• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Trimedyne Reports Preliminary Financial Results for the Quarter and Fiscal Year Ended September 30, 2007

Posted on: Monday, 31 December 2007, 09:01 CST

Trimedyne, Inc. (OTCBB: TMED), today reported its preliminary financial results for the quarter and fiscal year ended September 30, 2007, which are subject to the completion of the audit by its independent registered public accounting firm.

Trimedyne expects to report a loss of about $256,000 or $0.01 per share on revenues of $5,470,000 for its fiscal year ended September 30, 2007, compared to a profit of $97,000 or $0.01 per share on revenues of $6,237,000 for the prior year. The decline in revenues in the current fiscal year was primarily due to decreased unit sales of lasers.

The loss in the current year was due primarily to an increase in R & D expenses of $519,000 incurred in the development of a new Side Firing Laser Fiber which will be marketed by Boston Scientific Corporation in the U.S. and Japan and by Lumenis Ltd. throughout the rest of the world for use with Lumenis' Holmium Lasers for the treatment of benign prostatic hyperplasia or "BPH," commonly called an enlarged prostate.

About 50% of men over age 55 and higher percentages of men at advanced ages suffer from an enlarged prostate. About 1.2 million men worldwide undergo a surgical procedure each year to treat this condition. However, marketing of our new Side Firing Fiber by Boston Scientific and Lumenis will not commence until its development is finalized and Boston Scientific completes its quality review and testing of the new Fiber.

Trimedyne expects to report a loss of about $94,000 or $0.01 per share on revenues of $1,380,000 for its quarter ended September 30, 2007, compared to a profit of $27,000 or $0.00 per share on revenues of $1,281,000 for the prior year quarter. The loss during the quarter was primarily due to an increase in R & D expenses of $156,000 for the same purpose as described above.

Marvin P. Loeb, Sc.D., Chairman of Trimedyne, stated, "We have been devoting a very significant portion of our management and R & D efforts over the past two years to the development of a new Side Firing Fiber for Boston Scientific and Lumenis. While our Side Firing Fibers have been shown in laboratory testing on animal tissue to have a high vaporization rate, making them sufficiently durable for use with Lumenis' Holmium Lasers has proved to be a more challenging task than we originally projected due mainly to the higher peak power and shorter pulse duration of Lumenis' Holmium Lasers.

"As a result, the introduction of our new Side Firing Fiber by Boston Scientific and Lumenis has been delayed much longer than we originally anticipated. The reasons for the delay are described in detail in our Form 10-KSB Report for the year ended September 30, 2007, which is expected to be available on or before January 15, 2008.

"We expect to complete the development of a Side Firing Fiber for use with our Holmium Lasers for the treatment of enlarged prostates by late February 2008. Barring any unforeseen problems, we hope to commence marketing this new Fiber in early April 2008. Unit sales of lasers are expected to increase after we begin marketing the new Side Firing Fiber for use with our Holmium Lasers."

Dr. Loeb added, "We believe we now know what steps we must take to manufacture a durable, fast vaporizing Side Firing Fiber for Boston Scientific. We have ordered manufacturing equipment and components for the new Fiber, and we are assembling specially designed production equipment, ourselves. Barring any unforeseen problems, we hope to complete the development and provide samples of the new Fiber to Boston Scientific for its quality review and human testing by June 2008.

"Boston Scientific's quality review and testing are expected to take 4 to 6 months or longer. As a result, the earliest date by which we presently anticipate being able to ship supplies of the new Fiber to Boston Scientific is near the end of calendar 2008."

Trimedyne manufactures proprietary Holmium lasers and patented, disposable and reusable fiber optic laser energy delivery devices. For product, press releases, financial and other information, visit the 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 current 10-KSB Report and other 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.                    CONSOLIDATED STATEMENT OF OPERATIONS                                 (UNAUDITED)                       Three Months Ended               Year Ended                  September 30,  September 30,  September 30,  September 30,                      2007           2006           2007           2006                  ------------   ------------   ------------   ------------- Net revenues    $  1,380,000   $  1,281,000   $  5,470,000   $   6,237,000 Cost of  revenues            837,000        719,000      3,161,000       3,749,000                 ------------   ------------   ------------   -------------   Gross profit       543,000        562,000      2,309,000       2,488,000 Operating  expenses:  Selling,   general and   administrative     463,000        404,000      2,061,000       2,279,000  Research and   development        348,000        192,000      1,152,000         633,000                 ------------   ------------   ------------   -------------    Total     operating     expenses         811,000        596,000      3,213,000       2,912,000                 ------------   ------------   ------------   ------------- Income (loss)  from  operations         (268,000)       (34,000)      (904,000)       (424,000) Other income,  net                 174,000         61,000        656,000         522,000                 ------------   ------------   ------------   ------------- Net income  Before  income taxes   $    (94,000)  $     27,000   $   (248,000)  $      98,000 Provision for  income taxes             --             --          8,000           1,000 Net income after  provision for  income taxes   $    (94,000)  $     27,000   $   (256,000)  $      97,000                 ============   ============   ============   ============= Basic net  Income  per share      $      (0.01)  $       0.00   $      (0.01)  $        0.01                 ============   ============   ============   ============= Basic weighted  average common  shares  outstanding:     18,162,769     14,704,540     17,593,306      14,625,662                 ============   ============   ============   =============                               TRIMEDYNE, INC.                         CONSOLIDATED BALANCE SHEET                                (UNAUDITED)                                  ASSETS                                                              September 30,                                                                   2007                                                              ------------- Current assets:   Cash and cash equivalents                                  $   3,179,000   Net Accounts Receivable                                          574,000   Inventories                                                    3,059,000   Other                                                            245,000                                                              -------------     Total current assets                                         7,057,000   Property and equipment, net                                      920,000   Other assets                                                     585,000                                                              -------------                                                              $   8,571,000                                                              =============                LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:   Accounts payable                                           $     212,000   Accrued current liabilities                                      499,000   Notes payable                                                      2,000                                                              -------------      Total current liabilities                                     713,000 Other non-current liabilities                                       91,000                                                              -------------      Total liabilities                                             804,000                                                              ------------- Stockholders' equity:   Common stock                                                     186,000   Capital in excess of par value                                51,373,000   Accumulated deficit                                          (43,079,000)                                                              -------------                                                                  8,480,000   Treasury stock, at cost (101,609 shares)                        (713,000)                                                              -------------     Total stockholders' equity                                   7,767,000                                                              -------------                                                              $   8,571,000                                                              ============= 

 CONTACT: Jeff Rudner (949) 951-3800, Ext. 285 jrudner@trimedyne.com

SOURCE: Trimedyne, Inc.

Source: MARKET WIRE

More News in this Category