WILMINGTON, Mass., Aug. 15 - CardioTech International, Inc. (Amex: CTE) today announced financial results for its first quarter ended June 30, 2005. Total revenues for the quarter ended June 30, 2005 was $5,640,000 as compared to $5,531,000 for the comparable prior year period. Net loss for the quarter ended June 30, 2005 was $567,000 as compared to net income of $51,000 for the comparable prior year quarter, or $0.03 per share. The loss includes $111,000 in R&D expenses related to the graft program and $305,000 associated with initial production and training costs associated with a new large CDT customer.
Sales of medical devices were $4.321 million, outsourcing services sales reached $978K, and lastly sales of biomaterials were $341K for the quarter.
Michael Szycher, CEO and Chairman of CardioTech, stated, "The loss experienced in this current quarter is in part due to (1) accelerating the regulatory process necessary to begin clinical trials in Europe for our CardioPass synthetic Coronary Artery Bypass Graft ("CABG"), and expanding the clinical trials, to support a broader indication of CardioPass in the future and (2), initial production and ramp-up costs associated with a significant customer contract entered into by our CDT subsidiary. We believe that continued efficiencies in implementing the production associated with this contract should result in significant contributions to our future operating results."
Company Conference Call
Management will host a conference call on Monday, August 15, 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: 866-835-8825 and entering the pass code: 756336. 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 August 31, 2005 by dialing: 888-266-2081 and entering pass code: 756336.
About CardioTech
CardioTech International, Inc. maintains operations in Wilmington, Massachusetts; Plymouth, Minnesota and Rancho Santa Margarita, California. CardioTech focuses on developing, manufacturing and marketing devices to surgically treat cardiovascular disease. Current revenue sources include patented polyurethanes, medical devices, contract manufacturing, and disposables used during cardiopulmonary bypass procedures. CardioTech is currently conducting human clinical trials with a synthetic coronary artery bypass graft that addresses a $1.5 billion annual market. Additionally, CardioTech has partnered with Implant Sciences and CorNova to develop a drug- eluting stent that addresses a $1 billion international market.
CardioTech believes that this release contains forward-looking statements that 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.
For more information, please contact:
CardioTech International Inc.
Michael Szycher Ph.D.
CEO and Chairman
978-657-0075
Catalyst Financial Resources, LLC
Tom O'Brien
716-830-6611
CARDIOTECH INTERNATIONAL INC.
Financial Highlights (unaudited)
Summary of Operating Results:
Three Months Ended June 30,
2005 2004
Revenue $5,640,000 $5,531,000
Operating costs $6,199,000 $5,458,000
Income (loss) from operations $(559,000) $73,000
Net income (loss) $(567,000) $51,000
Net income (loss) per share, basic
and diluted $(0.03) $-
Shares used in computing net income
(loss) per common share, basic 19,257,817 17,664,498
Shares used in computing net income
(loss) per common share, diluted 19,257,817 20,252,251
Key Balance Sheet Data:
June 30, March 31,
2005 2005
Cash and cash equivalents $6,905,000 $7,469,000
Current assets 15,594,000 16,096,000
Total assets 23,100,000 23,762,000
Current liabilities 2,480,000 2,579,000
Working capital 13,114,000 13,517,000
Stockholders' equity 20,460,000 21,010,000
