Cambridge Heart Reports First Quarter Results; Revenue of U.S. Core Business Increased 36% Over Same Period Last Year.Business Editors/Health/Medical Writers BEDFORD, Mass.--(BUSINESS WIRE)--May 6, 2004 Cambridge Heart, Inc. (OTCBB-CAMH) today reported revenue of $1,265,804 for the quarter ended March 31, 2004. This represents an increase of 15% over revenue of $1,103,575 for the same period in 2003. Net loss for the quarter was $1,014,201, or $0.04 per share, compared to a loss of $1,243,683, or $0.06 per share, for the same quarter last year. The Company's reported 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 at March 31, 2004 were $5,097,113. As the Company had previously reported, its distribution agreement with Philips Medical Systems expired at the end of 2003. The Company recorded revenue of $255,503 during the quarter ended March 31, 2003 related to this agreement. Revenue for the quarter ended March 31, 2004 represents a 49% increase over the remaining $848,072 of revenue for the quarter ended March 31, 2003. 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., which the Company considers its core business, increased 36% for the quarter ended March 31, 2004 when compared to the same period of 2003. Compared to our record fourth quarter of 2003, the Company's core business revenue declined 45%. "Coming off of a very strong fourth quarter performance, we are disappointed that the first quarter did not meet our expectations of continued growth in our core business," 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. Mr. Chazanovitz also stated, "Our analysis suggests our first quarter result was caused by customer delays in making final buying decisions. Risk stratification risk stratification Medical decision-making The constellation of activities–eg, lab and clinical testing used to determine a person's risk for suffering a particular condition and need–or lack thereof–for preventive intervention remains a very important topic with regards to individuals at risk of 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. as it represents a means of efficiently enabling appropriate treatment. We believe that the volume of sales opportunities we have in the pipeline should allow us to regain our momentum." The Company will be holding a conference call at 4:15 PM. eastern time Monday, May 10, 2004 to discuss the accomplishments and financial results for the quarter ended March 31, 2004. The conference call phone in number is 800-992-7413 (outside the U.S. 801-303-7424). 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 1358. This playback Playback could mean:
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 (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 volt [for Alessandro Volta], abbr. V, unit of electric potential and electromotive force. It is defined as the difference of electric potential existing across the ends of a conductor carrying a constant current of 1 ampere when the power dissipated is 1 watt. - 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
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 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 customer delays in making final buying decisions, decreased demand for our products, 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
(Unaudited)
Statement of Operations Three months ended March 31,
2004 2003
-------------- --------------
Revenues $ 1,265,804 $ 1,103,575
Cost of goods sold 564,707 710,666
------------ ------------
701,097 392,909
Costs and expenses
Research and development 162,691 220,931
Selling, general and administrative 1,559,815 1,415,161
-------------- --------------
Loss from operations (1,021,409) (1,243,183)
Interest income (expense) 7,208 (500)
-------------- --------------
Net Loss attributable to common
shareholders $ (1,014,201) $ (1,243,683)
============== ==============
Net loss per common share - basic and
diluted $ (0.04) $ (0.06)
============== ==============
Weighted average shares outstanding -
basic and diluted 22,993,000 19,503,340
============== ==============
Balance Sheet March 31, December 31,
2004 2003
-------------- --------------
Assets
------
Cash & Marketable Securities $ 5,097,113 $ 5,609,244
Accounts receivable, net 1,097,471 1,762,885
Inventory 688,774 469,811
Other prepaid assets 150,084 163,221
-------------- --------------
Total current assets 7,033,442 8,005,161
Fixed assets, net 223,330 235,875
Other assets 241,017 278,511
-------------- --------------
$ 7,497,789 $ 8,519,547
============== ==============
Liabilities and stockholders' equity
---------------------------------------
Accounts payable and accrued expenses $ 1,014,066 $ 1,613,800
Debt, current portion 2,103 2,103
-------------- --------------
Total current liabilities 1,016,169 1,615,903
Debt, long-term portion 3,088 3,681
-------------- --------------
Total liabilities $ 1,019,257 $ 1,619,584
-------------- --------------
Series A Redeemable Convertible
Preferred 2,892,052 4,588,814
Warrants to acquire Series A Redeemable
Convertible Preferred Stock 889,546 1,024,150
-------------- --------------
$ 3,781,598 $ 5,612,964
-------------- --------------
Stockholders' equity
Common stock $ 28,218 $ 21,179
Additional paid-in-capital 56,179,273 53,770,911
Accumulated deficit (53,426,125) (52,411,924)
Deferred compensation (84,432) (93,167)
-------------- --------------
Total stockholders' equity 2,696,934 1,286,999
-------------- --------------
$ 7,497,789 $ 8,519,547
============== ==============
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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