Cryo-Cell International, Inc. (OTCBB:CCEL) (the "Company"), one of the world's largest and most established family cord blood banks, today announced results for the second quarter ended May 31, 2010. Consolidated revenues for the second quarter of fiscal 2010 were $4.3 million compared to $4.7 million for the second quarter of fiscal 2009. The revenues for the second quarter of fiscal 2010 consisted of $4.0 million in processing and storage revenue and $327,000 in licensee income compared to $4.2 million in processing and storage revenue and $483,000 in licensee income in the same period in fiscal 2009. Licensee income for the three months ended May 31, 2010 consisted entirely of $327,000 in royalty income earned on the processing and storage of cord blood stem cell specimens in geographic areas where the Company has license agreements. Licensee income for the 2009 period consisted of 408,000 in royalty income earned on the processing and storage of specimens in geographical areas where the Company has license agreements and $75,000 related to an installment payment of a non-refundable up-front license fee from the licensee of the Company's Célle program in India.
The Company reported net income in the second quarter of fiscal 2010 of $354,000, or $0.03 per basic common share, compared to net income of $769,000, or $0.07 per basic common share, in the second fiscal quarter of fiscal 2009. The decrease in net income for the three months ended May 31, 2010 principally resulted from a 9% decrease in revenue and a 3% increase in marketing, general and administrative expenses, which is partially offset by a 2% decrease in cost of sales. Although the Company experienced a 9% decrease in revenue, global affiliate revenue for specimens processed in the Company's facility in Florida increased 10%. The Company believes that certain economic trends in fiscal 2010 have continued to affect discretionary consumer spending such as the slow economic recovery and looming concerns about the prospect of a double-dip recession; high unemployment and decreased availability of consumer credit. These factors, coupled with the increasingly prevalent option of public cord blood banking, have contributed to the decrease of revenue and earnings during the second quarter of 2010.