HAMILTON THORNE ANNOUNCES 2012 FIRST QUARTER FINANCIAL RESULTS

Sales Increases Fueled By Significant Growth in the Americas and Asia-Pacific  

BEVERLY, MA and TORONTO, Ontario – May 29, 2012 - Hamilton Thorne Ltd. (TSX-V: HTL), a leading provider of precision laser devices and advanced image analysis systems for the fertility, stem cell and developmental biology research markets, today reported operational and financial results for the first quarter ended March 31, 2012.

“In the first quarter of 2012, revenues increased to $1.6 million, exceeding the prior year by 8.9%, led by a strong quarter for our CASA image analysis products and the continued  steady demand for the new LYKOS® laser system,” said David Wolf, President and Chief Executive Officer of Hamilton Thorne Ltd. “Hamilton Thorne reported strong North American sales for the first quarter, and also expanded its global penetration into emerging markets such as the Asia-Pacific region with significant sales in that territory.  We are also pleased to report that we reduced our net loss for the quarter by over $200,000 through a combination of sales growth, expense controls and reduced interest expense.”

 Highlights

  • In March 2012, Hamilton Thorne launched its leading-edge XYRCOS™ laser system for advanced research applications. The XYRCOS™ laser offers a significant advance in integrated laser optics, providing additional functionality, increased resolution and compatibility with all major microscope models. The XYRCOS™, which is engineered to have the laser and RED-i ® target locator built directly inside the objective, offers benefits for cutting-edge embryo micromanipulation applications such as the creation of transgenic animals, gene targeting, and stem cell research including blastocyst injection, 8-cell injection, and laser-assisted animal model IVF.

  • Hamilton Thorne appointed Anthony (Tony) McCook as the Company’s new Vice President of Sales. Mr. McCook brings over 25 years of sales leadership and a proven track record of success in capital equipment sales in healthcare, imaging and cell biology markets. Mr. McCook has been a key driver of Hamilton Thorne’s growth strategy as the Company continues to leverage its dominant position in the laser fertility market, into lucrative markets such as cell biology and stem cell research.

  • The Company expanded its distribution partnership with Leica Microsystems GmbH of Wetzlar, Germany, a leading global producer of innovative high-tech precision optics systems for the analysis of microstructures. This new arrangement provides Leica Microsystems with access to Hamilton Thorne’s current portfolio of laser products, as well as select pipeline products including the strongly anticipated IMSI STRICT™ software for the fertility market. The expanded partnership will enable Hamilton Thorne and Leica Microsystems to further penetrate markets that have proven successful and synergistic for both companies such as fertility and cell research markets.

Financial Results

All amounts are in US dollars, unless specified otherwise, and results expressed in accordance with the International Financial Reporting Standards ("IFRS"), which replaces Canadian Generally Accepted Accounting Policies ("GAAP") effective January 1, 2010 for all publicly accountable enterprises in Canada.

For the three months ended March 31, 2012, the Company achieved a total sales increase of 8.9% to $1,574,025 for the quarter, an increase of $128,611 from $1,445,413 during the previous year.  This increase was attributable to increased demand for our existing products, additional sales derived from our new LYKOS® laser introduced in the second quarter of 2011 and improved budget availability for capital equipment purchases. 

Gross profit for the year increased 8.3% to $953,904 in the quarter-ended March 31, 2012, compared to $880,531 in the previous year.  Gross profit as a percentage of sales remained relatively steady at 60.6% versus 60.9% for the quarter-ended March 31, 2011, due primarily to product mix and discounting on volume orders.

Operating expenses were $1,401,585 for the quarter-ended March 31, 2012, reduced $98,300, or 6.6% from $1,499,885 for the previous year, and reduced significantly as a percentage of sales, down to 89% from 104% for the prior year.  The reduction in operating expenses represents continued efforts to manage expenses as the company moves towards profitability, while continuing strategic investment in R&D and sales and marketing resources.

Research and development expenses decreased from $299,447 to $268,231 for the quarter-ended March 31, 2012 as certain spending incurred in 2011 related to development of the LYKOS® laser did not recur in 2012 as well as lower patent costs. 

