Trimedyne Reports a Net Loss for the Quarter Ended June 30, 2008
Market Wire, August, 2008
TRIMEDYNE, INC. (OTCBB: TMED) today announced its financial results for the quarter and nine months ended June 30, 2008.
Revenues for the quarter were $1,385,000, an increase of 16% from revenues of $1,197,000 for the prior year's quarter. The $188,000 increase in revenues was due to increases in sales of lasers and revenues from service and rentals, with a decrease in sales of fiber optic devices. While sales of lasers add significant dollars to revenues, lasers typically carry much smaller profit margins than fiber optic devices. The Company had a net loss of $585,000 or $0.03 per share for the current quarter, compared to a loss of $348,000 or $0.02 per share for the prior year quarter.
Revenues remained the same for the current nine month period, but the Company's net loss for the current nine months increased to $1,254,000 or $0.07 per share from a loss of $162,000 or $0.01 per share for the same nine month period of the prior year.
Marvin P. Loeb, Sc.D., CEO & Chairman of Trimedyne, said, "The Company incurred an increase in research and development costs and general and administrative expenses over the prior year due to our developing a new side firing optical fiber device, which will be marketed in the U.S. and Japan by Boston Scientific Corporation and in other countries throughout the world by Lumenis, Ltd. of Yokneam, Israel. Lumenis is one of the largest manufacturers of medical lasers with annual sales of about $300 million. Marketing of the new side firing fiber by Boston Scientific and Lumenis will commence when Boston Scientific has completed its quality review and testing of the new devices, which is presently expected to occur near the end of the first calendar quarter of year 2009."
Mr. Loeb added, "The new side firing fiber will be used with Lumenis' 80 and 100 watt Holmium Lasers for the treatment of benign prostatic hyperplasia or 'BPH,' commonly called an enlarged prostate, a condition which affects an estimated 50% of men over age 55 and an increasing percentage of men at older ages. Worldwide, approximately 1.2 million men are treated each year in a surgical procedure or a laser procedure to vaporize excess prostate tissue which is obstructing urine flow. The laser procedure reduces or eliminates the risks and adverse effects of the surgical procedure. The worldwide market for devices to treat BPH is estimated at about $700 million annually, and we expect to see a significant increase in revenues and profits when Boston Scientific and Lumenis begin marketing Trimedyne's new side firing laser fiber."
Trimedyne is developing a somewhat different side firing optical fiber device for use with its 80 watt Holmium Lasers for the treatment of BPH, which Trimedyne also presently expects to commence marketing worldwide near the end of the first calendar quarter of 2009.
Trimedyne manufactures proprietary Holmium lasers and patented fiber optic laser devices for a variety of 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, 2006 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 SHEET
ASSETS
June 30,
2008
-------------
Unaudited
Current assets:
Cash and cash equivalents $ 2,297,000
Trade accounts receivable, net of allowance for doubtful
accounts of $12,000 633,000
Inventories 2,878,000
Other current assets 236,000
------------
Total current assets 6,044,000
Property and equipment, net 1,392,000
Other 55,000
Goodwill 544,000
------------
$ 8,035,000
============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 286,000
Accrued expenses 359,000
Deferred revenue 74,000
Accrued warranty 29,000
Notes Payable 111,000
Current portion of long-term debt 162,000
------------
Total current liabilities 1,021,000
Deferred rent 78,000
Long-term debt, net of current portion 444,000
------------
Total liabilities 1,543,000
------------
Commitments and contingencies
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, 18,365,960 shares issued,
18,264,351 shares outstanding 184,000
Additional paid-in capital 51,422,000
Accumulated deficit (44,401,000)
------------
7,205,000
Treasury stock, at cost (101,609 shares) (713,000)
------------
Total stockholders' equity 6,492,000
------------
$ 8,035,000
============
TRIMEDYNE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
June 30, June 30,
2008 2007 2008 2007
------------ ------------ ------------ ------------
Net revenues $ 1,385,000 $ 1,197,000 $ 4,090,000 $ 4,090,000
Cost of revenues 1,017,000 685,000 2,897,000 2,324,000
------------ ------------ ------------ ------------
Gross profit 368,000 512,000 1,193,000 1,766,000
Operating expenses:
Selling, general
and administrative 602,000 566,000 1,780,000 1,598,000
Research and
development 419,000 391,000 994,000 804,000
------------ ------------ ------------ ------------
Total
operating
expenses 1,021,000 957,000 2,774,000 2,402,000
------------ ------------ ------------ ------------
Loss from operations (653,000) (445,000) (1,581,000) (636,000)
Other income, net 81,000 101,000 340,000 482,000
------------ ------------ ------------ ------------
Loss before
provision for
income taxes (572,000) (344,000) (1,241,000) (154,000)
Provision for
income taxes 13,000 4,000 13,000 8,000
------------ ------------ ------------ ------------
Net loss $ (585,000) $ (348,000) $ (1,254,000) $ (162,000)
============ ============ ============ ============
Net loss:
Basic $ (0.03) $ (0.02) $ (0.07) $ (0.01)
============ ============ ============ ============
Diluted $ (0.03) $ (0.02) $ (0.07) $ (0.01)
============ ============ ============ ============
Weighted average
number of shares
outstanding:
Basic 18,365,960 17,963,623 18,365,960 17,334,137
============ ============ ============ ============
Diluted 18,365,960 17,963,623 18,365,960 17,334,137
============ ============ ============ ============
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