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THERMOGENESIS CORP. ANNOUNCES THIRD QUARTER RESULTS
BioArchive (R) Revenues Significantly Increased,
Restructuring Plan Initiated and Balance Sheet Strengthened
Rancho Cordova, California (May 14, 2003) - THERMOGENESIS CORP. (Nasdaq: KOOL)
today announced results for its third quarter of fiscal year 2003, ended March
31, 2003. The Company reported net revenues for the third quarter of $2,886,000,
a 6% increase when compared to $2,735,000 reported in the third quarter of last
year. For the nine months ended March 31, 2003 the Company's net revenues
increased 8% to $7,289,000 compared to $6,720,000 for the first nine months of
the prior year.
This quarter represents the first three months of operations under the direction
of Kevin Simpson, the Company's new President and COO who has more than 20 years
of executive management experience in the field of life sciences, 12 years
specifically in the blood industry.
"Revenues continued to increase in our two pipeline product lines, BioArchive
and CryoSeal(R), for the three and nine months ended March 31, 2003", stated
Kevin Simpson. "We are especially pleased that the increasing momentum in
BioArchive and CryoSeal sales offset the decline in ThermoLine revenues which
were inflated in the prior year as a result of a large order for plasma freezers
received from Aventis Bio-Services, Inc. Additionally, revenues from BioArchive
and CryoSeal disposables sold to existing customers increased 216% over the
prior year third quarter and we anticipate continuing growth in these products."
Despite the increase in revenues, the Company's gross profit decreased $123,000
from the quarter ended March 31, 2002 to the quarter ended March 31, 2003. The
decrease was primarily due to the higher overhead resulting from lower units
produced in-house and increased contract service expenses. In order to improve
future gross profit margins, the Company has implemented a restructuring plan
designed to achieve the improvements in overall gross profit margins necessary
for the Company to achieve self-sufficiency and profitable growth. This plan
will be executed in three parts: (1) focus the Company's marketing and sales
efforts to improve the revenues and selling prices of the CryoSeal and
BioArchive product lines, (2) reduce the in-house direct and overhead costs of
manufacturing, and (3) identify alternative OEM supplier relationships that will
provide low cost and high quality disposables. As part of the restructuring
plan, on April 9, 2003, the Company reduced the personnel costs in manufacturing
overhead by approximately $500,000 and direct labor by $100,000 on an annual
basis.
The Company's balance sheet was strengthened upon completion of an equity
financing during the third quarter of fiscal year 2003, which generated $5.3
million in net proceeds. "Our ability to raise funds in the current market
speaks to the investors confidence in the Company's restructuring plan and
strategic direction" stated Philip Coelho, Chairman and CEO. "Additionally, we
initiated efforts in the third quarter to promote the federal financing of a
National Cord Blood Stem Cell Bank Network. The proposed legislation would
provide for the collection and cryogenic archiving of 200,000 cord blood stem
cell units to be used in the treatment of life threatening diseases to replace
the bone marrow of victims of radiation exposure from potential terrorist
attacks." Although uncertain in light of current fiscal and budgetary debates in
Congress, the Company is hopeful that a bill providing for the funding will be
introduced over the next six months.
Company Conference Call
Management will host a conference call today, March 14, 2003 at 11:00 am PST
(2:00 pm EST) to review the fiscal third quarter financial results and other
corporate events, followed by a Q&A session. The call can be accessed by
dialing: (800) 860-2442 within the U.S. or (412) 858-4600 outside the U.S..
Participants are asked to call the assigned number approximately 5 minutes
before the conference call begins. A replay of the conference call will be
available two hours after the call for the following five business days by
dialing: (877) 344-7529 within the U.S. or (412) 858-1440 outside the U.S. and
entering the following account number: 715 and the following passcode: 317050.
About THERMOGENESIS CORP.
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After extensive research, THERMOGENESIS CORP.'S newly introduced technology
platforms lead the world in their ability to produce biological products from
single units of blood. Umbilical cord blood banks are utilizing the Company's
BioArchive System as a critical enabling technology for the processing and
cryogenic archiving of stem cells for transplant. The CryoSeal FS System is used
to prepare hemostatic and adhesive surgical sealants from patient blood in about
an hour. CryoSeal FS System is not available in the United States. THERMOGENESIS
CORP. has been a leading supplier of state-of-the-art Ultra-Rapid Blood Plasma
Freezers and Thawers to hospitals and blood banks since 1992.
The statements contained in this release which are not historical facts are
forward-looking statements that are subject to risks and uncertainties that
could cause actual results to differ materially from those expressed in the
forward-looking statements, including, but not limited to, certain delays
beyond the Company's control with respect to market acceptance of new
technologies and products, delays in testing and evaluation of products and
other risks detailed from time to time in the Company's filings with the
Securities and Exchange Commission.
More Information, Contact:
Contact: THERMOGENESIS CORP.
Renee M. Ruecker, CFO
rruecker@thermogenesis.com
(916) 858-5100
THERMOGENESIS CORP.
Condensed Balance Sheets
(Unaudited)
March 31, June 30,
2003 2002
------------ -----------
ASSETS
Current assets:
Cash, cash equivalents and short term investments $7,208,000 $6,726,000
Accounts receivable, net 2,041,000 1,916,000
Inventory 2,896,000 2,887,000
Other current assets 615,000 115,000
------------ -----------
Total current assets 12,760,000 11,644,000
Equipment, net 472,000 537,000
Other assets 54,000 58,000
------------ -----------
$13,286,000 $12,239,000
============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,028,000 $995,000
Other current liabilities 1,218,000 1,018,000
------------ -----------
Total current liabilities 2,246,000 2,013,000
Long-term obligations 49,000 33,000
Stockholders' equity 10,991,000 10,193,000
------------ -----------
$13,286,000 $12,239,000
============ ===========
THERMOGENESIS CORP.
Condensed Statements of Operations
(Unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
2003 2002 2003 2002
Net revenues $2,886,000 $2,735,000 $7,289,000 $6,720,000
Cost of revenues 2,375,000 2,101,000 6,010,000 5,211,000
-------------- ------------ ----------- ------------
Gross profit 511,000 634,000 1,279,000 1,509,000
-------------- ------------ ----------- ------------
Expenses:
Selling, general and administrative 1,386,000 1,184,000 3,755,000 3,433,000
Research and development 795,000 652,000 2,183,000 1,708,000
-------------- ------------ ----------- ------------
Total operating expenses 2,181,000 1,836,000 5,938,000 5,141,000
Interest and other income/(expenses) 4,000 2,000 47,000 64,000
-------------- ------------ ----------- ------------
Net loss $(1,666,000) $(1,200,000) $(4,612,000) $(3,568,000)
============== ============ =========== ============
Basic and diluted net loss per common share ($0.05) ($0.04) ($0.13) ($0.11)
============== ============ =========== ============
Shares used in computing per share data 36,570,697 32,745,103 35,700,791 32,051,362
============== ============ =========== ============