Total Revenues More Than Double for the Second Consecutive
Quarter
Company to Hold Investment Community Conference Call at 2:00
p.m. Eastern Today
BSD Medical Corporation (NASDAQ: BSDM) (Company or BSD)
(www.BSDMedical.com), a leading provider of medical systems that
treat cancer and benign diseases using heat therapy, today reported
financial results for the three months and six months ended
February 28, 2014.
Second Quarter of Fiscal 2014 Highlights (all comparisons
with the second quarter of fiscal 2013)
- Total revenues increased 106% to $1.7
million
- Operating costs and expenses declined
slightly to $2.2 million
- Net loss of $1.5 million, an
improvement of $.4 million from $1.9 million
First Half of Fiscal 2014 Highlights (all comparisons
with the first half of fiscal 2013)
- Total revenues doubled to $3.0 million
compared to $1.5 million
- Gross margin improved to 48%, from
40%
- Operating costs and expenses were
reduced to $4.4 million from $4.7 million
- Net loss of $3.0 million dollars, a
$1.1 million improvement from a net loss of $4.1 million
- Total sales backlog of $1.6 million, a
96% increase
The Company reported cash and equivalents of $7.0 million and no
debt at February 28, 2014.
Management Commentary
“We are pleased to report our second consecutive quarter of more
than 100% year-over-year revenue growth, and a reduced loss,” said
Harold Wolcott, President of BSD Medical. “Our higher revenues are
primarily from increasing sales of our MicroThermX products. Our
operating costs and expenses remained relatively unchanged from the
prior year, even though we more than doubled total revenues. By
increasing sales and reducing operating costs and expenses, we
significantly reduced our net loss, compared with the same prior
year periods.”
“BSD is very encouraged with the progress and the sales momentum
for the MicroThermX system under our exclusive master distribution
agreement with Terumo Europe NV. Terumo has already established
sales in many of the Western European countries. Terumo will now
expand its marketing into additional Western European countries,
Eastern European countries, and several other markets defined in
the distribution agreement,” Mr. Wolcott added. “We see tremendous
potential for the MicroThermX Microwave Ablation System to meet the
worldwide market trend toward effective, less invasive and more
cost-effective therapies.”
“With the recent approval by the Taiwan Food and Drug
Administration for the BSD-2000 Hyperthermia System, we were able
to ship additional hyperthermia systems in the first half of fiscal
2014. Our distributor in Taiwan has also committed to purchase
other BSD-2000 Hyperthermia Systems before the end of BSD’s current
fiscal year,” Mr. Wolcott concluded.
Second Quarter and First Half of Fiscal 2014 Operating
Summary
BSD reported total revenues for the second quarter of fiscal
year 2014 of $1.7 million, more than doubling the $0.8 million from
the second quarter of fiscal year 2013. This increase in revenues
was driven primarily by increased sales of MicroThermX products and
the sale of two hyperthermia systems. The Company has a current
sales backlog of $1.6 million.
Gross margin was $0.8 million, or 45% of total revenues, for the
second quarter of fiscal 2014, compared to $0.4 million, or 49% of
total revenues, for the same period last year. Lower gross margin
percent resulted from a change in product mix.
Operating costs and expenses declined slightly to $2.2 million
during the second quarter of fiscal 2014 from $2.3 million in the
comparable prior year period.
Increased sales and lower operating costs and expenses resulted
in a reduction in our net loss. The Company reported a net loss of
$1.5 million, or $0.04 per share, for the second quarter of fiscal
2014, compared with a net loss of $1.9 million, or $0.06 per share,
for the second quarter of fiscal 2013.
Total revenues for the first half of fiscal 2014 increased 104%
to $3.0 million, from $1.5 million in the prior year. Gross margin
was $1.5 million, or 48% of total revenues, for the six months
ended February 28, 2014, compared with $0.6 million, or 40% of
total revenues, for the six months ended February 28, 2013.
Operating costs and expenses for the first half of 2014 decreased
to $4.4 million from $4.7 million in the prior year period. Net
loss for the first half of fiscal 2014 declined to $3.0 million
dollars, or $0.09 per share, from a net loss of $4.1 million, or
$0.14 per share, for the first half of fiscal 2013.
Conference Call
Management will hold a conference call today at 2:00 p.m.
Eastern time/12:00 p.m. Mountain time to discuss financial results
and provide a business update. Individuals may participate on the
call by dialing 877-941-1466 in the U.S. or 480-629-9870 outside
the U.S. and entering passcode 4673204. A telephone replay will be
available until April 16, 2014, by dialing 800-406-7325 in the U.S.
or by dialing 303-590-3030 outside the U.S. and entering conference
ID 4673204. The conference call will be available via webcast for
90 days by visiting the Investor Relations section of the Company's
website at www.BSDMedical.com.
About BSD Medical Corporation
BSD Medical Corporation develops, manufactures, markets and
services systems to treat cancer and benign diseases using heat
therapy, which is delivered using focused radiofrequency (RF) and
microwave energy. BSD’s product lines include both hyperthermia and
ablation treatment systems. BSD’s MicroThermX microwave ablation
system has been developed as a stand-alone therapy to employ
precision-guided microwave energy to ablate (destroy) soft tissue.
The Company has developed extensive intellectual property, multiple
products in the market and established distribution in the United
States, Europe and Asia. Certain of the Company’s products have
received regulatory approvals and clearances in the United States,
Europe and China. For further information visit BSD Medical's
website at www.BSDMedical.com.
Forward-Looking Statements.
