 |
TSO3 posts sustained revenue momentum and reduced expenses in the third quarterOctober 31, 2008Highlights from the third quarter 2008: Continued sales momentum with revenues of $725,257 Various initiatives result in efficiency gains and operating cost reductions Vendor partnership agreement formed with major U.S. based group purchasing organization Progress made in reducing sales and order/installation cycles Product development efforts include expanding the use of Sterizone® 125L Ozone Sterilizer Quebec, October 31, 2008 – Mr. R.M. (Ric) Rumble, President and Chief Executive Officer of TSO3 Inc. (“TSO3”) (TSX: TOS), is pleased to announce that the Company experienced continued sales momentum during the third quarter ended September 30, 2008. In total, five Sterizone® 125L Ozone Sterilizers and associated accessories were sold for revenues of $725,257. This compares to revenues of $281,525 for the same period last year. Sales for the first nine-months of 2008 were $1,853,584. This is up from $1,055,401 for the same period in 2007. “In the third quarter, TSO3 built on the sales momentum it has been steadily gaining since early in the second quarter. The Company recorded sales during each month of the third quarter, resulting in six consecutive months of revenue growth. I expect this trend to continue in the coming quarter driven by product enhancement plans, a promising new vendor partnership agreement and a marketing strategy emphasizing increased account segmentation,” said Mr. Rumble. New initiatives show results Various commercial, operational and technological initiatives implemented in the second quarter continued to produce positive results in the third quarter. These measures included better alignment of TSO3’s products to suit market needs and the optimization of financial resources, resulting in efficiency gains and operating cost reductions. “Due to measures initiated early in the second quarter, we have reduced the monthly burn-rate by about $150,000 as previously announced in June. This will enable TSO3 to conserve liquidities in a difficult financial market environment. At the same time, the Company is benefiting from rising revenues,” added Mr. W. Barry McDonald, who held the position of Interim President and Chief Executive Officer until mid October. Progress has also been made in reducing the sales and order/installation cycles, allowing TSO3 to capture sales sooner and permit customers to begin using the Sterizone® 125L Ozone Sterilizer more rapidly. These efforts will translate into nearer term and ongoing after-sale revenues from consumables and service contracts. R&D achievements R&D product development efforts have shown encouraging results. In particular, the Company is confident that current programs for expanding use of its Sterizone® 125L Ozone Sterilizer will produce positive results. Vendor partnership agreement In early October, TSO3 was proud to announce that the Company has been selected as a vendor partner by the Mid-Atlantic Group Network of Shared Services (MAGNET), one of the oldest and largest group purchasing organizations in the United States. East coast-based MAGNET, serves 11,000 health care providers including 750 acute care hospitals by offering access to a contract portfolio of high-quality capital equipment and services. As a vendor partner, TSO3 will supply MAGNET's members with its low temperature ozone sterilization system for hospital environments. New President and CEO In early October, TSO3 announced the appointment of Mr. R.M. (Ric) Rumble as President and Chief Executive Officer of the Company effective October 14, 2008. Prior to this appointment, Mr. Rumble held the position of President of BERCHTOLD Corporation. For 25 years he has held a variety of management and executive positions at leading medical device manufacturers in Canada and the United States. These previous positions include: Vice President, Sales & Marketing for Strategic Diagnostics Inc., Vice President and General Manager of STERIS Corporation, a global leader in health care sterilization business and President and Chief Executive Officer of MediVators Inc. “I would like to express my appreciation to Mr. W. Barry McDonald who held the position of Interim President and CEO until my recent appointment. With the talented and dedicated team at TSO3, Mr. McDonald has greatly contributed toward laying a foundation for the Company’s growth and prosperity. I am excited to take on the challenge of building this innovative and dynamic enterprise to new heights,” concluded Mr. Rumble. Conference call TSO3 will host a conference call this morning at 11:00 A.M. (ET). Analysts and institutional investors are invited to participate. The numbers to dial for access are (514) 807-8791 (Montréal area), (416) 644-3414 (Toronto area) or the toll-free number 1-800 732-9303. 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 Sterizone® 125L Ozone Sterilizer, is designed for sterile processing centers in the hospital environment. In contrast to other methods used, the ozone sterilization process developed and patented by TSO3 meets all standards required by the evolution in sterilization needs, which are: significant costs savings, increased safety for patients and hospital staff, and a “green” environmentally safe process. The Company believes that its technology represents an advantageous replacement solution to other low temperature sterilization processes currently used in hospitals. The Sterizone® 125L Ozone Sterilizer is cleared for commercialization by the US Food and Drug Administration and by Health Canada. TSO3 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. - 30 - Source: TSO3 Inc. Information: Marc Boisjoli CFO (418) 651-0003, ext. 228 mboisjoli@tso3.com Frédéric Tremblay HKDP Tel.: 514 395-0375, ext. 234 ir@tso3.com |
© 2005-2008 TSO3. All Rights Reserved.
