Guided Therapeutics Reports Third Quarter 2012 Results

  Guided Therapeutics Reports Third Quarter 2012 Results

Key Highlights:

  *PMA Amendment for LuViva® Advanced Cervical Scan filed with FDA
  *Third Edition CE Mark and Canadian Standards Association testing being
    completed
  *Canadian launch expected to be supported by additional unit shipments in
    the fourth quarter
  *$2.9 million raised in warrant exchange program through September 30, 2012

Business Wire

NORCROSS, Ga. -- November 13, 2012

Guided Therapeutics, Inc. (OTCBB: GTHP) (OTCQB: GTHP) today announced its
operating results for the quarter and nine months ended September 30, 2012.

Revenue for the third quarter of 2012 was $693,000, including revenue of
$43,000 on the sale of three LuViva® Advanced Cervical Scan demonstration
units in the quarter. This compares to revenue of $1.0 million in the third
quarter of 2011. Revenue for the first nine months of 2012 was $2.3 million
compared to $2.7 million for the first nine months of 2011. The variability in
revenue was primarily due to the timing of receipts accrued under the
Company’s contracts with Konica Minolta.

The net loss available to common stockholders for the third quarter of 2012
was $986,000, or $0.02 per share, compared to a net loss available to common
stockholders of $2.7 million, or $0.05 per share, in the comparable quarter of
2011. The net loss available to common stockholders for the first nine months
of 2012 was $3.2 million, or $0.06 per share, compared to a net loss available
to common stockholders of $3.9 million, or $0.08 per share, in the comparable
period of 2011. The decreased loss reported in the three and nine month
periods ended September 30, 2012 was due primarily to a claim settlement of
approximately $2.3 million recorded in the third quarter of 2011.

Cash on hand at September 30, 2012 was approximately $2.6 million as compared
to $2.2 million at December 31, 2011. Offsetting the cash outflow from
operations in the third quarter was a net change from financing activities of
approximately $3.0 million, which primarily represents proceeds received from
the exercise of outstanding warrants and options. Warrants exercisable for
approximately 15.9 million shares of the Company’s common stock, or 56.3% of
eligible warrants, were tendered as part of the Company’s warrant exchange
program completed in July 2012. New warrants issued in the exchange program,
representing approximately 15.1 million shares, were exercised in the third
quarter of 2012, resulting in approximately $2.9 million in cash proceeds to
the Company.

At September 30, 2012, the Company had approximately $461,000 of inventory on
hand. Management believes that available capital resources, including funds
from partnerships and grants, should be sufficient to support existing
operations through the first quarter of 2013. Outstanding warrants exercisable
for approximately 12.4 million shares of common stock at $0.65 per share that
will expire on March 1, 2013 could generate approximately $8.0 million in cash
proceeds to the Company, assuming full exercise.

“We are pleased to be able to report our progress with the FDA,” said Mark L.
Faupel, Ph.D., Chief Executive Officer and President of Guided Therapeutics.
“The filing of our PMA Amendment comes with FDA’s prior review regarding its
key contents and puts us on a track, if approved, for a U.S. launch of LuViva®
next year. In the meantime, we expect to comply with the Third Edition CE mark
requirements around the end of this year. This will provide LuViva® with
access to the 27 countries of the European Union. We will also utilize a
portion of this testing to meet Canadian Standards Association, or CSA, mark
requirements, which, while not mandatory, is valued by many of the
institutions our Canadian distributor is targeting for sales. We believe we
remain on track to ship additional units to Canada in the fourth quarter for
the launch.”

Dr. Faupel added, “We are also moving ahead with the ramp up of our
distributor network. During the quarter we formalized our relationship for
Turkey and added an experienced marketing manager for Europe to help manage
our distribution activities there and in the Middle East and Africa. We
continue to participate in European trade shows and conferences including the
International Federation of Gynaecology and Obstetrics and Medica, educating
hundreds of doctors and potential distributors about our technology and
positioning LuViva® to become part of the standard of care in the diagnosis of
cervical disease.”

Conference Call

Guided Therapeutics will hold a conference call at 11:00 a.m. EST Wednesday,
November 14, 2012, to discuss its financial results and corporate
developments. Interested parties are invited to listen to the call live over
the Internet at http://www.guidedinc.com/investors.htm or
http://www.viavid.com. The live call is also available by dialing (888)
510-1786 or for international callers (719) 325-2308. A replay of the
teleconference will be available on http://www.guidedinc.com/investors.htm. A
replay will also be available until November 21, 2012 by dialing (877)
870-5176, or for international callers (858) 384-5517, and using pin number
3514457.

