ThermoGenesis releases results for fourth quarter and fiscal year 2009

ThermoGenesis Corp. (Nasdaq: KOOL), a leading supplier of innovative products for processing and storing adult stem cells, today reported results for the fourth quarter and all of fiscal 2009.

For the quarter ended June 30, 2009, the Company reported revenues of $4.0 million. This compares with revenues of $7.2 million in the fourth quarter a year ago. As the Company indicated previously, revenues in the fourth quarter of fiscal 2009 were impacted by several factors, including delays in customer capital equipment purchases of its BioArchive((R)) System and reduced sales of AXP(TM) AutoXpress(TM) (AXP(TM)) bag sets due to the timing of orders from GE Healthcare. The Company expects these AXP orders will be recovered during the first two quarters of fiscal 2010.

Total disposable revenues were $2.2 million versus $4.2 million in the fourth quarter of fiscal 2008. Disposable revenues in the fourth quarter of fiscal 2009 were impacted by the factors outlined above, offset by revenues from sales of disposables for the Company's MarrowXpress(TM), or MXP(TM), which was launched in mid-fiscal 2009.

The company reported a net loss of $3.1 million, or $0.05 per share, versus a net loss of $2.5 million, or $0.04 per share, in the same period a year ago. As the Company indicated in its press release of August 6, 2009, the loss in the fourth quarter of fiscal 2009 included a number of non-recurring costs. They totaled approximately $1.8 million, including non-cash charges of approximately $0.9 million. Non-recurring charges included $0.8 million in reserves related to the transition to an upgraded AXP device and disposable as well as write-downs of obsolete inventory and tooling at AXP bag set suppliers. Non-recurring charges in the quarter also included $0.2 million related to the release and launch of the Company's Res-Q(TM) 60 BMC ("Res-Q") System, and $0.6 million of excess and aged surgical wound care inventory reserved in connection with the planned divesture of the CryoSeal product line. The Company also recorded $0.2 of severance charges during the quarter.

The company ended fiscal 2009 with $15.6 million in cash and short-term investments, compared with $17.7 million at the end of the third quarter of fiscal 2009 and $25.3 million at the end of fiscal 2008.

"While we have been able to manage our ongoing operating expenses, the non-recurring costs during the quarter reflect the impact of our key strategic initiatives that are focused on both ensuring a high level of quality and expanding the market for our offerings," said J. Melville Engle, Chief Executive Officer.

"We have continued to experience success with our quality initiatives through enhanced internal processes and increased communications with our key suppliers and customers. We also realized significant progress in our initiative to outsource the manufacturing of our devices and expect to complete this transition for our BioArchive and ThermoLine devices by the end of fiscal 2010.

"Our market expansion objectives," he continued, "are being realized with the initial market experience for our devices to process stem cells from bone marrow for orthopedic procedures--the MXP and Res-Q, which was formally launched at the end of July. Both devices have demonstrated solid results in terms of cell recovery and ease of use. Celling Technologies, our distributor for the products, is optimistic about the near-term market expansion opportunities through both adding new centers and entering new geographies. In addition, we will be looking to expand new indications beyond orthopedics for the Res-Q, as well as adding new distributors outside the U.S."

Engle said the Company is seeing positive trends for its cord blood devices as well. "Our larger customers are reporting encouraging collection activity and we recently added New England Cord Blood bank as an AXP customer. Given these favorable trends and the early success of our new products, we are optimistic about our opportunities in fiscal 2010 and our ability to grow revenues and reach profitability during the second half of the fiscal year. We are implementing strategies to achieve a strong performance with our existing products in existing markets and new markets, generate new product flow and capitalize on business development programs through joint ventures and corporate partnerships," he concluded.

For all of fiscal 2009, ThermoGenesis reported revenues of $19.8 million versus revenues of $21.9 million in fiscal 2008. The Company reported a net loss of $8.6 million, or $0.15 per share, compared with a net loss of $9.2 million, or $0.16 per share, in fiscal 2008. The results for fiscal 2009 include a decline of approximately $1.0 million in interest and other income versus fiscal 2008.

Source: http://www.thermogenesis.com