Cambridge Heart Inc. (OTC:CAMH) took a hit during the first quarter, as last year’s acquisition of partner Cardiac Science helped drive sales down 3.2 percent, even as it prepped an offering to raise enough cash to keep going after the end of this year.
The Tewksbury, Mass.-based cardiac test maker said continuing pressure on capital equipment sales also contributed to the top-line slide. Cambridge Heart still managed to pare its losses by 8.2 percent during the three months ended March 31, to $1.3 million or 1 cent per share, on sales of $637,000. That compares to losses of $1.5 million, or 2 cents per share, on sales of $658,000 during the same period last year.
CAMH, reeling from reimbursement decisions that didn’t go its way, signed a deal with Cardiac Science in 2009 to develop an OEM version of its microvolt T-wave alternans module. But when Opto Circuits (India) Ltd. (BSE:532391) bought Cardiac Science last December, sales of the OEM module suffered, according to a filing with the federal Securities & Exchange Commission.
"[W]hile the initial market preparation, product launch and lead generation activities were in line with our expectations, the number of units placed have been below our original projections. As we expected, this trend continued in the first quarter of 2011. We believe that the lack of traction is mainly attributable to organizational changes that occurred within Cardiac Science subsequent to the product launch," according to the filing. "The organizational restructuring of Cardiac Science, including extensive personnel changes, particularly within sales and marketing, and the merger of Cardiac Science with two subsidiaries of Opto Circuits resulted in shifts in priorities and focus that negatively impacted sales of our MTWA Module."
"We believe that this is short-term and we are currently discussing strategies with the new sales and marketing teams at Cardiac Science to increase MTWA Module placements," added CEO Ali Haghighi-Mood said in prepared remarks. "We have identified a potential strategy, which, if both parties can reach agreement, would significantly increase the number of MTWA Modules placed in the field in the coming quarters. We expect to be in a position to discuss the specifics of this strategy in the coming weeks."
Last month Cambridge Heart warned that it doesn’t have enough cash to stay afloat past the end of the year and registered for a stock offering worth more than $7.8 million. The company plans to sell nearly 30.2 million shares for 26 cents apiece, according to the filing.
CAMH shares closed up nearly 4.6 percent yesterday, at 23 cents.
Dynatronics Corp. (NSDQ:DYNT) boosted its third-quarter profits 22.0 percent on modest, 1.8 percent top-line growth.
The Salt Lake City-based medical device maker posted net income of $117,000, or 1 cent per diluted share, on sales of 8.4 million during the three months ended March 31. That compares with profits of $96,000, also 1 cent diluted EPS, on sales of $8.2 million during the same period last year.
Sanuwave Health Inc. (OTC:SNWV) saw its first-quarter losses improve 27.1 percent on a top-line increase of 75.9 percent during the three months ended March 31.
The Alpharetta, Ga.-based company posted losses of $2.2 million, or 14 cents per diluted share, on sales of $252,000. That compares with a loss of $3.0 million, or 24 cents diluted EPS, on sales of $143,000 during the same period last year.
IsoRay Inc. (AMEX:ISR) narrowed its first-quarter losses by 5.7 percent despite increased sales during the three months ended March 31, to $1.0 million or 4 cents per share, on sales of 1.4 million.
That’s a top-line boost of 17.2 percent for the Richland, Wash.-based brachytherapy device maker, which reported losses of $1.1 million, or 5 cents diluted EPS, on sales of $1.2 million during the same period last year.
PLC Systems Inc. (OTC:PLCSF), fresh off a funding round and the $1 million sale of its revascularization business and a $6 million debt financing, is looking to resume a trial of its RenalGuard system.
That’s the Franklin, Mass.-based company’s device to prevent contrast-induced nephropathy during MRI scans. PLC posted losses of $3.8 million, or 12 cents per share, on sales of $57,000 during the three months ended March 31. That compares with losses of $561,000, or 2 cents EPS, on sales of $267,000 during Q1 2010 — a top-line slide of 78.7 percent.
Nephros Inc.’s (OTC:NEPHD) first-quarter losses rose 6.3 percent as sales plunged 31.1 percent during the first quarter.
The River Edge, N.J.-based firm posted net losses of $707,000, or 18 cents EPS, on sales of $681,000 during the three months ended March 31. That compares with losses of $665,000, or 32 cents EPS, on sales of $989,000 during the same period last year.