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Revenue for the third quarter ended September 30, 2007 was $531,000,compared with revenues of $1,387,000 reported in the third quarter endedSeptember 30, 2006. For the nine month periods ended September 30, 2007 andSeptember 30, 2006, revenues were $2,228,000 and $7,660,000, respectively.The decrease in revenue resulted from the Company's decision, in the fourthquarter of 2006, to discontinue the RELIANT Trials and reduce commercialactivities associated with its first-generation Novacor(R) LVAS and to focusits efforts on the next-generation Levacor VAD, for which commercial saleshave not yet commenced.
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The net loss for the 2007 third quarter was $3,018,000, or $0.26 pershare, compared with a net loss of $7,619,000, or $1.37 per share, in theprior year's third quarter. For the nine month period ended September 30,2007, the net loss was $10,925,000, or $0.95 per share, compared with a netloss of $14,949,000, or $2.69 per share, in the first nine months of 2006.The decrease in the net loss for the quarter, compared with the 2006 quarter,resulted from a non-recurring inventory write-down of $3,600,000 in the thirdquarter of 2006 related to the legacy Novacor(R) LVAS product, coupled withreduced operating expenses and an increase in other income from the LevacorRotary VAD clinical product in the 2007 quarter. The decrease in the net lossper share for the third quarter and nine month periods of 2007 compared to2006 resulted from net loss decreasing and an increase in common sharesoutstanding resulting from the private placement of common shares during thefourth quarter of 2006. The weighted average shares outstanding used tocalculate the loss per share in both years were adjusted retroactively for theCompany's one-for-ten reverse share split in the second quarter of 2007.
"Following initial clinical success in Europe last year with our LevacorVAD, we are focused on activities leading to the start of a U.S. feasibilitytrial with the Levacor," said Jal S. Jassawalla, President and Chief ExecutiveOfficer of WorldHeart. "We believe we are making excellent progress in ourdevelopment activities and have had discussions with the FDA about our pre-clinical qualification program and the clinical study design."
Additional Financial Information
WorldHeart's cash and cash equivalents were $2,414,000 at September 30,2007, a decrease of $9,803,000 from December 31, 2006 and a decrease of$4,161,000 from June 30, 2007. Management plans to maintain reduced spendinglevels in the near term, while continuing to focus its resources on theLevacor VAD. The Company is also fully assessing various financingalternatives, including equity or debt transactions as well as corporatecollaborations to strengthen its balance sheet.
Selling, general and administrative expenses for the three months endedSeptember 30, 2007 decreased by $508,000, or 26%, compared with the sameperiod in 2006. For the nine month period ended September 30, 2007, selling,general and administrative expenses were 33% lower than the comparable 2006period. The decrease was due primarily to reduced selling expenses for theNovacor LVAS product in the United States and Europe.
Research and development expenses for the three months ended September 30,2007 decreased by $266,000, compared with the three months ended September 30,2006. For the nine month period of 2007, research and development expenseswere $923,000 less than in the first nine months of 2006. Higher clinicalexpenses were incurred in the first quarter of 2006 associated with theLevacor clinical implants in Europe. In addition, the Company conducteddevelopment work on both the Novacor and Levacor products in th
