CARDIOTECH REPORTS RECORD FISCAL 2004 RESULTS.CardioTech International, Inc. (AMEX AMEX See: American Stock Exchange :CTE (Coefficient of Thermal Expansion) The difference between the way two materials expand when heat is applied. This is very critical when chips are mounted to printed circuit boards, because the silicon chip expands at a different rate than the plastic board. ), Wilmington, Mass., has announced that revenues for the year ended March 31, 2004 totaled $21,799,000 as compared to $3,394,000 for the year ending March 31, 2003, a 542% increase. CardioTech has also generated an increase in cash and cash equivalents of $4,178,000 during fiscal 2004 as compared to a decrease of $1,154,000 in fiscal 2003, resulting in $7,117,000 of cash and cash equivalents at March 31, 2004 compared to $2,939,000 at March 31,2003. The increase in cash and cash equivalents resulted from a combination of generating cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses of $431,000 in fiscal 2004 compared to a use of cash in operations of $675,000 in fiscal 2003, for a net year-to-year operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. improvement of $1,106,000, and cash provided by financing operations of $5,918,000, generated primarily by the proceeds from the exercise of options and warrants, offset by cash used in investing activities of $2,171,000, related primarily to the purchase of Gish and CardioTech's Wilmington corporate headquarters facility. CardioTech reported a net loss of $1,515,000 or $.10 per share for fiscal 2004 compared to a net loss of $963,000 or $0.11 a share for fiscal 2003. CardioTech is providing Adjusted Net Loss of $617,000 compared to a reported $1,515,000, as the company believes that certain items reported in net loss for fiscal 2004 should be excluded to enable readers of the financial statements to more readily compare the operating results over multiple periods and to highlight the effect of several items included in net loss for fiscal 2004, which, the company believes should be separately evaluated. Michael Szycher, Ph.D., CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of CardioTech stated: "We are pleased with the year-to-year revenue increase. Though we have not yet reached operational profitability, we are cash flow positive and have increased our total assets from approximately $6 million to nearly $23 million, as a result of the accretive Gish acquisition. I am confident that we will continue to experience significant revenue growth in fiscal 05 while staying cash flow positive. We are successfully executing our three-fold corporate strategy of (1) positioning CardioTech as a preferred supplier of proprietary products, (2) establishing strategic relationships for organic growth, and (3) growing by accretive acquisitions." CardioTech International, Inc. maintains operations in Wilmington, Massachusetts, Plymouth, Minnesota and Rancho Santa Margarita, California Not to be confused with Santa Margarita, California, a community in San Luis Obispo County. Rancho Santa Margarita is a city in Orange County, California, United States. It is a newer, planned community set upon rolling hills. . CardioTech develops, produces and markets differentiated medical devices. Revenue sources include devices used in cardiopulmonary bypass cardiopulmonary bypass n. A procedure to circulate and oxygenate the blood during heart surgery involving the diversion of blood from the heart and lungs through a heart-lung machine and the return of oxygenated blood to the aorta. surgery, OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and products developed and manufactured for certain Fortune 100 companies, and sales/royalties from patented or proprietary biomaterials. CardioTech believes it is the only company in the world developing a synthetic coronary artery bypass graft coronary artery bypass graft n. Abbr. CABG A surgical procedure in which a section of vein or other conduit is grafted between the aorta and a coronary artery below the region of an obstruction in that artery. that addresses a potential market of $1.5 billion annually. Additionally, CardioTech has partnered with Implant Sciences and CorNova to develop a drug-eluting stent that addresses a potential market of $1 billion annually. For more information, visit http://www.cardiotech-inc.com. |
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