Alternans Revenue up 18% Sequentially over Q2
2006 BEDFORD, Mass., Nov 02, 2006 (BUSINESS WIRE) -- Cambridge Heart, Inc.
(OTCBB-CAMH) today reported total revenue of $2,030,600 for the quarter ended September
30, 2006, an increase of $1,113,300, or 121%, compared to total revenue of $917,300 for
the same period in 2005. Sequentially, total revenue increased $265,700, or 15%, from
$1,764,900 in revenue reported for the quarter ended June 30, 2006. The operating loss for
the third quarter of 2006 was $925,700, an increase of $269,200, or 41%, compared to an
operating loss of $656,500 for the same period in 2005. The operating loss for the third
quarter of 2006 included $170,000 in non-cash stock based compensation expense for
employees resulting from the adoption of SFAS123R, $154,000 in expenses related to
compliance with Section 404 of the Sarbanes-Oxley Act and $94,000 of severance related
charges. The net loss for the quarter was $818,100, or $0.01 per share, compared to a net
loss of $424,600, or $0.01 per share, in the same period in 2005. The net loss for the
2005 period included a non-cash gain of $184,300 related to a change in the value of the
Company's Series B warrants.
The Company reported total revenue for the nine months ended September 30, 2006 of
$5,214,500, an increase of $2,104,800 or 68% compared to total revenue of $3,109,700 for
the same period in 2005. The operating loss for the 2006 nine-month period was $2,213,400,
a decrease of $158,700, or 7%, compared to an operating loss of $2,372,100 in the same
period last year. The operating loss for the 2006 nine-month period included $330,000 in
non-cash stock based compensation expense, $154,000 in expenses related to compliance with
Section 404 of the Sarbanes-Oxley Act and $94,000 in severance related charges. The net
loss for the nine months ended September 30, 2006 was $8,196,700, or $0.14 per share,
compared to a net loss of $685,400, or $0.02 per share, in the same period in 2005. The
net loss for the 2006 period included a non-cash charge of $6,264,700 related to the
change in value of Series B warrants, and the net loss for the 2005 period included a
non-cash gain of $1,552,800, also related to a change in the value of the Company's Series
B warrants. As of March 31, 2006, all of the Series B warrants had been exercised and
converted into shares of the Company's common stock.
Revenue for the third quarter from the sale of the Company's Microvolt T-Wave Alternans
("Alternans") products was $1,736,200, an increase of $1,096,200, or 171%,
compared to $640,000 from the sale of such products in the same period in 2005.
Sequentially, quarterly revenue from the Company's Alternans products increased by
$269,500, or 18%, compared to revenue of $1,466,700 for the quarter ended June 30, 2006.
For the first nine months of 2006, revenue from Alternans products was $4,297,000, an
increase of $2,081,300, or 94%, compared to revenue of $2,215,700 in the same period in
2005.
The Company's cash used by operations was $545,600, and $1,295,000, respectively, for
the three and nine months ended September 30, 2006. Cash use is expected to increase in
future quarters as the Company continues to implement its sales and marketing expansion
plans throughout 2006 and 2007. The Company had cash and marketable securities of $8.1
million at September 30, 2006.
The Company currently has a total of 62.5 million shares of common stock issued and
outstanding. In addition, there are options and warrants outstanding to purchase 8.9
million common equivalent shares, bringing the fully diluted share count to 71.4 million
common equivalent shares.
"Hitting the $2 million dollar mark in revenue this quarter represents another
major milestone achieved by the Cambridge Heart team and reflects the expanding
endorsement by our targeted customers." stated Jeff Langan, President and Chief
Executive Officer of Cambridge Heart. "Our new VP of Sales and Marketing, Mark
Florence, and his team made it happen. Receiving Class IIa guideline status from the
American College of Cardiology (ACC), The American Heart Association (AHA) and the
European Society of Cardiology (ESC) in their 2006 "Guideline for Management of
Patients with Ventricular Arrhythmias and the Prevention of Sudden Cardiac Death" was
a major highlight this quarter as well. All of this positions us well for future
growth."
Conference Call Information
The Company will hold a conference call at 4:30 p.m. eastern on Thursday, November 2nd
to discuss the results for the 2006 third quarter. The conference call phone-in number is
866.356.4279 (outside the U.S. 617.597.5394), passcode 82383362. 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 44763245. This playback will begin approximately two hours after the call ends.
The conference call will also be available by webcast on the Company's web site at
www.cambridgeheart.com.
