- Sales up 57% year-over-year and 36% on a sequential basis -


TORONTO, Aug. 23 /CNW/ - Hamilton Thorne Ltd. (TSX-V: HTL), a leading provider of advanced laser systems and instruments for the stem cell research and fertility clinic markets, today reported operational and financial results for the second quarter ended June 30, 2010.

"The improving fundamentals of the stem cell and regenerative medicine market are reflected in our strong sales growth. Sales increased as a direct result of the increased demand for our laser products with our quarterly sales up 57% year-over-year and sales up 36% over the first quarter," said Meg Spencer, Chief Executive Officer of Hamilton Thorne Ltd. "Our focus to expand our sales reach into our markets is highlighted by the vendor partnership that we secured with Leica Microsystems, a leading micro-optics manufacturer. This partnership allows us dramatically to advance our penetration into the regenerative medicine market, to develop sales strategy collaboratively and ultimately to provide us with sales growth in North America. We intend to pursue additional distribution partnerships with leaders in the market to continue to grow our presence in labs worldwide."


  • Partnered with Leica Microsystems GmbH of Wetzlar, Germany, a leading global designer and producer of innovative high-tech precision optics systems for the analysis of microstructures. The vendor partnership enables Hamilton Thorne to draw on Leica Microsystems' specialized technical sales group and provides for the companies to work collaboratively to develop sales strategy and exchange leads to increase market penetration.
  • Launched Staccato™ multi-pulse laser system at the 8th Annual Meeting of the International Society of Stem Cell Research (ISSCR), June 16-19, 2010, in San Francisco, CA. Staccato™ will add to the functionality of the XYClone® laser system, providing the ability of near-continuous application of the laser to the sample through rapid pulsing of the beam.
  • Previewed the breakthrough Stiletto™ laser system, which is currently in beta site testing. The Stiletto™ laser system combines a proprietary laser, controller software and an automated stage for high speed scoring and separation of stem cell colonies. The Company intends to complete beta site testing and launch Stiletto™ in the second half of 2010.
  • Subsequent to quarter end, closed debentures offering of US$1.25 million.

Financial Results

All amounts are in US dollars, unless specified otherwise, and results expressed in accordance with Canadian Generally Accepted Accounting Principles (GAAP).

For the three months ended June 30, 2010, the Company recorded sales of $1,608,520, compared to $1,018,870 for the same period last year. The sales increases were attributable primarily to increased demand for its laser products and revenues from its Hawk-I installation. The Company's customers in the regenerative medicine field primarily use the Company's products in research applications. During 2009, the Company's sales, particularly in North America and Europe, were adversely impacted by budget freezes and extended purchasing cycles for research products. These issues have improved in 2010.

Cost of sales for the three months ended June 30, 2010 was $599,199, compared to $404,212 for the same period last year. Gross margins as a percent of sales improved for the comparable quarters to 62.7% from 60.3%. The improvements in the three month period were due primarily to the fact that manufacturing costs are largely fixed and did not increase proportionately with the increase in sales which more than offset the higher material cost due to aggressive pricing offered to establish a reference site for the Hawk-i product line.

For the three months ended June 30, 2010, total operating expenses were $1,310,926, compared to $1,047,581 for the same period last year.

Research and development (R&D) expenses for the three months ended June 30, 2010 were $228,947, compared with $220,924 for the same period last year. Sales and marketing expenses for the three months ended June 30, 2010 were $595,107, compared with $467,469 for the same period last year. General and administrative expenses for the three months ended June 30, 2010 were $486,872, compared with $359,188 for the same period last year.

The net loss for the quarter ended June 30, 2010 was $363,770, a decrease from the net loss of $521,584 for the same period of the previous year. The improvement was due to the increased sales and related margins along with decreased interest offset by increased operating expenses.

The Company also announced that it will grant 162,818 stock options to an officer of the Company pursuant to its stock option plan effective August 25, 2010 at the closing price on the date of grant. The options vest quarterly, with 1/16 vested at time of grant and 1/16 vesting each subsequent quarter, with an expiry ten years from the date of grant.

As at June 30, 2010, the Company's available cash and cash equivalents (including cash availability under its credit line) amounted to $276,703.

As of June 30, 2010 the Company had 24,415,157 common shares, 5,500,005 warrants, 3,542,756 options, and 440,001 agent compensation options outstanding.

The financial statements are available on href="www.sedar.com">www.sedar.com.

About Hamilton Thorne Ltd. ( href="www.hamiltonthorne.com">www.hamiltonthorne.com)

Hamilton Thorne's advanced laser systems and instruments are rapidly emerging as the dominant products to facilitate precise procedures in the stem cell research and fertility clinic markets. Hamilton Thorne's lead products, the ZILOS-tk and XYClone laser systems, attach to standard inverted microscopes and operate as robotic micro-surgeons, significantly reducing time and increasing efficiency in key in-vitro fertilization, stem cell, embryo, reproductive toxicology, and living cell procedures.

