Cambridge Heart Reports First Quarter Results.BEDFORD, Mass. -- Board Elects Robert P. Khederian as Lead Independent Director Cambridge Heart, Inc. (OTCBB-CAMH) today reported revenue of $1,009,483 for the quarter ended March 31, 2005. This represents a decrease of 20% over revenue of $1,265,804 for the same period in 2004. Net loss for the quarter was $897,333, or $0.02 per share, compared to a loss of $1,014,201, or $0.04 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, 2005 were $6,766,908. 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. declined 30% for the quarter ended March 31, 2005 when compared to the same period of 2004. David Chazanovitz, Chairman of the Board of Directors and Chief Executive Officer of Cambridge Heart, announced that Robert P. Khederian was elected to serve as the Lead Independent Director at its regularly scheduled Board meeting held Tuesday April 27, 2005. Mr. Khederian, a major shareholder of Cambridge Heart, joined the Company's Board of Directors in 2002. He is the Chairman of Belmont Capital Partners, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control and also serves on the board of directors of Inverness Inverness, town, Scotland Inverness (ĭn'vərnĕs`), town (1991 pop. 39,736), Highland, N Scotland, on the Moray Firth at the mouth of the Ness River. Medical Innovations, Inc. In addition, he is the Chairman and Founder of Provident prov·i·dent adj. 1. Providing for future needs or events. 2. Frugal; economical. [Middle English, from Latin pr Corporate Finance LLC an investment banking firm based in Boston. "The results of this first quarter reflect the challenges we continue to encounter with reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. for our important diagnostic test. The ongoing impact of this lack of reimbursement has created an obvious roadblock to increasing our overall revenue. We are aggressively working with key private payer insurance companies to hopefully resolve this issue" stated Mr. Chazanovitz. "At this challenging time I am pleased that Bob Khederian has accepted the important role of Lead Independent Director to both assist us in maintaining the best corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. practices, as well as to lend us even more of his time and business acumen acumen Astuteness, perception, perspicacity for the purpose of maximizing shareholder value." The Company will be holding a conference call at 4:30 PM. (Boston time) Thursday, April 28, 2005 to discuss the financial results for the quarter ended March 31, 2005. The conference call phone number is 800-481-7713 (outside the U.S 719-457-2730). Interested parties may listen to a recording of the conference call at any time during the 48 hours immediately following the call by dialing 888-203-1112 (outside the U.S. 719-457-0820) and enter the code 1345588. 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 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 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 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. 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", "could" 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 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. -Financial information follows-
Cambridge Heart, Inc.
Financial Highlights
(Unaudited)
Statement of Operations Three months ended March 31,
2005 2004
------------- -------------
Revenues $ 1,009,483 $ 1,265,804
Cost of goods sold 479,848 564,707
------------ ------------
529,635 701,097
Costs and expenses
Research and development 212,777 162,691
Selling, general and
administrative 1,254,167 1,559,815
------------- -------------
Loss from operations (937,309) (1,021,409)
Interest income 39,976 7,208
------------- -------------
------------- -------------
Net Loss attributable to common
shareholders $ (897,333) $ (1,014,201)
============= =============
Net loss per common share - basic and
diluted $ (0.02) $ (0.04)
============= =============
Weighted average shares outstanding -
basic and diluted 37,604,976 22,993,000
============= =============
Balance Sheet March 31, December 31,
2005 2004
------------- -------------
Assets
------
Cash & Marketable Securities $ 6,766,908 $ 7,646,964
Accounts receivable, net 868,996 982,796
Inventory 467,753 491,275
Other prepaid assets 142,646 154,272
------------- -------------
Total current assets 8,246,303 9,275,307
Fixed assets, net 178,468 207,761
Other assets 144,530 166,539
------------- -------------
$ 8,569,301 $ 9,649,607
============= =============
Liabilities and stockholders' equity
-------------------------------------
Accounts payable and accrued
expenses $ 799,852 $ 989,307
Debt, current portion 2,170 2,103
------------- -------------
Total current liabilities 802,022 991,410
Debt, long-term portion 1,052 1,577
------------- -------------
Total liabilities $ 803,073 $ 992,987
------------- -------------
Convertible Preferred Stock 3,046,307 3,701,891
Warrants to acquire Convertible
Preferred Stock 2,380,050 2,526,157
------------- -------------
$ 5,426,357 $ 6,228,048
------------- -------------
Stockholders' equity
Common stock $ 39,204 $ 34,731
Additional paid-in-capital 59,382,372 58,566,848
Accumulated deficit (57,012,111) (56,114,778)
Deferred compensation (69,595) (58,229)
------------- -------------
Total stockholders' equity 2,339,870 2,428,572
------------- -------------
$ 8,569,301 $ 9,649,607
============= =============
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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