About Cambridge Heart
Cambridge Heart (www.cambridgeheart.com) is engaged in the development and
commercialization of products for the non-invasive diagnosis of cardiac disease,
particularly the identification of those at risk of sudden cardiac arrest. The Company's
products incorporate its proprietary Microvolt T-Wave Alternans measurement technologies,
coupled with its patented Spectral Analytic Method and ultra-sensitive disposable
electrodes. Only Spectral Analytic Method MTWA tests are reimbursed by Medicare under its
National Coverage Policy that covers patients with a wide variety of cardiac symptoms.
Other major insurers in the USA also have coverage policies for the test. The T-Wave
Alternans test is included in the Guideline for Management of Patients with Ventricular
Arrhythmias and the Prevention of Sudden Cardiac Death jointly developed by the American
College of Cardiology (ACC), The American Heart Association (AHA) and the European Society
of Cardiology (ESC). The Company also files regular reports with the U.S. Securities and
Exchange Commission which are available at no charge either through the Company or via the
Internet at www.EDGAR.gov.
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 called T-wave alternans. These tiny
heartbeat variations - measured at one millionth of a volt - can be detected in any
clinical setting where titration of the heart rate is possible. The test involves placing
proprietary sensors on a patient's chest, after which the Company's proprietary algorithms
assess the data and deliver the results in a format that can be easily understood by the
attending physician. Extensive clinical research has shown that patients with symptoms of
or, who are 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.
Statements contained in this press release about anticipated revenue growth, and all
other statements that are not purely historical, are forward-looking statements for
purposes of the safe harbor provisions under The Private Securities Litigation Reform Act
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 under "Factors Which May Affect Future
Results", which is on file with the SEC and available at www.EDGAR.com. 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
any obligation to do so except as may be legally necessary, even if our estimates should
change.
Cambridge Heart, Inc.
Financial Highlights
Statement of Three months ended Nine months ended
Operations September 30, September 30,
--------------------------------------------------
2006 2005 2006 2005
--------------------------------------------------
Revenues $ 2,030,610 $ 917,327 $ 5,214,509 $ 3,109,672
Cost of goods
sold 781,743 489,010 2,102,638 1,514,706
-------------------------------------------------
Gross Profit 1,248,867 428,317 3,111,871 1,594,966
Costs and
expenses
Research and
development 112,956 143,486 375,226 532,894
Selling, general
and
administrative 2,061,599 941,342 4,950,080 3,434,155
--------------------------------------------------
Total
Operating
Expenses 2,174,555 1,084,828 5,325,306 3,967,049
Loss from
operations (925,688) (656,511) (2,213,435) (2,372,083)
Interest income 107,570 47,600 281,486 133,968
Change in valuation
of Series B
warrants - 184,307 (6,264,727) 1,552,757
------------- ------------------------ -----------
Net Loss $ (818,118)$ (424,604)$(8,196,676)$ (685,358)
==================================================
Net loss per common
share - basic and
diluted $ (0.01)$ (0.01)$ (0.14)$ (0.02)
==================================================
Weighted average
shares outstanding
- basic and diluted 60,983,423 40,756,204 58,717,264 39,361,041
==================================================
Balance Sheet September December 31,
30,
2006 2005
--------------------------
Assets
--------------------
Cash & Marketable
Securities $ 8,103,281 $ 5,297,834
Accounts
receivable, net 1,735,682 1,018,988
Inventory 389,982 419,938
Other prepaid
assets 83,544 79,843
--------------------------
Total current
assets 10,312,489 6,816,603
Fixed assets, net 94,864 85,771
Other assets 90,871 112,182
--------------------------
$ 10,498,224 $ 7,014,556
==========================
Liabilities and
stockholders'
equity
--------------------
Accounts payable
and accrued
expenses $ 1,547,748 $ 774,185
Debt, current
portion 176 1,577
--------------------------
Total current
liabilities 1,547,924 775,762
Debt, long-term
portion - 0
Series B warrant
liability - 1,503,646
--------------------------
Total
liabilities $ 1,547,924 $ 2,279,408
--------------------------
Convertible
Preferred 0 1,504,287
Warrants to acquire
Convertible
Preferred
Stock 462,318 743,440
--------------------------
$ 462,318 $ 2,247,727
--------------------------
Stockholders'
equity
Common stock $ 61,203 $ 46,301
Additional paid-
in-capital 75,418,629 61,236,294
Accumulated
deficit (66,991,850) (58,795,174)
--------------------------
Total
stockholders'
equity 8,487,982 2,487,421
--------------------------
$ 10,498,224 $ 7,014,556
==========================
SOURCE: Cambridge Heart, Inc.
At Cambridge Heart, Inc.
Roderick de Greef, 781-271-1200 x231
Chief Financial Officer
roderickd@cambridgeheart.com
or
At Consulting for Strategic Growth
Stanley Wunderlich, 800-625-2236
info@cfsg1.com
