Patient Safety Technologies Reports Second Quarter 2010 Results

TEMECULA, Calif., Aug. 17 /PRNewswire-FirstCall/ -- Patient Safety Technologies, Inc. (OTC Bulletin Board: PSTX) today announced financial results for its second quarter of fiscal year 2010, which ended June 30, 2010.

The company reported second quarter revenues of $3.77 million compared to $1.03 million reported in the second quarter of fiscal year 2009.  Reported second quarter revenues included $2.33 million shipped to the Company's distributor under a stocking purchase order.  Excluding the effect of this order, second quarter revenues were $1.44 million.

Reported gross profit was $1.98 million in the second quarter compared to $409 thousand reported in the second quarter of fiscal year 2009.  Reported gross margins were 52.4% in the second quarter, compared to 39.8% for the same period in 2009.    

"I am pleased with our revenue growth and margin expansion and the progress it represents.  I believe it is evidence of increasing industry awareness as to the frequency of retained surgical sponges as well as a growing intolerance for accepting any occurrences of this preventable surgical error," stated Brian E. Stewart, President and Chief Executive Officer.

The company now estimates that over 32.5 million of its Safety-Sponges® have been used in more than 1.3 million cumulative procedures using the SurgiCount Safety-Sponge® System, all without a single undetected Safety-Sponge® being left unintentionally inside a patient.  "The clinical evidence as to the efficacy of our solution is overwhelming.  For the hospitals using our system, we have taken what is estimated at a one in every 5,000 to 8,000 general surgeries event to zero in 1.3 million," stated Mr. Stewart.

Current contracted users of the SurgiCount Safety-Sponge® System now include over 50 hospitals across the U.S., including five of the 14 hospitals named to the U.S. News and World Report 2010-11 Honor Roll.

The company's second quarter financial statements are included in the Quarterly Report on Form 10-Q filed by the company on August 16, 2010 and available at the SEC's website at www.sec.gov  

About Patient Safety Technologies, Inc. and SurgiCount Medical

Patient Safety Technologies, Inc., through its wholly-owned operating subsidiary SurgiCount Medical, Inc., provides the Safety-Sponge® System, a solution proven to improve patient safety and reduce healthcare costs by preventing one of the most common errors in surgery, retained foreign objects.  For more information, contact SurgiCount Medical, Inc. at (951) 587-6201 or visit www.surgicountmedical.com.

Safe Harbor Statement

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding our business that are not historical facts are "forward-looking statements" (within the meaning of Section 21E of the Securities Exchange Act of 1934) that involve risks and uncertainties. Forward-looking statements reflect our management's current views with respect to future events and financial performance; however, you should not put undue reliance on these statements.  When used, the words "anticipates," "believes," "expects," "intends," "future," and other similar expressions, without limitation, identify forward-looking statements.  Forward-looking statements are not guarantees of future performance and are inherently subject to uncertainties and other factors which could cause actual results to differ materially from the forward-looking statements. These factors and uncertainties include: •our need for additional financing to support our business; the early stage of adoption of our Safety-Sponge® System and the need to expand adoption of our Safety-Sponge® System; any failure of our new management team and Board of Directors to operate effectively; our reliance on third-party manufacturers, some of whom are sole-source suppliers, and on our exclusive distributor; and any inability to successfully protect our intellectual property portfolio.  In light of the risks and uncertainties, there can be no assurance that any forward-looking statement will in fact prove to be correct.

Forward-looking statements can be affected by many other factors, including, those described in the "Business" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of our Annual Report on Form 10-K for 2009 and in our other public filings. These documents are available online through the SEC's website, www.sec.gov. Forward-looking statements are based on information presently available to senior management, and we have not assumed any duty to update any forward-looking statements

SOURCE Patient Safety Technologies, Inc.