LAKE FOREST, CA--(Marketwire - August 17, 2009) - TRIMEDYNE, INC. (OTCBB: TMED) today reported its financial results for the quarter and nine month period ended June 30, 2009.
Revenues for the current quarter were $2,068,000, an increase of 49% over revenues of $1,385,000 for the prior year's quarter. The $683,000 increase in revenues was due to higher revenues from sales of fiber optic devices, lasers, field service and rentals. The gross profit margin in the current quarter was 40% of revenues, compared to 27% for the prior year quarter. The Company had a net loss of $82,000 or $0.00 per share for the current quarter, an 86% reduction from the loss of $585,000 or $0.03 per share for the prior year quarter.
For the nine months ending June 30, 2009, revenues were $5,310,000, a 30% increase over revenues of $4,090,000 in the prior year period, and the Company's net loss for this period was $872,000 or $0.05 per Share, a 30% reduction from the net loss of $1,254,000 or $0.07 per Share for the prior year period.
Commenting on the financial results for the quarter, Marvin P. Loeb, Sc.D., Chairman of Trimedyne, said, "We are pleased with the 49% increase in revenues in the current quarter over the year ago quarter, which is also 27% higher than the revenues of $1,632,000 for the quarter ended March 31, 2009, and our loss in the current quarter was a 76% reduction from the loss of $345,000 for the quarter ended March 31, 2009."
Trimedyne has developed a new side firing optical fiber for use with 80 and 100 watt Holmium Lasers for the treatment of benign prostate hyperplasia or BPH, commonly called an enlarged prostate. We are beginning a limited marketing release of the new fiber under our VaporMAX® trademark at a price significantly lower than the prices of side firing fibers marketed by certain of our competitors. Our VaporMAX® Fiber is designed to operate at 80 or 100 watts of Holmium Laser energy for one hour or longer. Our competitors' side firing fibers sometimes fail before a BPH patient's treatment has been completed, interrupting the procedure and requiring the hospital to use a second fiber.
BPH is a condition which affects an estimated 50% of men over age 55 and an increasing percentage of men at older ages. Worldwide, an estimated 1.2 million men are presently treated each year in a surgical procedure primarily using radiofrequency (RF) or laser energy to remove excess prostate tissue which is obstructing urine flow. The laser procedure is usually performed on an outpatient basis and reduces the adverse effects of the RF surgical procedure, which typically requires a hospital stay and can entail significant bleeding, impotence and incontinence.
Trimedyne has developed a similar side firing optical fiber which will be marketed throughout the world by Lumenis, Ltd. of Yokneam, Israel, under Lumenis' DuraMAX trademark. Lumenis markets its side firing fibers through Boston Scientific Corporation in the U.S. and Japan. Elsewhere throughout the world, Lumenis markets its side firing fibers through its established sales organization. The DuraMAX™ side firing fiber will be used with Lumenis' large, worldwide installed base of 80 and 100 watt Holmium Lasers for the treatment of BPH.
Marketing of the new DuraMAX™ Fiber by Lumenis will commence when an audit of our manufacturing process and quality system is completed, which is expected to take several months to complete. We have not been advised when the audit will be commenced.
Trimedyne manufactures patented fiber optic laser devices and proprietary Holmium Lasers for the treatment of BPH, as well as for the treatment of herniated or ruptured discs in the spine and a variety of other, minimally invasive surgical procedures, many of which are performed on an outpatient basis at substantially less cost than conventional surgery. For product, press release, financial and other information, please visit Trimedyne's website, http://www.trimedyne.com.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act:
Statements in this news release may contain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934, including words like "expect," "may," "could" and others. Such statements may involve various risks and uncertainties, some of which may be discussed in the Company's Form 10-K-SB for the year ended September 30, 2008 and subsequently filed SEC reports. There is no assurance such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.
TRIMEDYNE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
ASSETS
June 30, September 30,
2009 2008
------------- -------------
Current assets:
Cash and cash equivalents $ 2,076,000 $ 2,007,000
Trade accounts receivable, net of allowance
for doubtful accounts of $16,000 and
$12,000, respectively 695,000 954,000
Inventories 2,082,000 2,584,000
Other current assets 276,000 171,000
------------- -------------
Total current assets 5,129,000 5,716,000
Property and equipment, net 1,250,000 1,382,000
Other 84,000 83,000
Goodwill 544,000 544,000
------------- -------------
Total Assets $ 7,007,000 $ 7,725,000
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 399,000 $ 256,000
Accrued expenses 552,000 469,000
Deferred revenue 115,000 75,000
Accrued warranty 50,000 54,000
Current portion of note payable and capital
leases 236,000 237,000
------------- -------------
Total current liabilities 1,352,000 1,091,000
Note payable and capital leases, net of
current portion 279,000 400,000
Deferred rent 58,000 73,000
------------- -------------
Total liabilities 1,689,000 1,564,000
------------- -------------
Commitments and contingencies (Note 4)
Stockholders' equity:
Preferred stock - $0.01 par value, 1,000,000
shares authorized, none issued and
outstanding -- --
Common stock - $0.01 par value; 30,000,000
shares authorized, 18,467,569 shares issued,
18,365,960 shares outstanding at
June 30, 2009 and September 30, 2008 186,000 186,000
Additional paid-in capital 51,454,000 51,425,000
Accumulated deficit (45,609,000) (44,737,000)
------------- -------------
6,031,000 6,874,000
Treasury stock, at cost (101,609 shares) (713,000) (713,000)
------------- -------------
Total stockholders' equity 5,318,000 6,161,000
------------- -------------
Total liabilities and stockholder's equity $ 7,007,000 $ 7,725,000
============= =============
TRIMEDYNE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
June 30, June 30,
2009 2008 2009 2008
----------- ----------- ----------- -----------
Net revenues $ 2,068,000 $ 1,385,000 $ 5,310,000 $ 4,090,000
Cost of revenues 1,250,000 1,017,000 3,400,000 2,897,000
----------- ----------- ----------- -----------
Gross profit 818,000 368,000 1,910,000 1,193,000
Operating expenses:
Selling, general and
administrative 653,000 602,000 2,042,000 1,780,000
Research and
development 317,000 419,000 931,000 994,000
----------- ----------- ----------- -----------
Total operating
expenses 970,000 1,021,000 2,973,000 2,774,000
----------- ----------- ----------- -----------
Loss from operations (152,000) (653,000) (1,063,000) (1,581,000)
Other income, net 74,000 81,000 199,000 340,000
----------- ----------- ----------- -----------
Loss before provision
for income taxes (78,000) (572,000) (864,000) (1,241,000)
Provision for income
taxes 4,000 13,000 8,000 13,000
----------- ----------- ----------- -----------
Net loss $ (82,000) $ (585,000) $ (872,000) $(1,254,000)
=========== =========== =========== ===========
Net loss:
Basic $ (0.00) $ (0.03) $ (0.05) $ (0.07)
=========== =========== =========== ===========
Diluted $ (0.00) $ (0.03) $ (0.05) $ (0.07)
=========== =========== =========== ===========
Weighted average number
of shares outstanding:
Basic 18,365,960 18,365,960 18,365,960 18,365,960
=========== =========== =========== ===========
Diluted 18,365,960 18,365,960 18,365,960 18,365,960
=========== =========== =========== ===========
