SOURCE: Trimedyne, Inc.

March 03, 2008 09:30 ET

Trimedyne Reports Its Financial Results for the Quarter Ended December 31, 2007

LAKE FOREST, CA--(Marketwire - March 3, 2008) - TRIMEDYNE, INC. (OTCBB: TMED) today reported its financial results for the quarter ended December 31, 2007.

Revenues for the quarter were $1,186,000, compared to revenues of $1,425,000 for the prior year's quarter. The $239,000 decline in revenues was due to decreases of $46,000 in laser sales, $123,000 in sales of fibers, needles and tips, and $70,000 in service and rental revenue during the current quarter. Also, during the current quarter, Trimedyne's R&D costs increased by $95,000, SG&A expenses increased by $72,000 and other income, primarily royalties, decreased by $85,000, a total of $252,000.

The decrease in sales and the increase in costs are due to Trimedyne's concentrating its management, sales and R&D efforts on preparing for the production and introduction of its new, disposable, patented VaporMAX® Side Firing Fiber and a new DuraMAX™ Side Firing Fiber, both of which have been cleared for sale by the FDA.

As a result, Trimedyne had a loss of $377,000 for the quarter ended December 31, 2007 or $0.02 per share, versus a profit of $166,000 or $0.01 per share in the same quarter of 2006.

However, Trimedyne's financial position is strong. At December 31, 2007, Trimedyne had current assets of $6.6 million, of which $2.5 million was cash and equivalents, versus $667,000 of current liabilities.

The new DuraMAX Fiber will be marketed by Boston Scientific Corporation in the U.S. and Japan, and will be marketed 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 $250 million. Their marketing of the new DuraMAX Fiber will commence when Boston Scientific has completed its quality review and testing of the new Fiber, which is presently expected to occur near the end of calendar year 2008, barring any unforeseen problems.

The new DuraMAX Fiber is intended to 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. Trimedyne's new VaporMAX Fiber will be marketed by Trimedyne for use with its 80 watt Holmium Lasers for the same purpose. Trimedyne expects to commence marketing its VaporMAX Fiber in April 2008.

Worldwide, approximately 1.2 million men are treated each year in a surgical procedure or a laser procedure to remove excess prostate tissue, which is obstructing urine flow. The surgical procedure, using radiofrequency energy, requires a hospital stay and can entail the risks of general anesthesia, bleeding, sometimes requiring a blood transfusion, impotence, incontinence and other adverse effects. The laser procedure is usually performed on an outpatient basis and reduces most of the risks and adverse effects of the surgical procedure. As a result, the adoption of the laser procedure to treat enlarged prostates by physicians and patients is growing.

Trimedyne expects to see a significant increase in revenues and profits when Boston Scientific Corporation and Lumenis begin marketing the new DuraMAX Fiber, as the potential worldwide market for devices to treat enlarged prostates is estimated to exceed $700 million per year.

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,

"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.

* DuraMAX is a trademark of Lumenis, Ltd.

                            TRIMEDYNE, INC.
                      CONSOLIDATED BALANCE SHEET

                                                               December 31,
Current assets:
  Cash and cash equivalents                                   $  2,568,000
  Trade accounts receivable, net of allowance for
   doubtful accounts of $12,000                                    576,000
  Inventories                                                    3,155,000
  Note due from related party                                        7,000
  Other current assets                                             288,000
    Total current assets                                         6,594,000

  Property and equipment, net                                    1,007,000
  Other                                                             39,000
  Goodwill                                                         544,000
                                                              $  8,184,000

Current liabilities:
  Accounts payable                                            $    209,000
  Accrued expenses                                                 350,000
  Deferred revenue                                                  55,000
  Accrued warranty                                                  24,000
  Notes payable and current portion of long-term debt               29,000
    Total current liabilities                                      667,000

Deferred rent                                                       88,000
Long-term debt, net of current portion                              92,000

    Total liabilities                                              847,000
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                                  186,000
  Additional paid-in capital                                    51,388,000
  Accumulated deficit                                          (43,524,000)
  Treasury stock, at cost (101,609 shares)                        (713,000)

    Total stockholders' equity                                   7,337,000

                                                              $  8,184,000

                            TRIMEDYNE, INC.

                                                    Three Months Ended
                                                        December 31,
                                                    2007           2006
                                               ------------   ------------
Net revenues                                   $  1,186,000   $  1,425,000
Cost of revenues                                    831,000        779,000
                                               ------------   ------------
  Gross profit                                      355,000        646,000

Operating expenses:
 Selling, general and administrative                551,000        479,000
 Research and development                           253,000        158,000
                                               ------------   ------------
   Total operating expenses                         804,000        637,000
                                               ------------   ------------

(Loss) income from operations                      (449,000)         9,000

Other income, net                                    72,000        157,000
                                               ------------   ------------

(Loss) income before income taxes                  (377,000)       166,000

Provision for income taxes                               --             --
                                               ------------   ------------

Net (loss) income                              $   (377,000)  $    166,000
                                               ============    ===========

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

Weighted average number of
 shares outstanding:

   Basic                                         18,365,960     16,537,495
                                               ============   ============
   Diluted                                       18,365,960     17,736,491
                                               ============   ============

Contact Information