BSD Medical Announces Financial Results for Second Quarter and First Six Months of Fiscal 2013

  BSD Medical Announces Financial Results for Second Quarter and First Six
  Months of Fiscal 2013

Business Wire

SALT LAKE CITY -- March 28, 2013

BSD Medical Corporation (NASDAQ:BSDM) (Company or BSD) (www.BSDMedical.com), a
leading provider of medical systems that treat cancer and benign diseases
using heat therapy, today reported financial results for its second quarter
and first six months of fiscal 2013, including:

  *Total revenues of $1.5 million for the six months ended February 28, 2013
    compared to total revenues of $0.9 million for the same period a year ago
  *Total revenues of $0.8 million for the second quarter ended February 28,
    2013 compared to total revenues of $0.3 million of the second quarter of
    last year
  *Total Hyperthermia backlog of approximately $0.8 million
  *Net loss of $1.9 million for the three months ended February 28, 2013
    compared to a net loss of $2.1 million for the three months ended February
    29, 2012
  *Net cash used in operating activities was $1.4 million for the three
    months ended February 28, 2013 and $3.4 million for the six months ended
    February 28, 2013
  *Cash and cash equivalents of $7.7 million
  *No debt
  *Total stockholders’ equity of $11.0 million

“Our results reflect solid market penetration trends for our MicroThermX^®
Microwave Ablation product line for the treatment of cancer,” said Harold
Wolcott, President of BSD. “Revenues during the first six months of fiscal
2013 increased by approximately $0.5 million over the same period last year
due largely to the performance of MicroThermX, including strong sales momentum
of disposable SynchroWave antennas fueled by a doubling of domestic
evaluations over the last six months and our fee per use model continuing to
attract new accounts.

“As we move into the second half of fiscal 2013, we are planning for a
significant expansion in the distribution of our MicroThermX ^ systems in
Europe, contingent upon our completing a Master Distribution Agreement
covering the entire continent. We are working diligently on this agreement.

“It is worth noting that our quarter-end backlog figure for Hyperthermia
products does not reflect purchase orders from our recently announced
exclusive Taiwanese distributor Linden Bioscience (Linden). These purchase
orders will be added to our backlog after import licenses have been obtained
by Linden. Our relationship with Linden, with its commitment to purchase an
estimated $7.1 million in BSD product over a five year period, further
validates our belief that the Hyperthermia business will flourish in Asia as
regulatory approvals are secured.

“We are keeping tight control of our spending, and our cash used in the
quarter was $0.5 million less than we used during the first quarter of fiscal
2013,” concluded Wolcott.

About BSD Medical Corporation

BSD Medical Corporation develops, manufactures, markets and services systems
to treat cancer and benign diseases using heat therapy delivered using focused
radiofrequency (RF) and microwave energy. BSD’s product lines include both
hyperthermia and ablation treatment systems. BSD’s hyperthermia cancer
treatment systems, which have been in use for several years in the United
States, Europe and Asia, are used to treat certain tumors with heat
(hyperthermia) while increasing the effectiveness of other therapies such as
radiation therapy. BSD’s microwave ablation system has been developed as a
stand-alone therapy to ablate and destroy soft tissue. The Company has
developed extensive intellectual property, multiple products in the market,
and well established distribution in the United States, Europe and Asia.
Certain of the Company’s products have received regulatory approvals in the
United States, Europe and China. For further information visit BSD Medical's
website at www.BSDMedical.com.

Forward-Looking Statements

Statements contained in this press release that are not historical facts,
including statements relating to our MicroThermX^® line of products, are
forward-looking statements, as defined in the Private Securities Litigation
Reform Act of 1995. All forward-looking statements are subject to risks and
uncertainties detailed in the Company's filings with the Securities and
Exchange Commission, including the market demand for our MicroThermX^®
products and the regulatory requirements we face. These forward-looking
statements speak only as of the date on which such statements are made, and
the Company undertakes no obligation to update such statements to reflect
events or circumstances arising after such date, except as required by law.

