SOURCE: Hamilton Thorne

Hamilton Thorne

May 29, 2012 08:30 ET

Hamilton Thorne Announces 2012 First Quarter Financial Results

Sales Increases Fueled by Significant Growth in the Americas and Asia-Pacific

BEVERLY, MA and TORONTO--(Marketwire - May 29, 2012) - Hamilton Thorne Ltd. (TSX VENTURE: HTL), a leading provider of precision laser devices and advanced image analysis systems for the fertility, stem cell and developmental biology research markets, today reported operational and financial results for the first quarter ended March 31, 2012.

"In the first quarter of 2012, revenues increased to $1.6 million, exceeding the prior year by 8.9%, led by a strong quarter for our CASA image analysis products and the continued steady demand for the new LYKOS® laser system," said David Wolf, President and Chief Executive Officer of Hamilton Thorne Ltd. "Hamilton Thorne reported strong North American sales for the first quarter, and also expanded its global penetration into emerging markets such as the Asia-Pacific region with significant sales in that territory. We are also pleased to report that we reduced our net loss for the quarter by over $200,000 through a combination of sales growth, expense controls and reduced interest expense."


  • In March 2012, Hamilton Thorne launched its leading-edge XYRCOS™ laser system for advanced research applications. The XYRCOS™ laser offers a significant advance in integrated laser optics, providing additional functionality, increased resolution and compatibility with all major microscope models. The XYRCOS™, which is engineered to have the laser and RED-i ® target locator built directly inside the objective, offers benefits for cutting-edge embryo micromanipulation applications such as the creation of transgenic animals, gene targeting, and stem cell research including blastocyst injection, 8-cell injection, and laser-assisted animal model IVF.

  • Hamilton Thorne appointed Anthony (Tony) McCook as the Company's new Vice President of Sales. Mr. McCook brings over 25 years of sales leadership and a proven track record of success in capital equipment sales in healthcare, imaging and cell biology markets. Mr. McCook has been a key driver of Hamilton Thorne's growth strategy as the Company continues to leverage its dominant position in the laser fertility market, into lucrative markets such as cell biology and stem cell research.

  • The Company expanded its distribution partnership with Leica Microsystems GmbH of Wetzlar, Germany, a leading global producer of innovative high-tech precision optics systems for the analysis of microstructures. This new arrangement provides Leica Microsystems with access to Hamilton Thorne's current portfolio of laser products, as well as select pipeline products including the strongly anticipated IMSI STRICT™ software for the fertility market. The expanded partnership will enable Hamilton Thorne and Leica Microsystems to further penetrate markets that have proven successful and synergistic for both companies such as fertility and cell research markets.

Financial Results

All amounts are in US dollars, unless specified otherwise, and results expressed in accordance with the International Financial Reporting Standards ("IFRS"), which replaces Canadian Generally Accepted Accounting Policies ("GAAP") effective January 1, 2010 for all publicly accountable enterprises in Canada.

For the three months ended March 31, 2012, the Company achieved a total sales increase of 8.9% to $1,574,025 for the quarter, an increase of $128,611 from $1,445,413 during the previous year. This increase was attributable to increased demand for our existing products, additional sales derived from our new LYKOS® laser introduced in the second quarter of 2011 and improved budget availability for capital equipment purchases.

Gross profit for the year increased 8.3% to $953,904 in the quarter-ended March 31, 2012, compared to $880,531 in the previous year. Gross profit as a percentage of sales remained relatively steady at 60.6% versus 60.9% for the quarter-ended March 31, 2011, due primarily to product mix and discounting on volume orders.

Operating expenses were $1,401,585 for the quarter-ended March 31, 2012, reduced $98,300, or 6.6% from $1,499,885 for the previous year, and reduced significantly as a percentage of sales, down to 89% from 104% for the prior year. The reduction in operating expenses represents continued efforts to manage expenses as the company moves towards profitability, while continuing strategic investment in R&D and sales and marketing resources.

Research and development expenses decreased from $299,447 to $268,231 for the quarter-ended March 31, 2012 as certain spending incurred in 2011 related to development of the LYKOS® laser did not recur in 2012 as well as lower patent costs.

Sales and marketing expenses decreased from $634,177 to $615,062 for the quarter-ended March 31, 2012 primarily due to decreased costs of selling, particularly travel and trade show expenses.

General and administrative (G&A) expenses decreased from $566,261 to $518,292 for the quarter-ended March 31, 2012 due primarily to strong expense controls, and the non-repetition of 2011 foreign currency valuation adjustments related to the convertible debentures issued in August 2010 and March 2011 issued in Canadian dollars, all offsetting increased payroll expenses.

Net interest expense decreased from $127,021 to $81,308 for the quarter-ended March 31, 2012. The decrease was due primarily to the significant reduction of the Company's debt as a result of the conversion of approximately $1.6 million of convertible debentures to equity and the reduction of the Company's bank loan by $1.5 million, both of which were completed in the quarter ended September 30, 2011.

The net loss for the quarter-ended March 31, 2012 was reduced from $746,375 to $528,989 due to revenue and gross profit growth, as well as reduced spending and reduced interest expense in the quarter.

As of March 31, 2012, the Company had 46,616,365 common shares, 5,729,440 warrants, and 4,630,393 options outstanding.

