Trimedyne Posts Record $1.2-Million Profit for Quarter

Trimedyne, the Santa Ana laser catheter maker, Monday reported record earnings of $1.2 million for the quarter ended March 31, compared to a net loss of $117,000 for the year-earlier period.

Revenues for the company’s fiscal 1988 second quarter increased 206% to $7 million, from $2.3 million.

“I expected them to do well, but not that well,” said Frank Ingersoll, an analyst at Knibb Securities in San Antonio, Tex. “They are doing some phenomenal things.”

For the first half of fiscal 1988, Trimedyne’s net income rose to $2.3 million, compared to $116,000 in the year-earlier period. Revenues for the first half of the year increased 185% to $12.3 million, from $4.3 million.

Trimedyne’s fortunes rocketed in March, 1987, when it became the first company to win U.S. Food and Drug Administration approval to market a laser catheter to treat arteriosclerosis in the legs. The company markets a laser system, which sells for $90,000, and disposable laser catheters, which are sold for about $400 each.

Trimedyne Vice President Rick Randall said the backlog for both products is higher than ever, and surgeons are using Trimedyne’s products with greater frequency.

“A year ago, 90% of the sales were for the laser systems. Now that’s only about 60% to 70%,” Randall said. “Surgeons aren’t asking us whether they should get into the technology. They’re asking about what cases they can use it for.”

Randall said he expects the second half of Trimedyne’s fiscal year to be even better than the first half.

Ingersoll, who raised his earnings estimate for the company only recently, said he expects to revise it upward again. He said the company could earn $4.9 million for the year.