Cambridge Heart Reports 55% Increase in Revenue; Revenue of U.S. Core Business Up 84% Over Last Year.Business Editors/Health/Medical Writers BEDFORD, Mass.--(BUSINESS WIRE)--July 29, 2003 Cambridge Heart, Inc. (OTCBB-CAMH) today reported record revenue of $1,627,236 for the quarter ended June 30, 2003. This represents an increase of 55% over revenues of $1,050,735 for the same period in 2002. Net loss attributable to common shareholders for the quarter was $2,566,216, or $0.13 per share, compared to a loss of $1,646,481, or $0.08 per share for the same quarter last year. The reported net loss attributable to common shareholders includes a non-cash financing charge associated with the Company's recently completed Series A Convertible Preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". financing of $1,533,280, or $0.08 per share. The Company reported a net loss of $1,032,936 which would have resulted in a loss of $0.05 per share before the financing charge. The Company reported revenue for the six-month period ended June 30, 2003 of $2,730,811, an increase of 39% over the same period of 2002. Net loss attributable to common shareholders for the six-month period ended June 30, 2003 was $3,809,898 or $0.19 per share compared to $3,261,865 or $0.17 per share for the same period of 2002. The net loss was $2,276,618, which would have resulted in a loss of $0.12 per share before the financing charge. Revenue from the sale of the Company's 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. (MTWA MTWA Microvolt T-Wave Alternans MTWA Maximum Total Weight Authorised MTWA Metro Toronto Wrestling Association MTWA Maximum Takeoff Weight Authorized ) products in the U.S. increased 84% for the quarter ended June 30, 2003 when compared to the same period of 2002 and 70% compared to the first quarter of 2003. For the six-month period ended June 30, 2003, revenue from the sale of MTWA products in the U.S. has increased 50% over the same period of 2002. Gross Profit for the quarter ended June 30, 2003 increased to 55.1% 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 27.3% for the same quarter of 2002 and 35.6% for the first quarter of 2003. "The second quarter was hectic but also very gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. . We completed an important equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. in May, while transferring the listing of our common stock from the Nasdaq SmallCap Market to the OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. ," 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. "We recorded our best revenue results ever, led by record sales in both our Heartwave Systems and disposable sensors. Our U.S. core business showed an increase of 70% over the first quarter of 2003 and an 84% increase over the same quarter of last year. These volume increases led to much improved gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. and a substantially lower operational cash burn." The Company will be holding a conference call at 10:00 a.m. eastern time tomorrow, July 30, 2003 to discuss the accomplishments and financial results of the quarter just ended. The conference call phone in number is 800-441-0022 (outside the U.S. 801-303-7410). Interested parties may listen to a recording of the conference call at any time during the 48 hours immediately following the call by dialing 800-839-0860 (outside the U.S. 402-220-1490) and enter the code 1243. 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 Microvolt T-Wave Alternans Test The Cambridge Heart Microvolt T-Wave 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 in any clinical setting where titration titration (tītrā`shən), gradual addition of an acidic solution to a basic solution or vice versa (see acids and bases); titrations are used to determine the concentration of acids or bases in solution. of the heart rate is possible. The preparation for the test consists of placing proprietary sensors 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, while those who test negative are at minimal risk. 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 Company's products incorporate its proprietary technology, Microvolt T-Wave Alternans, and are the only diagnostic tools cleared by the U.S. Food and Drug Administration to non-invasively measure microvolt levels of T-wave alternans. The Company, founded in 1990, 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 OTCBB OTCBB See OTC Bulletin Board (OTCBB). 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 obtaining third-party reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. for use of our products, 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 for use of our products and other factors identified in our most recent Quarterly Report on Form 10-Q Form 10-Q See 10-Q. 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 Six months
ended June 30, ended June 30,
2003 2002 2003 2002
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues $ 1,627,236 $ 1,050,735 $ 2,730,811 $ 1,959,459
Cost of goods sold 730,375 762,961 1,441,041 1,459,755
---------- ---------- --------- ---------
896,861 287,774 1,289,770 499,704
Costs and expenses
Research and
development 330,390 419,038 551,321 787,947
Selling, general
and administrative 1,599,348 1,541,875 3,014,508 3,032,580
Loss from
operations (1,032,877) (1,673,139) (2,276,059) (3,320,823)
Interest income
(expense) (59) 26,658 (559) 58,958
Net Loss $(1,032,936) $(1,646,481) $(2,276,618) $(3,261,865)
Beneficial
Conversion Feature (1,533,280) - (1,533,280) -
Net Loss
attributable
to common
shareholders $(2,566,216) $(1,646,481) $(3,809,898) $(3,261,865)
Net loss per common
share - basic and
diluted $ (0.13) $ (0.08) $ (0.19) $ (0.17)
Weighted average
shares outstanding -
basic and diluted 19,630,127 19,458,032 19,583,658 19,412,665
Balance Sheet June 30, December 31,
2003 2002
(Unaudited)
Assets
Cash &
Marketable
Securities $ 4,272,997 $ 3,093,412
Accounts
receivable, net 1,307,889 1,163,752
Inventory 592,330 667,889
Other prepaid
assets 129,715 253,934
Total current
assets 6,302,931 5,178,987
Fixed assets, net 343,258 461,344
Other assets 401,141 548,379
------------- -------------
$ 7,047,330 $ 6,188,710
Liabilities and stockholders' equity
Accounts payable
and accrued
expenses $ 1,085,307 $ 1,223,689
Debt, current
portion 1,007,550 803,029
Total current
liabilities 2,092,857 2,026,718
Debt, long-
term portion 4,732 5,584
Total
liabilities $ 2,097,589 $ 2,032,302
Series A Covertible
Preferred 1,217,192 0
Warrants to acquire
Series A Covertible
Preferred Stock 1,674,587 0
------------ -------------
$ 2,891,779 $ 0
Stockholders' equity
Common stock $ 19,987 $ 19,503
Additional paid-
in-capital 53,472,285 53,161,199
Accumulated
deficit (51,300,912) (49,024,294)
Deferred
compensation (133,398) 0
Total stockholders'
equity 2,057,962 4,156,408
------------- -------------
$ 7,047,330 $ 6,188,710
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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