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Cardica Announces Fiscal 2013 Fourth Quarter And Full Year Financial Results

 Cardica Announces Fiscal 2013 Fourth Quarter And Full Year Financial Results

PR Newswire

REDWOOD CITY, Calif., Aug. 5, 2013

REDWOOD CITY, Calif., Aug. 5, 2013 /PRNewswire/ -- Cardica, Inc. (Nasdaq:
CRDC) today announced financial results for its fiscal fourth quarter and full
year ended June 30, 2013. Cardica's management will hold a conference call at
4:30 p.m. Eastern Time to discuss the financial results and provide an update
on the company's business.

"In fiscal 2013 Cardica's main focus was to introduce the MicroCutter XCHANGE™
30 for human use, while carefully monitoring performance and continuing to
iterate the device in response to surgeons' feedback," said Bernard A. Hausen,
M.D., Ph.D., president and CEO of Cardica. "In addition, we reinitiated a
major clinical trial to support a 510(k) submission. Midway through the fiscal
year, we began a controlled launch for the MicroCutter XCHANGE™ 30 in Europe,
working with key surgeons to demonstrate the features and benefits of this
device in a host of different surgical procedures."

Dr. Hausen continued, "Now at the end of fiscal 2013, we are proud to have
successfully completed the MicroCutter European Trial (MET1) with very
encouraging results. We clearly met the primary endpoint of the trial, freedom
of MicroCutter-related severe adverse events when compared to historical
controls from the medical literature, with only one event in 160 patients
enrolled and 423 deployments. From a broad perspective our goal is, and has
always been, to have a product that clearly meets surgeons' expectations in
terms of reliability, repeatability and ease of use while offering key
benefits in terms of size and mobility. It is the combination of both that
will ensure success of this product in the U.S., the world's key market for
medical stapling products, pending marketing clearance by the U.S. Food and
Drug Administration."

Recent Highlights and Accomplishments:

  oCompleted our MicroCutter European Trial where we evaluated the
    MicroCutter XCHANGE 30.

       oThe primary endpoint of the trial has been met with only one
         MicroCutter-related event in 160 enrolled patients with 423
         deployments;
       oThe secondary endpoint analysis, acute procedural success,
         demonstrated a learning curve in device reliability typical for novel
         technology. Any issues in the initial phase of enrollment were
         quickly addressed resulting in substantial reliability growth and
         good procedural success in the second half of the enrollment period.
         None of the device-related issues resulted in a severe adverse event
         or a change in surgical procedure.

  oCompleted more than 1,200 deployments in more than 420 procedures with the
    XCHANGE 30 device since May 2012;
  oThe XCHANGE 30 continues to be used in a variety of complex procedures in
    the European Union including intestinal, lung and liver resections,
    pediatric procedures for congenital diseases, and others;
  oShipped 73 MicroCutter XCHANGE™ 30 devices and 420 XCHANGE™ 30 cartridges
    in the fiscal fourth quarter;
  oIncreased cumulative worldwide shipments of PAS-Port^® Proximal
    Anastomosis Systems to over 32,600 units, with 1,049 units shipped in the
    fiscal 2013 fourth quarter; and,
  oIncreased cumulative worldwide shipments of C-Port^® Distal Anastomosis
    Systems to over 13,800 units, with 130 units shipped in the fiscal 2013
    fourth quarter.

Fiscal 2013 Fourth Quarter and Full Year Ended June 30, 2013 Financial Results
Total product sales were approximately $0.8 million for both the fiscal 2013
and fiscal 2012 fourth quarters. License and development revenue was $84,000
for both the fiscal 2013 and fiscal 2012 fourth quarters, with license and
development revenue from both periods a result of the August 2010 agreement
with Intuitive Surgical. Total net revenue was approximately $0.9 million for
each of the fiscal 2013 and fiscal 2012 fourth quarters.

Cost of product sales was approximately $0.9 million for the fiscal 2013
fourth quarter compared to approximately $0.8 million for the same period of
fiscal 2012. Research and development expenses were approximately $2.3 million
for the fiscal 2013 fourth quarter compared to $2.2 million for the fiscal
2012 fourth quarter. Selling, general and administrative expenses were
approximately $1.4 million for the fiscal 2013 fourth quarter compared to $1.5
million for the fiscal 2012 fourth quarter.

The net loss for the fiscal 2013 fourth quarter was approximately $3.9
million, or $0.08 per share, compared with a net loss of approximately $3.6
million, or $0.10 per share, in the fiscal 2012 fourth quarter.

Total net revenue was approximately $3.5 million for the year ended June 30,
2013, compared to approximately $3.7 million for the year ended June 30, 2012.
Total operating costs and expenses for fiscal 2013 were approximately $19.2
million compared to approximately $17.0 million for fiscal 2012. Net loss for
fiscal 2013 was approximately $16.1 million, or $0.40 per share, compared to
approximately $13.6 million, or $0.44 per share for fiscal 2012.

Cash and short term investments as of June 30, 2013, were approximately $12.4
million compared with $17.0 million at March 31, 2013. As of June 30, 2013,
there were approximately 51 million shares of common stock outstanding.

