Cardica Announces Fiscal 2014 First Quarter Financial Results

        Cardica Announces Fiscal 2014 First Quarter Financial Results

PR Newswire

REDWOOD CITY, Calif., Nov. 4, 2013

REDWOOD CITY, Calif., Nov. 4, 2013 /PRNewswire/ -- Cardica, Inc. (Nasdaq:
CRDC) today announced financial results for its fiscal first quarter ended
September 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 the first months of fiscal 2014 we achieved significant milestones with
the filing of regulatory documents for the MicroCutter XCHANGE™ 30 in the
United States, and through our partner Century Medical, in Japan," said
Bernard A. Hausen, M.D., Ph.D., president and CEO of Cardica, Inc. "At this
time, we are interacting with the Food and Drug Administration (FDA) to
provide all additional information requested by the agency. Based on the
strong clinical outcomes from our pivotal trial, we believe there is
sufficient evidence to support market clearance in both the U.S. and Japan."

Recent Highlights and Accomplishments:

  oFiled a 510(k) application with the U.S. FDA for market clearance of the
    MicroCutter XCHANGE 30;
  oCentury Medical submitted regulatory documents to Japan's Pharmaceuticals
    and Medical Devices Agency (PMDA) for approval of Cardica's MicroCutter
    XCHANGE 30 cutting and stapling cartridge;
  oShipped 48 MicroCutter XCHANGE™ 30 devices and 144 XCHANGE™ 30 cartridges
    in the fiscal first quarter;
  oContinued to gain further experience with the MicroCutter XCHANGE™ 30 in a
    large variety of procedures performed in Europe, to explore all potential
    product applications and further evaluate product reliability and possible
    product improvements;
  oExpanded ex vivo testing of white cartridges with the expectation of
    introducing this improved product into the European market in the current
    quarter;
  oIncreased cumulative worldwide shipments of PAS-Port^® Proximal
    Anastomosis Systems to over 33,800 units, with 1,199 units shipped in the
    fiscal 2014 first quarter; and,
  oIncreased cumulative worldwide shipments of C-Port^® Distal Anastomosis
    Systems to over 13,900 units, with 87 units shipped in the fiscal 2014
    first quarter.

Fiscal 2014 First Quarter Ended September 30, 2013 Financial Results
Total product sales were approximately $0.7 million for the fiscal 2014 first
quarter compared to $0.8 million for the fiscal 2013 first quarter. License
and development revenue was $41,000 for the fiscal 2014 first quarter compared
to $84,000 for the fiscal 2013 first quarter. The license and development
revenue from both periods resulted from an agreement with Intuitive Surgical.
All deferred revenue has been recognized from this agreement as of August
2013. Total net revenue was approximately $0.8 million for the fiscal 2014
first quarter compared to $0.9 million for the comparable period of fiscal
2013.

Cost of product sales was approximately $1.0 million for the fiscal 2014 first
quarter compared to approximately $0.6 million for the same period of fiscal
2013. The increase in cost of product sales is due to costs associated with
introducing the MicroCutter XCHANGE 30. Research and development expenses were
approximately $1.7 million for the fiscal 2014 first quarter compared to $2.6
million for the fiscal 2013 first quarter. The decrease in research and
development expenses resulted primarily from the completion of the European
MicroCutter clinical study in the fiscal 2014 fourth quarter and lower
expenses for prototype parts. Selling, general and administrative expenses
were approximately $1.8 million for the fiscal 2014 first quarter compared to
$1.7 million for the fiscal 2013 first quarter.

The net loss for the fiscal 2014 first quarter was approximately $3.7 million,
or $0.07 per share, compared with a net loss of approximately $4.1 million, or
$0.11 per share, in the fiscal 2013 first quarter.

Cash and short term investments as of September 30, 2013, were approximately
$9.4 million compared with $12.4 million at June 30, 2013. As of September 30,
2013, there were approximately 51.2 million shares of common stock
outstanding.

Conference Call Details
To access the live conference call today, at 4:30 p.m. Eastern Time via phone,
please dial 866-515-2907 from the United States and Canada or 617-399-5121
internationally. The conference ID is 42573172. 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 November
11, 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 40283622.

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 47,700 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 U.S., pending marketing
clearance by the U.S. Food and Drug Administration and that it will introduce
the white cartridge in the current quarter are "forward-looking statements."
The words "expectation" and "believe" 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 Annual Report on Form 10-K for the year
endedJune 30, 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
                                                     September 30,
                                                     2013           2012
                                                      (unaudited)
Revenue
 Product sales, net                                 $    746   $   782
 License and development revenue                    41             84
 Royalty revenue                                   18             19
    Total                                            805            885
Operating costs and expenses
 Cost of product sales                              1,001          632
 Research and development                           1,657          2,552
 Selling, general and administrative                1,768          1,735
    Total operating costs and expenses               4,426          4,919
Loss from operations                                 (3,621)        (4,034)
Interest and other income                            4              5
Interest expense                                     (122)          (111)
Net loss                                             $  (3,739)   $ (4,140)
Basic and diluted net loss per share                 $   (0.07)  $  (0.11)
Shares used in computing basic and diluted net loss  51,089         36,723
per share
Balance Sheets
(amounts in thousands)
                                                     September 30,  June 30,
                                                     2013           2013
Assets                                               (unaudited)
 Cash and cash equivalents                       $   9,414    $12,395
 Accounts receivable                            280            391
 Inventories                                     1,545          1,457
 Other assets                                    3,122          3,518
    Total assets                                     $  14,361    $17,761
Liabilities and stockholders' equity
 Accounts payable and other liabilities          $   2,050    $ 1,945
 Deferred revenue                               2,013          2,054
 Long term debt                                  2,860          2,788
 Total stockholders' equity                      7,438          10,974
    Total liabilities and stockholders' equity       $  14,361    $17,761

SOURCE Cardica, Inc.

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