SOURCE: Trimedyne, Inc.

January 16, 2008 09:30 ET

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

LAKE FOREST, CA--(Marketwire - January 16, 2008) - Trimedyne, Inc. (OTCBB: TMED) today reported its audited financial results for the quarter and fiscal year ended September 30, 2007.

Trimedyne reports a loss of $324,000 or $0.02 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 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 $587,000 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. This new Side Firing Fiber will be used 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 reported a loss of $162,000 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 $224,000 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 more detail in our Form 10-KSB Report for the year ended September 30, 2007.

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, we presently anticipate being able to ship supplies of the new Fiber to Boston Scientific 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 our 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
(AUDITED)

                              Three Months Ended          Year Ended
                                 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      416,000     192,000   1,220,000     633,000
                           ----------- ----------- ----------- -----------
   Total operating expenses    879,000     596,000   3,281,000   2,912,000
                           ----------- ----------- ----------- -----------

Income (loss) from
 operations                   (336,000)    (34,000)   (972,000)   (424,000)

Other income, net              174,000      61,000     656,000     522,000
                           ----------- ----------- ----------- -----------
Net income before
 income taxes              $  (162,000)$    27,000 $  (316,000)$    98,000
Provision for income taxes          --          --       8,000       1,000

Net income after provision
 for income taxes          $  (162,000)$    27,000 $  (324,000)$    97,000
                           =========== =========== =========== ===========
Basic net income per share $     (0.01)$      0.00 $     (0.02)$      0.01
                           =========== =========== =========== ===========

Basic weighted average
 common shares outstanding: 18,162,769  14,704,540  17,594,668  14,625,662
                           =========== =========== =========== ===========



                                 TRIMEDYNE, INC.
                           CONSOLIDATED BALANCE SHEET
                                   (AUDITED)


                          ASSETS
                                                             September 30,
                                                                 2007
                                                             -------------

Current assets:
  Cash and cash equivalents                                  $   3,179,000
  Net Accounts Receivable                                          574,000
  Inventories                                                    2,991,000
  Other current assets                                             254,000
                                                             -------------
   Total current assets                                          6,998,000

  Property and equipment, net                                      920,000
  Other assets                                                     585,000
                                                             -------------
                                                             $   8,503,000
                                                             =============
        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                                          (43,147,000)
                                                             -------------
                                                                 8,412,000
  Treasury stock, at cost (101,609 shares)                        (713,000)
                                                             -------------

   Total stockholders' equity                                    7,699,000
                                                             -------------
                                                              $  8,503,000
                                                             =============

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