AdvanSource Biomaterials Corp. (NYSE:ASB) trimmed its second-quarter losses by 5.4 percent on an 11.8 percent boost to its bottom line.
The Wilmington, Mass.-based medical device polymer supplier posted net losses of $642,000, or 3 cents per share, on sales of $503,000 during the three months ended June 30. That compares with net losses of $679,000, also 3 cents per share, on sales of $450,000 during the same period last year.
AdvanSource said sales of its biomaterials rose sharply during the quarter, to $402,000, compared with $239,000 during Q2 2009.
President and CEO Michael Adams said the sales improvement reflects the success of AdvanSource’s marketing and sales efforts under its new business plan, according to a press release. In May 2008 the company, then called CardioTech International Inc., announced plans to re-brand itself as AdvanSource, in order to focus on its polymers business. Before the rebranding, CardioTech sold its Gish Biomedical Inc. subsidiary for $7.5 million in July 2007 and dealt its Catheter and Disposables Technology Inc. division for $1.2 million in March 2008.
Adams said sales should ramp up in future quarters, as AdvanSource signs new development deals and converts existing arrangements into commercial supply and licensing agreements.
"We recently announced a new development agreement and it is our expectation to continue to aggressively pursue similar opportunities," he said in prepared remarks. "In addition, we are confident that an existing development agreement could soon make the transition from a development relationship to a commercial supply and license relationship. We believe these types of relationships with medical device designers and manufacturers, where the transition from development to commercial relationships, albeit slowly, should provide us important opportunities to reap significant rewards."
AdvanSource closed the quarter with cash and equivalents worth $2.4 million, down from $3.1 million as of March 31.