First Quarter 2009 Financial Results
For the first quarter of 2009, the company sold three lasers and 479 handpiece units as compared to three lasers and 540 handpieces during the Q1 2008. The decrease in net revenue for the Q1 2009 results primarily from lower handpiece unit volume in the current year quarter.
Richard Lanigan, Cardiogenesis president, stated, ‘During the fourth quarter of 2008 and through the first quarter of 2009, we implemented an outreach initiative to cardiologists to increase referrals for stand-alone TMR procedures. While we experienced a slow January, the good news is that we added 18 new centers performing stand alone TMR during this period. Success with stand-alone TMR not only increases the case-load for the cardiothoracic surgeons, but may also serve to remind surgeons of the utility of the technology as an adjunct to coronary bypass surgery. We believe the validation of this stand-alone therapy with cardiothoracic surgeons and referring cardiologists is important to the commercial success of TMR.’
The company reported a first quarter 2009 operating loss of $297,000 as compared with an operating loss of $37,000 in the prior year quarter.
The gross margin percentage was 81% of net revenues for the Q1 2009 as compared with an 82% gross margin percentage in the Q1 2008. Gross profit decreased by $141,000 to $2,316,000 for the current year quarter as compared with $2,457,000 for the 2008 first quarter.
Research and development expenses were $288,000 in the first quarter of 2009 as compared with $216,000 in the 2008 first quarter. The dollar increase for the Q1 2009 was attributed primarily to an increase in activities supporting clinical trials and studies.
Sales and marketing expenses of $1,469,000 in the Q1 2009 decreased $58,000, or 4%, compared with $1,527,000 for the Q1 2008.
General and administrative expenses for the Q1 2009 totaled $856,000 as compared to $751,000 during the Q1 2008. This represents an increase of $105,000, or 14%.
