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Cardica Announces Fiscal 2014 Third Quarter Financial Results

        Cardica Announces Fiscal 2014 Third Quarter Financial Results

PR Newswire

REDWOOD CITY, Calif., May 1, 2014

REDWOOD CITY, Calif., May 1, 2014 /PRNewswire/ --Cardica, Inc. (Nasdaq: CRDC)
today announced financial results for its fiscal third quarter ended March 31,
2014. 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.

"Our efforts over the last year have been focused on product refinements and
the commercial introduction of the MicroCutter XCHANGE^® 30 in Europe," said
Bernard A. Hausen, M.D., Ph.D., president and CEO of Cardica. "Following
clearance from the U.S. Food and Drug Administration (FDA), we recently began
product introduction in the United States. We are working with key opinion
leaders to secure approval for product evaluation and purchasing through
multiple hospital Value Analysis Committees. While it is early in the launch
period, we are encouraged by the positive response we've experienced to date
and we believe that there is clearly a real market need. We intend to navigate
the hospital approval process while ensuring that we deliver quality products
that meet our customers' expectations. Importantly, last week we closed a
public offering that solidified our balance sheet and will bolster our ability
to implement a successful U.S. product introduction and product line
expansion."

Recent Highlights and Accomplishments:

  oReceived 510(k) clearance from the FDA for the MicroCutter XCHANGE 30 and
    blue and white cartridges, along with a material change for the cartridge,
    for use in multiple open or minimally-invasive surgical procedures for the
    transection, resection and/or creation of anastomoses in small and large
    intestine, as well as the transection of the appendix;
  oJuan-Carlos Verdeja, M.D., F.A.C.S., completed the first surgical
    procedure in the United States using the MicroCutter XCHANGE 30 at West
    Kendall Baptist Hospital in Florida;
  oRadu Pescarus, M.D., Foregut Fellow in the Gastrointestinal and Minimally
    Invasive Surgery Division of Providence Portland Medical Center, presented
    a poster detailing the pre-clinical use of the MicroCutter XCHANGE 30 in
    gastrointestinal surgical procedures including endoscopic assisted
    trans-gastric and trans-anal full thickness resections at the SAGES Annual
    Meeting in Salt Lake City, Utah;
  oThe MicroCutter XCHANGE 30 was selected as a finalist in the surgical
    Equipment, Instruments and Supplies category of the Medical Design
    Excellence Awards, one of the highest honors in the medical technology
    industry;
  oBegan the process of securing Value Analysis Committee (VAC) approval in
    several hospitals in the United States;
  oAs of March 31, 2014, secured approval from five hospital VACs who have
    approved use of the MicroCutter XCHANGE 30 for product evaluation and
    subsequently have the ability to purchase the MicroCutter XCHANGE 30;
  oIncreased cumulative worldwide shipments of PAS-Port^® Proximal
    Anastomosis Systems to over 36,000 units, with 1,151 units shipped in the
    fiscal 2014 third quarter;
  oIncreased cumulative worldwide shipments of C-Port^® Distal Anastomosis
    Systems to 14,275 units, with 200 units shipped in the fiscal 2014 third
    quarter; and,
  oRaised $44.5 million in net proceeds from an underwritten public offering
    of 37,375,000 shares of Cardica's common stock, offered at a price of
    $0.85 per share, and 191,474 shares of Series A convertible preferred
    stock, at a price of $85.00 per share.

Fiscal 2014 Third Quarter and Nine Months Ended March 31, 2014 Financial
Results
Total product sales were approximately $0.9 million for the fiscal 2014 third
quarter compared to $0.8 million for the fiscal 2013 third quarter. Total net
revenue was approximately $0.9 million for both the fiscal 2014 and fiscal
2013 third quarters.

Cost of product sales was approximately $1.4 million for the fiscal 2014 third
quarter compared to approximately $1.1 million for the fiscal 2013 third
quarter. Research and development expenses were approximately $1.7 million for
the fiscal 2014 third quarter compared to $2.0 million in the same period of
fiscal 2013. Selling, general and administrative expenses were $2.1 million
for the fiscal 2014 third quarter compared to $1.6 million for the same period
of fiscal 2013.

The net loss for the fiscal 2014 third quarter was approximately $4.4 million,
or $0.09 per share, compared with a net loss of approximately $3.9 million, or
$0.10 per share, in the fiscal 2013 third quarter.

Total net revenue was approximately $2.6 million for both the nine months
ended March 31, 2014 and March 31, 2013. Total operating costs and expenses
for the nine months ended March 31, 2014, were approximately $14.5 million
compared to $14.6 million for the nine months ended March 31, 2013. Net loss
for the nine months ended March 31, 2014, was approximately $12.3 million, or
$0.24 per share, compared to $12.3 million, or $0.33 per share for the same
period of fiscal 2013.

