8-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): September 9, 2009

ThermoGenesis Corp.
__________________________________________
(Exact name of registrant as specified in its charter)

Delaware	333-82900	94-3018487
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)
2711 Citrus Rd., Rancho Cordova, California		95742
_________________________________ (Address of principal executive offices)		___________ (Zip Code)

Registrant’s telephone number, including area code: 916-858-5100

Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

Item 2. On September 9, 2009, ThermoGenesis Corp. issued a press release announcing its results of operations and financial condition for the quarter and year ended June 30, 2009. The full text of the press release is set forth in Exhibit 99.1 attached to this report.

Item 9.01 Financial Statements and Exhibits.

99.1. Press release dated September 9, 2009, titled " ThermoGenesis Reports Fourth Quarter and Year End Results".

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	ThermoGenesis Corp.
September 9, 2009	By:	Matthew T. Plavan
		Name: Matthew T. Plavan
		Title: EVP, COO & CFO

Exhibit Index

Exhibit No.	Description
99.1	Press release dated September 9, 2009, titled “ThermoGenesis Reports Fourth Quarter and Year End Results”

EX-99.1

THERMOGENESIS REPORTS FOURTH QUARTER AND FISCAL 2009 RESULTS

RANCHO CORDOVA, CA. (September 9, 2009)—ThermoGenesis Corp. (NASDAQ: KOOL), a leading supplier of innovative products for processing and storing adult stem cells, today reported results for the fourth quarter and all of fiscal 2009.

For the quarter ended June 30, 2009, the Company reported revenues of $4.0 million. This compares with revenues of $7.2 million in the fourth quarter a year ago. As the Company indicated previously, revenues in the fourth quarter of fiscal 2009 were impacted by several factors, including delays in customer capital equipment purchases of its BioArchive^® System and reduced sales of AXP™ AutoXpress™ (AXP™) bag sets due to the timing of orders from GE Healthcare. The Company expects these AXP orders will be recovered during the first two quarters of fiscal 2010.

Total disposable revenues were $2.2 million versus $4.2 million in the fourth quarter of fiscal 2008. Disposable revenues in the fourth quarter of fiscal 2009 were impacted by the factors outlined above, offset by revenues from sales of disposables for the Company’s MarrowXpress™, or MXP™, which was launched in mid-fiscal 2009.

The company reported a net loss of $3.1 million, or $0.05 per share, versus a net loss of $2.5 million, or $0.04 per share, in the same period a year ago. As the Company indicated in its press release of August 6, 2009, the loss in the fourth quarter of fiscal 2009 included a number of non-recurring costs. They totaled approximately $1.8 million, including non-cash charges of approximately $0.9 million. Non-recurring charges included $0.8 million in reserves related to the transition to an upgraded AXP device and disposable as well as write-downs of obsolete inventory and tooling at AXP bag set suppliers. Non-recurring charges in the quarter also included $0.2 million related to the release and launch of the Company’s Res-Q™60 BMC (“Res-Q”) System, and $0.6 million of excess and aged surgical wound care inventory reserved in connection with the planned divesture of the CryoSeal product line. The Company also recorded $0.2 of severance charges during the quarter.

The company ended fiscal 2009 with $15.6 million in cash and short-term investments, compared with $17.7 million at the end of the third quarter of fiscal 2009 and $25.3 million at the end of fiscal 2008.

“While we have been able to manage our ongoing operating expenses, the non-recurring costs during the quarter reflect the impact of our key strategic initiatives that are focused on both ensuring a high level of quality and expanding the market for our offerings,” said J. Melville Engle, Chief Executive Officer.

“We have continued to experience success with our quality initiatives through enhanced internal processes and increased communications with our key suppliers and customers. We also realized significant progress in our initiative to outsource the manufacturing of our devices and expect to complete this transition for our BioArchive and ThermoLine devices by the end of fiscal 2010.

“Our market expansion objectives,” he continued, “are being realized with the initial market experience for our devices to process stem cells from bone marrow for orthopedic procedures—the MXP and Res-Q, which was formally launched at the end of July. Both devices have demonstrated solid results in terms of cell recovery and ease of use. Celling Technologies, our distributor for the products, is optimistic about the near-term market expansion opportunities through both adding new centers and entering new geographies. In addition, we will be looking to expand new indications beyond orthopedics for the Res-Q, as well as adding new distributors outside the U.S.”

