Cambridge Heart Reports First Quarter 2000 Results.Business Editors and Health/Medical Writers BEDFORD, Mass.--(BW HealthWire)--April 26, 2000 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 $412,904 for the quarter ended March 31, 2000, compared with revenue of $532,743 for the same period in 1999. Net loss for the first quarter of 2000 was $2,086,023, or $0.14 per share, compared to a loss of $1,678,600, or $0.15 per share, for the first quarter of 1999. Revenue from the sale of Alternans systems and disposable sensors for the quarter ended March 31, 2000 increased 55% from the same period in 1999 accounting for 65% of total revenue for the quarter. Disposable sensor revenues increased to $50,800 for the quarter, an increase of 250% over the prior year. Cash, cash equivalents, 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 at the end of the quarter were $9,165,701 and includes approximately $2,064,000 of net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the sale of 600,000 shares of common stock through a private placement concluded during the quarter. There are currently five major third party insurers reimbursing healthcare providers for valid claims submitted for the performance of the 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. , an increase of three during the quarter. The Company is continuing its efforts to build on this success to expand the list of major third party insurers reimbursing healthcare providers for its Alternans Test. "We are continuing efforts to shift our sales focus from standard stress to 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. and are pleased with the overall growth in alternans systems and disposable sensor revenue in the quarter. Physicians have shown a increasing enthusiasm for clinical use of our Alternans Test, however, purchases of our alternans systems have been slowed at some hospitals by the need for more evidence that the test will be reimbursed." said Jeffrey M. Arnold, Cambridge Heart Chairman, President, and Chief Executive Officer. "As the list of third-party payers providing reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. grows, we expect hospital acceptance and purchases of the alternans system will accelerate." Approximately 9 million stress tests are performed each year in the U.S. alone. Cambridge Heart's proprietary sensors are designed to separate T-wave alternans from background noise during routine exercise stress testing Determining the durability of a system by pushing it to its limits. Stress testing a network is performed by transmitting excessive numbers of packets or attempting to break in illegally. during the Company's Alternans Test, the only FDA-cleared noninvasive non·in·va·sive adj. 1. Not penetrating the body, as by incision. Used especially of a diagnostic procedure. 2. Not invading healthy tissue. cardiac diagnostic test to identify patients at risk for sudden cardiac death Sudden Cardiac Death Definition Sudden cardiac death (SCD) is an unexpected death due to heart problems, which occurs within one hour from the start of any cardiac-related symptoms. SCD is sometimes called cardiac arrest. . About the Cambridge Heart Alternans Test The Cambridge Heart Alternans Test measures extremely subtle beat-to-beat fluctuations in a person's heartbeat called T-wave alternans. T-wave alternans is not visible on electrocardiograms used in conjunction with ordinary exercise stress tests. 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 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. 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.
Financial Highlights
Statement of Operations Three months ended March 31,
2000 1999
(Unaudited) (Unaudited)
Revenues $ 412,604 $ 532,743
Cost of goods sold 435,305 465,322
(22,701) 67,421
Costs and expenses
Research and development 924,149 742,536
Selling and marketing 730,893 680,324
Administrative 537,483 395,096
Loss from operations (2,215,226) (1,750,535)
Interest income 128,903 71,935
Net Loss $ (2,086,323) $ (1,678,600)
Net loss per share
- basic and diluted $ (0.14) $ (0.15)
Weighted average shares outstanding
- basic and diluted 14,449,379 10,907,049
Balance Sheet March 31, March 31,
2000 1999
(Unaudited)
Assets
Cash & Marketable Securities $ 9,165,701 $ 4,736,588
Accounts receivable, net 533,629 619,237
Inventory 562,217 359,593
Other prepaid assets 200,567 216,273
Total current assets 10,462,114 5,931,691
Fixed assets, net 706,466 661,971
Other assets 436,856 422,539
$ 11,605,436 $ 7,016,201
Liabilities and stockholders' equity
Accounts payable and
accrued expenses $ 1,229,229 $ 863,852
Stockholders' equity
Common stock 14,643 10,907
Additional paid-in-capital 41,543,084 29,598,881
Accumulated deficit (31,121,826) (23,378,989)
Deferred compensation (59,694) (78,450)
Total stockholders' equity 10,376,207 6,152,349
$ 11,605,436 $ 7,016,201
The Company intends to file its quarterly report on Form 10-Q Form 10-Q See 10-Q. with the Securities and Exchange Commission shortly. Interested parties are encouraged to review this report. |
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