Cash and short term investments as of March 31, 2014, were approximately $2.9
million compared with $6.5 million at December 31, 2013. As of March 31, 2014,
there were approximately 51.6 million shares of common stock outstanding. As
of May 1, 2014 and following the closing of the underwritten public offering
and receipt of $44.5 million in net proceeds, there were approximately 88.9
million shares of common stock outstanding and 191,474 shares of Series A
convertible preferred stock outstanding. 

Conference Call Details
To access the live conference call today at 4:30 p.m. Eastern Time via phone,
please dial 866-515-2914 from the United States and Canada or 617-399-5128
internationally. The conference ID is 65016998. Please dial in approximately
10 minutes prior to the start of the call. A telephone replay will be
available beginning approximately four hours after the call through May 8,
2014, and may be accessed by dialing 888-286-8010 from the United States and
Canada or 617-801-6888 internationally. The replay passcode is 34870020.

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.

About Cardica
Cardicadesigns and manufactures proprietary stapling and anastomotic devices
for cardiac and laparoscopic surgical procedures.Cardica's technology
portfolio is intended to reduce operating time and facilitate
minimally-invasive and robot-assisted surgeries. Cardica's MicroCutter
XCHANGE^® 30, a cartridge-based articulating surgical stapling device with a
five-millimeter shaft diameter, is manufactured and cleared for use in a
variety of gastrointestinal procedures and appendectomies in the United
States, and is marketed for a wide range of surgical procedures in Europe.
Cardicais developing the Cardica^® MicroCutter XCHANGE^® 45, a
cartridge-based microcutter device that is being designed with an
eight-millimeter shaft to be used in a variety of procedures, including
bariatric, colorectal, thoracic and general surgery. The Cardica MicroCutter
XCHANGE 45 product requires 510(k) clearance and CE Mark and is not yet
commercially available in the U.S. or internationally. In addition, 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 50,000 units
throughout the world.

Forward-Looking Statements
The statements in this press release regarding Cardica's MicroCutter XCHANGE
30 and cartridges, as well as statements about future products are
"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 commercialize the XCHANGE 30 due to unanticipated
technical or other difficulties; that prospective customers may not perceive
the benefits of the XCHANGE 30 to be sufficient to warrant its purchase; that
prospective customers may be constrained by pricing pressures or purchasing
requirements in the hospitals and facilities in which they work, which could
prevent them from purchasing the XCHANGE 30; that the development of the
MicroCutter XCHANGE 45 may not be successful or gain regulatory clearance or
market acceptance; 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 Quarterly Report on Form 10-Q for the quarter endedDecember 31,
2013, under the caption "Risk Factors," filed on February 5, 2014. 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       Nine months ended
                            March 31,                March 31,
                            2014         2013        2014         2013
                            (unaudited)              (unaudited)
Revenue
 Product sales, net        $   916   $   767  $  2,497   $   2,322
 License and development   -            84          41           252
revenue
 Royalty revenue          18           17          52           53
      Total                 934          868         2,590        2,627
Operating costs and
expenses
 Cost of product sales     1,368        1,089       3,423        2,689
 Research and development  1,724        2,022       5,070        6,848
 Selling, general and      2,096        1,593       6,050        5,040
administrative
      Total operating costs                         
      and expenses          5,188                                 14,577
                                         4,704       14,543
Loss from operations        (4,254)      (3,836)     (11,953)     (11,950)
Interest and other income,  1            4           36           11
net
Interest expense            (126)        (114)       (373)        (339)
Net loss                    $ (4,379)   $ (3,946)   $(12,290)    $  (12,278)
Basic and diluted net loss  $  (0.09)  $  (0.10)  $  (0.24)  $   
per share                                                         (0.33)
Shares used in computing
basic and diluted net loss  51,587       38,633      51,330       37,436
per share

Balance Sheets
(amounts in thousands)
                                                 March 31,  June 30,
                                                 2014       2013
Assets                                           (unaudited)
 Cash and cash equivalents                   $  2,932  $12,395
 Accounts receivable                        537        391
 Inventories                                 1,292      1,457
 Other assets                                2,789      3,518
  Total assets                               $  7,550  $17,761
Liabilities and stockholders' equity
 Accounts payable and other liabilities      $ 2,578    $ 1,945
 Deferred revenue                           2,013      2,054
 Long term debt                              3,011      2,788
 Total stockholders' equity                  (52)       10,974
  Total liabilities and stockholders' equity $ 7,550    $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
 
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