Sales and marketing expenses decreased from $634,177 to $615,062 for the quarter-ended March 31, 2012 primarily due to decreased costs of selling, particularly travel and trade show expenses.

General and administrative (G&A) expenses decreased from $566,261 to $518,292 for the quarter-ended March 31, 2012 due primarily to strong expense controls, and the non-repetition of 2011 foreign currency valuation adjustments related to the convertible debentures issued in August 2010 and March 2011 issued in Canadian dollars, all offsetting increased payroll expenses.  

Net interest expense decreased from $127,021 to $81,308 for the quarter-ended March 31, 2012.  The decrease was due primarily to the significant reduction of the Company’s debt as a result of the conversion of approximately $1.6 million of convertible debentures to equity and the reduction of the Company’s bank loan by $1.5 million, both of which were completed in the quarter ended September 30, 2011.

The net loss for the quarter-ended March 31, 2012 was reduced from $746,375 to $528,989 due to revenue and gross profit growth, as well as reduced spending and reduced interest expense in the quarter. 

As of March 31, 2012, the Company had 46,616,365 common shares, 5,729,440 warrants, and 4,630,393 options outstanding.

The financial statements are available on www.sedar.com.

About Hamilton Thorne Ltd. (www.hamiltonthorne.com)

Hamilton Thorne designs, manufactures and distributes precision laser devices and advanced image analysis systems for the fertility, stem cell and development biology research markets. It provides novel solutions for Life Science that reduce cost, increase productivity, improve results and enable research breakthroughs in regenerative medicine, stem cell research and fertility markets. Hamilton Thorne's laser products attach to standard inverted microscopes and operate as robotic micro-surgeons, enabling a wide array of scientific applications and IVF procedures. Its image analysis systems improve outcomes in human IVF clinics and animal breeding facilities and provide high-end toxicology analyses.

Hamilton Thorne’s growing customer base includes pharmaceutical companies, biotechnology companies, fertility clinics, university research centers, and other commercial and academic research establishments worldwide. Current customers include world-leading research labs such as Harvard, MIT, Yale, McGill, DuPont, Monsanto, Charles River Labs, Jackson Labs, Merck, Novartis, Pfizer, and Oxford and Cambridge.

Neither the Toronto Venture Exchange, nor its regulation services provider (as that term is defined in the policies of the exchange), accepts responsibility for the adequacy or accuracy of this release.

Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict including the risk that the Company may not be able to obtain the necessary regulatory approvals, as applicable. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in filings by the Company with the Canadian securities regulators, which filings are available at www.sedar.com

Hamilton Thorne Ltd.

Consolidated Statements of Financial Position

As at March 31, 2012 and December 31, 2011

(Expressed in U.S. Dollars - unaudited)

 

 

 

 

March 31, 2012

December 31, 2011

Assets

   

 

 

Current

       
 

Cash and cash equivalents

   

                    298,272

                    484,421

 

Accounts receivable

   

                    717,965

                 1,021,326

 

Inventories

   

                    846,751

                    809,731

 

Prepaid expenses and other current assets

 

                       52,025

                       67,393

 

Total current assets

   

                 1,915,013

                 2,382,871

 

Property and equipment

   

                    195,234

                    214,204

 

Other assets

 

 

                    110,783

                    110,784

 

Total assets

 

 

                 2,221,030

                 2,707,859

           

Liabilities

       

Current

       
 

Accounts payable and accrued liabilities

   

                 1,433,850

                 1,393,090

 

Notes payable

   

                    340,958

                    338,961

 

Capital lease obligations, current

   

                       30,860

                       30,860

 

Deferred revenue

 

 

                       68,377

                       84,066

 

Total current liabilities

   

                 1,874,045

                 1,846,977

 

Capital lease obligations, non-current

   

                       70,694

                       80,202

 

Deferred revenue, long-term

   

                       28,000

                       28,000

 

Long-term debt

 

 

                 3,500,000

                 3,500,000

 

Total liabilities

 

 

