Total disposable revenues were $2.8 million versus $3.0 million in the third quarter of fiscal 2008. Disposable revenues associated with the company’s core AXP AutoXpress Platform (AXP) and BioArchive Systems offerings were $2.7 million versus $2.8 million a year ago. Total disposable revenues in the third quarter of fiscal 2009 versus the third quarter of fiscal 2008 also reflect a decline in revenues from the company’s CryoSeal® FS Platform product line.
The company’s results for the third quarter of 2009 reflect a decline of approximately $220,000 in net interest and other income due to lower cash and short term investments balances and interest rates. In addition, the results for the third quarter of 2008 include several expenses that did not occur in the third quarter of 2009. Third quarter 2008 expenses included $386,000 in costs related to a voluntary product recall, $300,000 in legal fees related to a distribution agreement negotiation and a $420,000 stock-based compensation expense.
The company ended the third quarter of fiscal 2009 with $17.7 million in cash and short-term investments, compared with $18.8 million at the end of the second quarter and $25.3 million at the end of fiscal 2008.
“We were definitely affected by the current difficult economic environment. With the delay of certain customer capital equipment purchasing decisions and reduced cord blood collection rates during the quarter, our disposable bag set sales were impacted. However, ThermoGenesis realized some significant accomplishments. We reduced our quarterly net loss by 60 percent versus a year ago as operating expenses were $2.9 million versus $4.5 million, reflecting reduced headcount, the timing of stock compensation expenses and tighter spending controls across all major areas of the company,” said J. Melville Engle, chief executive officer.
“In addition, we executed the successful roll out of our lab-based MarrowXpress™, or MXP™, System used to concentrate stem cells from bone marrow. The early experience with the device, in terms of cell recovery and ease of use, has been very positive. We are also readying the launch of our Res-Q™, a point-of-care processing device for bone marrow and platelet rich plasma (PRP) processing, next month. Additionally, we implemented new systems and processes in our quality area that are contributing to improved yields and positive customer feedback,” he added.
“Since joining ThermoGenesis three weeks ago, I have continued to be impressed by the company’s technology, track record of product innovation and dedicated team of employees. I believe we are well positioned to capitalize on the growing stem cell opportunity and have seen strong interest in our offerings from the market,” Engle continued.
For the first nine months of fiscal 2009, ThermoGenesis reported revenues of $15.8 million versus $14.8 million in the same period a year ago. The company reported a net loss of $5.5 million, or $0.10 per share, versus a net loss of $6.7 million, or $0.12 per share, in the first nine months of 2008. The results for the first nine months of 2009 include a decline of $825,000 in interest and other income versus the first nine months of 2008.
The company said it expects revenues for all of fiscal 2009 to be essentially flat with fiscal 2008. In the fourth quarter, the company expects to see an increase in product development and marketing costs associated with the launch of Res-Q. This is expected to increase the loss in the fourth quarter beyond the levels of the third quarter of fiscal 2009. These costs are expected to be confined to the fourth quarter of fiscal 2009. Consistent with prior guidance, the company anticipates reaching profitability during fiscal 2010.