BSD MEDICAL CORPORATION
Condensed Balance Sheets
(Unaudited)
ASSETS                                   February 28,      August 31,
                                           2013                2012
Current assets:
Cash and cash equivalents                  $ 7,731,846         $ 11,102,508
Accounts receivable, net of allowance        481,777             289,587
for doubtful accounts of $20,000
Related party trade accounts                 24,593              33,257
receivable
Inventories, net                             2,380,035           2,403,957
Other current assets                        173,377           120,069     
Total current assets                         10,791,627          13,949,378
                                                               
Property and equipment, net                  1,359,384           1,412,639
Patents, net                                -                 4,032       
                                                               
                                           $ 12,151,012       $ 15,366,049  
                                                               
LIABILITIES AND STOCKHOLDERS’ EQUITY
                                                               
Current liabilities:
Accounts payable                           $ 299,209           $ 195,754
Accrued liabilities                          637,002             424,698
Customer Deposits                            41,250              24,980
Deferred revenue – current portion          92,229            96,865      
Total current liabilities                    1,069,690           742,297
                                                               
Deferred revenue – net of current           87,719            126,420     
portion
                                                               
Total liabilities                           1,157,409         868,717     
                                                               
Commitments and contingencies
                                                               
Stockholders’ equity:
Preferred stock, $.001 par value;
10,000,000 shares authorized, no             -                   -
shares issued and outstanding
Common stock, $.001 par value,
80,000,000 shares authorized,                29,778              29,778
29,777,522 shares issued
Additional paid-in capital                   52,421,367          51,845,035
Treasury stock, 24,331 shares at cost        (234        )       (234        )
Accumulated deficit                         (41,457,308 )      (37,377,247 )
Total stockholders’ equity                  10,993,603        14,497,332  
                                                               
                                           $ 12,151,012       $ 15,366,049  

BSD MEDICAL CORPORATION
Condensed Statements of Comprehensive Loss
(Unaudited)
                                                  
                   Three Months Ended                  Six Months Ended
                   February 28,    February 29,       February 28,    February 29,
                   2013             2012               2013             2012
Revenues:
Sales              $ 766,084        $ 236,437          $ 1,283,698      $ 553,925
Sales to
related              6,275            546                76,546           301,406
parties
Equipment           46,900         34,900           118,800        75,550     
rental
                                                                        
Total revenues      819,259        271,883          1,479,044      930,881    
                                                                        
Cost of
Revenues:
Cost of sales        411,365          343,922            820,235          498,414
Cost of
related party        5,069            744                66,446           214,183
sales
Cost of
equipment           2,947          2,947            5,894          5,894      
rental
                                                                        
Total cost of       419,381        347,613          892,575        718,491    
revenues
                                                                        
Gross margin        399,878        (75,730    )      586,469        212,390    
(loss)
                                                                        
Operating
costs and
expenses:
Research and         558,691          582,611            1,085,958        1,119,346
development
Selling,
general and         1,705,682      1,457,662        3,594,931      2,912,497  
administrative
                                                                        
Total
operating           2,264,373      2,040,273        4,680,889      4,031,843  
costs and
expenses
                                                                        
Loss from           (1,864,495 )    (2,116,003 )      (4,094,420 )    (3,819,453 )
operations
                                                                        
Other income
(expense):
Interest             6,720            15,970             16,666           34,029
income
Other               (3,622     )    (2,565     )      (2,307     )    (4,579     )
(expense)
                                                                        
Total other         3,098          13,405           14,359         29,450     
income
                                                                        
Loss before          (1,861,397 )     (2,102,598 )       (4,080,061 )     (3,790,003 )
income taxes
                                                                        
Income tax          -              -                -              -          
benefit
                                                                        
Net
comprehensive      $ (1,861,397 )   $ (2,102,598 )     $ (4,080,061 )   $ (3,790,003 )
loss
                                                                        
Net loss per
common share:
Basic              $ (0.06      )   $ (0.07      )     $ (0.14      )   $ (0.13      )
Diluted            $ (0.06      )   $ (0.07      )     $ (0.14      )   $ (0.13      )
                                                                        
Weighted
average number
of shares
outstanding:
Basic                29,778,000       29,686,000         29,778,000       29,686,000
Diluted              29,778,000       29,686,000         29,778,000       29,686,000

Contact:

BSD Medical Corporation
William Barth, 801-972-5555
fax: 801-972-5930
investor@bsdmc.com
 
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