Exhibit 99.1
NEWS RELEASE FOR MAY 4, 2011 AT 4:10 PM ET
Contact:
|
William R. Abbott Senior Vice President and Chief Financial Officer 949-420-1800 |
CARDIOGENESIS REPORTS FIRST QUARTER 2011 RESULTS
IRVINE, CA, MAY 4, 2011
Cardiogenesis Corporation (OTCQB: CGCP), a leading developer of surgical products used in the
treatment of diffuse coronary artery disease, today reported financial results for its first
quarter ended March 31, 2011.
Revenue for the first quarter of 2011 was $3,053,000, a 6% decrease from prior year first
quarter revenue of $3,233,000. The company reported a net loss of $433,000, or $0.01 per basic and
diluted share, in the first quarter of 2011 as compared with net loss of $18,000, or $0.00 per
basic and diluted share, in the prior year first quarter.
“We posted a solid performance for the first quarter of 2011 with product revenues in excess
of $3.0 million dollars. In addition, we completed our preclinical work at the Texas Heart Stem
Cell Center which included bone marrow compatibility testing as well as a large animal safety study
for the PHOENIX™ System,” said Cardiogenesis Executive Chairman Paul McCormick. “On March
29th, we announced the signing of a definitive agreement to be acquired by Cryolife Inc.
in an all cash transaction valued at approximately $22 million. The transaction is expected to
close before the end of the second quarter.”
Handpiece revenue for the first quarter of 2011 increased slightly to $2,235,000 as compared
to $2,230,000 in the 2010 first quarter. Laser revenue in the first quarter of 2011 totaled
$540,000, a decrease of $174,000 from the first quarter of 2010.
Gross margin was 86% of net revenue for the first quarter of 2011, a two percentage point
increase from the first quarter of 2010. Gross profit decreased by $82,000, or 3%, to $2,623,000
for the first quarter of 2011 as compared with $2,705,000 for the 2010 first quarter
Research and development expenses of $521,000 in the quarter ended March 31, 2011 increased
$233,000, or 81%, compared with $288,000 in the quarter ended March 31, 2010.
Sales and marketing expenses of $1,357,000 in the quarter ended March 31, 2011 decreased by
374,000, or 22%, compared to first quarter 2010 expenses of $1,731,000.
General and administrative expenses for the quarter ended March 31, 2011 totaled $1,174,000 as
compared to $699,000 during the quarter ended March 31, 2010.
Upcoming Communications/Special Meeting of Shareholders
Cardiogenesis will not be hosting an investor conference call associated with the first
quarter results and the filing of its Report on Form 10-Q with the SEC for the quarter ended March
31, 2011. Cardiogenesis will be holding a special meeting of its shareholders, which will be held
at 8:30 a.m., Pacific, on Monday, May 16, 2011. At the special meeting of shareholders,
Cardiogenesis’ shareholders will vote on the proposal to approve and adopt Cardiogenesis’ Agreement
and Plan of Merger with CryoLife, Inc. and CL Falcon, Inc., a wholly-owned subsidiary of CryoLife.
If the proposal to adopt the merger agreement is approved by the requisite number of holders of
Cardiogenesis’ common stock, Cardiogenesis anticipates that the closing of the merger will occur
before the end of
its second fiscal quarter. Cardiogenesis’ shareholders are encouraged to read the definitive
proxy statement relating to the merger in its entirety as it provides, among other things, a
detailed discussion of the process that led to execution of the merger agreement.
About Cardiogenesis Corporation
Cardiogenesis specializes in the treatment of cardiovascular disease and is a leader in
devices that treat severe angina. Our market leading holmium:YAG laser system and single use
fiber-optic delivery systems are used to perform a FDA-cleared surgical procedure known as
Transmyocardial Revascularization (TMR).
For more information on Cardiogenesis and its products, please visit our website at
www.cardiogenesis.com.
Safe Harbor Statement
This press release contains forward-looking statements. Any forward-looking statements in this
news release are subject to numerous risks and uncertainties, many of which are outside the
Company’s control, that could cause actual results to differ materially. Factors that could affect
the accuracy of these forward-looking statements include, but are not limited to: the approval of
the merger with CryoLife by the Company’s shareholders and the ability to close the transaction in
a timely manner; any inability by the Company to sustain profitable operations or obtain additional
financing on favorable terms if and when needed; any failure to obtain required regulatory
approvals; failure of the medical community to expand its acceptance of TMR procedures; possible
adverse governmental rulings or regulations, including any FDA regulations or rulings; the
Company’s ability to comply with international and domestic regulatory requirements; possible
adverse Medicare or other third-party reimbursement policies or adverse changes in those policies;
any inability by the Company to ship product on a timely basis; the Company’s ability to manage its
growth; the effects of recent disruptions in global credit and equity markets and other adverse
economic developments that could adversely affect the market for our products or our ability to
raise needed financing; actions by our competitors; and the Company’s ability to protect its
intellectual property. Other factors that could cause Cardiogenesis’ actual results to differ
materially are discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K
for the year ended December 31, 2010 and the Company’s other filings with the Securities and
Exchange Commission. The Company disclaims any obligation to update any forward-looking statements
as a result of developments occurring after the date of this press release.
Additional Information about the Transaction and where to Find It
A definitive proxy statement of Cardiogenesis and other materials will be filed with the SEC.
Investors and shareholders may obtain a free copy of the definitive proxy statement and other
documents filed by Cardiogenesis with the SEC at the SEC’s website at www.sec.gov.
The definitive proxy statement and such other documents are also available for free on
Cardiogenesis’ website at www.cardiogenesis.com under “Investors/SEC Filings” or by directing such
request to Investor Relations, Cardiogenesis Corporation at (949) 420-1827.
Cardiogenesis and its directors, executive officers and other members of its management and
employees may be deemed to be participants in the solicitation of proxies from its shareholders in
connection with the proposed transaction. Information concerning the interests of Cardiogenesis’
participants in the solicitation is set forth in Cardiogenesis’ proxy statements and Annual Reports
on Form 10-K, previously filed with the SEC, and in the definitive proxy statement relating to the
proposed transaction.