Cambridge Heart has reported a total revenue of $1.18 million for the first quarter of 2008, which ended March 31, a decrease of 55 percent from total revenue of $2.59 million reported during the same period of 2007.
The operating loss for the quarter was $2.55 million, compared to an operating loss of $3.25 million for the same period in 2007, according to the Tewksbury, Mass.-based company. Included in the operating loss for the quarter was $742,987 of non-cash stock-based compensation expense.
The company posted a net loss for the quarter of $2.38 million, compared to a net loss of $3.16 million in the comparable 2007 period.
To counter its declining revenues, Cambridge Heart launched a new marketing and business initiative, whereby HearTwave II units will be placed in physician practices without any up-front purchase of the equipment. Under the plan, physicians can acquire the technology for a quarterly placement fee that covers the use of equipment and associated disposables, thereby eliminating the need for capital outlay or long-term contractual commitment, the company said.
To execute the new plan, the company said it will move forward with the expansion of its direct sales force, which is expected to grow from 10 to 16 professionals by the end of the third quarter.