Conference Call Details
To access the live conference call on August 5, 2013, at 4:30 p.m. Eastern
Time via phone, please dial 866-515-2912 from the United States and Canada or
617-399-5126 internationally. The conference ID is 98195935. Please dial in
approximately 10 minutes prior to the start of the call. A telephone replay
will be available beginning approximately two hours after the call through
August 12, 2013, and may be accessed by dialing 888-286-8010 from the United
States and Canada or 617-801-6888 internationally. The replay passcode is
33703897.

To access the live and subsequently archived webcast of the conference call,
go to the Investor Relations section of the company's website at
www.cardica.com. Please connect to the website at least 15 minutes prior to
the presentation to allow for any necessary software downloads.

The webcast is also being distributed through the Thomson StreetEvents
Network. Individual investors can listen to the call at www.earnings.com,
Thomson's individual investor portal, powered by StreetEvents. Institutional
investors can access the call via Thomson StreetEvents at
www.streetevents.com, a password-protected event management site.

AboutCardica
Cardicadesigns and manufactures proprietary stapling and anastomotic devices
for cardiac and laparoscopic surgical procedures.Cardica's technology
portfolio is intended to minimize operating time and enable minimally-invasive
and robot-assisted surgeries. Cardica manufactures and markets its automated
anastomosis systems, the C-Port^® Distal Anastomosis Systems and PAS-Port^®
Proximal Anastomosis System for coronary artery bypass graft (CABG) surgery,
and has shipped over 46,400 units throughout the world. In
addition,Cardicais developing the Cardica^® MicroCutter XCHANGE™ 30, a
cartridge-based microcutter device with a five-millimeter shaft diameter, and
the Cardica^® MicroCutter XCHANGE™ 45, a cartridge-based microcutter device
with an eight-millimeter shaft. Both MicroCutter devices are designed to be
used in a variety of procedures, including bariatric, colorectal, thoracic and
general surgery. The Cardica MicroCutter XCHANGE 30 and XCHANGE 45 products
require 510(k) review and are not yet commercially available in the U.S.

Forward-Looking Statements
The statements in this press release regarding Cardica's belief that the
MicroCutter product will be successful in the US, pending marketing clearance
by the U.S. Food and Drug Administration is a "forward-looking statement." The
words "expect" and "anticipated" are intended to identify these
forward-looking statements. There are a number of important factors that could
cause Cardica's results to differ materially from those indicated by these
forward-looking statements, including: that Cardica may not be successful in
its efforts to further develop or commercialize the XCHANGE 30 due to
unanticipated technical or other difficulties; that the XCHANGE 30 may face
unanticipated development, regulatory, or manufacturing delays; that review by
FDA could alter the results as presented herein; that Cardica's intellectual
property rights may not provide adequate protection to enable further
development of the XCHANGE 30; that surgeons may not use the XCHANGE 30
correctly, which could cause unfavorable results that may impair the
acceptance of the XCHANGE 30 by other surgeons; and that Cardica may not have
sufficient funds to develop the XCHANGE 30, as well as other risks detailed
from time to time in Cardica's reports filed with the U.S. Securities and
Exchange Commission, including its Current Report on Form 10-Q for the quarter
endedMarch 31, 2013, under the caption "Risk Factors." Cardica expressly
disclaims any obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein. You are
encouraged to read Cardica's reports filed with the U.S. Securities and
Exchange Commission, available at www.sec.gov.





Cardica, Inc.
Statements of Operations
(amounts in thousands except per share amounts)
                                  Three months ended  Twelve months ended
                                  June 30,            June 30,
                                  2013      2012      2013         2012
                                  (unaudited)         (unaudited)
Revenue
 Product sales, net              $      $      $   3,093  $   3,274
                                  771      844
 License and development revenue 84        84        336          336
 Royalty revenue                17        18        70           71
           Total                  872       946       3,499        3,681
Operating costs and expenses
 Cost of product sales           915       763       3,604        3,638
 Research and development        2,297     2,221     9,145        7,220
 Selling, general and            1,370     1,471     6,410        6,139
administrative
           Total operating costs  4,582     4,455     19,159       16,997
           and expenses
Loss from operations              (3,710)   (3,509)   (15,660)     (13,316)
Interest and other income (loss), (31)      4         (20)         9
net
Interest expense                  (118)     (107)     (457)        (268)
Net loss                          $        $        $           $ 
                                  (3,859)  (3,612)  (16,137)     (13,575)
Basic and diluted net loss per    $       $       $         $   
share                             (0.08)   (0.10)   (0.40)       (0.44)
Shares used in computing basic    51,060    36,408    40,842       30,547
and diluted net loss per share

Balance Sheets
(amounts in thousands)
                                                      June 30,     June 30,
                                                      2013         2012
Assets                                                (unaudited)
 Cash and cash equivalents                        $  12,395  $  14,645
 Accounts receivable                             391          299
 Inventories                                      1,457        576
 Other assets                                     3,518        2,622
      Total assets                          $  17,761  $  18,142
Liabilities and stockholders' equity
 Accounts payable and other liabilities           $   1,945  $   1,860
 Deferred revenue                                2,054        2,390
 Long term debt                                   2,788        2,532
 Total stockholders' equity                       10,974       11,360
    Total liabilities and stockholders'    $  17,761  $  18,142
  equity



SOURCE Cardica, Inc.

Website: http://www.cardica.com
Contact: Bob Newell, Vice President, Finance and Chief Financial Officer,
(650) 331-7133, investors@cardica.com