SOURCE: Trimedyne, Inc.

August 17, 2009 09:30 ET

Trimedyne Reports Its Financial Results for the Quarter and Nine Months Ended June 30, 2009

LAKE FOREST, CA--(Marketwire - August 17, 2009) - TRIMEDYNE, INC. (OTCBB: TMED) today reported its financial results for the quarter and nine month period ended June 30, 2009.

Revenues for the current quarter were $2,068,000, an increase of 49% over revenues of $1,385,000 for the prior year's quarter. The $683,000 increase in revenues was due to higher revenues from sales of fiber optic devices, lasers, field service and rentals. The gross profit margin in the current quarter was 40% of revenues, compared to 27% for the prior year quarter. The Company had a net loss of $82,000 or $0.00 per share for the current quarter, an 86% reduction from the loss of $585,000 or $0.03 per share for the prior year quarter.

For the nine months ending June 30, 2009, revenues were $5,310,000, a 30% increase over revenues of $4,090,000 in the prior year period, and the Company's net loss for this period was $872,000 or $0.05 per Share, a 30% reduction from the net loss of $1,254,000 or $0.07 per Share for the prior year period.

Commenting on the financial results for the quarter, Marvin P. Loeb, Sc.D., Chairman of Trimedyne, said, "We are pleased with the 49% increase in revenues in the current quarter over the year ago quarter, which is also 27% higher than the revenues of $1,632,000 for the quarter ended March 31, 2009, and our loss in the current quarter was a 76% reduction from the loss of $345,000 for the quarter ended March 31, 2009."

Trimedyne has developed a new side firing optical fiber for use with 80 and 100 watt Holmium Lasers for the treatment of benign prostate hyperplasia or BPH, commonly called an enlarged prostate. We are beginning a limited marketing release of the new fiber under our VaporMAX® trademark at a price significantly lower than the prices of side firing fibers marketed by certain of our competitors. Our VaporMAX® Fiber is designed to operate at 80 or 100 watts of Holmium Laser energy for one hour or longer. Our competitors' side firing fibers sometimes fail before a BPH patient's treatment has been completed, interrupting the procedure and requiring the hospital to use a second fiber.

BPH is a condition which affects an estimated 50% of men over age 55 and an increasing percentage of men at older ages. Worldwide, an estimated 1.2 million men are presently treated each year in a surgical procedure primarily using radiofrequency (RF) or laser energy to remove excess prostate tissue which is obstructing urine flow. The laser procedure is usually performed on an outpatient basis and reduces the adverse effects of the RF surgical procedure, which typically requires a hospital stay and can entail significant bleeding, impotence and incontinence.

Trimedyne has developed a similar side firing optical fiber which will be marketed throughout the world by Lumenis, Ltd. of Yokneam, Israel, under Lumenis' DuraMAX trademark. Lumenis markets its side firing fibers through Boston Scientific Corporation in the U.S. and Japan. Elsewhere throughout the world, Lumenis markets its side firing fibers through its established sales organization. The DuraMAX™ side firing fiber will be used with Lumenis' large, worldwide installed base of 80 and 100 watt Holmium Lasers for the treatment of BPH.

Marketing of the new DuraMAX™ Fiber by Lumenis will commence when an audit of our manufacturing process and quality system is completed, which is expected to take several months to complete. We have not been advised when the audit will be commenced.

Trimedyne manufactures patented fiber optic laser devices and proprietary Holmium Lasers for the treatment of BPH, as well as for the treatment of herniated or ruptured discs in the spine and a variety of other, 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, 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 Form 10-K-SB for the year ended September 30, 2008 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
                                                   June 30,  September 30,
                                                   2009           2008
                                               ------------- -------------

Current assets:
  Cash and cash equivalents                    $   2,076,000 $   2,007,000
  Trade accounts receivable, net of allowance
   for doubtful accounts of $16,000 and
   $12,000, respectively                             695,000       954,000
  Inventories                                      2,082,000     2,584,000
  Other current assets                               276,000       171,000
                                               ------------- -------------
      Total current assets                         5,129,000     5,716,000

Property and equipment, net                        1,250,000     1,382,000
Other                                                 84,000        83,000
Goodwill                                             544,000       544,000
                                               ------------- -------------
    Total Assets                               $   7,007,000 $   7,725,000
                                               ============= =============

   LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                             $     399,000 $     256,000
  Accrued expenses                                   552,000       469,000
  Deferred revenue                                   115,000        75,000
  Accrued warranty                                    50,000        54,000
  Current portion of note payable and capital
   leases                                            236,000       237,000
                                               ------------- -------------
    Total current liabilities                      1,352,000     1,091,000

Note payable and capital leases, net of
 current portion                                     279,000       400,000
Deferred rent                                         58,000        73,000
                                               ------------- -------------

    Total liabilities                              1,689,000     1,564,000
                                               ------------- -------------
Commitments and contingencies (Note 4)

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
   June 30, 2009 and September 30, 2008              186,000       186,000
  Additional paid-in capital                      51,454,000    51,425,000
  Accumulated deficit                            (45,609,000)  (44,737,000)
                                               ------------- -------------
                                                   6,031,000     6,874,000
  Treasury stock, at cost (101,609 shares)          (713,000)     (713,000)
                                               ------------- -------------

   Total stockholders' equity                      5,318,000     6,161,000
                                               ------------- -------------

   Total liabilities and stockholder's equity  $   7,007,000 $   7,725,000
                                               ============= =============




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


                            Three Months Ended       Nine Months Ended
                                 June 30,                  June 30,
                            2009         2008         2009         2008
                        -----------  -----------  -----------  -----------

Net revenues            $ 2,068,000  $ 1,385,000  $ 5,310,000  $ 4,090,000
Cost of revenues          1,250,000    1,017,000    3,400,000    2,897,000
                        -----------  -----------  -----------  -----------
  Gross profit              818,000      368,000    1,910,000    1,193,000

Operating expenses:
 Selling, general and
  administrative            653,000      602,000    2,042,000    1,780,000
 Research and
  development               317,000      419,000      931,000      994,000
                        -----------  -----------  -----------  -----------
   Total operating
    expenses                970,000    1,021,000    2,973,000    2,774,000
                        -----------  -----------  -----------  -----------

Loss from operations       (152,000)    (653,000)  (1,063,000)  (1,581,000)

Other income, net            74,000       81,000      199,000      340,000
                        -----------  -----------  -----------  -----------

Loss before provision
 for income taxes           (78,000)    (572,000)    (864,000)  (1,241,000)

Provision for income
 taxes                        4,000       13,000        8,000       13,000
                        -----------  -----------  -----------  -----------

Net loss                $   (82,000) $  (585,000) $  (872,000) $(1,254,000)
                        ===========  ===========  ===========  ===========

Net loss:
  Basic                 $     (0.00) $     (0.03) $     (0.05) $     (0.07)
                        ===========  ===========  ===========  ===========
  Diluted               $     (0.00)  $    (0.03) $     (0.05) $     (0.07)
                        ===========  ===========  ===========  ===========

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
                        ===========  ===========  ===========  ===========

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