About Guided Therapeutics

Guided Therapeutics, Inc. (OTCBB: GTHP) (OTCQB: GTHP) is developing a rapid
and painless testing platform for the early detection of disease based on its
patented biophotonic technology that utilizes light to detect disease at the
cellular level. The Company’s first product is the LuViva^® Advanced Cervical
Scan, a non-invasive device used to detect cervical disease instantly and at
the point of care. In a multi-center clinical trial, with women at risk for
cervical disease, the technology was able to detect cervical cancer up to two
years earlier than conventional modalities, according to published reports.
Guided Therapeutics has also entered into a partnership with Konica Minolta to
develop a non-invasive test for the early detection of esophageal cancer using
the technology platform. For more information, visit: www.guidedinc.com.

The Guided Therapeutics LuViva^® Advanced Cervical Scan is an investigational
device and is limited by federal law to investigational use. LuViva, the wave
logo and "Early detection, better outcomes" are registered trademarks owned by
Guided Therapeutics, Inc.

Forward-Looking Statements Disclaimer: A number of the matters and subject
areas discussed in this news release that are not historical or current facts
deal with potential future circumstances and developments. The discussion of
such matters and subject areas is qualified by the inherent risks and
uncertainties surrounding future expectations generally and also may
materially differ from Guided Therapeutics’ actual future experience involving
any of or more of such matters and subject areas. Such risks and uncertainties
include those related to the early stage of products in development, the
uncertainty of market acceptance of products, the uncertainty of development
or effectiveness of distribution channels, the intense competition in the
medical device industry, the uncertainty of capital to develop products, the
uncertainty of regulatory approval of products, dependence on licensed
intellectual property, as well as those that are more fully described from
time to time under the heading “Risk Factors” in Guided Therapeutics’ reports
filed with the SEC, including Guided Therapeutics’ Annual Report on Form 10-K
for the fiscal year ended December 31, 2011, and subsequent quarterly reports.

GUIDED THERAPEUTICS, INC. AND SUBSIDIARY
                                                               
Unaudited Condensed Consolidated Statements of Operations
For the Three Months and Nine Months Ended September 30, 2012 and 2011
                                                                                        
                                                                                        
                     Three Months Ended                     Nine Months Ended
                     September 30                           September 30
                                                                                        
In thousands,
except per           2012               2011                2012               2011
share data
Revenue
Contract and         $ 693              $ 1,021               2,326            2,701
grant revenue
Sales –
devices and            43                 --                  72               --
disposables
Cost of goods         55               --                130             --       
sold
Gross loss            (12    )          --                (58    )         --       
Cost and
Expenses
Research and           787                709                 2,397            2,024
development
Sales and              132                80                  271              200
marketing
General and           712              2,881             2,714           4,351    
administration
Total
operating             1,651            3,670             5,382           6,575    
expense
                                                                               
Operating Loss         (970   )           (2,649 )            (3,114 )         (3,874   )
                                                                               
Interest
(Expense) and         (16    )          (12    )           (52    )         (9       )
Other Income
Net Loss
Attributable         $ (986   )         $ (2,661 )          $ (3,166 )         $ (3,883 )
to Common
Stockholders
                                                                               
Basic and
Diluted Net          $ (0.02  )         $ (0.05  )          $ (0.06  )         $ (0.08 )
Loss per Share
                                                         
Basic and
Diluted
                      60,827           48,813          55,810             48,379   
Weighted
Average Shares
Outstanding
                                                                               

Selected Balance Sheet Data (Unaudited)
                                                  
(In thousands)                  September 30, 2012           December 31, 2011
Cash & Cash                     $    2,609                   $   2,200
Equivalents
Inventory                            461                         520
Working Capital                      607                         162
Total Assets                         4,771                       4,310
Accumulated Deficit                  (90,911   )                 (85,089   )
Stockholders’ Equity                 2,124                       1,577

Contact:

Investors:
Cameron Associates
Alison Ziegler, 212-554-5469
or
Guided Therapeutics
Bill Wells, 770-242-8723 Ext. 241
 
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