Trimedyne Loses $251,000 as Revenues Increase 42%

Citing heavy research and development expenses, Trimedyne Inc., a Santa Ana medical technology products company, Wednesday reported a $251,000 loss for the second quarter of its fiscal 1985. The company, which makes fiber-optic catheters and medical lasers, lost $469,000 in the same period last year.

But revenue for the second quarter, ended March 31, increased 42% to $975,000 from $684,000 in the same quarter of fiscal 1984.

For the first six months, Trimedyne lost $524,000, an improvement over a $896,000 loss during the same period a year ago. The company’s revenues rose 40% to $1.9 million from the $1.4 million reported in the first half of 1984.

“The company believes that these operating results are definitely a reflection of the potential demand for our unique medical products,” said Michael Henson, president and chief executive officer, in a statement. “In the short term, our intensive research investment in these technologies will result in continued losses. Assuming successful completion of these research programs, we anticipate the medical value and market demand for these products will be enormous.”

Last year, Trimedyne’s “Laser Optiscope” became the first product to receive U.S. Food and Drug Administration approval to begin human clinical trials for use an as alternative to heart bypass surgery. Each year, about 200,000 such procedures are performed in the U.S. The company believes it will take about two years before the studies are complete and the FDA grants marketing approval for its product.

Slump Spurs Quarter Loss for American Pacesetter

Citing a performance slump in all but one of its divisions, Newport Beach-based American Pacesetter reported an operating loss of $256,000 for the first three months of 1985, compared with an operating profit of $67,000 for the same period last year.

An extraordinary credit of $16,000 reduced the first-quarter net loss to $240,000. A year earlier, an extraordinary credit of $136,000 increased net earnings for the quarter to $203,000.

A tax loss carry-forward allows a corporation to use past losses as a credit against current taxes, increasing a company’s income by reducing its tax payments.

According to American Pacesetter officials, the extraordinary credits in the first quarters of 1985 and 1984 resulted from the reduction of foreign income taxes arising from prior operating losses in the company’s Pacesetter Electronics International Inc. subsidiary.

Revenues for the company also declined during the first three months of 1985 to $24.5 million from $26.3 for the same time last year.

John W. Klug, American Pacesetter’s chairman and president, attributed this year’s first quarter loss to “all of our real estate and electronics divisions not operating very well.” Klug added that the only division of the company that made a profit during the period was American Pacesetter-owned San Clemente Savings and Loan.