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 University, MIT, Yale, DuPont, Monsanto, Charles River Labs, Jackson Labs, Merck, Novartis, Pfizer, Oxford University, 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. 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.

Financials results included below:

Hamilton Thorne Ltd.
Consolidated Balance Sheets
As at June 30, 2010 and December 31, 2009
(Expressed in U.S. Dollars - unaudited)

  2010 2009
     Cash and cash equivalents 6,703 1,356,371
     Accounts receivable 1,084,947 499,875
     Inventories 569,882 512,300
     Prepaid expenses and other current assets 53,027 72,689
     Note receivable, officer - 23,813
  1,714,559 2,465,048
     Capital assets 111,285 90,481
     Other assets 125,656 72,454
  1,951,500 2,627,983
     Accounts payable and accrued liabilities 1,496,017 1,171,562
     Notes payable 54,159 83,037
     Capital lease obligations, current 5,753 5,753
     Deferred revenue 166,769 35,881
  1,722,698 1,296,233
     Capital lease obligations, non-current 4,537 7,904
     Long-term debt 4,780,000 5,050,000
  6,507,235 6,354,137
Shareholders' Equity (Deficiency)    
     Common shares 24,345,752 24,341,938
     Warrants 344,949 344,949
     Contributed surplus 279,267 199,767
     Accumulated deficit (29,525,703) (28,612,808)
                                                                                                                                       (4,555,735) (3,726,154)
  1,951,500 2,627,983

Hamilton Thorne Ltd.
Consolidated Statements of Operations and Comprehensive Loss and Deficit
For the periods ended June 30, 2010 and 2009
(Expressed in U.S. Dollars - unaudited)

  Six Months Three Months
                                                                                               2010 2009 2010 2009
Sales 2,789,207 2,134,424 1,608,520 1,018,870
Cost of sales 1,069,685 823,073 599,199 404,212
  1,719,522 1,311,351 1,009,321 614,658
     Research and development 479,254 397,697 228,947 220,924
     Sales and marketing 1,080,794 910,004 595,107 467,469
     General and administrative 940,255 741,653 486,872 359,188
  2,500,303 2,049,354 1,310,926 1,047,581
Loss from operations (780,781) (738,003) (301,605) (432,923)
Other income (expense)        
     Interest expense, net, including accretion (132,114) (173,057) (62,165) (88,661)
Net loss and comprehensive loss (912,895) (911,060) (363,770) (521,584)
Accumulated deficit at beginning of period: (28,612,808) (27,225,220) (29,161,933) (27,614,696)
Accumulated deficit at end of period: (29,525,703) (28,136,280) (29,525,703) (28,136,280)
Loss per share        
     Basic $(0.04) $(0.06) $(0.01) $(0.03)
     Diluted $(0.04) $(0.06) $(0.01) $(0.03)
Weighted average number of common shares outstanding          
     Basic 24,415,157 16,035,067 24,415,157 16,035,067
     Diluted 24,917,072 16,035,067 24,939,580 16,035,067

Hamilton Thorne Ltd.
Consolidated Statements of Cash Flows
For the periods ended June 30, 2010 and 2009
(Expressed in U.S. Dollars - unaudited)

  Six Months Three Months
                                                                                                                2010 2009 2010 2009
Cash flows from operating activities        
Net loss for the year (912,895) (911,060) (363,770) (521,584)
Adjustments to reconcile net loss to net cash
used in operating activities:
     Depreciation and amortization 31,191 57,402 16,164 27,951
     Non-cash interest expense/accretion - 75,378 - 37,897
     Share-based compensation expense 79,500 19,450 39,750 9,700
     Changes in non-cash operating assets and liabilities:        
          Accounts receivable (585,072) 475,576 (502,981) 30,246
          Inventories (57,582) 5,773 (57,891) (486)
          Prepaids and other current assets 43,475 (8,162) 12,921 (23,914)
          Other assets (57,000) (9,402) - (7,734)
          Accounts payable and accrued liabilities 324,455 24,361 342,087 162,459
          Deferred revenue 130,888 (3,355) 127,971 5,770
  (1,003,040) (274,039) (385,749) (279,695)
Cash flows from investing activities        
     Purchase of capital assets (48,197) (58,017) (11,101) (16,493)
Cash flows from financing activities        
     Proceeds from debt 754,454 447,714 256,411 277,714
     Private placement costs refunded 3,814 - 3,814 -
     Payments on debt (1,056,699) (117,767) (553,015) (5,345)
  (298,431) 329,947 (292,790) 272,369
Net Increase (decrease) in cash and cash equivalents (1,349,668) (2,109) (689,640) (23,819)
Cash and cash equivalents, beginning of period 1,356,371 5,029 696,343 26,739
Cash and cash equivalents, end of period 6,703 2,920 6,703 2,920

SOURCE Hamilton Thorne Ltd.

For further information: For further information:

David Wolf
Hamilton Thorne Ltd.

Ross Marshall
The Equicom Group
416.815.0700 x238

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