Engle said the Company is seeing positive trends for its cord blood devices as well. “Our larger customers are reporting encouraging collection activity and we recently added New England Cord Blood bank as an AXP customer. Given these favorable trends and the early success of our new products, we are optimistic about our opportunities in fiscal 2010 and our ability to grow revenues and reach profitability during the second half of the fiscal year. We are implementing strategies to achieve a strong performance with our existing products in existing markets and new markets, generate new product flow and capitalize on business development programs through joint ventures and corporate partnerships,” he concluded.

For all of fiscal 2009, ThermoGenesis reported revenues of $19.8 million versus revenues of $21.9 million in fiscal 2008. The Company reported a net loss of $8.6 million, or $0.15 per share, compared with a net loss of $9.2 million, or $0.16 per share, in fiscal 2008. The results for fiscal 2009 include a decline of approximately $1.0 million in interest and other income versus fiscal 2008.

Company’s Conference Call and Webcast

Management will host a conference call today at 2:00 PM Pacific (5:00 PM Eastern) to review the fiscal fourth quarter financial results.

The call can be accessed by dialing 1-800-860-2442 within the U.S. or 1-412-858-4600 outside the U.S. and referencing, “ThermoGenesis.” Mr. J. Melville Engle, Chief Executive Officer and Mr. Matthew Plavan, Executive Vice President, Chief Operating Officer and Chief Financial Officer will host the call to discuss the fourth quarter and year end results and other corporate events, followed by a Q&A session. Participants are asked to call the assigned number approximately 5 minutes before the conference call begins.

To listen to the audio webcast of the call during or after the event, please visit: http://www.thermogenesis.com/investors-webcasts-and-calls.aspx.

Replay
A replay of the conference call will be available two hours after the call for the following five business days by dialing 1-877-344-7529 within the U.S. or 1-412-317-0088 outside the U.S. and entering the following account number when prompted ‘385107’.

THERMOGENESIS CORP.
Condensed Consolidated Balance Sheets
(Unaudited)

	June 30,		June 30,
	2009		2008
ASSETS
Current assets:
Cash and cash equivalents	$	6,655,000	$	4,384,000
Short term investments		8,976,000		20,903,000
Accounts receivable, net		4,235,000		5,976,000
Inventory		5,233,000		5,131,000
Other current assets		623,000		367,000
Total current assets		25,722,000		36,761,000
Equipment, net		1,823,000		1,450,000
Other assets		110,000		71,000
	$	27,655,000	$	38,282,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,781,000	$	4,186,000
Other current liabilities		3,057,000		2,589,000
Total current liabilities		4,838,000		6,775,000
Long-term liabilities		363,000		982,000
Stockholders’ equity		22,454,000		30,525,000
	$	27,655,000	$	38,282,000

THERMOGENESIS CORP.
Condensed Consolidated Statements of Operations
(Unaudited)

	Three Months Ended						Years Ended
	June 30,						June 30,
	2009			2008			2009			2008
Net revenues	$	4,023,000		$	7,182,000		$	19,799,000		$	21,946,000
Cost of revenues		3,617,000			4,832,000			14,106,000			14,976,000
Gross profit		406,000			2,350,000			5,693,000			6,970,000
Expenses:
Selling, general and administrative		2,212,000			2,838,000			9,249,000			10,165,000
Research and development		1,306,000			2,157,000			5,222,000			7,172,000
Total operating expenses		3,518,000			4,995,000			14,471,000			17,337,000
Interest and other income, net		28,000			161,000			228,000			1,186,000
Net loss		($3,084,000	)		($2,484,000	)		($8,550,000	)		($9,181,000	)
Basic and diluted net loss per common share		($0.05	)		($0.04	)		($0.15	)		($0.16	)
Shares used in computing per share data		56,092,960			55,956,452			56,060,460			55,754,578

THERMOGENESIS CORP.
Condensed Consolidated Statements of Cash Flows
(Unaudited)

