TSO3 announces financial results for Q1 2009
The Company posts sales growth;takes decisive steps in its development
Highlights of Q1 2009 and recent weeks:
The sale of three units and accessories for total revenues of $533,488, compared to revenues of $91,147 in the first quarter of 2008 generated by the sale of accessories only;
Health Canada’s authorization for the sterilization of multi-channel flexible endoscopes and Food and Drug Administration filing for similar expanded claims;
Announced second cycle to be added to new and current base of already installed TSO3 STERIZONE® 125L sterilizers, further enhancing the technologies utility.
Election of Mr. W. Barry McDonald and Mr. Jean-François Bureau to the Company’s Board of Directors.
Quebec, May 15, 2009 – TSO3 Inc. (“TSO3”) (TSX: TOS) posted revenues of $533,488 during the first quarter of 2009, compared to $91,147 for the same period last year. During the first three months of the current fiscal year, the Company sold three units of its STERIZONE® 125L sterilizer and accessories, whereas it sold only accessories in the same quarter of 2008.
The Company’s net loss during the first quarter of 2009 was almost $2.0 million or $0.04 per share, whereas it was $2.2 million or $0.05 per share during the same period last year.
“Our sales growth in the first quarter of 2009, compared to the same period last year, is encouraging and indicates that our technology is receiving increasing support from our target clientele. Various initiatives which we have recently implemented to expand the range of medical instruments that can be processed by our STERIZONE® 125L sterilizer should further drive this trend in the coming months and strengthen our competitive position in our target markets,” said Mr. R.M. (Ric) Rumble, President and Chief Executive Officer of TSO3.
The first true alternative to ethylene oxide
In recent weeks, the Company took decisive steps in its development by introducing various initiatives that are positioning TSO3’s STERIZONE® 125L sterilizer as the first true alternative to legacy ethylene oxide-based sterilization systems commonly used in hospitals, which is a toxic chemistry and an environmental pollutant.
On March 31, 2009, Health Canada authorized the use of TSO3’s STERIZONE® for the sterilization of multi-channel flexible endoscopes. A submission for clearance for similar expanded claims has also been filed with the Food and Drug Administration (FDA). The Company is currently awaiting a decision on this filing.
On April 30, 2009, during its Annual General Meeting, the Company also announced its decision to add a second cycle to its STERIZONE® 125L sterilizer. This new cycle, while offering the same sterilization efficacy as the current base cycle, will allow TSO3’s STERIZONE® 125L to sterilize a wider range of fragile and delicate medical instruments causing less wear and tear.
TSO3 expects that its existing clients will have access to this additional cycle through the use of a field upgrade after the cycle has cleared the appropriate regulatory requirements. Later this year, the Company will file for clearance with Canadian and American regulatory authorities for approval of this new cycle currently under development.
Promising initiatives
“These various initiatives are highly promising for TSO3 since they permit hospitals to have a true alternative solution to ethylene oxide, a toxic process that is presently the only method of sterilizing the most delicate and complex medical instruments. Compared to ethylene oxide-based systems, our solution is more efficacious, more economical and is not a threat for employee safety and the environment. In accordance with our vision, we now have all the tools necessary to make our technology the new standard for low temperature sterilization in a hospital environment,” said Mr. Rumble.
Ethylene oxide-based sterilization uses an inflammable gas that is toxic for employees and the environment. TSO3’s STERIZONE® 125L uses only oxygen, water and electricity to create a safe system for users that is highly effective and leaves no toxic residue after use.
Two new appointments to the Board of Directors
Furthermore, TSO3 also had the pleasure of welcoming two new members to its Board of Directors, Mr. W. Barry Mcdonald and Mr. Jean-François Bureau. They were elected as board members during TSO3's Annual General Meeting held on April 30, 2009. Mr. McDonald, who held the position of interim President and Chief Executive Officer of TSO3 in 2008, is Managing Partner and founder of McDonald & Associates, a strategic and transactional global health care advisory firm. Mr. Bureau is Senior Vice-President and Chief Financial Officer of DiagnoCure, a company specialized in the development and marketing of diagnostic tests for cancer detection.
Conference call
TSO3 will host a telephone conference call today, May 15, 2009 at 10:30 a.m. (ET). Analysts and institutional investors are invited to participate. The numbers to dial for access are 514 807-8791 (Montréal area), 416 644-3424 (Toronto area) or the toll-free number 1-800-594-3790. Journalists and other interested parties may listen to the live Webcast of the Conference Call accessible via TSO3's Website at: www.tso3.com. The Webcast will be archived for 90 days.
To view the full announcement, click here.
The full financial results will soon be available in the Investor's section of our Website.
About TSO3
TSO3, founded in Québec City in 1998, specializes in the research and development of innovative, high-performance medical instrument sterilization technology with high commercial potential. The Company's first product, the TSO3 STERIZONE® 125L Sterilizer, is designed for sterile processing centers in the hospital environment.
The Company believes that its technology represents an advantageous replacement solution to other low temperature sterilization processes currently used in hospitals.
TSO3’s STERIZONE® 125L Sterilizer is cleared for commercialization by the US Food and Drug Administration and by Health Canada for sterilization of metal and heat sensitive instruments and devices with diffusion-restricted spaces, such as the hinged portion of haemostats, forceps and scissors and rigid endoscopes having a single stainless steel lumen as small as 0.9 mm internal diameter and 485 mm long is in commercialization phase for this first product since 2006.
For more information about TSO3, visit the Company's Web site at www.tso3.com
The statements in this release and oral statements made by representatives of TSO3 relating to matters that are not historical facts (including, without limitation, those regarding the timing or outcome of any financing undertaken by TSO3) are forward-looking statements that involve certain risks, uncertainties and hypotheses, including, but not limited to, general business and economic conditions, the condition of the financial markets, the ability of TSO3 to obtain financing on favourable terms and other
risks and uncertainties.
The TSX has neither approved nor disapproved the information contained herein and accepts no responsibility for it.
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Source: TSO3 Inc.
For further information:
Marc Boisjoli, Chief Financial Officer
418 651-0003, ext. 228
mboisjoli@tso3.com
Frédéric Tremblay
514 658-8033
ir@tso3.com