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ThermoGenesis Reports First Quarter Fiscal 2013 Results

New Asian Customers Ramping up AXP Operations

RANCHO CORDOVA, Calif., November 13, 2012 — ThermoGenesis Corp. (NASDAQ: KOOL), a leading supplier of enabling technologies for the processing, storage and administration of cell therapies, today reported
results for the first quarter of fiscal 2013.

For the quarter ended September 30, 2012, revenues were $4.1 million versus $4.9 million in the first quarter a year ago and $4.5 million in the prior quarter. The decline in year-over-year revenues was primarily due to decreased sales of the Company’s BioArchive® System devices, reflecting the continuing softness in worldwide capital equipment purchase activity. Total disposable sales in the first quarter of 2013 were $3.0 million versus $3.5 million in the same period a year ago. Disposable sales were negatively impacted by approximately $120,000 year-over-year due to a decline in sales of disposables from its CryoSeal product line for which the Company completed a disposition during the quarter.

ThermoGenesis reported net income of $1.0 million, or $0.06 per diluted share, in the first quarter of 2013 versus a net loss of $1.2 million, or $0.07 per share, in the same period a year ago. Included in the results for the first quarter of 2013 is a gain on sale of $2.0 million related to the CryoSeal transaction.

The Company ended the quarter with $8.8 million cash compared with $7.9 million at the end of fiscal 2012. The Company’s backlog at the end of first quarter was approximately $700,000.

“We continue to advance our strategy to transform ThermoGenesis into a leading provider of tools for stem cell therapy despite a challenging macroeconomic environment,” said Matthew Plavan, Chief Executive Officer. “We are well positioned in the cord blood market with new distribution agreements and enhanced customer service capabilities, and look forward to recording initial revenues from our product purchase and distribution agreement with Golden Meditech Holdings Limited in China before the end of calendar 2012.  As a result of these recent developments, we believe we will be able to grow quarterly revenues on a sequential basis during fiscal 2013,” he continued.

“At the same time,” he continued, “we have streamlined the Company to increase our focus on core business opportunities and enable us to better manage our financial resources, while continuing to respond to market shifts and longer-term opportunities, including new product development needs in developing markets.”



Conference Call and Webcast

Management will hold a conference call today at 2 p.m., Pacific (5 p.m., Eastern) to review the first quarter fiscal 2013 results.

Conference call details:

Dial-in (U.S.): 1-800-860-2442
Dial-in (Internationally): 1-412-858-4600
Conference Name: “ThermoGenesis”

To listen to the audio webcast of the call during or after the event, please visit http://services.choruscall.com/links/thermogen121113.html

An audio replay of the conference call will be available beginning approximately two hours after completion of the call for the following five business days.

To access the replay:

Access number (U.S.): 1-877-344-7529
Access number (Internationally) 1-412-317-0088
Conference ID#: 385107

 

About ThermoGenesis Corp.

ThermoGenesis
Corp. (www.thermogenesis.com) is a leader in developing and manufacturing automated blood processing systems and disposable products that enable the separation, preservation and delivery of cell and tissue therapy products. These include:

  • ·
    The BioArchive® System, an automated cryogenic device,
    used by cord blood stem cell banks in more than 30 countries for cryopreserving
    and archiving cord blood stem cell units for transplant.
  • ·
    AXP® AutoXpress® Platform (AXP), a
    proprietary family of automated devices that includes the AXP and the MXP®
    MarrowXpress® and companion sterile blood processing disposables for
    harvesting stem cells in closed systems. The AXP device is used for the
    processing of cord blood. The MXP is used for the preparation of cell concentrates,
    including stem cells from bone marrow aspirates in the laboratory setting.
  • ·
    The Res-Q® 60 BMC/PRP (Res-Q), a point-of-care system
    designed for the preparation of cell concentrates, including stem cells, from
    bone marrow aspirates and whole blood for platelet rich plasma (PRP).

