World Heart Corporation Announces 1998 Year-End Results
OTTAWA, Ontario, Canada, Feb. 23 /CNW/ - World Heart Corporation
(WorldHeart) today announced financial results for the fiscal year ending
December 31, 1998. All financial figures are expressed in Canadian dollars
and are prepared according to generally accepted accounting principles in
Canada.
Net operating revenues for 1998 were $19,062, reflecting initial sales of
the company's energy and information transfer system in the third quarter. No
operating revenues were recorded in 1997. Total loss for the year was
$3,665,269 or $.33 per share, compared with a loss of $9,436,846 or $.93 per
share for 1997. These results are consistent with company forecasts.
As expected, WorldHeart had no revenues in the last quarter of 1998,
reporting a net loss of $1,101,504, or $.09 per share in the fourth quarter,
compared with a net loss of $2,076,420, or $.20 per share for the same period
in 1997.
Forecasts for 1999 indicate no material operating revenues and total
expenditures of approximately $12 million, or $1.00 per share, reflecting
costs of pre-clinical trials and initial clinical use.
The company continues to expect first human implant of the device in
1999, subject to Health Canada approval. Progress in 1998 continued to be
consistent with this target. The initial bench operation of the final
pre-clinical device, which was planned for the end of 1998 began in
mid-January, 1999. This difference in timing will not materially affect the
timing of the first human implant. Acute animal tests of the pre-clinical
device began in January. Long term animal and bench trials are scheduled for
the second and third quarters, with first human implant expected before year
end.
Cash resources and short term investments at December 31st totalled
$14,650,483, compared with $5,483,915 at December 31, 1997, which is expected
to meet research and development and operating expenses through all of 1999
and the first quarter of 2000.
WorldHeart is a medical devices business focused on commercialization of
artificial heart and related technologies for which the worldwide rights were
acquired from the University of Ottawa Heart Institute. The continuing
research and development of these technologies is carried out under contract
to WorldHeart by the Cardiovascular Devices Division of the University of
Ottawa Heart Institute Research Corporation, an affiliate of the University of
Ottawa Heart Institute. WorldHeart is a public company whose stock trades on
the NASDAQ Market (ticker symbol: WHRTF) and The Toronto Stock Exchange
(ticker symbol: WHT).
Any forward-looking statements in this release are made pursuant to the
safe harbour provisions of the Private Securities Litigation Reform Act of
1995. Investors are cautioned that all forward-looking statements involve
risk and uncertainties, including without limitation, risks in product
development and market acceptance of and demand for the Company's products,
risks of downturns in economic conditions generally, and in the medical
devices markets, risks associated with costs and delays posed by government
regulation, limitations on third party reimbursement, inability to protect
proprietary technology, potential product liability and other risks detailed
in the Company's filings with the U.S. Securities and Exchange Commission. All
financial figures are prepared in accordance with Canadian Generally Accepted
Accounting Principles (GAAP) and are expressed in Canadian dollars.
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For further information: Ian W. Malone, Vice-President Finance and Chief
Financial Officer, World Heart Corporation, Tel: (613) 226-4278, Fax:
(613) 226-4744, E-Mail: imalone@worldheart.com; Sandy Armstrong, Media and
Public Relations, World Heart Corporation, Tel.: (613) 226-4278, Fax:
(613) 226-4744, E-Mail: sarmstrong@worldheart.com
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