Cambridge Heart Announces Fourth Quarter Results; Company Reports Significant Increases in US Alternans System Placements over Last Quarter.Business/Technology Editors & Health/Medical Writers BEDFORD, Mass.--(BW HealthWire)--Jan. 24, 2002 Cambridge Heart, Inc. (NASDAQ-CAMH) today reported record revenues of $858,228 for the quarter ended December 31, 2001. This represents an increase of 41% over revenues of $606,561 for the same period in 2000. Net loss for the quarter was $1,588,698, or $0.09 per share, compared to a loss of $1,690,043, or $0.10 per share. During the fourth quarter, the Company raised approximately $3.5 million of additional funds through the sale of 1,580,459 shares of its common stock and the exercise 539,203 previously issued warrants. The Company ended the quarter with $8,738,341 of cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has . Revenue from the Company's core business (U.S. sales of Alternans systems and sensors) increased in excess of 50% during the quarter ended December 31, 2001 compared to the quarter ended September 30, 2001. U.S. Alternans Stachybotrys atra, S. alternans, S. chartarum a fungus that grows on stored feed and produces trichothecene mycotoxins. Poisoning is characterized by diarrhea, necrotic ulcers in the mouth, mucosal petechiation and agranulocytosis. See also satratoxins. systems revenue increased 70% during the same period. Since the introduction of the Heartwave System at the end of 2000, approximately 100 units have been sold to US customers. Total revenue growth for the quarter ended December 31, 2001 compared to the quarter ended September 30, 2001 was 3%. This growth rate was directly affected by a problem that the Company identified in a key component of its CH2000 Stress Test System. As a result, no shipments of the product were made to its exclusive U.S. distributor during the quarter. Shipments of the product resumed earlier this month following successful validation See validate. validation - The stage in the software life-cycle at the end of the development process where software is evaluated to ensure that it complies with the requirements. of the solution. The interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. in shipments caused revenue for the quarter to fall below the Company's expectations, but had no effect on reported earnings per share. For the year ended December 31, 2001, revenue was $3,112,037 versus $1,909,883 for the year ended December 31, 2000, an increase of 63%. Net loss for the year 2001 was $6,466,433, or $0.37 per share, compared to a loss of $7,599,373 or $0.50 per share for the year 2000. "We are extremely pleased with our continuing success in sales of our Heartwave system in the key U.S. market, " stated David Chazanovitz, President and 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 Cambridge Heart, Inc. "Unit placements increased significantly this past quarter and the momentum demonstrated over the last half of 2001 gives me reason for optimism for 2002." Mr. Chazanovitz added, "I am pleased that two long-term shareholders have chosen to demonstrate their confidence in the future of Cambridge Heart by increasing their holdings. Along with the additional funds from the exercise of previously issued warrants, this investment provides added strength to our balance sheet, allowing us added flexibility in the expansion of our U.S. sales and marketing efforts." The Company will be holding a conference call today at 4:30 p.m. eastern time to discuss the accomplishments and financial results of the quarter just ended and its outlook for the year 2002. The conference call phone in number is 877-527-1570 (outside the U.S. 706-634-0953). Interested parties may listen to a recording of the conference call at any time during the 48 hours immediately following the call by dialing 800-642-1687 (outside the U.S. 706-645-9291) and enter the Conference ID #2956283. This playback Playback could mean:
About the Cambridge Heart Alternans Test alternans test Cardiology A noninvasive test for detecting T-wave alternans and identifying Pts at high risk for life-threatening cardiac arrhythmias and sudden cardiac death. The Cambridge Heart Alternans Test measures extremely subtle beat-to-beat fluctuations in a person's heartbeat (1) A periodic signal generated by hardware for activation and/or synchronization purposes. See MHz. (2) A periodic signal generated by hardware or software to indicate that it is still running. 