Q2 2008 Highlights
- Total sales increased by 40% to $604,996, compared to $431,133 in Q2
- Canadian and U.S. product sales increased by 7% and 97%,
respectively, compared to Q1 2008
- R&D expenses rose to $63,589 versus $22,168 in Q2 2007 due to
accelerated spending on TLC-3000 photodynamic technology
- Launched the new Theralase Laser Rehabilitation Centre and appointed
a new clinic director
- Appointed a Vice President, Business Development to help expand into
Canada and the U.S.
TORONTO, Aug. 25 /CNW/ - Theralase Technologies Inc. (TSXV: TLT) today
announced financial results for the three and six months ended June 30, 2008.
"The European sale of photodynamic light systems boosted total sales in
the second quarter and could lead to further international sales," said Roger
Dumoulin-White, President and CEO of Theralase Technologies. "Product sales,
particularly in the U.S., showed strong growth over the prior quarter helped
by the hiring of new sales representatives in Q1 2008. With the appointment of
our new VP of Business Development, Mark Lemieux, we believe we can accelerate
our sales and marketing initiatives in Canada and the U.S in the coming
"During the quarter, we continued to make progress developing our next
generation therapeutic laser, the TLC-2000, which we expect to start selling
in the first quarter of 2009. Our planned clinical studies at the Mayo Clinic
and the Scripps Institute should demonstrate the efficacy of the new
technology. We are also developing a TLC-3000 alpha prototype, which when used
with our patented photodynamic compounds, has the ability to destroy cancer
cells. This prototype is slated to be delivered to University Health Network
for pre-clinical evaluation in the third quarter."
Revenue for the three months ended June 30, 2008 was $604,996, an
increase of 40% over $431,133 in the same period in 2007 and a rise of 87%
compared to $324,026 in Q1 2008.
Product and product-related sales increased 41% to $597,289 from $423,306
in Q2 2007 mainly due to the sale of photodynamic light systems to a European
pharmaceutical company. Canadian product sales decreased by 3% to $248,961 but
increased 7% compared to Q1 2008. Product sales to the U.S. decreased by 2% to
$163,842 but increased 97% from $83,316 in Q1 2008. The year-over-year
decrease is primarily a result of a reduction in smoking cessation product
sales and the weakness in the U.S. currency. U.S. product sales are expected
to improve as the Company executes on its plans to hire and deploy U.S.
regional sales representatives.
Clinic services revenue declined by 1% to $7,707 compared to $7,827 in Q2
2007 as the Company's relocation in August 2007 temporarily shut down the
Theralase clinic. The Company expects clinic services revenue to increase
going forward due to the hiring of a new clinic director and the July 2008
launch of the Theralase Rehabilitation Laser Center, an in-house therapeutic
facility which will be used to treat patients as well as to showcase
Theralase's products to its customers.
Gross margin was $387,078, or 64% of revenue, compared to $323,535, or
75% of revenue, in the corresponding period in the prior year. The change is
primarily due to the addition of production personnel as well as the lower
margin achieved on the production of the photodynamic light systems.
Operating expenses rose to $609,596, or 101% of sales, from $497,354, or
115% of sales in Q2 2007. The majority of the year-over-year increase related
to the addition of new internal sales personnel, increased marketing,
accelerated spending on the research and development of the TLC-2000 and
TLC-3000 laser systems and administration expenses.
The net loss for the three months ended June 30, 2008 was $222,581, which
included $49,799 of non-cash expenses (amortization, stock-based compensation
expense, foreign exchange gain/loss and lease inducements). This compares to a
net loss for the three months ended June 30, 2007 of $176,463, which included
$173,292 of non-cash expenses.
During the second quarter of 2008, cash and cash equivalents decreased by
$229,445 to $239,463. The most significant impact to the cash outflow was the
net loss for the period and an increase in accounts receivable of $154,991, of
which over 63% has since been received.
Key Corporate Developments
TLC-2000: Biofeedback Laser Technology
In the second quarter, Theralase negotiated clinical studies, in
conjunction with the Mayo Clinic (Rochester, Minnesota) and the Scripps
Institute (La Jolla, California), to demonstrate the efficacy of the TLC-2000
technology in the areas of knee osteoarthritis and diabetic wound healing,
respectively. These clinical studies, if proven successful, could secure a new
Current Procedural Terminology (CPT) code for reimbursement of laser
treatments in the U.S. Theralase expects to starts selling the TLC-2000 in the
first quarter of 2009.
TLC-3000: Cancer Therapy and Wound Healing
In preparation for the next round of pre-clinical investigation,
Theralase has designed and produced the alpha prototype of the TLC-3000 light
source used to activate its patented PDCs in the presence of additional cancer
cell lines. The TLC-3000 alpha prototype is slated to be delivered in early
September 2008 to University Health Network for pre-clinical evaluation.
Published results on the analysis of the PDCs are expected in the late third
quarter to early fourth quarter of 2008.
Photodynamic Therapy (PDT) Light Systems
In April 2008, Theralase announced that the Company was chosen by a
European pharmaceutical company to contract manufacture prototype photodynamic
therapy (PDT) light-based systems for delivery in the second and third quarter
of 2008. These PDT light systems have been completed and delivered as per
schedule. These systems are to be used in combination with the European
pharmaceutical company's proprietary photosensitisers (light sensitive
compounds) in clinical studies commencing in the fourth quarter of 2008.
The Company continues to invest in its future through expanding its U.S
sales force for its TLC-1000 laser technology, commercializing its patented
TLC-2000 biofeedback technology and researching and developing its TLC-3000
photodynamic compounds aimed at the destruction of cancer. Theralase will also
increase its revenue by exploring new vertical medical markets (i.e. dental,
veterinarian and physician), introducing a recurring revenue model and a
take-home consumer laser system, leveraging its therapeutic laser
rehabilitation and training center and partnering with existing medical
facilities to create Theralase certified laser centers.
The complete consolidated financial statements and MD&A for three and six
months ended June 30, 2008 can be found at www.theralase.com and
Theralase Technologies Inc. designs, develops and manufactures patented,
super-pulsed laser technology used in a wide range of bio-stimulation and
bio-destruction clinical applications. The Theralase technology platform
targets several diverse healthcare sectors: firstly, for non-invasive pain
management and clinical therapy, in hundreds of neural muscular skeletal
conditions, including arthritis; secondly, to bio-stimulate and accelerate
wound care and healing, including bone fracture regeneration; and thirdly,
combining photodynamic compounds with super-pulsed, biofeedback laser
technology to attack specifically targeted cancer, bacteria, viruses and fat
This press release contains forward-looking statements which reflect the
Company's current expectations regarding future events. The forward-looking
statements involve risks and uncertainties. Actual results could differ
materially from those projected herein. The Company disclaims any obligation
to update these forward-looking statements.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the contents of this
For further information:
For further information: Roger White, President & CEO, Toll Free:
1-866-THE-LASE (843-5273), Phone: (416) 447-8455, e-mail:
email@example.com; Vanessa Beresford, The Equicom Group, Phone: (416)
815-0700 ext 227, e-mail: firstname.lastname@example.org