Cambridge Heart Reports a 38% Increase in 2002 Revenues.Business Editors/Health/Medical Writers BEDFORD, Mass.--(BUSINESS WIRE)--Feb. 13, 2003 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 reiterated its previously reported revenue of $1,074,336 for the quarter ended December 31, 2002. This represents an increase of 25% over revenues of $858,228 for the same period in 2001. Net loss for the quarter was $1,409,796, or $0.07 per share, compared to a loss of $1,588,698, or $0.09 per share for the same quarter last year. The Company ended the quarter with $3,093,412 of 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 . For the year ended December 31, 2002, revenue was $4,307,377 as compared to $3,112,037 for the same period in 2001, an increase of 38%. Net loss for the twelve months of 2002 was $5,922,685, or $0.30 per share, compared to a loss of $6,466,433 or $0.37 per share for the same period last year. 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. increased 56% for the year ended December 31, 2002 when compared to the same period of 2001. Revenue from U.S. sales of the Company's Micro-V Alternans Sensors, for the year ended December 31, 2002, increased 145% while sales from its Microvolt T-Wave Alternans systems increased 40% compared to the same period last year. Microvolt T-Wave Alternans revenue in the U.S. declined 44% during the three month period ended December 31, 2002 compared to the fourth quarter of 2001. Fourth quarter sales of the Company's Micro-V Alternans Sensors in the U.S. increased 104% over the fourth quarter of last year. The Company believes this growth in sensor A device that measures or detects a real-world condition, such as motion, heat or light and converts the condition into an analog or digital representation. An optical sensor detects the intensity or brightness of light, or the intensity of red, green and blue for color systems. volume is the best indicator of the level of utilization of its current installed base of MTWA capable systems. The Company also announced that it has received a letter of intent from a leading medical technology company for a loan of $1 million that would be convertible into shares of the Company's common stock at the lender's discretion or payable in 24 months.. Funding of the loan is conditioned upon the Company raising additional capital from the sale of equity securities and the completion of definitive agreements. Additional transaction details will be made available upon completion of the definitive documents. "Sales of our Micro-V Alternans Sensors showed strong growth in 2002, which we believe to be a good indicator of the level of MTWA equipment utilization, " 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. "Fourth quarter revenue from the sale of MTWA systems did not meet our expectations, primarily as a result of delays in customers' purchasing decisions." Mr. Chazanovitz continued, "We believe the establishment of the MASTER study together with improved Medicare reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. for our MTWA Test, both of which we announced in January, give us confidence we can regain our momentum." Finally, the Company announced that at yesterday's Medicare Coverage Advisory Committee Meeting, held to advise 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. regarding coverage of ICDs in Madit II patients, there were two presentations made supporting the importance and usefulness of MTWA in this patient population. Dr. Richard Cohen Several people are named Richard Cohen:
The Company will be holding a conference call today at 4:30 p.m. eastern time to discuss the accomplishments and financial results of the quarter just ended. 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 1181. 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 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 including sudden death, while those who test negative are at minimal risk. 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 NASDAQ/NMS under the symbol CAMH. Cambridge Heart can be found on the World Wide Web at www.cambridgeheart.com. Statements contained in this press release about obtaining third-party reimbursement four use of our products, 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 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 Quarterly Report on Form 10-Q Form 10-Q See 10-Q. 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 Year ended
Operations December 31, December 31,
2002 2001 2002 2001
(Unaudited) (Unaudited)
Revenues $ 1,074,336 $ 858,228 $ 4,307,377 $ 3,112,037
Cost of goods sold 814,023 660,522 3,061,521 2,430,646
260,313 197,706 1,245,856 681,391
Costs and expenses
Research and
development 303,763 466,016 1,387,946 1,845,331
Selling, general
and administrative 1,375,944 1,354,483 5,867,795 5,701,802
Loss from
operations (1,419,394) (1,622,793) (6,009,885) (6,865,742)
Interest income 9,598 34,095 87,200 399,309
Net Loss $ (1,409,796)$ (1,588,698)$ (5,922,685)$(6,466,433)
Net loss per share
- basic and
diluted $ (0.07)$ (0.09)$ (0.30)$ (0.37)
Weighted average
shares outstanding
- basic and
diluted 19,503,340 17,340,789 19,450,062 17,340,789
Balance Sheet December 31, December 31,
2002 2001
(Unaudited)
Assets
Cash & Marketable Securities 3,093,412 $ 8,738,340
Accounts receivable, net 1,163,752 995,476
Inventory 667,889 673,666
Other prepaid assets 253,934 141,268
Total current assets 5,178,987 10,548,750
Fixed assets, net 461,344 662,024
Other assets 548,379 688,775
$ 6,188,710 $ 11,899,549
Liabilities and stockholders' equity
Accounts payable and accrued expenses $ 1,223,689 $ 1,231,488
Debt, current portion 803,029 648,322
Total current liabilities 2,026,718 1,879,810
Debt, long-term portion 5,584 101,481
Total liabilities $ 2,032,302 $ 1,981,291
Stockholders' equity
Common stock $ 19,503 $ 19,267
Additional paid-in-capital 53,161,199 53,010,063
Accumulated deficit (49,024,294) (43,101,609)
Deferred compensation 0 (9,463)
Total stockholders' equity 4,156,408 9,918,258
$ 6,188,710 $ 11,899,549
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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