Cardiogenesis Reports Second Quarter 2010 Results





Healthcare Market Reports :- Cardiogenesis Corporation, a leading developer of surgical products used to treat cardiac patients suffering from severe angina, today reported financial results for its second quarter and first half ended June 30, 2010.

Revenue in the second quarter of 2010 totaled $2,429,000, a 9% increase from prior year second quarter revenues of $2,236,000.  Gross margin was 84% for the quarter, a one percentage point increase over the prior year second quarter. The company recorded a net loss of $552,000, or $0.01 per basic and diluted share, in the second quarter of 2010 compared with a net loss of $590,000, or $0.01 per basic and diluted share, in the 2009 second quarter.

"The Company had another $2 million plus quarter in disposable handpiece revenue.  For the first six months of 2010 we recorded a 17% increase in our disposable handpiece business as we continue to build utilization of our installed lasers," said Cardiogenesis Executive Chairman Paul McCormick.  "We also continue to make progress on our regulatory strategy to initiate a U.S. clinical trial for our novel PHOENIX™ Delivery System, PHOENIX combines myocardial tissue stimulation with the intramyocardial delivery of stem cells and is an exciting proprietary growth opportunity for our company."

For the first six months of 2010, revenue was $5,662,000 representing an 11% increase over revenue of $5,088,000 for the six months of 2009.  The operating loss for the first half of 2010 was $561,000 as compared with an operating loss of $859,000 for the six months ended June 30, 2009.  The net loss for the first half of 2010 totaled $570,000, or $0.01 per basic and diluted share, as compared with a net loss of $904,000, or $0.02 per basic and diluted share, in the first half of 2009.

Handpiece revenue in the second quarter of 2010 increased $159,000, or 8%, to $2,081,000 as compared to $1,922,000 in the 2009 second quarter as a result of higher unit sales and average selling prices. For the six months ended June 30, 2010, handpiece revenue increased by $619,000, or 17%, to $4,311,000 from handpiece revenue of $3,692,000 in the first six months of 2009.  Laser revenue in the second quarter of 2010 totaled $59,000. There was no laser revenue in the second quarter of 2009.  Laser revenue of $773,000 for the first six months of 2010 was essentially flat with the prior year. 

Gross margin was 84% of net revenue for both the three and six months ended June 30, 2010, a one percentage point increase over the prior year second quarter and two percentage points above the first half of 2009.  Gross profit increased by $203,000, or 11%, to $2,048,000 for the second quarter of 2010 as compared with $1,845,000 for the 2009 second quarter.  For the first half of 2010, gross profit increased by $592,000, or 14%, to $4,753,000 from a gross profit of $4,161,000 in the first half of 2009.

Research and development expenses of $270,000 in the quarter ended June 30, 2010 decreased $76,000, or 22% compared with $346,000 in the quarter ended June 30, 2009.  Through the first six months of 2010, research and development expenses of $558,000 were $76,000, or 12%, below the prior year period expense of $634,000.

Sales and marketing expenses of $1,554,000 in the quarter ended June 30, 2010 increased $282,000, or 22%, compared with $1,272,000 for the quarter ended June 30, 2009.  For the first half of 2010, sales and marketing expenses were $3,285,000, an increase of $544,000 or 20%, when compared to $2,741,000 for the six month period in 2009.

General and administrative expenses for the quarter ended June 30, 2010 totaled $772,000 as compared to $789,000 during the quarter ended June 30, 2009.  For the first half of 2010, general and administrative expense totaled $1,471,000, a decrease of $174,000 from the first six months of 2009.