BSD Medical Announces Third Quarter Fiscal 2013 Financial Results

  BSD Medical Announces Third Quarter Fiscal 2013 Financial Results

Business Wire

SALT LAKE CITY -- July 10, 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 third fiscal
quarter ended May 31, 2013 including:

  *Total revenue of $1.3 million for the third quarter ended May 31, 2013
    increased by 100% when compared to total revenues in the third quarter of
    fiscal 2012
  *Total revenue of $2.8 million for the nine months ended May 31, 2013
    increased approximately 75% when compared to revenues in the same period a
    year ago
  *Total hyperthermia backlog of approximately $2.3 million
  *Cash and cash equivalents of $10.9 million; no debt
  *Total stockholders’ equity of $14.1 million

“The growth in revenue during the third quarter and nine months ended May 31,
2013 when compared to the same periods in fiscal 2012 was chiefly derived from
increased MicroThermX^® Microwave Ablation sales,” said Harold Wolcott,
President of BSD. “As planned, we commenced shipping MicroThermX ^ systems and
SynchroWave antennas to Terumo Europe NV during the third quarter.”

“The increases in our third quarter and year to date operating expenses are
due mainly to our continuing roll out of the MicroThermX^® product line and
the support of our global distribution network. We also experienced
significant nonrecurring expenses supporting our regulatory efforts around the
world. Our balance sheet remains healthy with total cash of approximately
$10.9 million and no long-term debt at the end of the third quarter,”
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                                   May 31,           August 31,
                                           2013                2012
Current assets:
Cash and cash equivalents                  $ 10,882,122        $ 11,102,508
Accounts receivable, net of allowance
for doubtful                                 1,199,843           289,587
accounts of $20,000
Related party trade accounts                 24,823              33,257
receivable
Inventories, net                             2,309,299           2,403,957
Other current assets                        201,609           120,069     
Total current assets                         14,617,696          13,949,378
                                                               
Property and equipment, net                  1,333,289           1,412,639
Patents, net                                -                 4,032       
                                                               
                                           $ 15,950,985       $ 15,366,049  
                                                               
LIABILITIES AND STOCKHOLDERS’ EQUITY
                                                               
Current liabilities:
Accounts payable                           $ 385,334           $ 195,754
Accrued liabilities                          423,419             424,698
Customer deposits                            876,230             24,980
Deferred revenue – current portion          133,309           96,865      
Total current liabilities                    1,818,292           742,297
                                                               
Deferred revenue – net of current           59,216            126,420     
portion
                                                               
Total liabilities                           1,877,508         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, 34,006,202 and 29,777,522        34,006              29,778
shares
issued, respectively
Additional paid-in capital                   57,466,759          51,845,035
Treasury stock, 24,331 shares at cost        (234        )       (234        )
Accumulated deficit                         (43,427,054 )      (37,377,247 )
Total stockholders’ equity                  14,073,477        14,497,332  
                                                               
                                           $ 15,950,985       $ 15,366,049  
                                                                             
                                                                             

BSD MEDICAL CORPORATION
Condensed Statements of Comprehensive Loss
(Unaudited)
                                                  
                   Three Months Ended                  Nine Months Ended
                   May 31,                             May 31,
                   2013            2012               2013            2012
Revenues:
Sales              $ 1,256,583      $ 611,730          $ 2,540,281      $ 1,165,655
Sales to
related              230              13,757             76,776           315,163
parties
Equipment           59,900         25,900           178,700        101,450    
rental
                                                                        
Total revenues      1,316,713      651,387          2,795,757      1,582,268  
                                                                        
Cost of
Revenues:
Cost of sales        713,383          435,656            1,533,618        934,070
Cost of
related party        81               12,180             66,527           226,363
sales
Cost of
equipment           2,947          2,947            8,841          8,841      
rental
                                                                        
Total cost of       716,411        450,783          1,608,986      1,169,274  
revenues
                                                                        
Gross margin        600,302        200,604          1,186,771      412,994    
                                                                        
Operating
costs and
expenses:
Research and         607,690          641,457            1,693,648        1,760,803
development
Selling,
general and         1,967,082      1,667,503        5,562,013      4,580,000  
administrative
                                                                        
Total
operating           2,574,772      2,308,960        7,255,661      6,340,803  
costs and
expenses
                                                                        
Loss from           (1,974,470 )    (2,108,356 )      (6,068,890 )    (5,927,809 )
operations
                                                                        
Other income
(expense):
Interest             7,708            13,861             24,374           47,890
income
Other expense       (2,984     )    (2,371     )      (5,291     )    (6,950     )
                                                                        
Total other         4,724          11,490           19,083         40,940     
income
                                                                        
Loss before          (1,969,746 )     (2,096,866 )       (6,049,807 )     (5,886,869 )
income taxes
                                                                        
Provision for       -              (988       )      -              (988       )
income taxes
                                                                        
Net loss and
comprehensive      $ (1,969,746 )   $ (2,097,854 )     $ (6,049,807 )   $ (5,887,857 )
loss
                                                                        
Net loss per
common share:
Basic              $ (0.06      )   $ (0.07      )     $ (0.20      )   $ (0.20      )
Diluted            $ (0.06      )   $ (0.07      )     $ (0.20      )   $ (0.20      )
                                                                        
Weighted
average number
of shares
outstanding:
Basic                32,042,000       29,717,000         30,541,000       29,696,000
Diluted              32,042,000       29,717,000         30,541,000       29,696,000
                                                                                     
                                                                                     

Contact:

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