THERMOGENESIS CORP. designsmarkets and sells products and devices which utilize its proprietary thermodynamic technology for the processing of biological substances (THERMOGENESIS Proprietary Technology) including the cryopreservationthawingand harvesting of blood components. Thermogenesis Corp. has a market cap of $34.31 million; its shares were traded at around $0.6116 with and P/S ratio of 1.73. Thermogenesis Corp. had an annual average earning growth of 8.4% over the past 5 years.
Highlight of Business Operations:Revenues for the three months ended September 30, 2009 were $5,193,000 compared to $4,502,000 for the three months ended September 30, 2008, an increase of $691,000 or 15%. The increase is primarily due to revenues of $470,000 from the MXP product line which was launched in December 2008 and an increase in AXP disposable revenues of $460,000 due to volume increases. The increases were offset by a decline in Thermoline Freezer revenues of $330,000.
The Companys gross profit was $1,557,000 or 30% of net revenues for the three months ended September 30, 2009, as compared to $1,280,000 or 28% for the corresponding fiscal 2009 period. The increase in gross profit is primarily due to the $520,000 accrual for the voluntary recall of AXP bag sets in the quarter ended September 30, 2008, offset by an increase in warranty for BioArchive devices and AXP disposables.
Selling, general and administrative expenses were $2,163,000 for the three months ended September 30, 2009, compared to $2,447,000 for the comparable fiscal 2009 period, a decrease of $284,000 or 12%. The decrease is primarily due to lower salaries and benefits of $220,000 as there were five fewer positions employed during the quarter ended September 30, 2009 as compared to the quarter ended September 30, 2008.
Research and development expenses were $1,594,000 for the three months ended September 30, 2009, compared to $1,600,000 for the corresponding fiscal 2009 period, a decrease of $6,000. Spending in research and development has remained consistent as the increase in costs to complete development of the Res-Q product, $260,000, was offset by a decrease in costs associated with the Vantus subsidiary during the three months ended September 30, 2008.
At September 30, 2009, the Company had cash, cash equivalents and short-term investments of $13,120,000 and working capital of $18,634,000. This compares to cash, cash equivalents and short-term investments of $15,631,000 and working capital of $20,923,000 at June 30, 2009. The cash was used to fund operations, capital expenditures and other strategic initiatives of the Company. In addition to product revenues, the Company has primarily financed operations through the private and public placement of equity securities and has raised approximately $108,000,000, net of expenses, through common and preferred stock financings and option and warrant exercises.
Net cash used in operating activities for the three months ended September 30, 2009 was $2,255,000, primarily due to the net loss of $2,189,000, offset by depreciation and stock based compensation expense of $111,000 and $162,000, respectively. Accounts receivable utilized $228,000 of cash as a result of higher sales during the current quarter versus the prior quarter. Other current liabilities generated $237,000 in cash for the quarter ended September 30, 2009.
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