Urologix Reports 48% Increase in Sequential Revenue for Fiscal 2012 Second Quarter

Urologixﾮ, Inc. ULGX today reported financial results for its fiscal second quarter ended December 31, 2011. Second quarter fiscal year 2012 revenue totaled $4.7 million. The 48% sequential growth in revenue was attributable to 11% of sequential growth in the Company's Cooled ThermoTherapyﾙ (CTT) base business and the additional benefit from the first full quarter of selling the Prostivaﾮ Radio Frequency (RF) Therapy product following the license acquisition on September 6, 2011. Revenue grew 40% year over year, driven by the incremental contribution of Prostiva product revenue. As of December 31, 2011, the Company's cash balance was $1.6 million. The Company generated $17 thousand of cash in the second fiscal quarter ended December 31, 2011 compared to cash utilization of $413 thousand in the same period last year. The cash performance is a result in part of beneficial payment terms on Prostiva product inventory and the timing of royalty payments. Payments for approximately $1.3 million of Prostiva product purchased during the second quarter of fiscal year 2012 were deferred as a result of 270 day terms negotiated as part of the license agreement. On January 11, 2012, the Company also closed on a credit facility for $2 million with Silicon Valley Bank to provide additional liquidity for the ongoing integration of the Prostiva business.