	Years Ended
	June 30,
	2009			2008
Cash flows from operating activities:
Net loss		($8,550,000	)		($9,181,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		474,000			543,000
Stock based compensation expense		479,000			1,921,000
Accretion of discount on short-term investments		(161,000	)		(918,000	)
Loss on sale/retirement of equipment		—			238,000
Loss on impairment of equipment		149,000			—
Net change in operating assets and liabilities:
Accounts receivable		1,741,000			(2,750,000	)
Inventories		(102,000	)		(200,000	)
Prepaid expenses and other current assets		(256,000	)		48,000
Other assets		12,000			51,000
Accounts payable		(2,405,000	)		2,112,000
Accrued payroll and related expenses		317,000			39,000
Deferred revenue		(562,000	)		(633,000	)
Other current liabilities		107,000			279,000
Net cash used in operating activities		(8,757,000	)		(8,451,000	)
Cash flows from investing activities:
Purchase of short-term investments		(25,957,000	)		(44,336,000	)
Maturities of investments		38,045,000			52,000,000
Capital expenditures		(1,047,000	)		(514,000	)
Net cash provided by investing activities		11,041,000			7,150,000
Cash flows from financing activities:
Exercise of stock options		—			266,000
Repurchase of common stock		—			(293,000	)
Payments on capital lease obligations and note payable		(13,000	)		(18,000	)
Net cash (used in) provided by financing activities		(13,000	)		(45,000	)
Net increase (decrease) in cash and cash equivalents		2,271,000			(1,346,000	)
Cash and cash equivalents at beginning of year		4,384,000			5,730,000
Cash and cash equivalents at end of year	$	6,655,000		$	4,384,000
Supplemental non-cash financing and investing information
Transfer of equipment to other assets	$	51,000			—
Transfer of inventories to equipment		—		$	157,000
Transfer of equipment to inventories		—		$	42,000

About ThermoGenesis Corp.
ThermoGenesis Corp. (www.thermogenesis.com) is a leader in developing and manufacturing automated blood processing systems and disposable products that enable the manufacture, preservation and delivery of cell and tissue therapy products. These products include:

• The BioArchive^® System, an automated cryogenic device, is used by cord blood stem cell banks in more than 25 countries for cryopreserving and archiving cord blood stem cell units for transplant.

• AXP^® AutoXpress™ Platform (AXP), a proprietary family of automated devices that includes the AXP and the MXP^™ MarrowXpressä and companion sterile blood processing disposables for harvesting stem cells in closed systems. The AXP device is used for the processing of cord blood. GE Healthcare is the exclusive global distribution partner for the AXP cord blood product except for Central and South America, China, Russia/CIS and Japan, where ThermoGenesis markets through independent distributors. The MXP is used for isolating stem cells from bone marrow.

• The Res-Q^™ 60 BMC (Res-Q), a point of care system that is designed for bone marrow stem cell processing. This product was launched in July 2009.

• The CryoSeal^® FS System, an automated device and companion sterile blood processing disposable, is used to prepare fibrin sealants from plasma in about an hour. The CryoSeal FS System is approved in the U.S. for liver resection surgeries. The CryoSeal FS System has received the CE-Mark which allows sales of the product throughout the European community. Asahi Medical is the exclusive distributor for the CryoSeal System in Japan and the Company markets through independent distributors in Europe and South America.

This press release contains forward-looking statements, and such statements are made
pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
These statements involve risks and uncertainties that could cause actual outcomes to differ
materially from those contemplated by the forward-looking statements. Several factors, including
timing of FDA approvals, changes in customer forecasts, our failure to meet customers’ purchase
order and quality requirements, supply shortages, production delays, changes in the markets for
customers’ products, introduction timing and acceptance of our new products scheduled for fiscal
years 2009 and 2010, and introduction of competitive products and other factors beyond our control,
could result in a materially different revenue outcome and/or in our failure to achieve the revenue
levels we expect for fiscal 2009 and fiscal 2010. A more complete description of these and other
risks that could cause actual events to differ from the outcomes predicted by our forward-looking
statements is set forth under the caption “Risk Factors” in our annual report on Form 10-K and
other reports we file with the Securities and Exchange Commission from time to time, and you should
consider each of those factors when evaluating the forward-looking statements.

ThermoGenesis Corp.
Web site: http://www.thermogenesis.com
Contact: Investor Relations
+1-916-858-5107, or
ir@thermogenesis.com