BSD Medical Corporation (NASDAQ:BSDM) (Company or BSD) (www.BSDMedical.com), a leading provider of medical systems that treat cancer and benign diseases using heat therapy, today reported financial results for its first fiscal quarter ended November 30, 2011, including:

  • Cash and cash equivalents of $15.7 million
  • No debt
  • Total stockholders' equity of $19.7 million
  • Total revenues of $658,998, a 30% increase over total revenues of $506,985 for the first quarter of last fiscal year
  • Net loss of $1,687,405
  • Net cash used in operating activities of $1,378,264

"A significant portion of the increase in our revenues came from the successful implementation of a fee-per-use equipment rental program for our MicroThermX® Microwave Ablation System ("MicroThermX®")," said Harold Wolcott, President of the Company. "This rental program was designed to accelerate revenues from the MicroThermX® line of products, and the program has generated a revenue stream from sales of disposable SynchroWave antennas combined with highly profitable equipment rental fees. We believe the fee-per-use rental program will produce successful results throughout the United States. We continue to have a strong balance sheet, no debt, and believe we are sufficiently capitalized to continue the global rollout of our MicroThermX® line of products."

About BSD Medical Corporation

BSD Medical Corporation develops, manufactures, markets and services systems to treat cancer and benign diseases using heat therapy delivered using focused radiofrequency (RF) and microwave energy. BSD's product lines include both hyperthermia and ablation treatment systems. BSD's hyperthermia cancer treatment systems, which have been in use for several years in the United States, Europe and Asia, are used to treat certain tumors with heat (hyperthermia) while increasing the effectiveness of other therapies such as radiation therapy. BSD's microwave ablation system has been developed as a stand-alone therapy to ablate and destroy soft tissue. The Company has developed extensive intellectual property, multiple products in the market, and well established distribution in the United States, Europe and Asia. Certain of the Company's products have received regulatory approvals in the United States, Europe and China. For further information visit BSD Medical's website at www.BSDMedical.com.

Forward-Looking Statements

Statements contained in this press release that are not historical facts, including statements relating to our MicroThermX® line of products, are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission, including the market demand for our MicroThermX® products and the regulatory requirements we face. These forward-looking statements speak only as of the date on which such statements are made, and the Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date, except as required by law.

 
BSD MEDICAL CORPORATION
Condensed Balance Sheets
(Unaudited)

ASSETS

      

November 30,
2011

    

August 31,
2011

Current assets:    
Cash and cash equivalents $ 15,728,584 $ 17,135,968

Accounts receivable, net of allowance for doubtful accounts of $20,000

418,527

397,264

Related party trade accounts receivable 163,497 408,323
Inventories, net 2,463,269 2,406,214
Other current assets   97,824         121,148  
Total current assets 18,871,701 20,468,917
 
Property and equipment, net 1,443,105 1,445,897
Patents, net   19,827         25,092  
 
$ 20,334,633       $ 21,939,906  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Current liabilities:
Accounts payable $ 171,412 $ 301,936
Accrued liabilities 265,934 332,004
Deferred revenue - current portion   79,319         42,214  
Total current liabilities 516,665 676,154
 
Deferred revenue - net of current portion   144,724         192,158  
 
Total liabilities   661,389         868,312  
 
Commitments and contingencies
 
Stockholders' equity:

Preferred stock, $.001 par value; 10,000,000 shares authorized, no shares issued and outstanding

-

-

Common stock, $.001 par value, 80,000,000 shares authorized, 29,686,154 shares issued

29,686

29,686

Additional paid-in capital 50,747,784 50,458,729
Treasury stock, 24,331 shares at cost (234 ) (234 )
Accumulated deficit   (31,103,992 )       (29,416,587 )
Total stockholders' equity   19,673,244         21,071,594  
 
$ 20,334,633       $ 21,939,906  
 
 
     

BSD MEDICAL CORPORATION

Condensed Statements of Comprehensive Loss

(Unaudited)

 

Three Months Ended
November 30,

2011     2010
Revenues:    
Sales $ 317,488 $ 454,929
Sales to related parties 300,860 10,456
Equipment rental   40,650         41,600  
 
Total revenues   658,998         506,985  
 
Cost of Revenues:
Cost of sales 154,492 344,083
Cost of related party sales 213,439 9,247
Cost of equipment rental   2,947         6,399  
 
Total cost of revenues   370,878         359,729  
 
Gross margin   288,120         147,256  
 
Operating costs and expenses:
Research and development 536,735 77,296
Selling, general and administrative   1,454,835         1,023,931  
 
Total operating costs and expenses   1,991,570         1,101,227  
 
Loss from operations   (1,703,450 )       (953,971 )
 
Other income (expense):
Interest income 18,059 7,585
Other income (expense)   (2,014 )       (915 )
 
Total other income (expense)   16,045         6,670  
 
Loss before income taxes (1,687,405 ) (947,301 )
 
Income tax benefit   -         -  
 
Net loss and comprehensive loss $ (1,687,405 )     $ (947,301 )
 
Net loss per common share:
Basic $ (0.06 )     $ (0.04 )
Diluted $ (0.06 )     $ (0.04 )
 
Weighted average number of shares outstanding:
Basic 29,686,000 26,881,000
Diluted 29,686,000 26,881,000

BSD Medical Corporation
Dennis Gauger, 801-972-5555
investor@bsdmc.com
fax: 801-972-5930