IsoRay shrinks losses in Q2

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IsoRay, the sole producer of the Cesium-131 brachytherapy seed through its subsidiary IsoRay Medical, saw a decrease in net losses despite a 25 percent reduction in sales revenue for its fiscal 2009 second quarter, which ended Dec. 31.

For the quarter, the Richland, Wash.-based company reported a 41 percent decrease in net losses from approximately $2.8 million in 2008 to $1.6 million in 2009. IsoRay also booked a gross loss of $397,522 for the quarter, compared to a loss of $483,451 for the year-ago period. Included in the gross loss was a one-time impairment charge of $425,434 relating to a technology license.

Without this impairment charge, IsoRay reported its gross profit would have been $27,912 "due to significant improvement in manufacturing efficiencies."

Despite the decrease in net losses, the company booked 25 percent lower revenue for the quarter--approximately $1.33 million in sales compared with approximately $1.76 million in the second quarter of fiscal 2008. The decline in revenue resulted primarily from decreased sales volume and is partially attributable to a lower average number of seeds per case as a result of physicians optimizing their treatment planning based on the isotope and its characteristics, IsoRay said.

Dwight Babcock, chairman and CEO, said that the company has "made significant strides in refocusing our sales group, with the new hiring of Anthony Pasqualone, vice president of business development in charge of sales."