Forth quarter results out. They look better than I expected. Still a ways to go with the next important news the study results out in 2-3 months.
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Thursday February 13 5:14 PM EDT
Cambridge Heart Announces Fourth Quarter and Fiscal Year 1996 Results
BEDFORD, Mass., Feb. 13 /PRNewswire/ -- Cambridge Heart Inc today reported revenues of $366,935 for the quarter ended December 31, 1996, compared with no revenues a year ago. Net loss for the fourth quarter of 1996 was ($1,321,604), or ($.13) per share, compared with a loss of ($800,135), or ($.10) per share on a proforma basis, for the same period last year. The revenue for fiscal year 1996 is $866,942, compared with $68,047 for fiscal year 1995. The net loss for fiscal year 1996 is ($4,034,885), or ($.45) per share on a proforma basis, compared with a loss of ($2,496,958), or ($.32) per share on a proforma basis, last year.
Revenues in the fourth quarter of 1996 were primarily from sales to overseas customers and distributors and were 56% higher than those in the previous quarter. "We are very pleased that our continuing revenue growth indicates growing progress in obtaining market acceptance for our products," stated Jeffrey M. Arnold, Company President and CEO. "However, fourth quarter sales included some amount of year-end buying and the purchase of demonstration systems by new distributors which are not likely to be repeated in the first quarter of 1997." Following the recent FDA clearance of its High Resolution Electrode, the Company increased its U.S. salesforce in the third and fourth quarters of 1996. "Given the approximate six-month sales cycle for our products, we expect U.S. sales to begin to make a material contribution to revenue in the second quarter of this year," continued Mr. Arnold.
The CH 2000 system currently marketed by the Company, which includes the T-wave alternans measuring technology, and the Company's High Resolution Electrode, has received 510(k) clearance from the FDA for sale in the United States. This clearance does not allow the Company to make claims regarding the effectiveness of the T-wave alternans technology in identifying patients at risk of sudden death. The Company is currently conducting further clinical studies and intends to submit a 510(k) application to support such claims.
"Our primary goals for the next few quarters continue to be the completion of further clinical studies; the submission to the FDA in the second quarter of 1997 for an expansion of our labeling claims; and the targeted sales of systems to important opinion leaders in major research hospitals," stated Mr. Arnold.
Cambridge Heart is engaged in the research, development, and commercialization of products for the noninvasive diagnosis of cardiac disease. Using innovative technologies, the Company is addressing such key problems in cardiac diagnosis as the identification of those at risk of sudden cardiac death, the early detection of coronary artery disease, and the prompt and accurate diagnosis of heart attack.
Statements made in this news release that are not historical facts include forward-looking statements that involve risks and uncertainties. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are included in the section "Risk Factors" in the Cambridge Heart prospectus of August 2, 1996.
Cambridge Heart, Inc., Financial Highlights
Statement of Operations
Quarter Ended Fiscal Year Ended
December 31, December 31,
1996 1995 1996 1995
Revenues $366,935 $0 $866,942 $68,047
Cost of Goods Sold 330,935 59,365 884,229 141,312
Expenses
Research and Development 812,936 436,498 2,254,883 1,559,915
Selling, General and
Administrative 813,432 369,014 2,269,539 1,109,724
Loss from Operations (1,589,922) (864,877) (4,541,709) (2,742,904)
Net Interest 268,318 64,742 506,824 245,946
Net Loss ($1,321,604) ($800,135) ($4,034,885)($2,496,958)
Pro forma Loss
per Share ($0.13) ($0.10) ($0.45) ($0.32)
Pro forma Weighted
Average Shares 10,209,358 8,102,288 8,928,603 7,727,524
Condensed Balance Sheet
Fiscal Year Ended December 31,
1996 1995
Assets
Current Assets:
Cash and Cash Equivalents $18,588,583 $3,948,147
Accounts Receivable 420,984 ---
Inventory 251,788 118,865
Prepaid/Other Current Assets 384,422 35,579
Total Current Assets 19,645,777 4,102,591
Fixed Assets, net 423,159 161,978
Other Assets 160,523 12,791
Total $20,229,459 $4,277,360
Liabilities and Stockholders'
Equity (Deficit)
Accounts Payable/Accrued Expenses $499,720 $266,421
Stockholders' Equity (Deficit):
Series A Convertible Preferred Stock --- 6,578
Series B Convertible Preferred Stock --- 2,333
Common Stock 10,210 6,326
Additional Paid in Capital 29,216,651 9,076,507
Accumulated Deficit (9,115,684) (5,080,805)
Less Deferred Compensation (381,438) ---
Total Stockholders' Equity (Deficit): 19,729,739 4,010,939
Total $20,229,459 $4,277,360
The Company intends to file its annual report on Form 10-K with the Securities and Exchange Commission shortly. Interested parties are encouraged to review this report. SOURCE Cambridge Heart Inc. |
