Hamilton Thorne Announces 2012 Second Quarter Financial Results

BEVERLY, MA and TORONTO--(Marketwire -08/30/12)- Hamilton Thorne Ltd. (HTL.V), 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 second quarter and six months year-to-date ended June 30, 2012.

"During the second quarter of 2012, Hamilton Thorne sales declined versus the prior year, interrupting the trend of nine consecutive quarters of year-over-year growth. Laser sales were down slightly, while CASA sales were off substantially, due in part to cyclical fluctuations in demand, particularly for toxicology products, and due in part to purchase deferrals in anticipation of new product announcements," said David Wolf, President and Chief Executive Officer of Hamilton Thorne Ltd. "While our year-to-date sales decline was disappointing, we expect to see a return to steady growth as the demand for new products such as our LYKOS and XYRCOS lasers continues to grow, as the refreshed CASA product line roll-out proceeds, and as our new IMSI-Strict software captures market share."

Mr. Wolf continued, "In order to utilize our resources more effectively, we have reduced our R&D and marketing spending in new market development and have refocused our resources on penetrating and dominating the clinical IVF market and the animal fertility markets where Hamilton Thorne has an established business, strong brand recognition and quality products to truly transform the industry. Also, to increase our sales efficiency, we have realigned our sales personnel around target markets, rather than on a product-line basis. These changes, along with strong expense controls, have allowed us to right-size our overhead structure with a goal to be operational breakeven with sales in the range of $1.8 million per quarter, which are levels we achieved in three of four quarters in 2011."

Hamilton Thorne's well-respected CASA product line and cutting-edge ZILOS-tk and LYKOS clinical lasers have been leading products in their respective fertility fields. The Company believes that the clinical market will continue to be a strong growth opportunity as investments are increasing by an average of 10-20% in IVF clinic expansion and annual IVF cycles(1). Growth in mature markets like Europe and the United States is driven by adoption of new procedures such as pre-genetic diagnostic diagnosis (PGD), for which Hamilton Thorne's LYKOS laser with Multi-Pulse software is ideally suited. Emerging markets have increasingly become important sales opportunities for the Company with the rise of disposable income and the increased need for assisted reproductive services as dual income families delay child birth. Signs of growth and capital markets interest in the sector have been evident in recent VC investments and several M&A deals announced in the first half of 2012.

(1)US and Global data (exc. Canada) published by American Society for Reproductive Medicine (ASRM) in 2009.

Second Quarter Highlights

Financing Highlights:

The Company is continually exploring additional sources of funding to augment its cash position by raising additional equity, expanding its existing line of credit, and other financing alternatives. The Company is also exploring other strategic options to maximize shareholder value.

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.

Originally posted here:
Hamilton Thorne Announces 2012 Second Quarter Financial Results