BSD Medical Misses in 3Q

Zacks

BSD Medical Corporation (BSDM), a leader in providing medical systems for treatment of cancer and other invasive diseases, reported a third-quarter fiscal 2012 loss per share of 7 cents, higher than the Zacks Consensus Estimate of a loss of 6 cents. The year-ago loss was 3 cents a share.

Net loss for the quarter came in at $2.1 million compared with a net loss of $0.8 million in the prior-year quarter.

Revenues

Revenues dwindled 61.1% year over year to $0.6 million in the reported quarter, missing the Zacks Consensus Estimate of $1.0 million.

Despite increased sales of disposable Synchro Wave antennae, coupled with profitable rental fees for its MicroThermX Microwave Ablation System, revenues declined due to falling hyperthermia system sales. Austerity measures in the international markets and the impact of healthcare reforms in the domestic market were primarily responsible for lower hyperthermia system sales.

Margins

Gross margin in the reported quarter came in at 30.8% compared with 61.7% in the year-ago period.

Selling, general and administrative expenses increased 20.0% year over year to $1.7 million in the reported quarter while research and development expenses rose 33.1% year over year to $0.6 million.

Balance Sheet

BSD Medical exited the third quarter with cash and cash equivalents to $12.7 million, down 25.7% since August 31, 2011. The company had no long-term debt as of May 31, 2012.

BSD Medical is a developer, manufacturer and supplier of medical systems which deliver accurate radio-frequency and microwave energy for the treatment of cancer. The company’s revenues currently rely on a small number of systems. It plans to enhance its product portfolio to diversify its sales base in the near-term.  

The company faces a tough competitive landscape which includes players like Boston Scientific Corporation (BSX) and AngioDynamics Inc. (ANGO). Additionally, the economic crisis and government healthcare reforms remain as overhangs.

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