BSD Medical Corporation (BSDM)’s Investor and Analyst Conference Call Transcript

Understanding how to market those and what resources reach both to customer at the patient level as well as our physician customer and turning those into sales is important. And most importantly is how to have our sales force in a disciplined manner turning prospects into customers. I believe these building blocks are very straight forward I do believe this is an executional turn around and I look forward to sharing how we will be measured and the progress we are making against those objectives, and with that I will turn it over to William S. Barth our Chief Financial Officer.

William S. Barth, Chief Financial Officer

Thank you Clint, wanna report our results for the first quarter of November 30 2014. Our revenues for that quarter were 843,000 and which is a decrease of 37 percent from total revenues of 1.3 million or the three months ended November 30 2013. Product sales were higher in the quarter a year ago due to significant stocking orders from Terumo from Microthermax Systems. The decrease of products sales revenues for the first quarter were partially offset by modest increase in sales of Microthermax disposable devices, and service contracts and other revenues along with increase in rental of microthermax systems on a decreased basis.

During those three months ended, we recognized partial revenue on one hyperthermia system, by comparison during the three months ended for the prior year November 30 2013. Total gross margins was 392,000 in the first quarter or approximately 47 percent of total revenues. This compares to 690,000 or approximately 52 percent of the three months ended November 30 2013. The decrease in gross margin and gross margin percentage over the year resulted primarily from the decrease in product sales. Operating expenses in total increase to 2.4 million for the first quarter of 2015, from 2.2 million for the comparable period last year. Research and development expenses declined about 30 thousand dollars to 470,000 compared to 500,000 from the first quarter of fiscal 2014.