1. called T-wave alternans T-wave alternans Cardiology A subtle every-other-beat variation in T waves that is prognostic of Pts at high risk for life-threatening cardiac arrhythmias and sudden cardiac death. See Alternans test. . These tiny heartbeat variations - measured at one millionth of a volt volt [for Alessandro Volta], abbr. V, unit of electric potential and electromotive force. It is defined as the difference of electric potential existing across the ends of a conductor carrying a constant current of 1 ampere when the power dissipated is 1 watt. - are detected during a typical treadmill or bicycle exercise stress test by proprietary sensors placed on a patient's chest. Extensive clinical research has shown that patients with symptoms of or at risk of life threatening arrhythmias who test positive for T-wave alternans are at significant risk for subsequent sudden cardiac events cardiac event Coronary event Cardiology Any severe or acute cardiovascular condition including acute MI, unstable angina, or cardiac mortality including sudden death. About Cambridge Heart Cambridge Heart is engaged in the research, development and commercialization of products for the non-invasive 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 arrest cardiac arrest n. Abbr. CA A sudden cessation of cardiac function, resulting in loss of effective circulation. Cardiac arrest A condition in which the heart stops functioning. , the early detection of coronary artery disease coronary artery disease, condition that results when the coronary arteries are narrowed or occluded, most commonly by atherosclerotic deposits of fibrous and fatty tissue. , and the prompt and accurate diagnosis of heart attack. The Company, founded in 1992, is based in Bedford, Massachusetts Bedford is a town in Middlesex County, Massachusetts, United States. It is within the Greater Boston area, some 15 miles north-west of the city of Boston. The population of Bedford was 12,595 at the 2000 census. and is traded on the NASDAQ/NMS under the symbol CAMH CAMH Centre for Addiction and Mental Health CAMH Contemporary Arts Museum Houston (Houston, TX) CAMH Comprehensive Accreditation Manual for Hospitals . Cambridge Heart can be found on the World Wide Web at www.cambridgeheart.com. Statements contained in this press release about anticipated revenue growth, and all other statements that are not purely historical, are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. for purposes of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions under The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. In some cases, we use words such as "believes", "expects", "anticipates", "plans", "estimates" and similar expressions that convey uncertainty of future events or outcomes to identify these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements. Factors that may cause or contribute to such differences include failure to obtain funding necessary to develop or enhance our technology, adverse results in future clinical studies of our technology, failure to obtain or maintain patent protection for our technology, failure to obtain or maintain adequate levels of third-party reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. for use of our products and other factors identified in our most recent Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. under "Factors Which May Affect Future Results", which is on file with the SEC. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. any obligation to do so, even if our estimates change.
Cambridge Heart, Inc.
Financial Highlights
Statement of
Operations Three months ended Year ended
December 31, December 31,
2001 2000 2001 2000
(Unaudited) (Unaudited)
Revenues $ 858,228 $ 606,561 $ 3,112,037 $ 1,909,883
Cost of goods sold 660,522 564,570 2,430,646 1,879,246
197,706 41,991 681,391 30,637
Costs and expenses
Research and
development 466,016 431,282 1,845,331 2,694,483
Selling, general
and
administrative 1,354,483 1,522,792 5,701,802 5,508,596
Loss from
operations (1,622,793) (1,912,083) (6,865,742) (8,172,442)
Interest income 34,095 222,040 399,309 573,069
Net Loss $(1,588,698) $(1,690,043) $(6,466,433) $ (7,599,373)
Net loss per share
- basic and
diluted $ (0.09) $ (0.10) $ (0.37) $ (0.50)
Weighted average
shares
outstanding
- basic and
diluted 17,132,338 17,052,298 17,340,789 15,331,565
Balance Sheet December 31, December 31,
2001 2000
(Unaudited)
Assets
Cash & Marketable Securities $ 8,738,341 $ 11,455,242
Accounts receivable, net 995,476 617,619
Inventory 673,666 406,096
Other prepaid assets 141,268 72,058
Total current assets 10,548,750 12,551,015
Fixed assets, net 662,024 827,211
Other assets 688,775 596,782
$ 11,899,549 $ 13,975,008
Liabilities and stockholders' equity
Accounts payable and accrued
expenses $ 1,231,488 $ 1,085,801
Debt, current portion 648,322 206,958
Total current liabilities 1,879,810 1,292,759
Debt, long-term portion 101,481
Total liabilities $ 1,981,291 $ 1,292,759
Stockholders' equity
Common stock $ 19,266 $ 17,053
Additional paid-in-capital 53,010,064 49,326,663
Accumulated deficit (43,101,609) (36,635,176)
Deferred compensation (9,463) (26,291)
Total stockholders' equity 9,918,258 12,682,249
$ 11,899,549 $ 13,975,008
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.
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