SOURCE: Trimedyne, Inc.

May 23, 2011 17:33 ET

Trimedyne Reports Its Financial Results for the Quarter Ended March 31, 2011

LAKE FOREST, CA--(Marketwire - May 23, 2011) - TRIMEDYNE, INC. (OTCBB: TMED) today reported its financial results for the quarter ended March 31, 2011.

Revenues for the current quarter were $1,880,000, an increase of 8.9% from revenues of $1,727,000 for the prior year's quarter. The $153,000 increase in revenues was due to higher revenues from sales of lasers, compared to the year earlier period. The Company had a net loss of $75,000 or $0.00 per share for the current quarter, compared to a loss of $307,000 or $0.02 per share for the prior year quarter.

For the six month period ended March 31, 2011, revenues were $3,515,000, an increase of 4.0% from $3,381,000 for the same period of 2010. However, for the six months ended March 31, 2011, the Company's net loss was $368,000 or $0.02 per share, a 39.4% decrease from a net loss of $607,000 or $0.03 per share for the same six month period of 2010.

All of the above per share numbers are based on a weighted average of 18,365,960 shares outstanding.

Commenting on the financial results for the quarter, Marvin P. Loeb, Sc.D., Chairman of Trimedyne, said, "We are pleased with the 8.9% increase in revenues in the current quarter over the year ago quarter.

"We had a net increase in cash of $58,000 in the current quarter to $2,586,000 at March 31, 2011. We are carefully controlling costs and judicially devoting funds to the development of new products and expanding our sales organization. However, we cannot assure that we will be able to achieve or maintain sales growth or further reduce our costs."

Trimedyne manufactures proprietary Holmium lasers and patented fiber optic laser devices for vaporizing the prostate to treat BPH, vaporizing excess 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
                                                  March 31,   September 30,
                                                    2011          2010
                                                ------------  ------------

Current assets:
  Cash and cash equivalents                     $  2,586,000  $  2,528,000
  Trade accounts receivable, net of allowance
    for doubtful accounts of $12,000 at March
    31, 2011 and September 30, 2010                  591,000       691,000
  Inventories                                      2,426,000     2,613,000
  Other current assets                               125,000       177,000
                                                ------------  ------------
      Total current assets                         5,728,000     6,009,000

Property and equipment, net                        1,143,000       908,000
Other                                                 75,000       102,000
Goodwill                                             544,000       544,000
                                                ------------  ------------
    Total Assets                                $  7,490,000  $  7,563,000
                                                ============  ============

         LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                              $    392,000  $    129,000
  Accrued expenses                                   450,000       588,000
  Deferred revenue                                    43,000        75,000
  Accrued warranty                                    40,000        17,000
  Income tax payable                                  11,000        11,000
  Current portion of note payable and capital
   leases                                            104,000       161,000
  Current portion of note payable to related party   125,000            --
  Accrued interest due to related party               19,000         3,000
                                                ------------  ------------
    Total current liabilities                      1,184,000       984,000

Note payable and capital leases, net of current
 portion                                              49,000        92,000
Senior secured convertible note to related party,
 net of discount of $89,000 and $99,000,
 respectively                                        411,000       401,000
Note payable to related party, net of current
 portion                                             125,000            --
Deferred rent                                         86,000        80,000
Derivative liabilities                                86,000        96,000
                                                ------------  ------------

    Total liabilities                              1,941,000     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 March
   31, 2011 and September 30, 2010, 18,365,960
   shares outstanding at March 31, 2011 and
   September 30, 2010                                186,000       186,000
  Additional paid-in capital                      51,245,000    51,238,000
  Accumulated deficit                            (45,169,000)  (44,801,000)
                                                ------------  ------------
                                                   6,262,000     6,623,000
  Treasury stock, at cost (101,609 shares)          (713,000)     (713,000)
                                                ------------  ------------

   Total stockholders' equity                      5,549,000     5,910,000
                                                ------------  ------------

   Total liabilities and stockholders' equity  $   7,490,000  $  7,563,000
                                               =============  ============




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

                      Three Months Ended           Six Months Ended
                            March 31,                  March 31,
                       2011          2010          2011           2010
                   ------------  ------------  ------------   ------------

Net revenues       $  1,880,000  $  1,727,000  $  3,515,000   $  3,381,000
Cost of sales         1,103,000     1,126,000     2,129,000      2,202,000
                   ------------  ------------  ------------   ------------
  Gross profit          777,000       601,000     1,386,000      1,179,000

Operating expenses:
 Selling, general and
  administrative        709,000       659,000     1,416,000      1,288,000
 Research and
  development           171,000       316,000       381,000        621,000
                   ------------  ------------  ------------   ------------
   Total operating
    expenses            880,000       975,000     1,797,000      1,909,000
                   ------------  ------------  ------------   ------------

Loss from operations   (103,000)     (374,000)     (411,000)      (730,000)

Other income, net        30,000        71,000        47,000        132,000
                   ------------  ------------  ------------   ------------

Loss before provision
 for income taxes       (73,000)     (303,000)     (364,000)      (598,000)

Provision for income
 taxes                    2,000         4,000         4,000          9,000
                   ------------  ------------  ------------   ------------

Net loss           $    (75,000) $   (307,000) $   (368,000)  $   (607,000)
                   ============  ============  ============   ============

Net loss per share:
  Basic            $      (0.00) $      (0.02) $      (0.02)  $      (0.03)
                   ============  ============  ============   ============
  Diluted          $      (0.00) $      (0.02) $      (0.02)  $      (0.03)
                   ============  ============  ============   ============

Weighted average
 number of shares
 outstanding:

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

Contact Information