Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

ThermoGenesis (KOOL) Earnings, Q4/12 And FY12 Results - BUY

The Q4/12 net loss was $738K or $0.04 per share

KOOL reported a net loss of $738K, or $0.04 per share in Q4/12; $430K less than the net loss of $1.68M, or $0.07 per share in Q4/11.

Q4/12 revenues were $4.5M versus $5.4M in Q4/11 and $4.9M in the prior quarter. The decline in year-over-year revenues was attributable to decreased sales of BioArchive(NYSE:R) System devices, reflecting the continuing softness in worldwide capital equipment purchase activity. Total disposable sales were higher in Q4/12 totaling $3.3M compared to $3M in Q4/11 and $2.9M in Q3/12. Cost of revenues was $3M versus $3.512M in Q4/11. Gross profit was $1.149M versus $1.866M in Q4/11. SG&A expenses were $1.692M versus $2.245M in Q4.11. R&D expenses were $810K in Q4/12 versus $789K in Q4/11. Total operating expenses were $2.5M versus $3M in Q4/11. Interest expense was $315 k versus $0 in Q4/11. In 8/12, KOOL received $2M in cash related to the sale of assets of the CryoSeal(R) Fibrin Sealant System (CryoSeal) product line. This payment will be reflected in the balance sheet at 9/30/12. The backlog at the end of Q4/12 was $1.5M. Shares used in computing the net loss were 16.4M for Q4/12 and 16.346M in Q4/11.

  • KOOL ended the year with $7.9M in cash compared to $8.5M at the end of Q3/12 and $12.3M at the end of FY11.

For FY12: KOOL reported revenues of $19M compared with revenues of $23.4M in FY11. Disposable revenues in fiscal 2012 were $13.2M versus $13.8M in FY11. KOOL reported a net loss of $5M, or $0.30 per share, compared with a net loss of $2.6M, or $0.17 per share, in FY11.


  • KOOL has realized a number of important milestones in its growth strategy, beginning with recent product purchase and distribution agreement for the AXP(R) AutoXpress(R) (NYSE:AXP) System with Golden Meditech Holdings Limited, which is affiliated with China Cord Blood Corporation-the first and largest umbilical cord blood bank operating in China. Under the 5 year agreement, Golden Meditech will have annual minimum purchase commitments and exclusive distribution rights for the AXP System-used for the processing of stem cells from cord blood-in the People's Republic of China (excluding Hong Kong and Taiwan) and in Singapore, Indonesia, India and the Philippines once relevant approvals have been obtained in each respective region where they have not yet occurred;
  • Initiated new integrated distribution programs for cord blood products with the signing of 3 new and expanded distribution agreements. These include Concessus for several countries in Western Europe, HVD Biotech Vertriebs for 10 countries in Central and Eastern Europe and 13 Middle Eastern countries, and CEI covering nine countries in Latin America. These agreements provide a customer-centric approach by incorporating market, service and product support for cord blood products with a single channel partner by major geography;
  • Completed the sale of the CryoSeal System to Asahi Kasei Medical Co., Ltd. monetize this non-core asset KOOL at a transaction price 2 1/2 times the last 3 year's average annual revenues generated by this product line. The $2M cash proceeds from this transaction will be reflected in our 9/30/12 balance sheet.

The Bottom Line: KOOL closed on 9/20/12 at $1.04 down -$0.08 or -7.14%. In the after hours trading KOOL traded <$0.90 - $1.03> down -$0.09 or -8.95% to $0.95but, the recent trading range travels from $1.04 - $1.11 … So it is down on the earnings announcement <who usually is n't> and should bounce back … at least to $1.00 by next week. Today <9/21>is also quadruple witching day - with contracts for stock index futures, stock index options, stock options and single stock futures (SSF) all expiring. Review the recent achievements! I believe KOOL could be a … speculative BUY for it's close to the bottom of the recent range <$0.93> on 8/3/12 and should rebound. KOOL also has $7.9M in cash with a low burn and $2M will be reflected in the balance sheet from a sale on 9/30/12; SG&A is falling but, the speculative ranking is dependent on the softness in capital equipment sales and finally operating expenses fell and should stay steady. Matt Plavan has done a good job … stand by him! The cord blood device product revenues continued to be negatively impacted by the macroeconomic environment this past year. But, KOOL has accomplished a number of important milestones that should facilitate efforts to the near term by securing new customers and distributor agreements, gained product regulatory approvals in growth geographies.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.