                 5,472,739

                 5,455,179

           

Shareholders' Equity (Deficiency)

     
 

Common shares

   

               28,699,248

               28,699,248

 

Warrants

   

                    280,213

                    280,213

 

Contributed surplus

   

                    823,223

                    798,623

 

Accumulated deficit

 

 

             (33,054,393)

             (32,525,404)

 

Total Shareholders' equity (deficiency)

 

 

               (3,251,709)

               (2,747,320)

 

Total Liabilities and shareholders' equity (deficiency)

                 2,221,030

                 2,707,859

           

 

 

 

 

 

 

Hamilton Thorne Ltd.

Consolidated Statements of Operations and Comprehensive Loss

For the three months ended March 31, 2012 and 2011

(Expressed in U.S. Dollars - unaudited)

           

 

 

 

 

2012

2011

Sales

   

                 1,574,025

                 1,445,413

Cost of sales

 

 

                    620,121

                    564,883

Gross profit

 

 

                    953,904

                    880,530

Expenses

       
 

Research and development

   

                    268,231

                    299,447

 

Sales and marketing

   

                    615,062

                    634,177

 

General and administrative

 

 

                    518,292

                    566,261

Total expenses

 

 

                 1,401,585

                 1,499,885

           

Loss from operations

   

                   (447,681)

                   (619,355)

           

Other income (expense)

       
 

Interest expense including accretion

   

                     (81,308)

                   (127,021)

 

Interest income

 

 

                                -  

                                -  

           

Net loss and comprehensive loss

 

 

                   (528,989)

                   (746,376)

           

Loss per share    

       
 

Basic

   

 $                      (0.01)

 $                      (0.03)

 

Diluted

   

 $                      (0.01)

 $                      (0.03)

           

Weighted average number of common shares outstanding 

   
 

Basic

   

               46,615,365

               24,415,157

 

Diluted

   

               46,615,365

               24,415,157

           

 

 

 

 

 

 

           

Hamilton Thorne Ltd.

Consolidated Statements of Cash Flows

For the three months ended March 31, 2012 and 2011

(Expressed in U.S. Dollars - unaudited)

 

 

 

 

2012

2011

       

 

 

Cash flows from operating activities

       

Net loss for the year

   

                   (528,989)

                   (746,376)

Adjustments to reconcile net loss to net cash used in

   

  operating activities:

       
 

Depreciation and amortization

   

                       20,100

                       14,460

 

Non-cash interest expense/accretion

   

                       25,627

                    109,374

 

Share-based payments expense

   

                       24,600

                       39,750

 

Changes in non-cash operating assets and liabilities:

   
 

  Accounts receivable

   

                    303,361

                    262,195

 

  Inventories

   

                     (37,020)

                     (77,814)

 

  Prepaid expenses and other current assets

 

                       15,368

                       10,793

 

  Other assets

   

                                 1

                       (1,585)

 

  Accounts payable and accrued liabilities

   

                       31,680

                           (309)

 

  Deferred revenue

 

 

                     (15,689)

                     (14,034)

Net cash flows used in operating activities

 

 

                   (160,961)

                   (403,546)

           

Cash flows used in investing activities

       

 

Purchase of capital assets

 

 

                       (1,130)

                     (20,440)

           

Cash flows from financing activities

       
 

Proceeds from debt

   

                                -  

                    574,890

 

Payments on debt

   

                     (24,058)

                     (18,163)

Net cash flows provided by (used in) financing activities

                     (24,058)

                    556,727

           

Net Increase (decrease) in cash and cash equivalents

                   (186,149)

                    132,741

Cash and cash equivalents, beginning of period

 

                    484,421

                    714,498

Cash and cash equivalents, end of period

 

 

                    298,272

                    847,239

       

  

  

Supplemental disclosure of cash flow information:

     

Cash paid during the period for interest

   

                       62,129

                       61,335

Supplemental disclosure of non-cash financing activities:

   
 

Equipment acquired under capital lease

   

                                -  

                       21,436

 

 

 

 

 

 



Subscribe to Our Investor Email List