Cardica's 4Q Loss Narrows

Surgical devices maker Cardica’s (CRDC - Snapshot Report) fourth-quarter fiscal 2011 (ended June 30) net loss per share of 11 cents was lower than both the Zacks Consensus Estimate of a loss and the year-ago quarter’s loss of 13 cents.

Net loss for the quarter trimmed 7.4% year over year to $2.8 million due to the combined effect of higher sales and lower costs. For the fiscal year, loss per share of 14 cents was also below the Zacks Consensus Estimate of a loss of 16 cents.

Revenues for the quarter rose roughly 5% year over year to $1 million, matching the Zacks Consensus Estimate. Product sales fell modestly year over year to $0.9 million. For fiscal 2011, revenues propelled more than three-fold year over year to $13.2 million, mostly in line with the Zacks Consensus Estimate.

The California-based company booked license and development revenues of $84,000 in the fourth quarter stemming from its licensing pact with Intuitive Surgical (ISRG - Analyst Report) inked in August 2010. Under the deal, Intuitive obtained the exclusive global license to Cardica's intellectual property, related to tissue cutting, stapling and clip appliers for application in the robotics field.

Consolidated operating costs and expenses fell 4.6% year over year in the quarter to roughly $3.9 million. Cost of product sales declined roughly 22% to $0.8 million. R&D expenses remained essentially flat year over year at $1.7 million. Selling, general and administrative expenses were also stable year over year at $1.3 million.

The company exited fiscal 2011 with cash and short-term investment of roughly $9.3 million, a 41% year-over-year increase, with no debt. 

Cardica manufactures stapling devices for endoscopic and cardiac surgery procedures. Its proprietary technology is designed to reduce operating time and enable minimally-invasive and robot-assisted surgeries. The company markets its automated anastomosis systems for coronary artery bypass graft (“CABG”) surgery and has sold over 36,000 units globally.

Cardica is developing the Microcutter line of novel endoscopic stapling devices for use in a variety of surgeries that require cutting and stapling. The company, in March 2011, received European CE Mark for its initial Microcutter device.

The Microcutter XPRESS 30 is the first product in the Microcutter family which Cardica intends to market. The company recently completed the key internal design verification process for Microcutter XPRESS 30 and applied the European CE Mark to the device. Cardica’s Microcutter products are yet to be approved by the U.S. Food and Drug Administration (“FDA”).

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