REDWOOD CITY, Calif., Jan. 24 /PRNewswire-FirstCall/ -- Cardica, Inc. (Nasdaq: CRDC) today reported financial results and corporate progress for its fiscal 2008 second quarter and six months ended December 31, 2007.
"We continue to make excellent commercial progress, with over 1,000
C-Port systems shipped in the past quarter for the first time, an expanding
product line designed to enable minimally-invasive cardiac surgery and
substantial advancement for our development-stage products," said Bernard
A. Hausen, M.D., Ph.D., president and chief executive officer of Cardica,
Inc. "Moving forward, we will build on our momentum with a significant
presence at the Annual Meeting of the Society for Thoracic Surgeons (STS)
next week where we will feature our reloadable, cartridge-based C-Port(R)
xA X-CHANGE(TM) system, host a joint robotic seminar with Intuitive
Surgical, participate in a physician education event featuring our
anastomosis products and train surgeons on the use of our devices at STS
Recent Highlights and Accomplishments
-- Trained a total of 232 surgeons on C-Port(R) Distal Anastomosis Systems
since product introduction;
-- Increased cumulative worldwide shipments of C-Port systems to over
3,600 units, with more than 1,000 units sold in the fiscal 2008 second
-- Increased cumulative worldwide shipments of PAS-Port(R) Proximal
Anastomosis Systems to over 7,300 units, with more than 560 units sold
in the fiscal 2008 second quarter, of which the vast majority of units
were deployed in Japan;
-- Reported data at the 2007 American Heart Association Scientific
Sessions demonstrating that C-Port xA(R) and C-Port(R) Flex-A(R) Distal
Anastomosis Systems produce excellent patency in off-pump cardiac
-- Hosted a premier live webcast demonstrating the use of the C-Port xA
and the C-Port Flex-A systems during an off-pump coronary artery bypass
graft (CABG) procedure and a taped robotic closed-chest bypass surgery,
-- Launched C-Port xA X-CHANGE system, a cartridge-based system, and will
feature it at the Annual Meeting of the Society of Thoracic Surgeons
which is taking place Jan. 25-30 in Fort Lauderdale, Fla.
-- Raised $15.4 million in net proceeds through the sale of 1,981,170
shares of Cardica's common stock; and
-- Received $2 million from Cook Medical for multiple milestones under the
Cook Vascular Closure Device and patent foramen ovale (PFO) license,
development and commercialization agreements.
Fiscal 2008 Second Quarter and Six Months Ended December 31, 2007 Financial Results
Total revenue was approximately $1.7 million for the fiscal 2008 second quarter compared to approximately $0.9 million for the fiscal 2007 second quarter. Total product revenue was approximately $1.3 million for the fiscal 2008 second quarter compared to approximately $0.4 million for the same period in fiscal 2007. Cost of product revenue was approximately $1.2 million for the fiscal 2008 second quarter compared to approximately $0.9 million for the fiscal 2007 second quarter.
Research and development expenses were approximately $1.7 million for both the fiscal 2008 and 2007 second quarters. Selling, general and administrative expenses for the fiscal 2008 second quarter were approximately $3.2 million compared to approximately $2.2 million for the same period in fiscal 2007.
The net loss for the fiscal 2008 second quarter was approximately $4.2 million, or $0.29 per share, compared to a net loss of approximately $2.5 million, or $0.23 per share, for the fiscal 2007 second quarter.
Total net revenue for the six months ended December 31, 2007 was approximately $3.0 million compared to approximately $1.4 million for the same period of fiscal 2007. Total operating costs and expenses for the six months ended December 31, 2007 were approximately $11.4 million compared to approximately $9.0 million for the same period of fiscal 2007. The net loss for the first six months of fiscal 2008 was approximately $7.8 million, or $0.56 per share, compared to a net loss of approximately $6.1 million, or $0.60 per share, for the same period of fiscal 2007.
Cash and investments at December 31, 2007 were $30.9 million, compared to $18.9 million at September 30, 2007. The Cook $2.0 million payment was deposited in January 2008 and is not included in the year-end cash and investments balance. As of December 31, 2007, there were approximately 15.7 million shares of common stock outstanding.
Financial Guidance for Fiscal 2008:
For the full fiscal year 2008, we continue to expect total revenue of $6 million to $8 million, of which we expect product revenue of $4 million to $5 million. In addition, we continue to expect development revenue of $2 million to $3 million. We continue to anticipate that fiscal 2008 research and development, and selling, general and administrative expenses will total $20 million to $21 million, including non-cash stock-based compensation expense of approximately $2 million. We continue to expect that the net loss for fiscal 2008 will be between $16 million and $18 million.
