Cardiogenesis Reports First Quarter 2009 Results
May 14 2009 - 7:30AM
PR Newswire (US)
IRVINE, Calif., May 14 /PRNewswire-FirstCall/ -- Cardiogenesis
Corporation (Pink Sheets: CGCP) the "Company", a leading developer
of surgical products used in the treatment of patients suffering
from severe angina, today reported financial results for its first
quarter ended March 31, 2009. First Quarter 2009 Financial Results
Net revenues in the first quarter of 2009 totaled $2,852,000, a 4%
decrease from the prior year first quarter net revenues of
$2,982,000. During the first quarter of 2009, the Company sold
three lasers and 479 handpiece units as compared to three lasers
and 540 handpieces during the first quarter of 2008. The decrease
in net revenue for the three months ended March 31, 2009 results
primarily from lower handpiece unit volume in the current year
quarter. Richard Lanigan, Cardiogenesis President, stated, "During
the fourth quarter of 2008 and through the first quarter of 2009,
we implemented an outreach initiative to cardiologists to increase
referrals for stand-alone TMR procedures. While we experienced a
slow January, the good news is that we added 18 new centers
performing stand alone TMR during this period. Success with
stand-alone TMR not only increases the case-load for the
cardiothoracic surgeons, but may also serve to remind surgeons of
the utility of the technology as an adjunct to coronary bypass
surgery. We believe the validation of this stand-alone therapy with
cardiothoracic surgeons and referring cardiologists is important to
the commercial success of TMR." The Company reported a first
quarter 2009 operating loss of $297,000 as compared with an
operating loss of $37,000 in the prior year quarter. The net loss
for the quarter was $314,000 or $0.01 per basic and diluted share,
as compared with a net loss of $36,000, or $0.00 per basic and
diluted share in the 2008 first quarter. The gross margin
percentage was 81% of net revenues for the quarter ended March 31,
2009 as compared with an 82% gross margin percentage in the first
quarter of 2008. Gross profit decreased by $141,000 to $2,316,000
for the current year quarter as compared with $2,457,000 for the
2008 first quarter. Research and development expenses were $288,000
in the first quarter of 2009 as compared with $216,000 in the 2008
first quarter. The dollar increase for the three months ended March
31, 2009 was attributed primarily to an increase in activities
supporting clinical trials and studies. Sales and marketing
expenses of $1,469,000 in the quarter ended March 31, 2009
decreased $58,000, or 4%, compared with $1,527,000 for the quarter
ended March 31, 2008. General and administrative expenses for the
quarter ended March 31, 2009 totaled $856,000 as compared to
$751,000 during the quarter ended March 31, 2008. This represents
an increase of $105,000, or 14%. About Cardiogenesis Corporation
Cardiogenesis is a medical device company specializing in the
treatment of cardiovascular disease and is a leader in devices that
treat severe angina. The Company's market leading holmium:YAG laser
system and single use fiber-optic delivery systems are used to
perform a FDA-cleared surgical procedure known as Transmyocardial
Revascularization (TMR). For more information on Cardiogenesis and
its products, please visit the Company's website at
http://www.cardiogenesis.com/ or the direct to patient website at
http://www.heartofnewlife.com/. Safe Harbor Statement With the
exception of historical information, the statements set forth above
include forward-looking statements. Any forward-looking statements
in this news release are subject to numerous risks and
uncertainties, many of which are outside the Company's control,
that could cause actual results to differ materially. Factors that
could affect the accuracy of these forward-looking statements
include, but are not limited to: any inability by the Company to
sustain profitable operations or obtain additional financing on
favorable terms if and when needed; any failure to obtain required
regulatory approvals; failure of the medical community to expand
its acceptance of TMR procedures; possible adverse governmental
rulings or regulations, including any FDA regulations or rulings;
the Company's ability to comply with international and domestic
regulatory requirements; possible adverse Medicare or other
third-party reimbursement policies or adverse changes in those
policies; any inability by the Company to ship product on a timely
basis; the Company's ability to manage its growth; the effects of
recent disruptions in global credit and equity markets and other
adverse economic developments that could adversely affect the
market for our products or our ability to raise needed financing;
actions by our competitors; and the Company's ability to protect
its intellectual property. Other factors that could cause
Cardiogenesis' actual results to differ materially are discussed in
the "Risk Factors" section of the Company's Annual Report on Form
10-K for the year ended December 31, 2008 and the Company's other
filings with the Securities and Exchange Commission. The Company
disclaims any obligation to update any forward-looking statements
as a result of developments occurring after the date of this press
release. CARDIOGENESIS CORPORATION CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (in thousands, except per share amounts)
(unaudited) Three months ended March 31, 2009 2008 Net revenues
$2,852 $2,982 Cost of revenues 536 525 ----- ----- Gross profit
2,316 2,457 ----- ----- Operating expenses: Research and
development 288 216 Sales and marketing 1,469 1,527 General and
administrative 856 751 ----- ----- Total operating expenses 2,613
2,494 ----- ----- Operating loss (297) (37) Other income (expense):
Interest expense (10) (20) Interest income 1 21 ----- ----- Total
other (expense) income, net (9) 1 ----- ----- Loss before income
taxes (306) (36) Provision for income taxes 8 - ----- ----- Net
loss $(314) $(36) ====== ===== Net loss per share: Basic $(0.01) $-
======= ===== Diluted $(0.01) $- ======= ===== Weighted average
shares outstanding: Basic 45,487 45,274 ------ ------ Diluted
45,487 45,274 ------ ------ CARDIOGENESIS CORPORATION CONDENSED
CONSOLIDATED BALANCE SHEETS (in thousands) March 31, December 31,
2009 2008 (unaudited) (audited) ASSETS Current assets: Cash and
cash equivalents $2,773 $2,907 Accounts receivable, net of
allowance for doubtful accounts of $0 and $20, respectively 1,425
1,330 Inventories 1,125 1,164 Investments in marketable securities
- 75 Prepaids and other current assets 363 395 ----- ----- Total
current assets 5,686 5,871 Property and equipment, net 353 382
Other assets, net 18 18 ----- ----- Total assets $6,057 $6,271
====== ====== LIABILITIES AND SHAREHOLDERS' EQUITY Current
liabilities: Accounts payable $222 $200 Accrued liabilities 1,130
1,103 Deferred revenue 796 800 Current portion of capital lease
obligations 9 6 ----- ----- Total current liabilities 2,157 2,109
Capital lease obligations, less current portion 21 13 ----- -----
Total liabilities 2,178 2,122 ----- ----- Commitments and
Contingencies Shareholders' equity: Preferred stock: no par value;
5,000 shares authorized; none issued and outstanding - - Common
stock: no par value; 75,000 shares authorized; 45,487 and 45,487
shares issued and outstanding, respectively 174,043 173,999
Accumulated deficit (170,164) (169,850) --------- --------- Total
shareholders' equity 3,879 4,149 ----- ----- Total liabilities and
shareholders' equity $6,057 $6,271 ====== ====== DATASOURCE:
Cardiogenesis Corporation CONTACT: William R. Abbott, Senior Vice
President and Chief Financial Officer of Cardiogenesis Corporation,
+1-949-420-1800 Web Site: http://www.cardiogenesis.com/
http://www.heartofnewlife.com/
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