SOURCE: Trimedyne, Inc.

February 24, 2009 09:30 ET

Trimedyne Reports Its Financial Results for the Quarter Ended December 31, 2008

LAKE FOREST, CA--(Marketwire - February 24, 2009) - TRIMEDYNE, INC. (OTCBB: TMED) today reported its financial results for the quarter ended December 31, 2008.

Revenues for the quarter were $1,610,000, an increase of 36% from revenues of $1,186,000 for the prior year's quarter. The $424,000 increase in revenues was due to increases in sales of lasers and revenues from service and rentals, offset by a 3.4% decrease in sales of fiber optic devices. While sales of lasers add significant dollars to revenues, lasers typically carry much smaller profit margins than fiber optic devices. The Company had a net loss of $445,000 or $0.02 per share for the current quarter, compared to a loss of $377,000 or $0.02 per share for the prior year quarter.

Commenting on the financial results for the quarter, Marvin P. Loeb, Sc.D., Chairman of Trimedyne, said, "We are pleased with the 36% increase in revenues in the current quarter over the year ago quarter. However, we are not pleased that our net loss for the current quarter was $445,000. Administrative expenses, testing and scaling up for production of the new side firing optical fiber were responsible for a substantial part of the increase in our costs during the quarter and are expected to continue into the next quarter."

Loeb continued, "We have developed 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. Marketing of the new side firing fiber by Boston Scientific and Lumenis will commence when Boston Scientific has completed its audit of our manufacturing process and quality system, which is expected to take 4 to 5 months. Boston Scientific has not advised us when this audit will be commenced."

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, approximately 1.2 million men are treated each year in a surgical procedure or a laser procedure to vaporize excess prostate tissue which is obstructing urine flow. The laser procedure is typically performed on an outpatient basis and reduces or eliminates the adverse effects of the surgical procedure, which include substantial bleeding, infections and the risks of general anesthesia, impotence and incontinence."

Trimedyne has also developed a similar side firing optical fiber for use with its 80 watt Holmium Lasers for the treatment of BPH under its VaporMAX® trademark. Trimedyne presently expects to commence worldwide marketing of its VaporMAX® fiber, barring any unforeseen problems, in April 2009.

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.

                        TRIMEDYNE, INC.

                                            December 31,    September 30,
                                               2008             2008
                                          ---------------  ---------------

Current assets:
  Cash and cash equivalents               $     1,677,000  $     2,007,000
  Trade accounts receivable, net of
   allowance for doubtful accounts of
   $12,000 and $12,000, respectively              950,000          954,000
  Inventories                                   2,478,000        2,584,000
  Other current assets                            126,000          171,000
                                          ---------------  ---------------
      Total current assets                      5,231,000        5,716,000

Property and equipment, net                     1,314,000        1,382,000
Other                                              81,000           83,000
Goodwill                                          544,000          544,000
                                          ---------------  ---------------
                                          $     7,170,000  $     7,725,000
                                          ===============  ===============


Current liabilities:
  Accounts payable                        $       248,000  $       256,000
  Accrued expenses                                436,000          469,000
  Deferred revenue                                 78,000           75,000
  Accrued warranty                                 51,000           54,000
  Current portion of note payable
   and capital leases                             197,000          237,000
                                          ---------------  ---------------
    Total current liabilities                   1,010,000        1,091,000

Note payable and capital leases,
 net of current portion                           363,000          400,000
Deferred rent                                      68,000           73,000
                                          ---------------  ---------------

    Total liabilities                           1,441,000        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,
   2008 and 2007                                  186,000          186,000
  Additional paid-in capital                   51,438,000       51,425,000
  Accumulated deficit                         (45,182,000)     (44,737,000)
                                          ---------------  ---------------
  Treasury stock, at cost
   (101,609 shares)                              (713,000)        (713,000)
                                          ---------------  ---------------

    Total stockholders' equity                  5,729,000        6,161,000
                                          ---------------  ---------------

                                          $     7,170,000  $     7,725,000
                                          ===============  ===============

                               TRIMEDYNE, INC.

                                                For the Three Months Ended
                                                        December 31,

                                                    2008           2007
                                               ------------   ------------
Net revenues                                   $  1,610,000   $  1,186,000
Cost of revenues                                  1,076,000        831,000
                                               ------------   ------------
  Gross profit                                      534,000        355,000

Operating expenses:
  Selling, general and administrative               716,000        551,000
  Research and development                          296,000        253,000
                                               ------------   ------------
    Total operating expenses                      1,014,000        804,000
                                               ------------   ------------

(Loss) from operations                             (478,000)      (449,000)

Other income, net                                    38,000         72,000
                                               ------------   ------------

(Loss) before income taxes                         (440,000)      (377,000)

Provision for income taxes                            5,000             --
                                               ------------   ------------

Net (loss)                                     $   (445,000)  $   (377,000)
                                               ============    ===========

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

Weighted average number of
 shares outstanding:

   Basic                                         18,365,960     18,365,960
                                               ============   ============
   Diluted                                       18,365,960     18,365,960
                                               ============   ============

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