Cardiogenesis reports 13% increase in first-quarter 2010 revenue

Cardiogenesis Corporation (Pink Sheets: CGCP), a leading developer of surgical products used in the treatment of cardiac patients suffering from severe angina, today reported financial results for its first quarter ended March 31, 2010.

Revenues in the first quarter of 2010 totaled $3,233,000, a 13% increase from prior year first quarter revenues of $2,852,000.  Higher quarterly revenues resulted in a gross margin of 84% and a small operating loss of $13,000 compared with an operating loss of $297,000 in the 2009 first quarter.  Net loss for the quarter was $18,000 or $0.00 per basic and diluted share, as compared with net loss of $314,000, or $0.01 per basic and diluted share in the 2009 first quarter.

"The increase in first quarter sales is the result of focusing our sales team on the utilization of previously installed laser systems in U.S. hospitals," said Cardiogenesis Executive Chairman Paul McCormick. "We must continue to build on this momentum.  Increased sales of our current commercial products will allow us to pursue our regulatory strategy to initiate a U.S. clinical trial for our novel PHOENIX™ Delivery System, which combines myocardial tissue stimulation with the intramyocardial delivery of stem cells.  We believe that this combination therapy is an exciting growth opportunity and could potentially represent a new standard of care for delivery of stem cells to the heart."

Handpiece revenue in the first quarter of 2010 increased $460,000, or 26%, to $2,230,000 as compared to $1,770,000 in the 2009 first quarter as a result of higher unit sales and average selling prices.  Laser revenue in the first quarter of 2010 decreased $52,000, or 7%, to $714,000 from the first quarter of 2009 as a result of lower average selling prices.

Gross margin was 84% of net revenues for the quarter ended March 31, 2010 as compared to 81% in the prior year quarter.  On higher revenues, gross profit increased by $389,000 to $2,705,000 for the first quarter of 2010 as compared with $2,316,000 for the 2009 first quarter.

Research and development expenses were unchanged at $288,000 in the first quarter of both 2010 and 2009.

Sales and marketing expenses of $1,731,000 in the quarter ended March 31, 2010 increased $262,000, or 18%, compared with $1,469,000 for the quarter ended March 31, 2009.  

General and administrative expenses for the quarter ended March 31, 2010 totaled $699,000 as compared to $856,000 during the quarter ended March 31, 2009.

SOURCE Cardiogenesis Corporation