BSD Medical Announces Financial Results for Second Quarter and First Six Months of Fiscal 2013

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BSD Medical Announces Financial Results for Second Quarter and First Six Months of Fiscal 2013

SALT LAKE CITY--(BUSINESS WIRE)-- BSD Medical Corporation (NAS: 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 its second quarter and first six months of fiscal 2013, including:

  • Total revenues of $1.5 million for the six months ended February 28, 2013 compared to total revenues of $0.9 million for the same period a year ago
  • Total revenues of $0.8 million for the second quarter ended February 28, 2013 compared to total revenues of $0.3 million of the second quarter of last year
  • Total Hyperthermia backlog of approximately $0.8 million
  • Net loss of $1.9 million for the three months ended February 28, 2013 compared to a net loss of $2.1 million for the three months ended February 29, 2012
  • Net cash used in operating activities was $1.4 million for the three months ended February 28, 2013 and $3.4 million for the six months ended February 28, 2013
  • Cash and cash equivalents of $7.7 million
  • No debt
  • Total stockholders' equity of $11.0 million

"Our results reflect solid market penetration trends for our MicroThermX® Microwave Ablation product line for the treatment of cancer," said Harold Wolcott, President of BSD. "Revenues during the first six months of fiscal 2013 increased by approximately $0.5 million over the same period last year due largely to the performance of MicroThermX, including strong sales momentum of disposable SynchroWave antennas fueled by a doubling of domestic evaluations over the last six months and our fee per use model continuing to attract new accounts.


"As we move into the second half of fiscal 2013, we are planning for a significant expansion in the distribution of our MicroThermXsystems in Europe, contingent upon our completing a Master Distribution Agreement covering the entire continent. We are working diligently on this agreement.

"It is worth noting that our quarter-end backlog figure for Hyperthermia products does not reflect purchase orders from our recently announced exclusive Taiwanese distributor Linden Bioscience (Linden). These purchase orders will be added to our backlog after import licenses have been obtained by Linden. Our relationship with Linden, with its commitment to purchase an estimated $7.1 million in BSD product over a five year period, further validates our belief that the Hyperthermia business will flourish in Asia as regulatory approvals are secured.

"We are keeping tight control of our spending, and our cash used in the quarter was $0.5 million less than we used during the first quarter of fiscal 2013," concluded Wolcott.

About BSD Medical Corporation

BSD Medical Corporation develops, manufactures, markets and services systems to treat cancer and benign diseases using heat therapy delivered using focused radiofrequency (RF) and microwave energy. BSD's product lines include both hyperthermia and ablation treatment systems. BSD's hyperthermia cancer treatment systems, which have been in use for several years in the United States, Europe and Asia, are used to treat certain tumors with heat (hyperthermia) while increasing the effectiveness of other therapies such as radiation therapy. BSD's microwave ablation system has been developed as a stand-alone therapy to ablate and destroy soft tissue. The Company has developed extensive intellectual property, multiple products in the market, and well established distribution in the United States, Europe and Asia. Certain of the Company's products have received regulatory approvals in the United States, Europe and China. For further information visit BSD Medical's website at www.BSDMedical.com.

Forward-Looking Statements

Statements contained in this press release that are not historical facts, including statements relating to our MicroThermX® line of products, are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission, including the market demand for our MicroThermX® products and the regulatory requirements we face. These forward-looking statements speak only as of the date on which such statements are made, and the Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date, except as required by law.

BSD MEDICAL CORPORATION
Condensed Balance Sheets
(Unaudited)

ASSETS
  

February 28,
2013

  

August 31,
2012

Current assets:
Cash and cash equivalents$7,731,846$11,102,508

Accounts receivable, net of allowance for doubtful accounts of $20,000

481,777

289,587

Related party trade accounts receivable24,59333,257
Inventories, net2,380,0352,403,957
Other current assets 173,377  120,069 
Total current assets10,791,62713,949,378
 
Property and equipment, net1,359,3841,412,639
Patents, net -  4,032 
 
$12,151,012 $15,366,049 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Current liabilities:
Accounts payable$299,209$195,754
Accrued liabilities637,002424,698

Customer Deposits

41,250

24,980

Deferred revenue - current portion

 

92,229

 

 

96,865

 
Total current liabilities1,069,690742,297
 
Deferred revenue - net of current portion 87,719  126,420 
 
Total liabilities 1,157,409  868,717 
 
Commitments and contingencies
 
Stockholders' equity:

Preferred stock, $.001 par value; 10,000,000 shares authorized, no shares issued and outstanding

-

-

Common stock, $.001 par value, 80,000,000 shares authorized, 29,777,522 shares issued

29,778

29,778

Additional paid-in capital52,421,36751,845,035
Treasury stock, 24,331 shares at cost(234)(234)
Accumulated deficit (41,457,308) (37,377,247)
Total stockholders' equity 10,993,603  14,497,332 
 
$12,151,012 $15,366,049 

BSD MEDICAL CORPORATION

Condensed Statements of Comprehensive Loss

(Unaudited)

    
Three Months EndedSix Months Ended
February 28,
2013
 February 29,
2012
February 28,
2013
 February 29,
2012
Revenues:
Sales$766,084$236,437$1,283,698$553,925
Sales to related parties6,27554676,546301,406
Equipment rental 46,900  34,900  118,800  75,550 
 
Total revenues 819,259  271,883  1,479,044  930,881 
 
Cost of Revenues:
Cost of sales411,365343,922820,235498,414
Cost of related party sales5,06974466,446214,183
Cost of equipment rental 2,947  2,947  5,894  5,894 
 
Total cost of revenues 419,381  347,613  892,575  718,491 
 
Gross margin (loss) 399,878  (75,730) 586,469  212,390 
 
Operating costs and expenses:
Research and development558,691582,6111,085,9581,119,346
Selling, general and administrative 1,705,682  1,457,662  3,594,931  2,912,497 
 
Total operating costs and expenses 2,264,373  2,040,273  4,680,889  4,031,843 
 
Loss from operations (1,864,495) (2,116,003) (4,094,420) (3,819,453)
 
Other income (expense):
Interest income6,72015,97016,66634,029
Other (expense) (3,622) (2,565) (2,307) (4,579)
 
Total other income 3,098  13,405  14,359  29,450 
 
Loss before income taxes(1,861,397)(2,102,598)(4,080,061)(3,790,003)
 
Income tax benefit -  -  -  - 
 
Net comprehensive loss$(1,861,397)$(2,102,598)$(4,080,061)$(3,790,003)
 
Net loss per common share:
Basic$(0.06)$(0.07)$(0.14)$(0.13)
Diluted$(0.06)$(0.07)$(0.14)$(0.13)
 

Weighted average number of shares outstanding:

Basic29,778,00029,686,00029,778,00029,686,000
Diluted29,778,00029,686,00029,778,00029,686,000



BSD Medical Corporation
William Barth, 801-972-5555
fax: 801-972-5930
investor@bsdmc.com

KEYWORDS:   United States  North America  Utah

INDUSTRY KEYWORDS:

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