TSO3 Reports Record Third Quarter 2017 Results

QUEBEC CITY and MYRTLE BEACH, SC, Nov. 6, 2017

Third Quarter 2017 Financial Summary

• Revenue increased to $5.1 million, an 11% sequential increase over the $4.6 million recorded in the second quarter of 2017 and a 46% increase over the $3.5 million recorded in the third quarter of 2016.  The Company shipped 44 STERIZONE^® VP4 Sterilizers to Getinge, its exclusive global distributor, in the third quarter of 2017. 
• Gross profit was $2.0 million, or 39% of revenue, which compares gross profit of $1.7 million, or 38% of revenue, in the second quarter of 2017 and a gross profit of $1.1 million, or 32% of revenue, in the third quarter of 2016.  Gross margin in the third quarter of 2017 would have been 43% after excluding the effect of foreign currency exchange rate fluctuation as compared to the second quarter of 2017. 
• Research and Development (R&D) expenses grew to $1.6 million, as compared to $1.5 million in the second quarter of 2017 and $0.8 million in the year-ago quarter.
• Sales, General and Administrative (SG&A) expenses were $2.1 million, as compared to $2.4 million in the second quarter of 2017 and $1.8 million in the third quarter of 2016. 
• The Company's net loss was $1.8 million or $(0.02) per share in the third quarter of 2017 and compares to net losses of $2.3 million or $(0.02) per share in the second quarter of 2017 and $1.5 million, or $(0.02) per share, in the third quarter of 2016.
• The Company had $16.1 million in cash, cash equivalents and investments and no debt as at September 30, 2017, as compared to $16.7 million and no debt at the end of the second quarter of 2017.

Management Commentary

"We are pleased with our financial results in the third quarter, and our training and support efforts continue to positively impact the rate at which our distributor is winning new business," stated R. M. (Ric) Rumble, TSO₃'s President and CEO. "We are looking forward to a productive fourth quarter 2017 and fiscal year 2018.  We are moving forward with plans for our new, higher capacity, US assembly facility, and we continue to have a positive dialogue with US regulators regarding our application to further enhance our sterilizers' claims to include duodenoscopes.

Q3-2017 Conference Call

TSO₃'s President and CEO R.M. (Ric) Rumble and CFO Glen Kayll, will host the conference call, followed by a question and answer period. 

Date: Tuesday, November 7, 2017
Time: 8:30 a.m. Eastern Standard Time
Toll-free dial-in number: 1-888-231-8191
International dial-in number: 1-514-807-9895 (Montreal); 1-647-427-7450 (Toronto)
Conference ID: 1482596