CardioTech International, Inc. Reports Results For Second Quarter And First Half Of Fiscal 2006
WILMINGTON, Mass., Nov. 9 /PRNewswire-FirstCall/ -- CardioTech International, Inc. , a developer and manufacturer of advanced medical device products treating cardiovascular disease, today announced financial results for its second quarter and six months ended September 30, 2005.
For the fiscal quarter ended September 30, 2005, revenues were approximately $6.0 million as compared to approximately $5.3 million for the comparable prior year period, a 14.1% increase. Net loss was $285,000, or $0.01 per diluted share, compared to a net loss of $368,000, or $0.02 per diluted share, for the comparable prior year period.
For the six months ended September 30, 2005, revenues were approximately $11.7 million, as compared to approximately $10.8 million for the comparable prior year period, a 7.9% increase. Net loss was $852,000, or $0.04 per diluted share, compared to a net loss of $316,000, or $0.02 per diluted share, for the comparable prior year period.
There were several important strategic developments involving the Company's technology and operations during the past quarter.
The Company is in late-stage discussions with a notified body regarding the requirements necessary for CE mark in Europe for its CardioPass(TM) synthetic Coronary Artery Bypass Graft ("CABG"). In September 2005, the Company received FDA approval for its heparin coated products for the cardiopulmonary bypass surgery market. The Company is currently applying for CE Mark in Europe for its heparin coated products and anticipates approval in calendar year 2006.
Dr. Michael Szycher, CEO and Chairman, CardioTech, said, "We are actively engaged with European regulatory authorities and are pleased with the rapid progress being made to begin clinical trials to obtain CE mark for the CardioPass graft with an indication for "no-option" patients. We look forward to informing investors in the near term as to the recommended path which the regulatory authorities will require in order for us to achieve the CE mark."
At the Catheters and Disposables Technology, Inc subsidiary ("CDT"), production start-up costs for the private-label manufacturing line, dedicated to a major customer, are included in cost of goods sold for the three months ended September 30, 2005. During this period, the Company moved from preproduction to full production.
Dr. Szycher further commented, "At our cardiopulmonary bypass business, Gish Biomedical, Inc., we have recently hired a Director of Sales and Marketing-Worldwide to accelerate product sales overseas, primarily in Japan, where the Company generates higher overall gross margins. At CDT, the expected benefits of our investment to increase production capabilities are being realized. Gross margin improved as we ramped-up production volume to meet our customers requirements."
Company Conference Call and Replay
Management will host a conference call on Wednesday, November 9, 2005 at 4:10 PM Eastern Time to review the financial results and other corporate events, followed by a Q&A session. The call can be accessed by dialing: 866- 818-1393 and entering the pass code: 806086. Participants are asked to call the assigned number approximately 5 minutes before the conference call begins. A replay of the conference call will be available approximately three hours after the call through November 30, 2005 by dialing: 888-266-2081 and entering pass code: 806086.
CardioTech International, Inc. is a medical device company that develops, manufactures and sells advanced products to surgically treat cardiovascular disease. The company is currently developing new products that address annual worldwide markets exceeding $1 billion. CardioPass is the Company's proprietary, synthetic coronary artery bypass graft and CardioTech has partnered to develop a drug-eluting stent.
The company's corporate headquarters are located in Wilmington, Massachusetts, with operations in California and Minnesota. The company generates revenues from sales of advanced medical devices and disposables used during cardiopulmonary bypass procedures, as well as from contracted product design and development services. More information can be found about CardioTech at its website: http://www.cardiotech-inc.com.
CardioTech believes that this press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties. Such statements are based on management's current expectations and are subject to facts that could cause results to differ materially from the forward-looking statements. For further information you are encouraged to review CardioTech's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-KSB for the period ended March 31, 2005, and Quarterly Reports on Form 10-Q for the periods ended June 30, 2005 and September 30, 2005. The Company assumes no obligation to update the information contained in this press release
For more information, please contact: CardioTech International Inc. Michael Szycher Ph.D. CEO and Chairman Eric G. Walters Vice President and CFO 978-657-0075 Catalyst Financial Resources, LLC Tom O'Brien 716-830-6611 CardioTech International, Inc. Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except share and per share amounts) September 30, March 31, 2005 2005 ASSETS Current assets: Cash and cash equivalents $7,032 $7,469 Accounts receivable-trade, net 3,451 3,399 Accounts receivable-other 309 231 Inventories 5,481 4,802 Prepaid expenses and other current assets 263 195 Total current assets 16,536 16,096 Property, plant and equipment, net 4,287 4,549 Amortizable intangible assets, net 680 776 Goodwill 1,638 1,638 Other assets 183 198 Investment in CorNova, Inc. 564 505 Total assets $23,888 $23,762 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $1,805 $1,664 Accrued expenses 908 652 Deferred revenue 202 263 Total current liabilities 2,915 2,579 Deferred rent 147 173 Stockholders' equity: Preferred stock; $.01 par value; 5,000,000 shares authorized; 500,000 shares issued and none outstanding as of September 30, 2005 and March 31, 2005, respectively - - Common stock; $.01 par value; 50,000,000 shares authorized; 19,489,493 and 19,258,989 shares issued and outstanding as of September 30, 2005 and March 31, 2005, respectively 195 192 Additional paid-in capital 35,786 35,263 Accumulated deficit (15,122) (14,270) Accumulated other comprehensive loss (33) (175) Total stockholders' equity 20,826 21,010 Total liabilities and stockholders' equity $23,888 $23,762 CardioTech International, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts) Three Months Ended Six Months Ended September 30, September 30, 2005 2004 2005 2004 Revenues: Product sales $5,763 $5,108 $11,200 $10,458 Royalties 271 181 475 362 6,034 5,289 11,675 10,820 Operating expenses: Cost of product sales 4,410 3,804 8,882 7,571 Research and development 386 267 703 541 Selling, general and administrative 1,538 1,577 2,948 2,993 6,334 5,648 12,533 11,105 Loss from operations (300) (359) (858) (285) Other income and expense: Investment and other income 86 8 96 16 Interest and other expense (6) (7) (7) (25) 80 1 89 (9) Equity in net loss of CorNova, Inc. (65) (10) (83) (22) Net loss $(285) $(368) $(852) $(316) Net loss per common share, basic and diluted $(0.01) $(0.02) $(0.04) $(0.02) Shares used in computing net loss per common share, basic and diluted 19,350 17,671 19,304 17,670CardioTech International, Inc.
CONTACT: Michael Szycher Ph.D., CEO and Chairman, or Eric G. Walters, VicePresident and CFO, both of CardioTech International Inc., +1-978-657-0075;or Tom O'Brien of Catalyst Financial Resources, LLC, +1-716-830-6611
Web site: http://www.cardiotech-inc.com//