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8-K - FORM 8-K - Dex Liquidating Co. | c11526e8vk.htm |
Exhibit 99.1
Contact:
Bob Newell
Vice President, Finance and Chief Financial Officer
(650) 331-7133
investors@cardica.com
Vice President, Finance and Chief Financial Officer
(650) 331-7133
investors@cardica.com
CARDICA ANNOUNCES FISCAL 2011 SECOND QUARTER FINANCIAL RESULTS
REDWOOD CITY, Calif. January 27, 2011 Cardica, Inc. (Nasdaq: CRDC) today announced financial
results for its fiscal second quarter and six-months ended December 31, 2010. Cardicas management
will host a conference call at 4:30 p.m. Eastern Time today to discuss the financial results and
provide an update on the companys business.
We continue to advance development of our line of microcutter true multi-fire endoscopic staplers,
making progress in finalizing our initial devices while at the same time continuing our product
development efforts for an expanded product line. Based on our product attributes and surgeon
requirements, we believe our microcutter technology platform can be the basis for devices that
address the vast majority of endoscopic surgical procedures requiring cutting and stapling, which
includes more than two million procedures in the U.S. alone, said Bernard A. Hausen, M.D., Ph.D.,
president and chief executive officer of Cardica. Importantly, we continue to receive positive
feedback from key opinion leaders indicating a demand for our proposed microcutter products, which,
in addition to eliminating cartridge reloads, have a smaller shaft diameter and greater end
effector articulation than staplers available today. We anticipate receiving the CE Mark and
completing first-in-man use of our initial microcutter product in Europe in the current quarter.
In addition, our cardiac surgery business has continued to generate revenue at a rate of
approximately $4 million per year, for a consistent contribution to overhead, continued Dr.
Hausen.
Recent Highlights and Accomplishments
| Completed tooling of the Microcutter XPRESS 30 (formerly referred to as the Cardica
Microcutter ES8); |
| Launched tooling of the Microcutter XPRESS 45 (formerly referred to as the Cardica
Microcutter ES8) and XCHANGE 30 (formerly referred to as the Cardica Microcutter MES5); |
| Initiated development of the Microcutter FLEXCHANGE 30, a planned device with a
flexible shaft to facilitate endoscopic procedures requiring cutting and stapling, and the
Microcutter XPRESS 60, a planned cutting and stapling device specifically designed for the
bariatric and thoracic surgery markets; |
| Increased cumulative worldwide shipments of PAS-Port® Proximal Anastomosis
Systems to over 21,800 units, with 1,142 units shipped in the fiscal 2011 second quarter; |
| Increased cumulative worldwide shipments of C-Port® Distal Anastomosis
Systems to over 11,500 units, with 478 units shipped in the fiscal 2011 second quarter;
and, |
| Entered into a common stock purchase agreement with Aspire Capital Fund, LLC, which
provides that Aspire Capital is committed to purchase up to
$10 million of the companys common
stock at Cardicas option over the next two years upon the terms and subject to the conditions set forth in the
agreement. |
Fiscal 2011 Second Quarter and Six Months Ended December 31, 2010 Financial Results
Total product sales were approximately $1.1 million for the fiscal 2011 second quarter compared to
$1.0
million for the same period of fiscal 2010. Total net revenue was approximately $1.2 million for
the fiscal 2011 second quarter compared to $1.1 million for the fiscal 2010 second quarter. Cost of
product sales was approximately $1.0 million for the fiscal 2011 second quarter compared to $0.7
million in the same period of fiscal 2010.
Research and development expenses were approximately $2.0 million for the fiscal 2011 second
quarter compared to $1.2 million for the fiscal 2010 second quarter. Selling, general and
administrative expenses for the fiscal 2011 second quarter were approximately $1.6 million compared
to $1.4 million for the comparable quarter of fiscal 2010.
The net loss for the fiscal 2011 second quarter was approximately $3.3 million, or $0.13 per
diluted share, compared to a net loss of approximately $2.2 million, or $0.09 per diluted share,
for the fiscal 2010 second quarter.
Total product sales were approximately $2.1 million for the six months ended December 31, 2010
compared to $1.8 million for the same period of fiscal 2010. Total net revenue for the six months
ended December 31, 2010 was approximately $11.2 million compared to approximately $2.0 million for
the same period of fiscal 2010. Total net revenue for the fiscal 2011 six month period included
$9.1 million related to a license agreement with Intuitive Surgical for a royalty-bearing license
to Cardicas stapling, cutting and clip appliers for the field of robotics. Total operating costs
and expenses for the six months ended December 31, 2010 were approximately $8.4 million compared to
$6.9 million for the six months ended December 31, 2009. Net income for the first six months of
fiscal 2011 was approximately $2.9 million, or $0.11 per diluted share, compared to a net loss of
$4.9 million for the first six months of fiscal 2010, or $0.25 per diluted share.
Cash and cash equivalents at December 31, 2010 were approximately $12.6 million compared to $14.9
million at September 30, 3010 and $6.6 million at June 30, 2010. As of December 31, 2010, there
were approximately 25.7 million shares of common stock outstanding.
Conference Call Details
To access the live conference call today at 4:30 p.m. Eastern Time via phone, please dial
866-783-2138 from the United States and Canada or 857-350-1597 internationally. The conference ID
is 48374794. Please dial in approximately 10 minutes prior to the start of the call. A telephone
replay will be available beginning approximately two hours after the call through February 3, 2011,
and may be accessed by dialing 888-286-8010 from the United States and Canada or 617-801-6888
internationally. The replay passcode is 77283194.
To access the live and subsequently archived webcast of the conference call, go to the Investor
Relations section of the companys website at www.cardica.com. Please connect to the website at
least 15 minutes prior to the presentation to allow for any necessary software downloads.
