ThermoGenesis Corp. (Nasdaq: KOOL) Extends Distribution Agreement, Posts Quarterly Loss

ThermoGenesis Corp. (Nasdaq: KOOL) has amended their distribution agreement with GE Healthcare under which the unit of General Electrics Company will continued distribution of the company’s AXP AutoXpress cord blood processing system. Further, GE will be providing incremental financial support in fields of marketing and market research.[BANNER]

Reaction on the stock market on Friday was however ambiguous as the company also announced worse than expected financials. $0.03 per share loss under $6 million revenue was far behind $0.00 and $19.4 in estimates.

Management signified expectations of increased freezer revenues in the coming quarters as the products are newly presented to the market. Further, increasing AXP sales a viable as GE Healthcare is looking to build up inventories due to increased demand. ThermoGenesis plans to achieve profitability in second or third fiscal quarter of 2010.

With built in expectations the company has still failed to deliver for the most recent quarter and it’s unlikely their share price will provide extended appreciation under current circumstances. Taking Friday’s performance as a benchmark – trading volume was strong only for the first two hours into trading and we have witnessed profit taking afterwards as the price rumbled back down.

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