ThermoGenesis Corp. of Rancho Cordova reported a bigger fiscal first-quarter loss as it announced plans for a product recall.

ThermoGenesis Corp. of Rancho Cordova reported a bigger fiscal first-quarter loss as it announced plans for a product recall.

The company lost $2.7 million, or 5 cents per share in the quarter ended Sept. 30. That was 17 percent worse than the loss of $2.3 million, or 4 cents per share, in the company’s fiscal first quarter last year.

First-quarter revenue totaled $4.5 million, up 24 percent from $3.6 million in the same period of last year.

ThermoGenesis makes equipment and disposable bags for processing and storing stem cells from blood and adult bone marrow. Stem cells are used to treat cancers such as leukemia and lymphoma and blood diseases.

The first quarter financial results include a $520,000 cost resulting from a voluntary recall of disposable AutoXpress stem-cell processing bags. The bags contained small particles that could cause contamination of the stem-cell samples.


The company said it will submit a recall plan for U.S. Food and Drug Administration approval this week.


“The company believes that it has adequately accrued for the costs related to this plan, but the estimate may change depending on the discussions with the FDA,” the company said in a news release. “As part of the recall plan, the company will provide customers a blood filter to be used, as necessary, with any bag already processed.”

The company also experienced short-term delays in shipments of AXP devices dued to a “flawed supplier component” and because the company filled nearly its entire bag set backlog during the prior quarter, according to the news release.

The company ended the quarter with $22.3 million in cash and short term investments.
The company expects overall fiscal 2009 revenue growth of 10 to 20 percent, a downgrade from prior guidance of 30 to 35 percent.

The company has revised its strategy for its Vantus Inc. veterinary subsidiary. It will now focus on the company’s Res-Q system for bone marrow processing and concentrating platelets from peripheral blood.