Cambridge Heart Reports Results for the 2005 Fourth Quarter and Full Year.BEDFORD, Mass. -- Cambridge Heart, Inc. (OTCBB-CAMH) today reported revenue of $1,089,200 for the quarter ended December 31, 2005, a decrease of $305,600 or 21.9% compared to revenue of $1,394,800 in the same period in 2004. Sequentially, revenue increased $171,900 or 18.7% from the $917,300 reported for the quarter ended September 30, 2005. The operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the fourth quarter was $615,600, a decrease of $98,900 or 13.8% compared to $714,500 in 2004. The net loss for the quarter was $562,500 or $0.01 per share compared to a loss of $3,291,700 or $0.10 per share, for the same quarter last year. Last years net loss included a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $2,603,900, or $0.08 per share, related to the Company's 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. Sequentially, the Company's net loss decreased by $46,400 or 7.6% from the $608,900 in the quarter ended September 30, 2005. The Company reported revenue for the year ended December 31, 2005 of $4,198,900, a decline of $908,900 or 17.8% compared to revenue of $5,107,800 in the same period in 2004. The loss from operations for 2005 was $2,987,700, a decrease of $772,100 or 20.5% compared to $3,759,800 in 2004. The net loss for the year ended December 31, 2005 was $2,800,600 or $0.07 per share compared to $6,306,700 or $0.21 per share, for the same period in 2004. The net loss for the 2004 year included a non-cash charge of $2,603,900, or $0.08 per share, related to the Company's December 2004 Series B Convertible Preferred stock financing. Revenue for the fourth quarter 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. ("Alternans alternans /al·ter·nans/ (awl-ter´nanz) [L.] 1. alternating; see pulsus alternans. 2. alternation. ") products was $875,100, a decrease of $167,000 or 16% compared to $1,042,100 in the same period in 2004. Sequentially, revenue from the Company's Alternans products increased $235,100 or 36.7% compared to $640,000 in the previous quarter ended September 30, 2005. For the twelve months ended December 31, 2005, revenue from the sale of Alternans products totaled $3,090,800, a decline of $727,100 or 19% from the $3,817,900 reported in the same period of 2004. The Company had 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, 2005 of $5.3 million. Excluding proceeds from the exercise of certain warrants, the Company used $509,700 of cash in the fourth quarter of 2005. Since December 31, 2005, the Company has received $2.6 million in proceeds from the exercise of warrants to purchase shares of common stock, as well as shares of Series A and B Convertible Preferred stock. The Company's current cash balance is approximately $7.6 million. On a common share equivalent basis, the Company currently has a total of 57.2 million shares issued and outstanding, and options and warrants outstanding to purchase the equivalent of 11.0 million additional common shares. "The year ended on the best possible note for Cambridge Heart with a strongly worded Proposed National Coverage Determination from 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. ," 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. "Our revenue was up slightly from the third quarter and within our expectations, remaining in the average range we have experienced all year." Mr. Chazanovitz continued, "Cash inflows from the exercise of warrants has brought in approximately $2.7 million providing us with additional financial flexibility as we move forward." The Company will hold a conference call at 4:30 PM. eastern time Tuesday, February 14, 2006 to discuss the accomplishments and financial results for the quarter and year ended December 31, 2005. The conference call phone in number is 800.561.2731 (outside the U.S. 617.614.3528), passcode 40798974. Interested parties may listen to a recording of the conference call at any time during the 48 hours immediately following the call by dialing 888.286.8010 (outside the U.S. 617.801.6888) and enter the passcode 49140240. This playback Playback could mean:
About Cambridge Heart Cambridge Heart is engaged in the research, development and commercialization of products for the non-invasive Non-invasive A procedure that does not penetrate the body. Mentioned in: Multiple-Gated Acquisition Scan non-invasive 1. not penetrating the skin, e.g. a non-invasive test. 2. 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 first 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
An arrhythmia is an abnormality in the heart's rhythm, or heartbeat pattern. The heartbeat can be too slow, too fast, have extra beats, skip a beat, or otherwise beat irregularly. 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 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. -Financial information follows-
Cambridge Heart, Inc.
Financial Highlights
Statement of Operations
Three months ended Twelve months ended
December 31, December 31,
2005 2004 2005 2004
------------------------------------------------
Revenues $ 1,089,199 $ 1,394,803 $ 4,198,871 $ 5,107,751
Cost of goods sold 465,487 613,726 1,980,193 2,341,421
------------ ------------ ----------- -----------
Gross
Profit 623,712 781,077 2,218,678 2,766,330
Costs and expenses
Research and
development 165,968 229,881 698,862 774,285
Selling,
general
and
admin-
istrative 1,073,324 1,265,731 4,507,479 5,751,875
------------ ------------ ----------- -----------
Total
Operating
Expenses 1,239,292 1,495,612 5,206,341 6,526,160
------------ ------------ ----------- -----------
Loss from
operations (615,580) (714,535) (2,987,663) (3,759,830)
Interest income 53,075 26,687 187,043 56,977
------------ ------------ ----------- -----------
Net Loss $ (562,505)$ (687,848)$(2,800,620)$(3,702,853)
Beneficial
Conversion
Feature - (2,603,884) 0 (2,603,884)
------------ ------------ ----------- -----------
Net Loss
attributable
to common
shareholders $ (562,505)$ (3,291,732)$(2,800,620)$(6,306,737)
============ ============ =========== ===========
Net loss per common
share - basic and
diluted $ (0.01)$ (0.10)$ (0.07)$ (0.21)
============ ============ =========== ===========
Weighted average
shares
outstanding -
basic and diluted 41,557,282 33,712,916 39,914,615 29,622,673
============ ============ =========== ===========
Balance Sheet December 31, December 31,
2005 2004
------------ -------------
Assets
------
Cash &
Marketable
Securities $ 5,297,834 $ 7,646,963
Accounts
receivable, net 1,018,988 982,796
Inventory 419,938 491,276
Other prepaid
assets 79,843 154,272
------------ -------------
Total current
assets 6,816,603 9,275,307
Fixed assets,
net 85,771 207,761
Other assets 112,182 166,539
------------ -------------
$ 7,014,556 $ 9,649,607
============ =============
Liabilities and
stockholders' equity
----------------------
Accounts payable
and accrued
expenses $ 774,185 $ 989,307
Debt, current
portion 1,577 2,103
------------ -------------
Total current
liabilities 775,762 991,410
Debt, long-term
portion - 1,578
------------ -------------
Total
liabilities $ 775,762 $ 992,988
------------ -------------
Convertible
Preferred Stock 1,534,174 3,701,891
Warrants to
acquire
Convertible
Preferred Stock 2,298,220 2,526,156
------------ -------------
$ 3,832,394 $ 6,228,047
------------ -------------
Stockholders' equity
Common stock $ 46,301 $ 34,731
Additional paid-
in-capital 61,298,789 58,566,847
Accumulated
deficit (58,915,397) (56,114,777)
Deferred
compensation (23,293) (58,229)
------------ -------------
Total
stockholders'
equity 2,406,400 2,428,572
------------ -------------
$ 7,014,556 $ 9,649,607
============ =============
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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