EXHIBIT 99
[GRAPHIC OMITTED]
THERMOGENESIS CORP. ANNOUNCES SECOND QUARTER RESULTS
Record Q2 Revenues and Gross Margin Increase 18% over Prior Year - Company
Makes Key Investments in New Product Development, Clinical Trials &
Compliance with Section 404 of the Sarbanes-Oxley Act of 2002
Rancho Cordova, California (February 9, 2005) - THERMOGENESIS CORP. (Nasdaq:
KOOL) today announced results for its second quarter of fiscal 2005. Net
revenues for the quarter ended December 31, 2004 increased 18% to a second
quarter record of $2,954,000, compared to $2,500,000 for the second quarter of
fiscal 2004. The gross margin for the second quarter increased 18% to $950,000
or 32% of net revenues compared to $802,000 or 32% of net revenues for the
quarter ended December 31, 2003. The net loss for the quarter ended December 31,
2004, was $1,841,000 or $0.04 per basic and diluted common share compared to
$1,223,000 or $0.03 per basic and diluted common share for the second quarter of
fiscal 2004.
The net revenues for the six months ended December 31, 2004 were $5,351,000 as
compared to $4,643,000 for the six months ended December 31, 2003, an increase
of 15%. For the six months ended December 31, 2004, the gross profit increased
to $1,730,000 or 32% compared to $1,391,000 or 30% for the first six months of
the prior year. For the six months ended December 31, 2004, the net loss was
$3,720,000 or $0.08 per basic and diluted share as compared to $2,462,000 or
$0.06 per basic and diluted share for the six months ended December 31, 2003.
The increased operating expenses for the six months ended December 31, 2004 were
used for the following:
o To employ an outside Design and Development Engineering firm to
accelerate the development of the ("Divide and Capture") DAC
Blood Separation System. We are now concluding the internal
validation and beginning alpha tests and preparing manufacturing
units for beta launch in the fourth quarter.
o To upgrade and expand our engineering capabilities by the
addition of our new Vice President of R&D and expansion of our
engineering and scientific staff to assure that ongoing product
development efforts of DAC, Thrombin Processing Device ("TPD")
and other projects to meet our 3-Year Business Plan milestones.
o To increase our Phase III CryoSeal FS System clinical sites to
eight in an effort to complete our 150 patient enrollment by
April 30, 2005.
o To employ marketing studies of the distribution opportunities for
the DAC technology outside of cord blood stem cells.
o Legal fees related to contract negotiations on pending strategic
distribution agreements and patent filings and issues.
o To employ outside advisors and absorb increased audit fees in
connection with Sarbanes-Oxley Section 404 compliance.
Kevin Simpson, President and Chief Operating Officer stated, "Last quarter, we
indicated that the planned increase in spending is necessary to complete the
development and launch of the new disposable products needed to take the Company
to the next level of revenues, gross margin and ultimately, profitability. We
are pleased with the results of these investments and look forward to the
acceptance of these products in their respective markets."
The DAC System semi-automates the separation of whole blood into components. The
System allows up to six units to be processed simultaneously. Included in the
blood processing set is a patented 25 ml freezing bag suitable for long term
storage in the -196 C liquid nitrogen of the (R) System.
The TPD is a stand-alone disposable which is designed to produce 8.5 ml of
autologous thrombin from approximately 11 ml of patient plasma for various
applications, including topical hemostasis or release of growth factors from
platelets. The Company anticipates market launch of the TPD in Europe in the
fourth quarter of fiscal 2005. The TPD is not available in the United States.
Company Conference Call
Management will host a conference call today, February 9, 2005 at 11:00am PST to
review the 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 and giving the conference name "THERMOGENESIS".
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) 317-0088 outside the U.S. and
entering the following account number: 459# and the following passcode: 364495.
About ThermoGenesis Corp.
ThermoGenesis Corp. is a leader in enabling technologies for cell therapeutics.
The Company's 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
cryogenic archiving of stem cells for transplant, while its CryoSeal(R) FS
System is used to prepare hemostatic and adhesive surgical sealants from patient
blood in about an hour. 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.
For More Information, Contact:
THERMOGENESIS CORP.
Kevin Simpson: (916) 858-5100
or visit the web site at www.thermogenesis.com
THERMOGENESIS CORP.
Condensed Statements of Operations
(Unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
2004 2003 2004 2003
----------------- ---------------- ---------------- ------------------
Net revenues $2,954,000 $2,500,000 $5,351,000 $4,643,000
Cost of revenues 2,004,000 1,698,000 3,621,000 3,252,000
----------------- ---------------- ---------------- ------------------
Gross profit 950,000 802,000 1,730,000 1,391,000
----------------- ---------------- ---------------- ------------------
Expenses:
Selling, general and administrative 1,452,000 1,285,000 2,886,000 2,421,000
Research and development 1,395,000 748,000 2,664,000 1,447,000
----------------- ---------------- ---------------- ------------------
Total operating expenses 2,847,000 2,033,000 5,550,000 3,868,000
Interest and other income, net 56,000 8,000 100,000 15,000
----------------- ---------------- ---------------- ------------------
Net loss ($1,841,000) ($1,223,000) ($3,720,000) ($2,462,000)
================= ================ ================ ==================
Basic and diluted net loss per common share ($0.04) ($0.03) ($0.08) ($0.06)
================= ================ ================ ==================
Shares used in computing per share data 45,100,050 40,265,493 45,011,948 39,862,971
================= ================ ================ ==================
THERMOGENESIS CORP.
Condensed Balance Sheets
(Unaudited)
December 31, June 30,
2004 2004
-------------------- ------------------
ASSETS
Current assets:
Cash, cash equivalents and short term investments $13,022,000 $16,612,000
Accounts receivable, net 2,598,000 3,107,000
Inventories 3,035,000 2,470,000
Other current assets 617,000 582,000
-------------------- ------------------
Total current assets 19,272,000 22,771,000
Equipment, net 1,241,000 1,146,000
Other assets 149,000 197,000
-------------------- ------------------
$20,662,000 $24,114,000
==================== ==================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,158,000 $1,709,000
Other current liabilities 1,053,000 1,264,000
-------------------- ------------------
Total current liabilities 2,211,000 2,973,000
Long-term obligations and note payable 103,000 173,000
Stockholders' equity 18,348,000 20,968,000
-------------------- ------------------
$20,662,000 $24,114,000
==================== ==================