SOURCE: Trimedyne, Inc.

May 15, 2008 09:30 ET

Trimedyne Reports Financial Results for the Quarter Ended March 31, 2008

LAKE FOREST, CA--(Marketwire - May 15, 2008) - TRIMEDYNE, INC. (OTCBB: TMED) today reported a net loss of $292,000 or ($0.02) per share for the quarter ended March 31, 2008. At March 31, 2008, Trimedyne had $2,573,000 of cash and equivalents, receivables of $721,000, other current assets of $250,000 and inventories of $3,064,000, versus accounts payable of $345,000, accrued expenses of $442,000 and equipment lease debt of $368,000.

Revenues for the quarter were $1,519,000, a 3.5% increase over revenues of $1,468,000 for the prior year's quarter. The increase in revenues was due to higher laser sales and service and rental revenue, which offset a decrease in sales of optical fiber laser delivery devices. While sales of lasers add significant dollars to revenues, lasers typically carry much smaller profit margins than disposable optical fiber devices.

Marvin P. Loeb, CEO of Trimedyne, said, "We incurred a significant increase in research and development costs and general and administrative costs due to our developing a new side firing optical fiber, which will be marketed in the U.S. and Japan by Boston Scientific Corporation and in other countries throughout the world by Lumenis, Ltd. of Yokneam, Israel. Lumenis is one of the largest manufacturers of medical lasers with annual sales of about $300 million. They will begin marketing the new fiber when Boston Scientific has reviewed our manufacturing process and quality system and tested the new fiber. This is presently expected to be completed, and shipments of the new fiber are expected to commence, near the end of calendar year 2008."

Mr. Loeb added, "The new side firing fiber will be used with Lumenis' 80 and 100 watt Holmium Lasers for the treatment of benign prostatic hyperplasia or 'BPH,' commonly called an enlarged prostate, a condition which affects an estimated 50% of men over age 55 and an increasing percentage of men at older ages. Worldwide, an estimated 1.2 million men are treated each year with surgery, a laser procedure or other therapy to remove excess prostate tissue which is obstructing urine flow. The laser procedure is shorter, is typically performed on an outpatient basis and reduces the risks, adverse effects and hospitalization of the surgical procedure. As a result, the adoption of the laser procedure by physicians and patients is growing."

Trimedyne is developing a somewhat different, side firing fiber for use with its 80 watt Holmium Lasers for the treatment of BPH. It is presently being evaluated by physicians in the U.S. and a number of foreign countries. However, the evaluation is taking longer than we anticipated. When it is completed, we will determine when marketing of the new fiber may be commenced.

Trimedyne manufactures proprietary Holmium lasers and patented fiber optic laser devices for a variety of minimally invasive surgical procedures, many of which are performed on an outpatient basis at substantially less cost than conventional surgery. For product, press release, financial and other information, please visit 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 Form 10-K-SB for the year ended September 30, 2006 and subsequently filed 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.
                  CONDENSED CONSOLIDATED BALANCE SHEET


                                 ASSETS
                                                               March 31,
                                                                 2008
                                                             -------------

                                                                Unaudited
Current assets:
  Cash and cash equivalents                                   $  2,573,000
  Trade accounts receivable, net of allowance for doubtful
   accounts of $12,000                                             721,000
  Inventories                                                    3,064,000
  Other current assets                                             250,000
                                                              ------------
    Total current assets                                         6,608,000

  Property and equipment, net                                    1,220,000
  Other                                                             40,000
  Goodwill                                                         544,000
                                                              ------------
                                                              $  8,412,000
                                                              ============
                   LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                                            $    345,000
  Accrued expenses                                                 442,000
  Deferred revenue                                                  83,000
  Accrued warranty                                                  31,000
  Current portion of long-term debt                                 66,000
                                                              ------------
    Total current liabilities                                      967,000

Deferred rent                                                       83,000
Long-term debt, net of current portion                             302,000
                                                              ------------

    Total liabilities                                            1,352,000
                                                              ------------

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, 18,365,960 shares issued, 18,264,351 shares
   outstanding                                                     184,000
  Additional paid-in capital                                    51,405,000
  Accumulated deficit                                          (43,816,000)
                                                              ------------
                                                                 7,773,000
  Treasury stock, at cost (101,609 shares)                        (713,000)
                                                              ------------

    Total stockholders' equity                                   7,060,000
                                                              ------------

                                                              $  8,412,000
                                                              ============


                             TRIMEDYNE, INC.
         CONDENSED CONSOLIDATED STATEMENTS OF INCOME (OPERATIONS)
                               (UNAUDITED)


                           Three Months Ended         Six Months Ended
                                March 31,                 March 31,
                           2008         2007         2008         2007
                       ------------ ------------ ------------ ------------

Net revenues           $  1,519,000 $  1,468,000 $  2,705,000 $  2,893,000
Cost of revenues          1,049,000      860,000    1,880,000    1,639,000
                       ------------ ------------ ------------ ------------
  Gross profit              470,000      608,000      825,000    1,254,000

Operating expenses:
 Selling, general and
  administrative            627,000      553,000    1,178,000    1,032,000
 Research and
  development               322,000      255,000      575,000      413,000
                       ------------ ------------ ------------ ------------
   Total operating
    expenses                949,000      808,000    1,753,000    1,445,000
                       ------------ ------------ ------------ ------------

Loss from operations       (479,000)    (200,000)    (928,000)    (191,000)

Other income, net           187,000      224,000      259,000      381,000
                       ------------ ------------ ------------ ------------

(Loss) income before
 provision for income
 taxes                     (292,000)      24,000     (669,000)     190,000

Provision for income
 taxes                           --        4,000           --        4,000
                       ------------ ------------ ------------ ------------

Net income (loss)      $   (292,000)$     20,000 $   (669,000)$    186,000
                       ============ ============ ============ ============

Net income (loss) per
 share:
  Basic                $      (0.02)$       0.00 $      (0.04)$       0.01
                       ============ ============ ============ ============
  Diluted              $      (0.02)$       0.00 $      (0.04)$       0.01
                       ============ ============ ============ ============

Weighted average
 number of shares
 outstanding:

   Basic                 18,365,960   17,532,763   18,365,960   17,019,394
                       ============ ============ ============ ============
   Diluted               18,365,960   18,769,173   18,365,960   18,251,514
                       ============ ============ ============ ============

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