SOURCE: Trimedyne, Inc.

February 10, 2012 09:00 ET

Trimedyne Reports Financial Results for the Quarter and Fiscal Year Ended September 30, 2011

LAKE FOREST, CA--(Marketwire - Feb 10, 2012) - TRIMEDYNE, INC. (OTCBB: TMED) reported revenues of $6,656,000 for the fiscal year ended September 30, 2011, a 4% increase from revenues of $6,401,000 for the prior fiscal year. The increase in revenues was largely due to increased Laser sales offset by a decrease in sales of Fibers, Needles and Switchtips, due to the economic slowdown and persistent unemployment, in which unemployed and uninsured people are putting-off elective, outpatient procedures.

The Company had an operating loss of $(1,522,000) for the 2011 fiscal year, compared to an operating loss of $(1,441,000) for the prior fiscal year. The Company had net loss of ($1,486,000) or $(0.08) per share for the fiscal year ended September 30, 2011 as compared to a net income of $639,000 or $0.04 per share for the prior fiscal year, which was benefitted by the receipt of $2,000,000 from the amicable settlement of the Company's contract dispute with a prospective customer. The customer also renewed its Patent License Agreement with Trimedyne through July 21, 2014, when the patent expires.

For the quarter ended September 30, 2011, the Company had revenues of $1,732,000, a 15% increase from revenues of $1,505,000 for the same quarter of the prior year. The Company had an operating loss of $(683,000) for the quarter ended September 30, 2010, compared to an operating loss of $(573,000) for the same quarter of the prior year. The Company had a loss of $(689,000) or $0.04 per share for the quarter ended September 30, 2011, versus net income of $1,308,000 or $0.07 per share for the year earlier quarter, due to the amicable settlement of the Company's contract dispute described above.

Included in the cost of sales for the fiscal year and quarter ended September 30, 2011, was a charge for excess and obsolete inventory of $287,000. Without this non-cash charge, the Company's loss from operations would have been $(1,235,000) for the fiscal year and $(396,000) for the quarter ended September 30, 2011, and the Company's net loss for the fiscal year and quarter ended September 30, 2011, would have been $(1,199,000) and $(402,000), respectively.

The Company ended the 2011 fiscal year with cash and equivalents of $1,151,000 and receivables and other current assets of $741,000, versus accounts payable and accrued expenses of $698,000.

Trimedyne manufactures proprietary Holmium lasers and patented fiber optic laser devices for vaporizing the prostate to treat BPH, vaporizing spinal disc tissue to treat herniated or ruptured discs and in a variety of other, minimally invasive procedures, many of which are performed on an outpatient basis at substantially less cost than conventional surgery. For product, press release, financial, SEC Reports 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 current Form 10-K Report 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. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
As of September 30,
2011 2010
Current assets:
Cash and cash equivalents $ 1,151,000 $ 2,528,000
Trade accounts receivable, net of allowance for doubtful accounts of $11,000 for 2011 and 2010 598,000 691,000
Inventories 2,162,000 2,613,000
Other current assets 143,000 177,000
Total current assets 4,054,000 6,009,000
Property and equipment, net 1,027,000 908,000
Other 92,000 102,000
Goodwill 544,000 544,000
$ 5,717,000 $ 7,563,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 270,000 $ 129,000
Accrued expenses 428,000 588,000
Deferred revenue 93,000 75,000
Accrued warranty 38,000 17,000
Income tax payable -- 11,000
Current portion of note payable and capital leases 133,000 161,000
Notes payable to related party 187,000 --
Accrued interest due to related party 1,000 3,000
Total current liabilities 1,150,000 984,000
Senior secured convertible note to related party, net of discount of zero and $99,000, respectively -- 401,000
Note payable and capital leases, net of current portion 13,000 92,000
Deferred rent 100,000 80,000
Derivative liabilities -- 96,000
Total liabilities 1,263,000 1,653,000
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, 18,395,960 and 18,365,960 shares outstanding at September 30, 2011 and 2010 186,000 186,000
Additional paid-in capital 51,268,000 51,238,000
Accumulated deficit (46,287,000 ) (44,801,000 )
5,167,000 6,623,000
Treasury stock, at cost (101,609 shares) (713,000 ) (713,000 )
Total stockholders' equity 4,454,000 5,910,000
$ 5,717,000 $ 7,563,000
TRIMEDYNE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Year Ended
September 30, September 30,
2011 2010 2011 2010
Net Revenues $ 1,732,000 $ 1,505,000 $ 6,656,000 $ 6,401,000
Cost of sales: 1,563,000 1,224,000 4,574,000 4,197,000
Gross profit $ 169,000 $ 281,000 2,082,000 $ 2,204,000
Selling, general and administrative expenses 628,000 669,000 2,751,000 2,585,000
Research and development expenses 224,000 185,000 853,000 1,060,000
Loss from operations $ (683,000 ) $ (573,000 ) $ (1,522,000 ) $ (1,441,000 )
Other (loss)income, net (2,000 ) 1,884,000 45,000 2,095,000
(Loss) income before provision for income taxes $ (685,000 ) $ 1,311,000 $ (1,477,000 ) $ 654,000
Provision for income taxes 4,000 3,000 9,000 15,000
Net loss $ (689,000 ) $ 1,308,000 $ (1,486,000 ) $ 639,000
Basic net income (loss) per share $ 0.07 $ 0.07 $ (0.08 ) $ 0.04
Diluted net income (loss) per share (0.04 ) $ 0.07 $ (0.08 ) $ 0.03
Basic weighted average common shares outstanding: 18,384,207 18,365,960 18,384,207 18,365,960

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