The webcast is also being distributed through the Thomson StreetEvents Network. Individual
investors can listen to the call at www.earnings.com, Thomsons individual investor portal, powered
by StreetEvents. Institutional investors can access the call via Thomson StreetEvents at
www.streetevents.com, a password-protected event management site.
About Cardica
Cardica designs and manufactures proprietary stapling and anastomotic devices for cardiac and
endoscopic surgical procedures. Cardicas technology portfolio is intended to minimize operating
time and enable minimally-invasive and robot-assisted surgeries. Cardica manufactures and markets
its automated anastomosis systems, the C-Port® Distal Anastomosis Systems and
PAS-Port® Proximal Anastomosis System, for coronary artery bypass graft (CABG) surgery
and has shipped over 33,000 units throughout the world. In addition, the company is developing the
Cardica Microcutter XPRESS 30, a true multi-fire endoscopic stapling device designed to be used in
a variety of procedures, including bariatric, thoracic and general surgery. The Cardica Microcutter
XPRESS 30 requires regulatory clearance through the 510(k) or other process with the U.S. Food &
Drug Administration and is not yet commercially available.
Forward-Looking Statements
This press release contains forward-looking statements, including all statements regarding the
future development, potential surgical uses, regulatory approval and first-in-man use of products
in Cardicas proposed microcutter product line, including the Cardica Microcutter XPRESS 30 and
Cardicas expectations regarding future sales of its automated anastomosis products. Any statements
contained in this press release that are not historical facts may be deemed to be forward-looking
statements. The words progress, believe, can, proposed, anticipate and similar
expressions are intended to identify forward-looking statements. There are a number of important
factors that could cause Cardicas results to differ materially from those indicated by these
forward-looking statements, including that Cardica may not be successful in its efforts to develop
the Cardica Microcutter XPRES 30 or any other microcutter products and to expand its product
portfolio; that the Microcutter XPRESS 30 may not be subject to a 510(k) rather than longer
Premarket Approval application process or otherwise may not obtain U.S. regulatory approval or CE
Mark on Cardicas anticipated timeline, if at all; that Cardicas current and any future products
may never gain any significant degree of market acceptance; that any future Cardica products face
development, regulatory, reimbursement and manufacturing risks; that Cardicas intellectual
property rights may not provide adequate protection; that Cardicas sales, marketing and
distribution strategy and capabilities may not be sufficient or successful; and that general
business and economic conditions may impair Cardicas ability to market and develop products, as
well as other risks detailed from time to time in Cardicas reports filed with the U.S. Securities
and Exchange Commission, including its Quarterly Report on Form 10-Q for the fiscal quarter ended
September 30, 2010. 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 Cardicas reports filed with the U.S. Securities and Exchange Commission, available at
www.sec.gov.
# # #
Cardica, Inc.
Statements of Operations
(amounts in thousands except per share amounts)
Statements of Operations
(amounts in thousands except per share amounts)
Three months ended | Six months ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Revenue |
||||||||||||||||
Product sales, net |
$ | 1,094 | $ | 1,023 | $ | 2,089 | $ | 1,840 | ||||||||
License and development revenue |
84 | 19 | 9,109 | 124 | ||||||||||||
Royalty revenue |
16 | 22 | 38 | 47 | ||||||||||||
Total |
1,194 | 1,064 | 11,236 | 2,011 | ||||||||||||
Operating costs and expenses |
||||||||||||||||
Cost of product sales |
961 | 699 | 1,905 | 1,539 | ||||||||||||
Research and development |
1,972 | 1,221 | 3,347 | 2,364 | ||||||||||||
Selling, general and administrative |
1,611 | 1,361 | 3,106 | 2,965 | ||||||||||||
Total operating costs and expenses |
4,544 | 3,281 | 8,358 | 6,868 | ||||||||||||
Income (loss) from operations |
(3,350 | ) | (2,217 | ) | 2,878 | (4,857 | ) | |||||||||
Interest and other income |
17 | 21 | 23 | 27 | ||||||||||||
Interest expense |
| (30 | ) | (11 | ) | (60 | ) | |||||||||
Net income (loss) |
$ | (3,333 | ) | $ | (2,226 | ) | $ | 2,890 | $ | (4,890 | ) | |||||
Basic net income (loss) per share |
$ | (0.13 | ) | $ | (0.09 | ) | $ | 0.12 | $ | (0.25 | ) | |||||
Diluted net income (loss) per share |
$ | (0.13 | ) | $ | (0.09 | ) | $ | 0.11 | $ | (0.25 | ) | |||||
Shares used in computing net income (loss) per share |
||||||||||||||||
Basic |
25,396 | 23,947 | 25,009 | 19,874 | ||||||||||||
Diluted |
25,396 | 23,947 | 27,183 | 19,874 | ||||||||||||
Balance Sheets
(amounts in thousands)
(amounts in thousands)
December 31, | June 30, | |||||||
2010 | 2010 | |||||||
(unaudited) | ||||||||
Assets |
||||||||
Cash and cash equivalents |
$ | 12,593 | $ | 6,561 | ||||
Accounts receivable |
444 | 376 | ||||||
Inventories |
655 | 1,131 | ||||||
Other assets |
2,411 | 1,723 | ||||||
Total assets |
$ | 16,103 | $ | 9,791 | ||||
Liabilities and stockholders equity |
||||||||
Accounts payable and other liabilities |
$ | 1,881 | $ | 1,511 | ||||
Short term debt |
| 1,400 | ||||||
Deferred revenue |
1,282 | 403 | ||||||
Total stockholders equity |
12,940 | 6,477 | ||||||
Total liabilities and stockholders equity |
$ | 16,103 | $ | 9,791 | ||||