Cambridge Heart Reports Fourth Quarter Results.BEDFORD, Mass. -- Cambridge Heart, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CAMH CAMH Centre for Addiction and Mental Health CAMH Contemporary Arts Museum Houston (Houston, TX) CAMH Comprehensive Accreditation Manual for Hospitals ) today reported revenue of $1,394,803 for the quarter ended December 31, 2004, a 9% increase over the previous quarter, but a decline of 38% from revenue of $2,260,283 for the same period in 2003. Net loss attributable to common shareholders for the quarter was $3,291,731, or $0.10 per share, compared to a loss of $467,227, or $0.02 per share, for the same quarter last year. The reported net loss attributable to common shareholders for 2004 includes a non-cash financing charge associated with the Company's recently completed Series B 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 $2,603,884, or $0.08 per share. The Company reported a net loss before financing charges of $687,847, or $0.02 per share, for the quarter ended December 31, 2004. 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 December 31, 2004 were $7,646,963. The Company reported revenue for the year ended December 31, 2004 of $5,107,751, a decline of 26% from 2003. The Company's reported revenue for the prior year included approximately $1.7 million of non-recurring revenue from the sale of products to Philips Medical Systems and to participants in the Medtronic Medtronic Cardiology A major manufacturer of pacemakers, defibrillators, and other cardiac devices sponsored MASTER Study. Net loss attributable to common shareholders for the year ended December 31, 2004 was $6,306,737 or $0.21 per share, as compared to $4,920,910, or $0.25 per share, for 2003. The Company reported a net loss of $3,702,853, or $0.13 per share, and $3,387,630, or $0.17 per share, before financing charges for the years ended December 31, 2004 and 2003, respectively. 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 4% over the prior quarter and declined 47% when compared to the same quarter of 2003. For the twelve months ended December 31, 2004, revenue from the sale of MTWA products in the U.S. declined 32% from 2003. Revenue from the sale of products to participants in the MASTER Study during 2003 contributed significantly to both the quarterly and annual comparisons. "While the fourth quarter was our best quarter of the year, we continued to experience challenges to our top line growth from limited reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. for our MTWA test. We are making progress toward improving the reimbursement environment as evidenced by the recently announced coverage decision for our MTWA test by Blue Cross/Blue Shield of Michigan." 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. "Through the advocacy of many of our key customers, as well as our own efforts, we anticipate that we will continue to see progress throughout 2005." Mr. Chazanovitz also stated, "We are very pleased that CMS (1) See content management system and color management system. (2) (Conversational Monitor System) Software that provides interactive communications for IBM's VM operating system. has recognized the importance of MTWA by strongly encouraging its inclusion in follow up ICD ICD International Classification of Diseases (of the World Health Organization); intrauterine contraceptive device. ICD abbr. data registries. We are confident that the collection of additional MTWA data will eventually benefit patients and payers alike." The Company will be holding a conference call at 4:30 PM. eastern time Wednesday, February 16, 2004 to discuss the accomplishments and financial results for the quarter and year ended December 31, 2004. The conference call phone in number is 800-478-6251 (outside the U.S. 913-981-5558). 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 8855634. 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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 under the symbol CAMH. 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
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.
Cambridge Heart, Inc.
Financial Highlights
Statement of Three months ended Twelve months ended
Operations December 31, December 31,
2004 2003 2004 2003
------------ ------------ ----------- -----------
Revenues $ 1,394,803 $ 2,260,283 $ 5,107,751 $ 6,944,911
Cost of goods sold 613,726 881,573 2,341,421 3,202,490
------------ ------------ ----------- -----------
781,077 1,378,710 2,766,330 3,742,421
Costs and expenses
Research and
development 229,881 161,087 774,285 944,325
Selling, general
and
administrative 1,265,731 1,689,628 5,751,875 6,192,723
------------ ------------ ----------- -----------
Loss from
operations (714,534) (472,005) (3,759,830) (3,394,627)
Interest income 26,687 4,778 56,977 6,997
------------ ------------ ----------- -----------
Net
Loss $ (687,847)$ (467,227)$(3,702,853) $(3,387,630)
Beneficial
Conversion Feature (2,603,884) -- (2,603,884) (1,533,280)
------------ ------------ ----------- -----------
Net Loss
attributable to
common
shareholders $ (3,291,731)$ (467,227)$(6,306,737) $(4,920,910)
============ ============ =========== ===========
Net loss per common
share - basic and
diluted $ (0.10)$ (0.02)$ (0.21) $ (0.25)
============ ============ =========== ===========
Weighted average
shares outstanding
- basic
and diluted 33,712,916 20,758,368 29,622,673 19,663,460
============ ============ =========== ===========
Balance Sheet December 31, December 31,
2004 2003
------------- ------------
Assets
------
Cash & Marketable
Securities $ 7,646,964 $ 5,609,244
Accounts
receivable, net 982,796 1,762,885
Inventory 491,275 469,811
Other prepaid
assets 154,272 163,221
------------- ------------
Total current
assets 9,275,307 8,005,161
Fixed assets, net 207,761 235,875
Other assets 166,539 278,511
------------- ------------
$ 9,649,607 $ 8,519,547
============== ============
Liabilities and
stockholders'
equity
----------------
Accounts payable
and accrued
expenses $ 989,307 $ 1,613,800
Debt, current
portion 2,103 2,103
------------- ------------
Total current
liabilities 991,410 1,615,903
Debt, long-term
portion 1,577 3,681
------------- ------------
Total
liabilities $ 992,987 $ 1,619,584
------------- ------------
Redeemable
Convertible
Preferred 3,701,891 4,588,814
Warrants to acquire
Redeemable
Convertible
Preferred Stock 2,526,157 1,024,150
------------- ------------
$ 6,228,048 $ 5,612,964
------------- ------------
Stockholders' equity
Common stock $ 34,731 $ 21,179
Additional paid-
in-capital 58,566,848 53,770,911
Accumulated
deficit (56,114,778) (52,411,924)
Deferred
compensation (58,229) (93,167)
------------- ------------
Total
stockholders'
equity 2,428,572 1,286,999
------------ ------------
$ 9,649,607 $ 8,519,547
============= ===========
The Company intends to file its annual report on Form 10-K with the
Securities and Exchange Commission shortly.
Interested parties are encouraged to review this report.
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