Conference Call Details
We will hold a live conference call today, January 24, 2008 at 4:30 p.m. Eastern Time to discuss our fiscal second quarter financial results and provide an update on the business. To access the live conference call via phone, please dial 800-659-1966 in the United States and Canada or 617-614-2711 internationally. The conference ID is 37076673. Please dial in approximately ten minutes prior to the start of the call. A telephone replay will be available beginning approximately one hour after the call through January 31, 2008 and may be accessed by dialing 888-286-8010 from the United States and Canada or 617-801-6888 internationally. The replay passcode is 33900859.
To access the live and subsequently archived webcast of the conference call, go to the Investor Relations section of Cardica's website at http://www.cardica.com. Please connect to the website at least 15 minutes prior to the call to allow for any necessary software downloads.
About Cardica, Inc.
Cardica is a leading provider of automated anastomosis systems for coronary artery bypass graft (CABG) surgery. By replacing hand-sewn sutures with easy-to-use automated systems, Cardica's products provide cardiovascular surgeons with rapid, reliable and consistently reproducible anastomoses, or connections of blood vessels, often considered the most critical aspect of the CABG procedure. Cardica's C-Port(R) Distal Anastomosis Systems are marketed in Europe and the United States. The PAS-Port(R) Proximal Anastomosis System is marketed in Europe and Japan and is being evaluated in a pivotal trial in the United States and Europe. Cardica also is developing additional devices with Cook Incorporated to facilitate vascular closure and other surgical procedures.
This press release contains forward-looking statements, including,
without limitation, statements under the heading "Financial Guidance for
Fiscal 2008." The words "anticipate," "expect," "will" and similar
expressions are intended to identify forward-looking statements. These
forward-looking statements are based upon Cardica's current expectations.
Forward-looking statements involve risks and uncertainties. Cardica's
actual results and the timing of events could differ materially from those
anticipated in such forward-looking statements as a result of these risks
and uncertainties, which include, without limitation, risks associated with
Cardica's dependence upon the success of its current products, market
acceptance of Cardica's C-Port(R) Distal Anastomosis Systems, manufacturing
of the C-Port(R) Distal Anastomosis Systems and PAS-Port(R) Proximal
Anastomosis System and our suppliers, Cardica's sales, marketing and
distribution strategy and capabilities, success of pre-clinical studies of
and regulatory activities related to the Cook Vascular Closure Device and
specialized PFO closure device, the timing of completion and success of the
multi-national clinical trial evaluating Cardica's PAS-Port Proximal
Anastomosis System and Cardica's need for additional funding. These and
other risk factors are discussed under "Risk Factors" in Cardica's
Quarterly Report on Form 10-Q for the fiscal quarter ended September 30,
2007. Cardica expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements
contained herein. You are encouraged to read the Company's reports filed
with the U.S. Securities and Exchange Commission, available at
~ financial statements to follow ~
Statements of Operations
(amounts in thousands except per share amounts)
Three months ended Six months ended
December 31, December 31,
2007 2006 2007 2006
Product revenue, net $1,283 $416 $2,309 $874
Development revenue 395 500 702 500
Royalty revenue from
related-party 16 12 32 25
Total revenue 1,694 928 3,043 1,399
Operating costs and
Cost of product
revenue 1,199 884 2,212 1,563
development 1,746 1,661 3,434 3,149
Selling, general and
administrative 3,176 2,203 5,729 4,273
Total operating costs
and expenses 6,121 4,748 11,375 8,985
Loss from operations (4,427) (3,820) (8,332) (7,586)
Interest income 283 298 553 687
Interest expense (25) (132) (50) (396)
Other income 2 - 3 -
Gain on early retirement
of notes payable to
related-party - 1,183 - 1,183
Net loss $(4,167) $(2,471) $(7,826) $(6,112)
Basic and diluted net
loss per share $(0.29) $(0.23) $(0.56) $(0.60)
Shares used in computing
basic and diluted net
loss per share 14,471 10,642 14,037 10,210
in thousands) December 31, June 30,
Assets (unaudited) (Note 1)
Cash and investments $30,903 $23,434
Other assets 4,513 3,890
Total assets $35,416 $27,324
liabilities $3,008 $3,315
liabilities 2,000 2,020
Stockholders' equity 30,408 21,989
equity $35,416 $27,324
(1) Derived from audited financial statements
|SOURCE Cardica, Inc.|
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