Cardima Announces First Quarter 2005 Financial Results.FREMONT, Calif. -- Cardima(R), Inc. (Nasdaq SC: CRDM CRDM Control Rod Drive Mechanism CRDM Centre for Rapid Design and Manufacture (Buckinghamshire Chilterns University) CRDM Cumann Rince Dea Mheasa (Irish dancing organisation) ), developer of the REVELATION(R) Tx, REVELATION(R) T-Flex and REVELATION(R) Helix microcatheter systems for the 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), today reported financial results for the first quarter ended March 31, 2005. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the first quarter ended March 31, 2005 decreased 13% to $555,000 from $636,000 for the same period in 2004. 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. derived net sales fell 15% to $268,000 in the first quarter of 2005, compared with $317,000 in the same period of 2004. European derived net sales decreased 47% to $68,000 from $129,000 for the first quarters of 2005 and 2004, respectively. Net sales in Japan (Asia) increased 18% or $34,000 to $219,000 in the first quarter of 2005 from $185,000 for the same prior year period. Net loss for the first quarter of 2005 decreased 1% or $29,000 to $2,329,000 or $0.02 per share, compared with $2,358,000 or $0.03 per share, for the first quarter of 2004. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased 22% to $2,697,000 for the first quarter of 2005 from $2,215,000 for the same period in 2004. Selling, general and administrative expenses increased 38% or $470,000 to $1,697,000 from $1,227,000 for the first quarters of 2005 and 2004, respectively. This increase was due to the implementation of a Sarbanes-Oxley compliance program in the first quarter of 2005. Research and development expenses decreased 35% to $642,000 in the first quarter of 2005 from $988,000 for the first quarter of 2004. Shares used in calculating the net loss per share increased to 101.4 million shares outstanding from 82.1 million shares. The increase in shares was due to the issuance of shares in connection with the private placement in November 2004. Cardima has scheduled an investor conference call regarding this announcement to be held today, beginning at 4:30 p.m. Eastern Time. To participate in the live call via telephone, please call (800) 901-5259 (domestic) or (617) 786-4514 (international) and use participant passcode #23196452. Individuals interested in listening to the conference call via the Internet may do so by visiting the investor relations Investor relations The process by which the corporation communicates with its investors. section of the Company's Web site at www.cardima.com. A telephonic replay of this call will be available for 14 days starting from 3:30 PM Pacific Time on Wednesday, May 11, 2005 through 8:59 PM Pacific Time on Wednesday, May 25, 2005. Please call (888) 286-8010 (domestic) or (617) 801-6888 (international) and use participant passcode # 56735619. The live webcast will be archived on Cardima's website for one year. About Cardima Cardima, Inc. has developed the REVELATION(R) Tx, REVELATION T-Flex and REVELATION Helix linear ablation ablation /ab·la·tion/ (-shun) 1. separation or detachment; extirpation; eradication. 2. removal or destruction, especially by cutting. ab·la·tion n. microcatheters, the NAVIPORT deflectable de·flect intr. & tr.v. de·flect·ed, de·flect·ing, de·flects To turn aside or cause to turn aside; bend or deviate. [Latin d guiding catheters, and the INTELLITEMP energy management system for the minimally invasive invasive /in·va·sive/ (-siv) 1. having the quality of invasiveness. 2. involving puncture of the skin or insertion of an instrument or foreign material into the body; said of diagnostic techniques. treatment of atrial fibrillation (AF). The REVELATION Helix was developed for the treatment of AF originating in the pulmonary veins pulmonary vein n. A vein that carries oxygenated blood from the lungs to the left atrium of the heart. of the heart. The REVELATION Tx, REVELATION T-Flex and REVELATION Helix systems and the INTELLITEMP have received CE Mark approval in Europe. The Company has also developed a Surgical Ablation System, which is intended for cardiac surgeons A cardiac surgeon is a surgeon who performs cardiac surgery - operative procedures on the heart and great vessels. Training In the United States and Canada, a cardiac surgery residency typically comprises anywhere from six to nine years (or longer) of training to become use in ablating cardiac tissue during heart surgery using radio frequency (RF) energy. In February 2003, the Company announced that it had received 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. 510(k) clearance to market the Surgical Ablation System in the U.S. for use in ablating cardiac tissue. Except for the historical information contained herein, the matters discussed in this press release, including the Company's potential future events relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the delisting Delisting When the stock of a company is removed from a stock exchange. Notes: Reasons for delisting include violating regulations and/or failure to meet financial specifications set out by the stock exchange. of the Company's common stock from Nasdaq, the sufficiency of its cash resources to fund continued operations, the performance and utility of its products and the prospects for entering into a strategic transaction for its Surgical Ablation System or otherwise raising necessary funding, 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 expressed in or implied by such forward-looking statements. Potential risks and uncertainties include the risk that the Company's common stock will be delisted from The Nasdaq SmallCap Market at the opening of business on May 17, 2005; the risk that if the Company does appeal the Nasdaq Staff's Determination, such appeal will be unsuccessful; the risk that the Company will not be able to raise additional capital in the immediate term as needed as needed prn. See prn order. to continue operations; uncertainties associated with the Company's ability to secure a strategic transaction involving its Surgical Ablation System; the risk that the Company will be unable to obtain U.S. FDA approval for the Company's PMA PMA (papillary-marginal-attached), n a system of epidemiologic scoring of periodontal disease devised by Schour and Massler in which the symbols denote the areas involved in gingival inflammation. PMA Progressive muscular atrophy for the REVELATION(R) Tx linear ablation microcatheter system, including uncertainties associated with its ability to revise the study design and collect data acceptable to the FDA; the risk that the approval process for the REVELATION Tx or any other product, including additional clinical trials, will require substantial unanticipated expenses and management attention; the limited number of cases employing the Company's products and the limited amount of follow-up information involving these cases; the possibility of business disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. or unanticipated expenses due to the Company's staffing reduction and financing efforts; and uncertainties associated with its ability to conduct successful clinical trials, obtain and maintain regulatory approvals, gain acceptance for the Company's products from the marketplace or successfully manufacture, market, sell and distribute its products. Additional risks are set forth in the Company's Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 31, 2005 and 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 the year ended December 31, 2004. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectations.
Cardima, Inc.
Statements of Operations
(Unaudited)
In thousands, except per share amounts
Three months ended
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March 31,
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2005 2004
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Net sales $ 555 $ 636
Cost of Goods sold 444 718
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Gross margin 111 (82)
Operating expenses:
Research and development 642 988
Selling, general and administrative 1,697 1,227
Impairment of assets 358 --
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Total operating expenses 2,697 2,215
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Operating loss (2,586) (2,297)
Interest and other income, net 259 (24)
Other non-cash expense -- (33)
Interest expense (2) (4)
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Net loss $ (2,329) $(2,358)
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Basic and diluted net loss per share $ (0.02) $ (0.03)
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Weighted average shares used in computing basic and
diluted net loss per share 101,391 82,051
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Selected Balance Sheet Data
(Unaudited)
In Thousands
March 31,
2005 December 31,
(Unaudited) 2004(a)
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Cash, cash equivalents and short term
investments $ 1,718 $ 3,854
Working capital 2,200 4,158
Total assets 4,210 6,537
Total liabilities 1,989 1,998
Stockholders' equity 2,221 4,539
(a) Derived from audited financial statements included in the
Company's Annual report on form 10-K.
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