REDWOOD CITY, Calif., April 29 Cardica, Inc.(Nasdaq: CRDC) today reported financial results and corporate progress for itsfiscal 2008 third quarter and nine months ended March 31, 2008.
"We continue to make substantial progress in the adoption of our automatedanastomosis products by surgeons, with the recent launch of our reloadableC-Port(R) xA X-CHANGE(TM) System and the publication of an economic analysissupporting the use of our C-Port systems in beating heart procedures," saidBernard A. Hausen, M.D., Ph.D., president and chief executive officer ofCardica, Inc. "Importantly, today we submitted a 510(k) application for ourPAS-Port Proximal Anastomosis System following the completion of a clinicaltrial comparing proximal anastomoses completed using our PAS-Port system tohand-sewn anastomoses. We believe that the PAS-Port system offers surgeons theability to rapidly attach a vessel to the aorta without requiring clamping, acritical improvement over hand-sewn anastomoses that we believe could have farreaching implications for preventing ischemic events such as strokes duringand after coronary bypass procedures."
Fiscal 2008 Third Quarter and Nine Months Ended March 31, 2008 FinancialResults
Total revenue was approximately $1.7 million for the fiscal 2008 thirdquarter compared to approximately $1.1 million for the fiscal 2007 thirdquarter. Total product revenue was approximately $1.0 million for the fiscal2008 third quarter compared to approximately $0.6 million for the fiscal 2007third quarter. Cardica ended the fiscal 2008 third quarter with a modestbackorder of its C-Port systems as a result of a brief shipment delay to allowfor minor manufacturing modifications to improve performance of the systems.The modifications were implemented and shipping resumed in April.
Cost of product revenue was approximately $1.2 million for the fiscal 2008third quarter compared to approximately $0.6 million for the fiscal 2007 thirdquarter.
Research and development expenses for the fiscal 2008 third quarter wereapproximately $2.5 million compared to $1.8 million for the fiscal 2007 thirdquarter. Selling, general and administrative expenses for the fiscal 2008third quarter were approximately $3.7 million compared to approximately $2.4million for the fiscal 2007 third quarter.
The net loss for the fiscal 2008 third quarter was approximately $5.5million, or $0.35 per share, compared to a net loss of approximately $3.5million, or $0.31 per share, for the fiscal 2007 third quarter.
Total revenue for the nine months ended March 31, 2008 was approximately$4.8 million compared to approximately $2.5 million for the nine months endedMarch 31, 2007. Total operating costs and expenses for the nine months endedMarch 31, 2008 were approximately $18.8 million compared to approximately$13.8 million for the nine months ended March 31, 2007. The net loss for thefirst nine months of fiscal 2008 was approximately $13.4 million, or $0.92 pershare, compared to a net loss of approximately $9.6 million, or $0.91 pershare, for the first nine months of fiscal 2007.
Cash and investments at March 31, 2008 were $28.3 million, compared to$30.9 million at December 31, 2007. As of March 31, 2008, there wereapproximately 15.6 million shares of common stock outstanding.
Financial Guidance for Fiscal 2008
For the full fiscal year 2008, we continue to expect total revenue of$6 million to $8 million, of which we expect product revenue of $4 million to$5 million. In addition, we continue to expect development revenue of$2 million to $3 million. We continue to anticipate that fiscal 2008 researchand development and selling, general and administrative expenses will total$20 million to $21 million, including non-cash stock-based compensationexpense of approximately $2 million. We continue to expect that the net lossfor fiscal 2008 will be