Cardima, Inc. Announces First Quarter Results - Revenues Increase 55%; Gross Revenues Increase in Each of the Nine Consecutive Quarters Ended March 31, 1999.FREMONT, Calif.--(BUSINESS WIRE)--April 22, 1999-- Cardima(R), 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 : CRDM CRDM Control Rod Drive Mechanism CRDM Centre for Rapid Design and Manufacture (Buckinghamshire Chilterns University) CRDM Cumann Rince Dea Mheasa (Irish dancing organisation) ), today announced financial results for the quarter ended March 31, 1999. Revenues for the quarter increased 55% to $775,000 from $501,000 for the same period a year ago. The increase in revenues was due to sales of the Revelation(TM) family of microcatheters for treatment of atrial fibrillation atrial fibrillation Irregular rhythm (arrhythmia) of contraction of the atria (upper heart chambers). The most common major arrhythmia, it may result as a consequence of increased fibrous tissue in the aging heart, of heart disease, or in association with severe infection. (AF) in the European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the European Community (EU), increased VuePort(TM) balloon occlusion occlusion /oc·clu·sion/ (o-kloo´zhun) 1. obstruction. 2. the trapping of a liquid or gas within cavities in a solid or on its surface. 3. guiding catheter sales and increased Pathfinder mini microcatheter sales for diagnosing ventricular tachycardia Ventricular Tachycardia Definition Ventricular tachycardia (V-tach) is a rapid heart beat that originates in one of the lower chambers (the ventricles) of the heart. (VT). Net loss for the first quarter ended March 31, 1999 was $3,429,000, or $0.24 net loss per share, compared with a net loss of $3,849,000, or $0.47 net loss per share, for the same period in 1998. The Company's shares outstanding increased by 7.9 million shares during the quarter ended March 31, 1999 due to the private placement that occurred in late January and early February 1999. The decreased net loss was due primarily to positive gross margins based on increased sales volume and reduced expenses as a result of the previously announced reduction in workforce in January 1999. Included in the operating results for the quarter ended March 31, 1999 was a one-time charge for the reduction in workforce of approximately $300,000. Phil Radlick, Ph.D., 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 Cardima, said "We are pleased with our comparative sales growth this quarter. Sales increased 55% over Q1 1998 and this is the ninth consecutive quarter of increasing gross sales Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. . European sales for the quarter increased 289% as compared to the same period a year ago, due primarily to sales of the Revelation(TM) and Revelation Tx microcatheters to treat AF, since these products received CE Mark approval in August and December of 1998, respectively. These are the only microcatheter products that are approved in Europe to treat AF. The electrophysiology electrophysiology /elec·tro·phys·i·ol·o·gy/ (-fiz?e-ol´ah-je) 1. the study of the mechanisms of production of electrical phenomena, particularly in the nervous system, and their consequences in the living organism. 2. community in Europe has shown a strong interest in our products and we have seen a growing acceptance and usage of the Revelation family of microcatheters to diagnose and treat AF. We have concentrated our efforts in Europe during this last quarter and intend to continue this effort." Dr. Radlick continued, "We also have enrolled 17 patients toward our goal of 20 at the eight centers involved in the expanded AF trial in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . We plan to complete enrollment and treatment of all 20 patients in the second quarter of 1999 and, upon FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. approval, we intend to further expand the trial." Cardima, Inc. designs, develops, manufactures and markets minimally invasive, single-use microcatheter-based systems for the dual purpose of finding and treating the two most common forms of cardiac arrhythmias cardiac arrhythmia n. See cardiac dysrhythmia. Cardiac arrhythmia An irregular heart rate or rhythm. Mentioned in: Holter Monitoring, Stress Test cardiac arrhythmia : atrial fibrillation, a condition of the heart characterized by the irregular and very rapid beating of the heart's atrial atrial /atri·al/ (a´tre-al) pertaining to an atrium. a·tri·al adj. Of or relating to an atrium. Atrial Having to do with the upper chambers of the heart. chambers, and ventricular tachycardia, a life-threatening condition in which heartbeats are improperly initiated from within the ventricular walls, bypassing the heart's normal conduction system conduction system systema conducens cordis Anatomy A network of specialized nerve fibers innervated by both the sympathetic–SNS and parasympathetic nervous systems–PNS; PNS stimulation, eg, ↑ vagal stimulation, ↓ sinus node automaticity . Cardima is the only company developing unique microcatheters to be used in diagnosing and treating VT from within the wall of the heart. For further information about atrial fibrillation and ventricular tachycardia, contact Cardima's website at www.cardima.com. Except for the historical information contained herein, the matters discussed in this press release 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. that involve risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include the Company's ability to conduct successful clinical trials, obtain timely regulatory approvals and gain acceptance from the marketplace for its products and, additional risks are set forth in the Company's 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. for December 31, 1998 filed with the Securities and Exchange Commission on March 19, 1999 and as amended on March 23, 1999. -0-
Cardima, Inc.
Statements of Operations
In thousands, except per share amounts
(Unaudited)
Three months ended
March 31,
1999 1998
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Revenues $ 775 $ 501
Cost of goods sold 677 748
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Gross margin 98 (247)
Operating expenses:
Research and development 1,637 1,663
Sales, general and
administrative 1,849 2,047
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Total operating expenses 3,486 3,710
Operating loss (3,388) (3,957)
Interest and other income 99 144
Interest expense (140) (36)
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Net loss $ (3,429) $ (3,849)
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Net loss per share $ (0.24) $ (0.47)
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Shares used in calculating
net loss per share 14,178 8,137
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Selected Balance Sheet Data
In thousands
March 31, December 31,
1999 1998(a)
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Cash, cash equivalents and
short-term investments $10,795 $ 645
Working capital/(deficit) 9,288 (1,614)
Total assets 17,230 7,283
Total liabilities 7,370 8,459
Stockholders' equity/(deficit) 9,860 (1,176)
(a) Derived from audited financials
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