WILMINGTON, Mass., Aug. 13 CardioTechInternational, Inc. (Amex: CTE), a developer and manufacturer of advancedmedical device products for the treatment of cardiovascular and otherdiseases, today reported financial results for the fiscal first quarter endedJune 30, 2007. The Company's financial condition and results of operations,which are based on the Company's continuing operations, exclude the financialcondition and results of operations of Gish BioMedical, Inc., a wholly-ownedsubsidiary of the Company, due to the sale of substantially all of the assetsof Gish on June 30, 2007.
For the fiscal first quarter ended June 30, 2007, revenues were $1.7million as compared to $1.2 million in the year-earlier period. The net lossfrom continuing operations declined to $341,000, or $0.02 per diluted share,compared to a loss of $1.3 million, or $0.07 per diluted share, in the year-earlier period. The Company reported a net loss of $1.8 million, including a$1.2 million loss on the sale of Gish, or $0.09 per diluted share, as comparedto a net loss of $1.2 million, or $0.06 per diluted share, in the year-earlierperiod.
The increase in revenues was primarily due to royalties and developmentfees of $498,000, a 72% increase from $289,000 in the year-earlier period.Royalties are earned when manufacturers sell medical devices which use ouradvanced polymers. The growth in royalties is a result of additionalshipments of existing and new products by manufacturers who have royaltyagreements with CardioTech.
Selling, general and administrative expenses declined by 7% to $793,000during the three months ended June 30, 2007, as certain financial systemsimplementation, legal and other professional expenses incurred in the year-earlier period did not repeat. The Company's cash and cash equivalentsbalance at June 30, 2007 was $2.6 million, which excludes $5.8 million in netcash proceeds from the sale of Gish received after June 30, 2007.
Commenting on CardioTech's performance, President & CEO Michael Adamssaid: "I am pleased to report notably improved results in the first quarter.We are experiencing a significant increase in contacts from medical devicecompanies inquiring about our advanced polymers and our ability to tailortheir properties for application in novel medical devices. These companiesbusinesses span a wide variety of large medical device sectors. In addition,quotations for new contract manufacturing work are growing. We areparticularly pleased with the revenue and margin expansion in our engineeringand contract manufacturing business which had been struggling throughout mostof fiscal 2007.
"In the first quarter, we also completed the sale of Gish Biomedical,which no longer fit our business model. The influx of approximately $5.8million in net cash proceeds from the sale further strengthened our debt-freebalance sheet and allows us to concentrate on our growth initiatives. TheEuropean clinical trial of our CardioPass(TM) synthetic coronary artery bypassgraft continues to proceed on schedule. CardioPass(TM) is a breakthroughdevice for coronary bypass surgery that reflects CardioTech's unique strengthin polymer science. We are dedicated to deepening our relationship withexisting customers and expanding our reach in the broader medical devicecommunity in fiscal 2008 and beyond."
CONFERENCE CALL & REPLAY INFORMATION
CardioTech will host a conference call with investors at 2:30 p.m., ET onMonday, August 13, 2007, to discuss its fiscal first quarter 2008 financialresults. Participants should dial in 866-835-8845 (ID# 1119929) at least 10minutes before the call is scheduled to begin. Outside the US 703-639-1408(ID#1119929).
A replay will be available approximately 2 hours after the conference callends for a period of two weeks at 888-266-2081 reference #1119929. Outsidethe US the replay dial in is (703) 925-2