Cambridge Heart Announces Third Quarter Results; Company Reports Second Consecutive Quarter of Record Revenue.Business/Technology Editors & Health/Medical Writers BEDFORD, Mass.--(BW HealthWire)--Oct. 24, 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 of $836,861 for the quarter ended September 30, 2001. This represents an increase of 93% over revenues of $432,839 for the same period in 2000, and 13% over revenues of $739,021 for the quarter ended June 30, 2001. Net loss for the quarter was $1,461,476, or $0.09 per share, compared to a loss of $1,933,836, or $0.13 per share, for the same quarter last year and a loss of $1,702,197, or $0.10 for the quarter ended June 30, 2001. The Company ended the quarter with $6,472,513 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 . For the nine month period ended September 30, 2001, revenue was $2,253,809 versus $1,303,322 for the same period in 2000, an increase of 73%. The Company's revenue results to date are 119% of those reported for the full year of 2000. Net loss for the nine months of 2001 was $4,877,735, or $0.29 per share, compared to a loss of $5,909,327 or $0.40 per share for the same period last year. Gross margins improved to $177,695 or 21% 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 $8,391 or 2% of net sales for the third quarter of 2000, and $142,509 or 19% of net sales for the quarter ended June 30, 2001. The percentage improvement from the previous quarter is a result of an increase in the contribution from sales of higher margin 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. products in the U.S. Revenue from the Company's Microvolt T-Wave Alternans business in the U.S., increased 287% and 111% for the three and nine month periods ended September 30, 2001 respectively compared to the same periods of 2000, and 41% from the quarter ended June 30, 2001. "Our alternans technology is starting to demonstrate traction in the all important 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. "In addition to the increases we saw in the number of placements of new Microvolt T-Wave Alternans systems this quarter, we experienced a four-fold increase in unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. of our disposable Micro-V Alternans Sensors compared to third quarter last year and a 71% increase over last quarter." The Company also announced the strengthening of its CH 2000 product distribution agreement with Philips Medical Systems by expanding their distribution rights to include all regions outside the U.S. except where Cambridge Heart has pre-existing distribution. 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 #2098957. 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 (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. 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 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. 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 Nine months ended
September 30, September 30,
2001 2000 2001 2000
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues $836,861 $432,839 $2,253,809 $1,303,322
Cost of goods sold 659,166 424,448 1,770,124 1,314,676
177,695 8,391 483,685 (11,354)
Costs and expenses
Research and
development 353,959 677,224 1,379,315 2,263,201
Selling, general
and
administrative 1,360,891 1,367,310 4,347,319 3,985,801
Loss from
operations (1,537,155) (2,036,143) (5,242,949) (6,260,356)
Interest income 75,679 102,307 365,214 351,029
Net Loss $(1,461,476) $(1,933,836) $(4,877,735) $(5,909,327)
Net loss per
share - basic
and diluted $(0.09) $(0.13) $(0.29) $(0.40)
Weighted average
shares outstanding
- basic and diluted 17,066,923 15,097,940 17,062,125 14,753,727
Balance Sheet Sept. 30, Dec. 31,
2001 2000
(Unaudited)
Assets
Cash & Marketable Securities $6,472,513 $11,455,242
Accounts receivable, net 932,208 617,619
Inventory 569,294 406,096
Other prepaid assets 188,432 72,058
Total current assets 8,162,447 12,551,015
Fixed assets, net 743,778 827,211
Other assets 755,711 596,782
$9,661,936 $13,975,008
Liabilities and stockholders' equity
Accounts payable and accrued expenses $1,833,904 $1,292,759
Stockholders' equity
Common stock 17,067 17,053
Additional paid-in-capital 49,336,493 49,326,663
Accumulated deficit (41,512,911) (36,635,176)
Deferred compensation (12,617) (26,291)
Total stockholders' equity 7,828,032 12,682,249
$9,661,936 $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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