Surgical devices maker
Cardica
's (
CRDC
) second-quarter fiscal 2012 (ended December 31) net loss per share
of 12 cents was lower than both the Zacks Consensus Estimate of a
loss and the year-ago quarter's loss of 13 cents. Net loss narrowed
4.4% year over year to $3.2 million as lower costs more than offset
a decline in sales.
Revenues dipped roughly 23.6% year over year in the quarter to
$0.9 million, matching the Zacks Consensus Estimate. Product sales
tumbled 25.9% year over year to $0.8 million. The California-based
company registered license and development revenues of $84,000 in
the second quarter (flat year over year) stemming from its
licensing pact with
Intuitive Surgical
(
ISRG
) inked in August 2010.
Consolidated operating costs and expenses fell 11% year over
year in the quarter to roughly $4 million. Cost of product sales
rose roughly 12.2% to $1.1 million. R&D expenses contracted
24.8% year over year to $1.5 million. Selling, general and
administrative expenses, at $1.5 million, fell 7.9% year over
year.
The company exited the second quarter with cash and short-term
investment of roughly $7.6 million, a 40% year-over-year decline,
with long-term debt of $2.4 million. Cardica secured a loan (of $2
million) following the achievement of the first milestone for its
Microcutter product line (in September 2011) under its distribution
pact with Japan-based Century Medical.
The agreement provides Century Medical with exclusive rights to
distribute the Microcutter products in Japan. In exchange, Century
Medical agreed to offer Cardica with a loan of up to $4 million.
Following the attainment of the second milestone, in November 2011,
the company can now draw the remaining $2 million under the loan
commitment.
Cardica makes 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 CABG
surgery and has sold over 38,000 units (including 25,000 PAS-Port
proximal anastomosis systems) globally. Cardica competes with
larger players such as
Johnson & Johnson
(
JNJ
) and
Covidien
(
COV
) in the laparoscopic stapling and sealing devices market.
Cardica recently suspended enrollment in the European clinical
trial for its endoscopic stapling device MicroCutter XPRESS 30 as
the device failed to perform satisfactorily in thicker tissue. The
MicroCutter XPRESS 30 was initially planned as the first product in
the microcutter product line which the company intended to
commercialize. Cardica is now prioritizing the development of
MicroCutter XCHANGE 30, a cartridge based microcutter device.
COVIDIEN PLC (
COV
): Free Stock Analysis Report
CARDICA INC (
CRDC
): Free Stock Analysis Report
INTUITIVE SURG (
ISRG
): Free Stock Analysis Report
JOHNSON & JOHNS (
JNJ
): Free Stock Analysis Report
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