SOURCE: Trimedyne, Inc.

January 19, 2010 09:30 ET

Trimedyne Reports Financial Results for the Quarter and Fiscal Year Ended September 30, 2009

LAKE FOREST, CA--(Marketwire - January 19, 2010) - TRIMEDYNE, INC. (OTCBB: TMED) today reported its audited financial results for the quarter and fiscal year ended September 30, 2009.

Trimedyne reported revenues of $2,112,000 for the quarter ended September 30, 2009, an increase of 18.6% over revenues of $1,781,000 for the same quarter of 2008. Trimedyne had a net loss of only $37,000 or zero per share in the quarter ended September 30, 2009, based on a weighted average of 18,366,000 shares outstanding, compared to a net loss of $336,000 or $0.02 per share in the same quarter of 2008 on the same number of shares. The reduction in net loss was largely due to increased revenues and improved margins on sales.

Trimedyne had revenues of $7,422,000 in its fiscal year ended September 30, 2009, an increase of 26.4% over revenues of $5,871,000 in fiscal year ended September 30, 2008.

In the Fiscal Year ended September 30, 2009, Trimedyne reported a net loss of $909,000 or $0.05 per share on a weighted average of 18,366,000 shares outstanding, a reduction of 42.8% from the net loss of $1,590,000 or $0.09 per share in the prior fiscal year on the same number of shares. The reduction in net loss was largely due to increased revenues and improved margins on sales.

Marvin P. Loeb, Sc.D., Chairman of Trimedyne, said, "We are pleased the Company almost reached break-even in the quarter ended September 30, 2009, and our net loss in the current fiscal year was 42.8% lower than in the prior fiscal year."

Dr. Loeb continued, "We have been devoting a very significant portion of our management and R&D efforts over the past two years to the development of our new VaporMAX® Side Firing Fiber. Making the new Fiber sufficiently durable for use with powerful Holmium Lasers proved to be a more challenging task than we originally anticipated. We have now completed the development of the new Fiber and its testing in our laboratory was successful. An independent testing laboratory also tested the new Fiber and reported it performed as successfully as it did in our lab. Our new Fiber is presently being evaluated by our customers and distributors, and the initial reports are excellent. We are commencing production and expect to commence sales of the new Fiber in March 2010."

About 50% of men over age 55 and greater percentages of men at higher ages suffer from an enlarged prostate, technically benign prostatic hyperplasia or "BPH." About 1.2 million men worldwide, including about 200,000 in the United States, undergo a surgical or laser procedure each year to treat BPH. Our new VaporMAX® Side Firing Laser Fiber has been cleared for sale by the FDA for use with our Holmium Lasers and other Holmium Lasers with a compatible connector, such as Lumenis' Holmium Laser, for the treatment of BPH.

When Lumenis, Ltd. ("Lumenis") and its distributor in the U.S. and Japan, Boston Scientific Corporation, successfully complete physician evaluations of our new Fiber and their audit of our manufacturing process and quality system, a differently appearing version of our new Side Firing Fiber will be marketed by Lumenis under its DuraMAX trademark by Boston Scientific Corporation in the U.S. and Japan, and throughout the rest of the world by Lumenis' direct sales force in Europe, China, India and other countries. Lumenis is based in Israel and is the world's largest medical laser manufacturer, with revenues of about $250 million.

Trimedyne manufactures proprietary Holmium lasers and patented, disposable and reusable fiber optic laser energy delivery devices. For product, financial and other information, visit our 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," "anticipate," "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. AND SUBSIDIARIES
                      CONSOLIDATED BALANCE SHEETS

                         ASSETS
                                                  As of September 30,
                                         ----------------------------------
                                                2009            2008
                                            ------------     -----------

Current assets:
  Cash and cash equivalents                 $  1,621,000    $  2,007,000
  Trade accounts receivable, net of
   allowance for doubtful accounts
   of $12,000 and $12,000, respectively          988,000         954,000
  Inventories                                  2,266,000       2,584,000
  Other current assets                           226,000         171,000
                                            ------------    ------------
      Total current assets                     5,101,000       5,871,000

Property and equipment, net                    1,168,000       1,382,000
Other                                             87,000          83,000
Goodwill                                         544,000         544,000
                                            ------------    ------------
                                            $  6,900,000    $  7,725,000
                                            ============    ============

       LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                          $    449,000    $    256,000
  Accrued expenses                               497,000         469,000
  Deferred revenue                               100,000          75,000
  Accrued warranty                                54,000          54,000
  Income tax payable                              20,000              --
  Current portion of note payable and
   capital leases                                209,000         237,000
                                            ------------    ------------
    Total current liabilities                  1,329,000       1,091,000

Note payable and capital leases,
 net of current portion                          232,000         400,000
Deferred rent                                     51,000          73,000
                                            ------------    ------------

    Total liabilities                          1,612,000       1,564,000
                                            ------------    ------------
Commitments and contingencies

Stockholders' equity:
  Preferred stock - $0.01 par value,
   1,000,000 shares authorized, none issued
   and outstanding                                    --              --
  Common stock - $0.01 par value;
   30,000,000 shares authorized, 18,467,569
   shares issued, 18,365,960 shares
   outstanding at September 30, 2009
   and 2008                                      186,000         186,000
  Additional paid-in capital                  51,461,000      51,425,000
  Accumulated deficit                        (45,646,000)    (44,737,000)
                                            ------------    ------------
                                               6,001,000       6,874,000
  Treasury stock, at cost (101,609 shares)      (713,000)       (713,000)
                                            ------------    ------------

   Total stockholders' equity                  5,288,000       6,161,000
                                            ------------    ------------

                                           $   6,900,000    $  7,725,000
                                            ============    ============



                    TRIMEDYNE, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF OPERATIONS

                           Three Months Ended           Year Ended
                              September 30,            September 30,
                      ------------------------  --------------------------
                          2009         2008         2009          2008
                      -----------  -----------  ------------  ------------
Net Revenues          $ 2,112,000  $ 1,781,000  $  7,422,000  $  5,871,000
Cost
 of sales:              1,237,000    1,266,000     4,637,000     4,163,000
                      -----------  -----------  ------------  ------------
Gross
 profit               $   875,000  $   515,000     2,785,000  $  1,708,000

Selling, general and
 administrative
 expenses                 641,000      593,000     2,683,000     2,373,000
Research and
 development expenses     385,000      317,000     1,316,000     1,311,000
                      -----------  -----------  ------------  ------------

Loss from operations  $  (151,000) $  (395,000) $ (1,214,000) $ (1,976,000)

Other income, net         134,000       59,000       333,000       399,000
                      -----------  -----------  ------------  ------------

Loss before provision
 for income taxes     $   (17,000) $  (336,000) $   (881,000) $ (1,577,000)

Provision for
 income taxes              20,000           --        28,000        13,000
                      -----------  -----------  ------------  ------------

Net loss              $   (37,000) $  (336,000) $   (909,000) $ (1,590,000)
                      ===========  ===========  ============  ============

Basic and diluted
 net loss per share   $      0.00  $     (0.02) $      (0.05) $      (0.09)
                      ===========  ===========  ============  ============
Basic and diluted
 weighted average
 common shares
 outstanding:          18,365,960   18,365,960    18,365,960    18,365,960
                      ===========  ===========  ============  ============

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