Loss Expected and Positions (10%) Cut, ThermoGenesis Corp (KOOL)
KOOL expects revenues for Q4/10, to be approximately $7.3 M and to report a small net loss for the quarter, in the range of $150 K to $450 K, subject to final audit adjustments. KOOL plans to report complete final results for Q4/and FY10 and provide outlook for FY11 in mid-September.
KOOL’s revenues from sales of its products serving the bone marrow stem cell market; the MXP MarrowXpress® (MXP) and Res-Q 60 BMC (Res-Q) Systems were consistent with Q4/10 and it continues to expect growth in these revenues in fiscal 2011.
KOOL expects to end Q4/10 with approximately $10.7 M in cash and short-term investments, versus $10.1 M at the end of the prior quarter. The cash balance for Q4/10 includes a $1M cash payment received in conjunction with its amended CryoSeal® Fibrin Sealant System wound care product distribution and license agreement with Asahi Kasei Kuraray Medical Co., Ltd.
As of 7/1/10, KOOL implemented a layoff of 10% of its work force, further streamlining operations which will lower operating expense run rate to drive profitability in FY11. 2 primary factors contributed to an increase of more than $2 M in revenues; included strong sales of AXP® AutoXpress (AXP) System bag sets as filled backlog from Q3/10, ongoing customer demand and the sale of 7 BioArchive® Systems. Their cord blood business was strong during Q4/10; with consistent utilization of their AXP bag sets by key customers, including Cord Blood Registry (CBR), with whom KOOL entered into an agreement during Q4/10, said J. Melville Engle, Chief Executive Officer of ThermoGenesis.
Shares of KOOL closed at $0.59 Friday (7/16/10) and were down (12:45 pm) $0.025 ($0.565) on Monday (7/19/10).