The financial statements are available on

About Hamilton Thorne Ltd. (
Hamilton Thorne designs, manufactures and distributes precision laser devices and advanced image analysis systems for the fertility, stem cell and development biology research markets. It provides novel solutions for Life Science that reduce cost, increase productivity, improve results and enable research breakthroughs in regenerative medicine, stem cell research and fertility markets. Hamilton Thorne's laser products attach to standard inverted microscopes and operate as robotic micro-surgeons, enabling a wide array of scientific applications and IVF procedures. Its image analysis systems improve outcomes in human IVF clinics and animal breeding facilities and provide high-end toxicology analyses.

Hamilton Thorne's growing customer base includes pharmaceutical companies, biotechnology companies, fertility clinics, university research centers, and other commercial and academic research establishments worldwide. Current customers include world-leading research labs such as Harvard, MIT, Yale, McGill, DuPont, Monsanto, Charles River Labs, Jackson Labs, Merck, Novartis, Pfizer, and Oxford and Cambridge.

Neither the Toronto Venture Exchange, nor its regulation services provider (as that term is defined in the policies of the exchange), accepts responsibility for the adequacy or accuracy of this release.

Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict including the risk that the Company may not be able to obtain the necessary regulatory approvals, as applicable. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in filings by the Company with the Canadian securities regulators, which filings are available at

Financial results included below:

Hamilton Thorne Ltd.
Consolidated Statements of Financial Position
As at March 31, 2012 and December 31, 2011
(Expressed in U.S. Dollars - unaudited)
March 31, 2012 December 31, 2011
Cash and cash equivalents 298,272 484,421
Accounts receivable 717,965 1,021,326
Inventories 846,751 809,731
Prepaid expenses and other current assets 52,025 67,393
Total current assets 1,915,013 2,382,871
Property and equipment 195,234 214,204
Other assets 110,783 110,784
Total assets 2,221,030 2,707,859
Accounts payable and accrued liabilities 1,433,850 1,393,090
Notes payable 340,958 338,961
Capital lease obligations, current 30,860 30,860
Deferred revenue 68,377 84,066
Total current liabilities 1,874,045 1,846,977
Capital lease obligations, non-current 70,694 80,202
Deferred revenue, long-term 28,000 28,000
Long-term debt 3,500,000 3,500,000
Total liabilities 5,472,739 5,455,179
Shareholders' Equity (Deficiency)
Common shares 28,699,248 28,699,248
Warrants 280,213 280,213
Contributed surplus 823,223 798,623
Accumulated deficit (33,054,393 ) (32,525,404 )
Total Shareholders' equity (deficiency) (3,251,709 ) (2,747,320 )
Total Liabilities and shareholders' equity (deficiency) 2,221,030 2,707,859
Hamilton Thorne Ltd.
Consolidated Statements of Operations and Comprehensive Loss
For the three months ended March 31, 2012 and 2011
(Expressed in U.S. Dollars - unaudited)
2012 2011
Sales 1,574,025 1,445,413
Cost of sales 620,121 564,883
Gross profit 953,904 880,530
Research and development 268,231 299,447
Sales and marketing 615,062 634,177
General and administrative 518,292 566,261
Total expenses 1,401,585 1,499,885
Loss from operations (447,681 ) (619,355 )
Other income (expense)
Interest expense including accretion (81,308 ) (127,021 )
Interest income - -
Net loss and comprehensive loss (528,989 ) (746,376 )
Loss per share
Basic $ (0.01 ) $ (0.03 )
Diluted $ (0.01 ) $ (0.03 )
Weighted average number of common shares outstanding
Basic 46,615,365 24,415,157
Diluted 46,615,365 24,415,157
Hamilton Thorne Ltd.
Consolidated Statements of Cash Flows
For the three months ended March 31, 2012 and 2011
(Expressed in U.S. Dollars - unaudited)
2012 2011
Cash flows from operating activities
Net loss for the year (528,989 ) (746,376 )
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 20,100 14,460
Non-cash interest expense/accretion 25,627 109,374
Share-based payments expense 24,600 39,750
Changes in non-cash operating assets and liabilities:
Accounts receivable 303,361 262,195
Inventories (37,020 ) (77,814 )
Prepaid expenses and other current assets 15,368 10,793
Other assets 1 (1,585 )
Accounts payable and accrued liabilities 31,680 (309 )
Deferred revenue (15,689 ) (14,034 )
Net cash flows used in operating activities (160,961 ) (403,546 )
Cash flows used in investing activities
Purchase of capital assets (1,130 ) (20,440 )
Cash flows from financing activities
Proceeds from debt - 574,890
Payments on debt (24,058 ) (18,163 )
Net cash flows provided by (used in) financing activities (24,058 ) 556,727
Net Increase (decrease) in cash and cash equivalents (186,149 ) 132,741
Cash and cash equivalents, beginning of period 484,421 714,498
Cash and cash equivalents, end of period 298,272 847,239
Supplemental disclosure of cash flow information:
Cash paid during the period for interest 62,129 61,335
Supplemental disclosure of non-cash financing activities:
Equipment acquired under capital lease - 21,436

Contact Information

  • For more information, please contact:

    David Wolf
    President & CEO
    Hamilton Thorne Ltd.
    Email Contact

    Lisa Rivero
    Director of Corporate Communications
    Hamilton Thorne Ltd.
    Email Contact