TSO3 second quarter revenues increase to $703,000

TSO₃ Inc. ("TSO₃") (TSX: TOS) an innovator in sterilization technology for medical devices in healthcare settings, posted its highest quarterly revenues in its second quarter of 2011. For the period ending June 30, 2011, the Company posted revenues of $703,000 from the sales of 3M™ Optreoz™ 125-Z Sterilizers, accessories, consumables and service contracts, as well as license revenues. This amount also includes sales of supplies and service contracts on first generation sterilizers (125L). These revenues compare to Q2 2010 revenues of $545,604, for the sale of 3M™ Optreoz™ Sterilizers, accessories, supplies and service contracts to 3M™ for training purposes. For the six-month period ended June 30, 2011, revenues amounted to $892,554 compared to $733,878 for the same period in 2010. The difference is explained by higher sales of private labelled 3M™ Optreoz Sterilizers and Accessories as a result of initial 3M™ commercial activity.

The Company recorded a net loss of $2,115,784 for the second quarter of 2011, or $0.04 per share, compared to a net loss of $1,929,389 or $0.03 for the same period in 2010. Higher research and development expenditures totaling $1,093,637 were largely responsible for this increase in the net loss. For the first six-month period of 2011, the Company recorded a net loss of $3,995,794 or $0.07, compared to $3,985,945 for the same period in 2010, or also $0.07.

"In the second quarter, we initiated shipment of 3M™ Optreoz™ 125-Z Sterilizers to customer locations and as we transitioned into third quarter, our backlog sat at over half a million dollars and growing", said R.M. (Ric) Rumble President and CEO of TSO₃. "Customer satisfaction is being closely monitored by 3M™ in these early accounts. I am pleased to say that end user Customers are reporting excellent results from the use of our low temperature sterilization solution that delivers high and cost-effective throughput of their high demand medical devices. Customers are also reporting loading configurations that include multiple complex flexible endoscopes - a first in the industry", added Mr. Rumble. "As planned and announced in previous communications, in second quarter we filed our new submission for United States clearance and we remain confident in our ability to obtain this required clearance to access the US market".