THERMOGENESIS Corp. Reports Operating Results (10-Q)

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May 07, 2010
THERMOGENESIS Corp. (KOOL, Financial) filed Quarterly Report for the period ended 2010-03-31.

Thermogenesis Corp. has a market cap of $42.6 million; its shares were traded at around $0.76 with and P/S ratio of 2.2. KOOL is in the portfolios of Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Revenues for the three months ended March 31, 2010 were $4,764,000 compared to $5,148,000 for the three months ended March 31, 2009, a decrease of $384,000 or 7%. The downturn in the economy continues to impact our revenues, especially our capital equipment sales as customers are taking longer to secure their funding sources. The decrease in revenues is primarily due to decreases related to BioArchive devices of $476,000 as there were fewer BioArchive devices sold in the current quarter and a decrease in ThermoLine freezer revenues of $290,000 due to a lack of sales of our largest freezer in the current quarter. Offsetting these decreases were increases in AXP device revenues of $192,000, as the devices were awaiting upgraded component parts during the first and second quarters of fiscal 2010 and an increase in revenues from BioArchive disposables of $176,000. We anticipate revenues from AXP disposables to increase as our second supplier will be delivering product in the fourth quarter.

Revenues for the nine months ended March 31, 2010 were $15,912,000, compared to $15,776,000 for the nine months ended March 31, 2009, an increase of $136,000 or 1%. This increase is primarily due to product revenue increases from the MXP and Res-Q product lines of approximately $955,000. MXP was launched in December 2008 and Res-Q in the first quarter of the current fiscal year. This increase was offset by a decrease in BioArchive device revenue of $855,000.

Selling, general and administrative expenses were $5,975,000 for the nine months ended March 31, 2010, compared to $7,037,000 for the comparable fiscal 2009 period, a decrease of $1,062,000 or 15%. The decrease is primarily due to a severance accrual of $370,000 during the quarter ended December 31, 2008 to the Companys former Chief Executive Officer, lower salaries and benefits of $448,000, lower labeling/translation costs of $170,000 and lower legal fees of $110,000.

Research and development expenses were $4,074,000 for the nine months ended March 31, 2010, compared to $3,916,000 for the comparable fiscal 2009 period, an increase of $158,000 or 4%. This is primarily due to an increase in the costs incurred to complete development of the Res-Q product of $265,000 and the termination of the consulting agreement with the Companys former Chief Technology Architect effective October 1, 2009 for $240,000. These increases were offset by the reduction of costs associated with the Vantus subsidiary during the six months ended December 31, 2008 of $290,000.

At March 31, 2010, the Company had cash, cash equivalents and short-term investments of $10,126,000 and working capital of $15,866,000. 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 nine months ended March 31, 2010 was $5,035,000, primarily due to the net loss of $5,022,000, offset by depreciation and stock based compensation expense of $361,000 and $419,000, respectively. Accounts receivable utilized $782,000 of cash as a result of increased revenues from the fourth quarter of fiscal 2009.

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