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CARDICA, INC. Reports Operating Results (10-Q)

February 08, 2013 | About:
10qk

10qk

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CARDICA, INC. (CRDC) filed Quarterly Report for the period ended 2012-12-31.

Cardica, Inc. has a market cap of $50.9938 million; its shares were traded at around $1.35 with and P/S ratio of 12.3305.

Highlight of Business Operations:

For the six months ended December 31, 2012, we generated net revenue of $1.8 million, including $24,000 from commercial sales of the MicroCutter XCHANGE 30 and $168,000 of license and development revenue, and incurred a net loss of $8.3 million.

In addition, on the same date, we entered into a stock purchase agreement with Intuitive Surgical pursuant to which Intuitive Surgical paid $3.0 million to purchase from us an aggregate of 1,249,541 shares of our common stock, or the Stock Issuance. The net proceeds recorded to stockholders equity based upon the fair value of our common stock on August 16, 2010, were approximately $2.0 million after offering expenses. From the premium paid of $1.0 million and the upfront license fee payment of $9.0 million, $168,000 and $168,000 have been recorded as license and development revenue for the six months ended December 31, 2012 and 2011, respectively, and $209,000 has been recorded as deferred revenue as of December 31, 2012. There were no underwriters or placement agents involved with the Stock Issuance, and no underwriting discounts or commissions or similar fees were payable in connection with the Stock Issuance.

Net Revenue. Total net revenue was $874,000 for the three months ended December 31, 2012, compared to $912,000 for the same period in 2011. Product sales decreased by $38,000, or 5%, to $773,000 for the three months ended December 31, 2012, compared to $811,000 for the same period in 2011. The decrease in product sales for the three months ended December 31, 2012, was primarily attributable to lower PAS-Port system sales, offset in part by our first commercial sales of our MicroCutter XCHANGE 30 of $24,000.

Cost of Product Sales. Cost of product sales consists primarily of material, labor and overhead costs. Cost of product sales decreased by $110,000, or 10%, to $1.0 million for the three months ended December 31, 2012, compared to $1.1 million for the same period in 2011. The decrease in cost of product sales resulted primarily from an allocation of overhead to Research and Development for work performed on our microcutter product line which was previously absorbed solely by production of PAS-Port and C-Port systems, partially offset by increased overhead spending. We recorded an inventory valuation adjustment to reduce the cost of inventory to its net realizable value by $189,000 in the three months ended December 31, 2012, compared to $63,000 for the same period in 2011, primarily due to our higher inventory costs for the MicroCutter XCHANGE 30. We released $3,200 of excess and obsolete inventory reserves as a result of units sold in the three months ended December 31, 2012.

Cost of Product Sales. Cost of product sales decreased by $305,000, or 16%, to $1.6 million for the six months ended December 31, 2012, compared to $1.9 million for the same period in 2011. The decrease in cost of product sales resulted primarily from an allocation of overhead to Research and Development for work performed on our microcutter product line which was previously absorbed solely by production of PAS-Port and C-Port systems, partially offset by increased overhead spending. We recorded an inventory valuation adjustment to reduce the cost of inventory to its net realizable value by $194,000 in the six months ended December 31, 2012, compared to $128,000 for the same period in 2011, primarily due to our higher inventory costs for the MicroCutter XCHANGE 30. We released $6,300 of excess and obsolete inventory reserves as a result of units sold in the six months ended December 31, 2012.

Read the The complete Report

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