Cambridge Heart Reports Continued Growth and First Quarter 2001 Results.Business Editors and Health/Medical Writers BEDFORD, Mass.--(BUSINESS WIRE)--April 25, 2001 Significant Progress on Reimbursement Achieved First CH 2000 Shipped to Agilent Under Distribution Agreement 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 revenues of $677,927 for the quarter ended March 31, 2001, compared with revenue of $412,904 for the same period in 2000, an increase of 64%. Gross margins improved to $163,500, 24% 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 ($22,400), (5%) of net sales for the first quarter of 2000. Net loss for the first quarter of 2001 was $1,714,062, or $0.10 per share, compared to a loss of $2,086,023, or $0.14 per share, for the first quarter of 2000. The Company ended the quarter with $9,576,637 million 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 continued its growth during the quarter ended March 31, 2001, increasing 50% over the first quarter of 2000 and now represents 59% of total revenue. Revenue from the sale of the Company's disposable sensors in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , a primary indicator of equipment usage, increased 67% from last quarter and 185% over the first quarter of 2000. "I am pleased with our overall financial progress in the first 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. "In addition to sales increases in line with our expectations, we are seeing improvements in gross margin as our increasing volume creates a lower cost per unit. Our partnerships with well-respected companies continue to build Cambridge Heart's exposure in the marketplace. It was rewarding to see Cambridge Heart products exhibited by both Agilent Technologies This article needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. and Spacelabs Medical at the recently concluded American College of Cardiology The American College of Cardiology (ACC) is a nonprofit medical association established in 1949 to educate, research and influence health care public policy. The president for the 2006–2007 year is Steven E. Nissen. [1] The organization has 39 chapters in the U.S. meeting." The Company began shipment of its upgraded CH 2000 stress test system to Agilent Technologies, Inc. during the quarter as part of its exclusive U.S. distribution agreement for the CH 2000 stress test system. Other significant developments during the first quarter included notification from the American Medical Association American Medical Association (AMA), professional physicians' organization (founded 1847). Its goals are to protect the interests of American physicians, advance public health, and support the growth of medical science. in March of its decision to establish a new Category I CPT CPT See: Carriage Paid To code for its 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. test. The availability of this code will give healthcare providers an efficient means of submitting claims and receiving timely reimbursement. The Company anticipates that the new code will be available for use by providers in January 2002. 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 upcoming periods. The conference call phone in number is 800-374-0296 (outside the U.S. 706-634-2237). 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 #805976. 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 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 made in this news release that are not historical facts include forward-looking statements that involve risks and uncertainties. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements including uncertainties concerning market acceptance, reimbursement and other factors that are included in Cambridge Heart's 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. and other filings with the Securities and Exchange Commission.
Cambridge Heart, Inc.
Unaudited Financial Highlights
Statement of Operations Three months ended March 31,
2001 2000
Revenues $ 677,927 $ 412,904
Cost of goods sold 514,446 435,305
------------ ------------
163,481 (22,401)
Costs and expenses
Research and development 563,919 924,149
Selling, general and administrative 1,498,148 1,268,376
Loss from operations (1,898,586) (2,214,926)
Interest income 184,524 128,903
Net Loss $ (1,714,062) $ (2,086,023)
Net loss per share - basic and diluted $ (0.10) $ (0.14)
Weighted average shares outstanding
- basic and diluted 17,052,889 14,449,379
Balance Sheet December 31, December 31,
2001 2000
Assets
Cash & Marketable Securities $ 9,576,637 $ 11,455,242
Accounts receivable, net 664,264 617,619
Inventory 490,477 406,096
Other prepaid assets 203,934 72,058
Total current assets 10,935,312 12,551,015
Fixed assets, net 764,098 827,211
Other assets 689,164 596,782
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$ 12,388,574 $ 13,975,008
Liabilities and stockholders' equity
Accounts payable and accrued expenses $ 1,400,976 $ 1,292,759
Stockholders' equity
Common stock 17,053 17,053
Additional paid-in-capital 49,342,318 49,326,663
Accumulated deficit (38,349,238) (36,635,176)
Deferred compensation (22,535) (26,291)
Total stockholders' equity 10,987,598 12,682,249
------------ ------------
$ 12,388,574 $ 13,975,008
The Company intends to file its quarterly report on Form 10-Q with the
Securities and Exchange Commission. Interested parties are encouraged
to review this report.
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