Trimedyne Profit Drops Despite Rise in Revenue

Trimedyne Inc., a Tustin medical instruments manufacturer, reported Friday that its profit dropped to $448,000 in the latest quarter from $1.2 million a year earlier. The 1988 figure included a gain of $469,000 resulting from prior-year losses.

Revenue for the second quarter ended March 31 rose 34% to $9.4 million from $7 million. The period is the second quarter of Trimedyne’s 1989 fiscal year.

For the 6 months ended March 31, earnings were $1.5 million. Last year, Trimedyne posted net income of $2.3 million for the same period, which included a $770,000 gain from a loss carry-forward. Revenue increased 59%, to $19.5 million from $12.3 million.

Howard K. Cooper, Trimedyne’s president and chief executive, said sales for the quarter were below the company’s expectations.

“While our products are gaining increased acceptance in the medical community, purchasing cycles have been lengthened,” he said. “This development is common with companies building an industry, rather than reacting to market demand.”

In addition, he said that foreign sales of Trimedyne’s laser systems have not developed as originally planned. He said the company has implemented measures to spur demand, including increasing research and development expenditures by 70%.

Trimedyne manufactures lasers, optical fibers and cardiovascular laser catheters for removing blockages from blood vessels.