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ThermoGenesis (KOOL) Q2/13 And 1st 6 Months Results

A net loss of $563 K, or $0.03 per share

A net loss of $563 K, or $0.03 per share in Q2/13, compared with a net loss of $1.3 M, or $0.08 per share, in Q2/12.

For Q2 ended 12/ 31/12, net revenues were $4.8 M compared to revenues to revenues of $4.1 M in Q1/13 and $4.77 in Q2/11. Revenues for Q2/13 versus Q2/12 reflect increased sales of BioArchive(NYSE:R) System devices, offset by declines in BioArchive disposable revenues, as well as CryoSeal product sales--which the KOOL divested in Q1/13. Costs of revenues were $2.826 M with a gross profit of $1.97 M. SG&A expenses were $1.82M while R&D expenses were $714 K with total operating expense logging in at $2.53 M.

  • KOOL ended the quarter with $7.5 M in cash compared with $8.8 M at Q1/13 and $7.9 M in FY12. The KOOL's backlog at the end of Q2 was approximately $714 K.

The first six months of FY13: KOOL <a 6/29 year end> reported net income of $432 K, or $0.03 per diluted share, compared to a net loss of $2.5 M, or $0.15 per share, in the 1st 6 months of 2012. The results for the 1st 6 months of 2013 include a gain on sale of $2 M related to the CryoSeal transaction. KOOL also has encouraging data from the critical limb ischemia (NYSE:CLI) clinical evaluation of the MXP in Naples; a P1 study that used the MXP platform to produce cell concentrate for use in treating peripheral artery disease patients with CLI.

The Bottom line: Q2 demonstrated improvement in gross margins and reduce operating expenses and the net loss by more than 50% versus Q2/12. Revenues increased nearly $700 K versus Q1/13. Together with the $500 K, KOOL received at the end of Q2 divestitures have generated ... a total of $3.5 M in cash with $2.5 M received in the last 6 months. Restructuring and streamlining initiatives have reduced operating and overhead expenses by more than $2 M annually.

Their cash position is good … compared to the past ... so expect KOOL to pick up the price appreciation to above the NASDAQ limit of $1.00. On 11/15/12, KOOL received a notice from the NASDAQ notifying them that for 30 consecutive business days and have been provided with 180 calendar days (until 5/14/13) to regain compliance. The key will be breaking beyond the 50 day moving average of $0.93 and the comparable 200 day of $0.93. Momentum has been slow due to moderate volume which has been well below the 10 day numbers. KOOL had 1 day of compliance since 1/2/13. Ranking - BUY and a target pricing of $1.10 to $1.20 in the next 6 months.

KOOL closed at $0.98, down $0.01 or -0.61%.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.