This press release contains forward-looking statements, which
are subject to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, including statements relating to its
financial results and expectations, Terumo’s marketing plans, the
potential for the MicroThermX Microwave Ablation System, the
purchasing plans of our distributor in Taiwan and hyperthermia
revenue opportunities. Readers are cautioned that these
forward-looking statements are only predictions and may differ
materially from actual future events or results due to a variety of
factors, including, among other things, the demand for the
Company’s products, the ability of the Company to produce the
products to meet the demand, global economic conditions and
uncertainties in the geopolitical environment and other risk
factors set forth in the Company’s most recent reports on Form 10-K
and Form 10-Q. Any forward-looking statements in this release are
based on limited information currently available to the Company,
which is subject to change, and the Company will not necessarily
update the information.
BSD MEDICAL CORPORATION Condensed Balance
Sheets (Unaudited)
ASSETS
February 28,
2014
August 31,
2013
Current assets: Cash and cash equivalents $
7,023,187 $ 9,450,528 Accounts receivable, net of allowance for
doubtfulaccounts of $20,000
669,988
899,969
Related party trade accounts receivable 5,026 24,201 Inventories,
net 2,430,385 2,445,770 Other current assets 153,565
200,028 Total current
assets 10,282,151 13,020,496 Property and equipment, net
1,286,087 1,319,880
$ 11,568,238 $ 14,340,376
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities: Accounts payable $ 334,085 $ 521,417 Accrued
liabilities 623,179 573,880 Customer deposits 324,630 317,480
Deferred revenue – current portion 693,808
730,593 Total current
liabilities 1,975,702 2,143,370 Deferred revenue – net of
current portion 13,038
53,115 Total liabilities 1,988,740
2,196,485 Commitments and
contingencies Stockholders’ equity:
Preferred stock, $.001 par value;
10,000,000 sharesauthorized, no shares issued and outstanding
-
-
Common stock, $.001 par value, 80,000,000 sharesauthorized,
34,006,202 shares issued
34,007
34,007
Additional paid-in capital 58,157,627 57,739,056 Treasury stock,
24,331 shares at cost (234 ) (234 ) Accumulated deficit
(48,611,902 ) (45,628,938 )
Total stockholders’ equity 9,579,498
12,143,891 $ 11,568,238
$ 14,340,376
BSD MEDICAL CORPORATION
Condensed Statements of Comprehensive
Loss
(Unaudited)
Three Months Ended Six Months Ended
February 28,2014 February
28,2013 February
28,2014 February 28,2013
Revenues: Sales $ 1,616,076 $ 766,084 $
2,847,635 $ 1,283,698 Sales to related parties 1,748 6,275 18,434
76,546 Equipment rental 72,900
46,900 155,300
118,800 Total revenues 1,690,724
819,259
3,021,369 1,479,044
Cost of Revenues: Cost of sales 918,426 411,365 1,547,137
820,235 Cost of related party sales 259 5,069 7,913 66,446 Cost of
equipment rental 2,947 2,947
5,894
5,894 Total cost of revenues 921,632
419,381
1,560,944 892,575
Gross margin 769,092 399,878
1,460,425
586,469 Operating costs and expenses: Research
and development 559,287 558,691 1,062,044 1,085,958 Selling,
general and administrative 1,682,319
1,705,682 3,387,032
3,594,931 Total operating
costs and expenses 2,241,606
2,264,373 4,449,076
4,680,889 Loss from operations
(1,472,514 ) (1,864,495 )
(2,988,651 ) (4,094,420 )
Other income (expense): Interest income 5,104 6,720 11,427 16,666
Other expense (2,693 ) (3,622 )
(5,740 ) (2,307 )
Total other income 2,411 3,098
5,687
14,359 Loss before income taxes (1,470,103 )
(1,861,397 ) (2,982,964 ) (4,080,061 ) Income tax benefit
- -
- - Net
comprehensive loss $ (1,470,103 ) $ (1,861,397 )
$ (2,982,964 ) $ (4,080,061 )
Net loss per common share: Basic $ (0.04 ) $
(0.06 ) $ (0.09 ) $ (0.14 )
Diluted $ (0.04 ) $ (0.06 ) $
(0.09 ) $ (0.14 )
Weighted average number of
sharesoutstanding:
Basic 33,982,000 29,778,000 33,982,000 29,778,000 Diluted
33,982,000 29,778,000 33,982,000 29,778,000
BSD MEDICAL CORPORATION
Condensed Statements of Cash
Flows
(Unaudited)
Six Months Ended February 28,2014
February 28,2013 Cash flows from
operating activities: Net loss $ (2,982,964 )
$ (4,080,061 ) Adjustments to reconcile net loss to net cash usedin
operating activities: Depreciation and amortization 61,377 70,026
Stock-based compensation 418,571 576,332 Decrease (increase) in:
Receivables 249,156 (183,526 ) Inventories 15,385 23,922 Other
current assets 46,463 (53,308 ) Increase (decrease) in: Accounts
payable (187,332 ) 103,455 Accrued liabilities 49,299 212,304
Customer deposits 7,150 16,270 Deferred revenue (76,862 )
(43,337 ) Net cash used in
operating activities (2,399,757 )
(3,357,923 ) Cash flows from investing activities:
Purchase of property and equipment (27,584 )
(12,739 ) Cash flows from financing activities
- - Net
decrease in cash and cash equivalents (2,427,341 ) (3,370,662 )
Cash and cash equivalents, beginning of the period 9,450,528
11,102,508 Cash
and cash equivalents, end of the period $ 7,023,187
$ 7,731,846
BSD Medical CorporationWilliam Barth, 801-972-5555Fax:
801-972-5930investor@bsdmc.com