This press release contains forward-looking
statements.  These statements involve risks and uncertainties that could cause
actual outcomes to differ materially from those contemplated by the
forward-looking statements. Several factors including timing of FDA and foreign
regulatory approvals, changes in customer forecasts, our failure to meet
customers’ purchase order and quality requirements, supply shortages,
production delays, changes in the markets for customers’ products, introduction
timing and acceptance of our new products scheduled for fiscal year 2013, and
introduction of competitive products and other factors beyond our control could
result in a materially different revenue outcome and/or in our failure to
achieve the revenue levels we expect for fiscal 2013.  A more complete
description of these and other risks that could cause actual events to differ
from the outcomes predicted by our forward-looking statements is set forth
under the caption “Risk Factors” in our annual report on Form 10-K
and other reports we file with the Securities and Exchange Commission from time
to time, and you should consider each of those factors when evaluating the forward-looking
statements.

 

ThermoGenesis Corp.

Web site: http://cescatherapeutics.com

Contact: Investor Relations

+1-916-858-5107, or

ir@thermogenesis.com



Financials

ThermoGenesis
Corp.

Condensed Balance

(Unaudited)

 

September 30,

2012

June 30,

2012

ASSETS
Current assets:
   Cash and cash equivalents

$8,753,000

$7,879,000

   Accounts receivable, net

3,515,000

4,558,000

   Inventories

6,209,000

6,290,000

   Prepaid expenses and other current assets

366,000

338,000

            Total current assets

18,843,000

19,065,000

Equipment, net

1,634,000

1,652,000

Other assets

325,000

363,000

$20,802,000

$21,080,000

Current liabilities:
   Accounts payable

$1,505,000

$2,772,000

   Other current liabilities

2,186,000

2,259,000

            Total current liabilities

3,691,000

5,031,000

Long-term liabilities

129,000

151,000

Stockholders’ equity

16,982,000

15,898,000

$20,802,000

$21,080,000

 



ThermoGenesis
Corp.

Condensed
Statements of Operations (Unaudited)

 

Three Months Ended

September 30,

2012

2011

Net revenues

$4,122,000

$4,859,000

Cost of revenues

2,496,000

2,860,000

         Gross profit

1,626,000

1,999,000

Expenses:
    Selling, general and
administrative

1,796,000

2,316,000

    Research and development

838,000

923,000

    Gain on sale of product line

(2,000,000)

        Total
operating expenses

634,000

3,239,000

Interest and other income, net

3,000

32,000

Net income (loss)

$995,000

($1,208,000)

Per share data:
    Basic net income (loss) per common
share

$0.06

($0.07)

    Diluted net income (loss) per
common share

$0.06

($0.07)

Weighted average common shares outstanding:
   Basic

16,515,846

16,363,033

   Diluted

16,520,275

16,363,033

 

ThermoGenesis
Corp.

Condensed
Statements of Cash Flows (Unaudited)

 

Three Months Ended,

September 30,

2012

2011

Cash flows from operating activities:
    Net income/(loss)

$995,000

($1,208,000)

    Adjustments to reconcile net loss
to net cash used inoperating activities:
         Depreciation
and amortization

134,000

99,000

         Stock
based compensation expense

143,000

366,000

         Gain
on sale of product line

(2,000,000)

         Net
change in operating assets and liabilities:
              Accounts
receivable, net

1,043,000

(447,000)

              Inventories

13,000

(230,000)

              Prepaid
expenses and other current assets

(28,000)

105,000

              Other
assets

1,000

              Accounts
payable

(982,000)

29,000

              Accrued
payroll and related expenses

(26,000)

142,000

              Deferred
revenue

(15,000)

80,000

              Other
liabilities

(54,000)

(457,000)

         Net
cash used in operating activities

(777,000)

(1,520,000)

Cash flows from investing activities:
     Capital expenditures

(295,000)

(36,000)

     Proceeds from sale of
product line

2,000,000

         Net
cash provided by (used in) investing activities

1,705,000

(36,000)

Cash flows from financing activities:
     Repurchase of common stock

(54,000)

         Net
cash used in financing activities

(54,000)

Net increase (decrease) in cash and cash equivalents

874,000

(1,556,000)

Cash and cash equivalents at beginning of period

7,879,000

12,309,000

Cash and cash equivalents at end of period

$8,753,000

$10,753,000