Cambridge Heart Announces Second Quarter Results; Company Reports Record Revenue.Business Editors and Health/Medical Writers BEDFORD, Mass.--(BUSINESS WIRE)--July 25, 2001 Cambridge Heart, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CAMH CAMH Centre for Addiction and Mental Health CAMH Contemporary Arts Museum Houston (Houston, TX) CAMH Comprehensive Accreditation Manual for Hospitals ) today reported record revenues for the Company of $739,021 for the quarter ended June 30, 2001, compared with revenue of $457,580 for the same period in 2000, an increase of 62%. Gross margins improved to $142,509, 19% of net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight compared to $2,657, 0.5% of net sales for the second quarter of 2000. Net loss for the quarter was $1,702,198, or $0.10 per share, compared to a loss of $1,889,467, or $0.13 per share, for the same quarter last year. For the six month period ended June 30, 2001, revenue was $1,416,948 versus $870,484 for the same period in 2000, an increase of 63%. Net loss for the six months of 2001 was $3,416,261, or $0.20 per share, compared to a loss of $3,975,490 or $0.27 per share for the same period last year. The Company ended the quarter with $7,798,435 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 sale of the Company's proprietary Alternans products for the three and six months ended June 30, 2001, increased 56% and 53% respectively over the same periods of 2000. For the three and six month periods ended June 30, 2001, revenue from the sale of the Company's disposable sensors in the United States, a primary indicator of equipment usage, increased 59% and 101% respectively over the same periods of 2000. The Company initiated shipments of its Heartwave System to European customers during the second quarter. "I am pleased to be able to report record revenues for the second quarter," 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. "As I look at our expected performance for the 3rd and 4th quarters I anticipate continued top line growth, modestly accelerating from current growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. . We anticipate that the AMA (Automatic Message Accounting) The recording and reporting of telephone calls within a telephone system. It includes the calling and called parties and start and stop times of the call. will formally issue a unique CPT CPT See: Carriage Paid To code for Microvolt microvolt one-millionth (10-6) of a volt; abbreviated µV. 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. in January 2002, which we believe will help streamline the administrative approval process and therefore reduce the time required to close the sale." Mr. Chazanovitz also stated, "I was very pleased with the level of interest and support shown for Microvolt T-Wave Alternans by the EP community at the annual meeting of the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Society of Pacing and Electrophysiology held in May. In addition, just prior to the NASPE NASPE National Association for Sport and Physical Education NASPE North American Society of Pacing and Electrophysiology NASPE National Association of State Personnel Executives Meeting, the first patient was enrolled in the ABCD See CompTIA. clinical trial that we are sponsoring in conjunction with St. Jude Medical St. Jude Medical, Inc. NYSE: STJ is a $2.9 billion global cardiovascular device company, with headquarters in St. Paul, Minnesota, United States. The company sells products in more than 100 countries and has over 20 operations and manufacturing facilities worldwide. . We anticipate that excitement generated by this trial will add to our momentum and exposure in the marketplace." The Company will be holding a conference call today at 4:15 p.m. eastern time to discuss the accomplishments and financial results of the quarter just ended and its outlook for the upcoming periods. 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 #1424563. This playback will begin approximately two hours after the call ends. The conference call will also be available by webcast on the Company's web site at www.cambridgeheart.com. 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 called T-wave alternans. These tiny heartbeat variations - measured at one millionth of a volt - 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 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 and is traded on the NASDAQ/NMS under the symbol CAMH. 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 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 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 any obligation to do so, even if our estimates change.
Cambridge Heart, Inc.
Financial Highlights
Statement of Operations
Three months ended Six months ended
June 30, June 30,
2001 2000 2001 2000
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues $ 739,021 $ 457,580 $ 1,416,948 $ 870,484
Cost of goods sold 596,512 454,923 1,110,958 890,228
142,509 2,657 305,990 (19,744)
Costs and expenses
Research and
development 461,438 661,828 1,025,356 1,585,977
Selling,
general and
administrative 1,488,280 1,350,115 2,986,428 2,618,491
Loss from
operations (1,807,209) (2,009,286) (3,705,794) (4,224,212)
Interest income 105,012 119,819 289,535 248,722
Net Loss $(1,702,197) $(1,889,467) $(3,416,259) $(3,975,490)
Net loss per share
- basic and
diluted $ (0.10) $ (0.13) $ (0.20) $ (0.27)
Weighted
average shares
outstanding
- basic and
diluted 17,066,460 14,655,855 17,059,712 14,575,745
Balance Sheet June 30, December 31,
2001 2000
(Unaudited)
Assets
Cash & Marketable Securities $ 7,798,435 $ 11,455,242
Accounts receivable, net 749,831 617,619
Inventory 637,710 406,096
Other prepaid assets 186,848 72,058
Total current assets 9,372,824 12,551,015
Fixed assets, net 743,745 827,211
Other assets 746,040 596,782
$ 10,862,609 $ 13,975,008
Liabilities and stockholders' equity
Accounts payable and accrued expenses $ 1,491,635 $ 1,292,759
Stockholders' equity
Common stock 17,067 17,053
Additional paid-in-capital 49,424,121 49,326,663
Accumulated deficit (40,051,435) (36,635,176)
Deferred compensation (18,779) (26,291)
Total stockholders' equity 9,370,974 12,682,249
$ 10,862,609 $ 13,975,008
The Company intends to file its quarterly report on Form 10-Q with the
Securities and Exchange Commission shortly. Interested parties are
encouraged to review this report.
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