First-quarter fiscal 2010 results announced by IsoRay

Nov 16 2009

IsoRay Inc. (AMEX:ISR) a medical isotope company focusing on the treatment of prostate, lung, head and neck and other malignant disease through the use of its proprietary radioisotope technology, announced its financial results for the first quarter of fiscal year 2010, ended September 30, 2009.

Sales revenue for the quarter decreased by 9% to approximately $1,379,087 as compared to approximately $1,519,582 in the first quarter of fiscal 2009. However, 50 medical centers ordered the Company’s Proxcelan™ seeds in the first quarter of fiscal 2010 compared to the 47 centers that ordered in the first quarter of fiscal 2009. Management believes that the decline in sales revenue is primarily attributable to a lower average invoice price due to the change in the seed loading configurations being ordered by our current customers in comparison to the first quarter of FY2009. In addition, as physicians have become more comfortable with the increased energy of Cs-131 seeds, fewer seeds are being used.

Gross margin for the quarter increased by 208% to approximately $218,998 as compared to approximately $71,146 in the first quarter of fiscal 2009.

Basic and diluted loss per share for the quarter decreased by 50% to approximately $ (.04) per share as compared to approximately $ (.08) per share in the first quarter of fiscal 2009.

The Company’s net loss decreased 49% from approximately $1,793,596 in the quarter ended September 30, 2008 to $906,708 in the quarter ended September 30, 2009.

The Company reduced its cash burn this quarter by 48% to approximately $515,597 as compared to approximately $989,015 in the first quarter of fiscal 2009. The Company had cash and short-term investments of approximately $4,029,087 as of September 30, 2009. Management believes that this cash position combined with our reduced monthly cash requirements can be used to support all of the current initiatives.

During the first quarter of FY2010, IsoRay commenced shipping seeds for use in other disease sites including lung, head and neck, and ocular melanomas, supporting the expansion of our total body brachytherapy isotope.

Dwight Babcock, IsoRay Chairman and CEO, commented “There is a unique opportunity for Cesium-131 with its short half life and energy level to become the isotope of choice for brachytherapy applications throughout the entire body. We are aggressively expanding the use of Cesium-131 throughout the body with our physician partners and demonstrating that Cs-131 can be effectively used as primary and adjunct treatment for many cancers. It is our expectation to continue to gain market share in the prostate market as well as expand into all other areas of the body with a total isotope solution. We already see our strategic plan gaining momentum and expect more facilities to adopt Cs-131 for other tumor locations.”

SOURCE IsoRay, Inc.,