SOURCE: Trimedyne, Inc.

February 22, 2011 09:30 ET

Trimedyne Reports Its Financial Results for the Quarter Ended December 31, 2010

LAKE FOREST, CA--(Marketwire - February 22, 2011) - TRIMEDYNE, INC. (OTCBB: TMED) today reported its financial results for the quarter ended December 31, 2010.

Revenues for the quarter were $1,635,000, a 1.1% decrease from revenues of $1,654,000 for the prior year's quarter. The Company had a net loss of $293,000 or $0.02 per share for the current quarter, compared to a loss of $300,000 or $0.02 per share for the same quarter of the prior year.

Marvin P. Loeb, Sc.D., CEO & Chairman of Trimedyne, said, "We regret not being able to report a lower loss for the current Quarter."

Dr. Loeb continued, "The Company recently introduced a line of 200, 365, 550 and 1000 micron Single Use optical fibers, for use with our Holmium Lasers and Holmium Lasers with a compatible connector made by others, for the fragmentation of urinary stones in the kidney, ureter or bladder, biliary stones in the gall bladder and for other applications in surgery. In the United States and other developed countries, many hospitals and surgery centers want the convenience and safety of using a new optical fiber, with a factory polished tip and confirmed sterility for each case, rather than depending on their busy nurses to clean, clip and re-sterilize Reusable optical fibers.

"These new Single Use Optical Fibers and our new VaporMAX® Side Firing Fibers enable us to better serve our customers in the U.S. and other developed countries, while we continue to sell Reusable Optical Fibers in other countries where cost is a major concern."

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.
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                    (UNAUDITED)


                             ASSETS
                                                 December 31, September 30,
                                                      2010        2010
                                                  -----------  -----------

Current assets:
  Cash and cash equivalents                       $ 2,353,000  $ 2,528,000
  Trade accounts receivable, net of allowance
    for doubtful accounts of $12,000 at
    December 31, 2010 and September 30, 2010          741,000      691,000
  Inventories                                       2,471,000    2,613,000
  Other current assets                                221,000      177,000
                                                  -----------  -----------
      Total current assets                          5,786,000    6,009,000

Property and equipment, net                           855,000      908,000
Other                                                  98,000      102,000
Goodwill                                              544,000      544,000
                                                  -----------  -----------
    Total Assets                                  $ 7,283,000  $ 7,563,000
                                                  ===========  ===========

         LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                                $   200,000  $   129,000
  Accrued expenses                                    586,000      588,000
  Deferred revenue                                     61,000       75,000
  Accrued warranty                                     23,000       17,000
  Income tax payable                                   13,000       11,000
  Current portion of note payable and capital
   leases                                             127,000      161,000
  Accrued interest due to related party                11,000        3,000
                                                  -----------  -----------
    Total current liabilities                       1,021,000      984,000

Senior secured convertible note to related party,
 net of discount of $94,000 and $99,000,
 respectively                                         406,000      401,000
Note payable and capital leases, net of current
 portion                                               71,000       92,000
Deferred rent                                          83,000       80,000
Derivative liabilities                                 81,000       96,000
                                                  -----------  -----------

    Total liabilities                               1,662,000    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 at December
   31, 2010 and September 30, 2010, 18,365,960
   shares outstanding at December 31, 2010 and
   September 30, 2010                                 186,000      186,000
  Additional paid-in capital                       51,242,000   51,238,000
  Accumulated deficit                             (45,094,000) (44,801,000)
                                                  -----------  -----------
                                                    6,334,000    6,623,000
  Treasury stock, at cost (101,609 shares)           (713,000)    (713,000)
                                                  -----------  -----------

   Total stockholders' equity                       5,621,000    5,910,000
                                                  -----------  -----------

   Total liabilities and stockholder's equity     $ 7,283,000  $ 7,563,000
                                                  ===========  ===========




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

                                               For the Three Months Ended
                                                      December 31,

                                                   2010           2009
                                               ------------   ------------
Net revenues                                   $  1,635,000   $  1,654,000
Cost of revenues                                  1,026,000      1,076,000
                                               ------------   ------------
  Gross profit                                      609,000        578,000

Operating expenses:
 Selling, general and administrative                707,000        629,000
 Research and development                           210,000        305,000
                                               ------------   ------------
   Total operating expenses                         917,000        934,000
                                               ------------   ------------

(Loss) from operations                             (308,000)      (356,000)

Other income, net                                    17,000         61,000
                                               ------------   ------------

(Loss) before income taxes                         (291,000)      (295,000)

Provision for income taxes                            2,000          5,000
                                               ------------   ------------

Net (loss)                                     $   (293,000)  $   (300,000)
                                               ============   ============

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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