Cardiogenesis Corporation (Pink Sheets: CGCP), a leading developer of surgical products used in the treatment of patients suffering from severe angina, today reported financial results for its second quarter ended June 30, 2009.
Net revenues in the second quarter of 2009 totaled $2,236,000, a 46% decrease from the prior year second quarter net revenues of $4,119,000. The decrease in net revenue for the three months ended June 30, 2009 results primarily from the absence of laser sales in the current year quarter.
Net revenues in the first six months of 2009 totaled $5,088,000, a decrease of approximately 28% from net revenues of $7,101,000 in the first six months of 2008. The year to date decrease as compared with the prior year period is primarily attributable to a $1,459,000, or 66%, decrease in laser sales and a $635,000, or 15%, decrease in disposable handpiece revenue.
Paul McCormick, Executive Chairman, noted, "Although we face a very challenging capital equipment environment, we are pleased to note that total domestic handpiece revenue was up sequentially, which we believe to be an early response to our marketing strategy to focus on building the revenue stream from its consumables by re-engaging the cardiology community. We plan on providing more detail on our growth strategies on today's conference call."
The Company reported a second quarter 2009 operating loss of $562,000 as compared with an operating income of $582,000 in the prior year quarter. The net loss for the quarter was $590,000 or $0.01 per basic and diluted share, as compared with net income of $602,000, or $0.01 per basic and diluted share in the 2008 second quarter.
For the first six months of 2009, Cardiogenesis reported an operating loss of $859,000 as compared with operating income of $545,000 for the same period in the prior year. The net loss for the first six months of 2009 was $904,000, or $0.02 per basic and diluted share, compared with net income of $566,000, or $0.01 per basic and diluted share, for the first six months of 2008.
The gross margin percentage was 83% of net revenues for the quarter ended June 30, 2009 as compared with 86% in the second quarter of 2008. Gross profit in absolute dollars decreased by $1,684,000 to $1,845,000 for the current year second quarter as compared with $3,529,000 for the 2008 second quarter.
For the six months ended June 30, 2009, the gross margin percentage was 82% of net revenues as compared to 84% for the six months ended June 30, 2008. Gross profit in absolute dollars decreased by $1,825,000 to $4,161,000 for the six months ended June 30, 2009, as compared to $5,986,000 for the six months ended June 30, 2008. The decrease in the gross margin percentage and gross profit in dollars for the six month period is primarily attributed to a decrease in laser sales.