Cyberonics-CYBX .report five of five.
* note i own shares or options in all five companies.
Cyberonics, Inc. Reports Second Quarter Results; Record Sales Reported for U.S. and International Markets
HOUSTON, Jan. 15 /PRNewswire/ -- Cyberonics, Inc. (Nasdaq: CYBX - news) today reported record quarterly sales results. Net sales for the second quarter ended December 31, 1997 totaled $3,335,000, representing a 662% increase compared to net sales of $438,000 for the same quarter one year ago. Cyberonics' net loss for the second quarter totaled $2,458,000, or $.15 per share, compared to $2,696,000, or $.23 per share, for the same quarter of the prior fiscal year.
Sales for the second quarter established a new corporate record, reflecting continued favorable results from the Company's worldwide market launch of its proprietary, implantable vagus nerve stimulation (''VNS(TM)'') device, the NeuroCybernetic Prosthesis (''NCP(R)'') System, for the treatment of epilepsy patients experiencing partial onset seizures. Second quarter net sales consisted of $2,708,000 from the U.S. market and $627,000 from international markets. Net sales for the same quarter one year ago were attributable entirely to the Company's international markets.
For the six months ended December 31, 1997, Cyberonics reported net sales of $4,439,000 and a net loss of $7,415,000 or $.49 per share compared to net sales of $723,000 and a net loss of $4,489,000 or $.39 per share for the six months ended December 31, 1996.
Robert P. Cummins, President and Chief Executive Officer, commented, ''We are pleased with both the top and bottom line results for the quarter and six months ended December 31, 1997. Record sales in the U.S. and in Europe indicate that we are making progress on all relevant fronts including physician acceptance, patient demand and third party reimbursement. In the U.S. we experienced strong demand both from study sites and from centers with no prior experience with the NCP System. Overall demand in the last six months has been sufficiently strong that we finished with an order backlog at the end of the second quarter.''
Mr. Cummins continued, ''With an estimated 190,000 Americans and their families today trapped by refractory partial onset seizures, Cyberonics has only just begun to satisfy the pressing need for new epilepsy treatment alternatives. With that in mind, expansion of production capacity has become one of Cyberonics' highest priorities. We are presently expanding our existing manufacturing facility while we concurrently prepare a new 18,000 square foot facility to serve our longer-term requirements. This additional capacity, when available, will allow Cyberonics the opportunity to help an increasing number of individuals looking for a better treatment alternative for their refractory epilepsy.''
Cyberonics Inc. was founded in 1987 to design, develop and market medical devices for the treatment of epilepsy and other debilitating neurological disorders using a novel therapy, vagus nerve stimulation. The Company's initial target market is epilepsy, the world's second most prevalent neurological disorder, which is characterized by recurrent seizures. In addition to the U.S., the NCP System is currently approved for sale in all the member countries of the European Union, Canada and other markets.
Portions of this press release contain forward looking statements. Actual results could differ materially from those projected in the forward looking statements as a result of a number of important factors, including the Company's ability to develop and obtain all appropriate regulatory approvals of sufficient manufacturing capacity, the overall rate of future physician demand for the Company's products, the ability to secure third party reimbursement and the rate at which other sales activities are initiated. For further discussion of these and other important factors that could affect the Company's activities and results, please refer to the Company's Annual Report on Form 10-K for the year ended June 30, 1997 and the Company's Quarterly Report on Form 10-Q for the three months ended September 30, 1997.
CYBERONICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended Six Months Ended
December 31, December 31,
1997 1996 1997 1996
Net sales $3,335,496 $437,818 $4,438,730 $722,761
Cost of sales 925,395 158,381 1,247,269 227,672
GROSS PROFIT 2,410,101 279,437 3,191,461 495,089
Operating expenses:
Research and development
expenses 1,625,490 1,943,930 3,602,022 3,370,915
Selling, general and
administrative expenses 3,840,708 1,033,924 7,799,933 1,844,174
Total operating expenses 5,466,198 2,977,854 11,401,955 5,215,089
LOSS FROM OPERATIONS (3,056,097)(2,698,417) (8,210,494) (4,720,000)
Interest income, net 568,224 107,208 770,485 254,535
Other income (expense) 29,746 (105,017) 24,684 (23,282)
NET LOSS $(2,458,127)$(2,696,226)$(7,415,325)$(4,488,747)
Net loss per share $(0.15) $(0.23) $(0.49) $(0.39)
Shares used in computing
net loss per share 16,549,150 11,765,178 15,185,045 11,490,707
CYBERONICS, INC.
CONSOLIDATED BALANCE SHEETS
December 31, June 30,
1997 1997
ASSETS (Unaudited)
Cash and cash equivalents $18,094,794 $781,639
Securities held to maturity 27,666,432 7,129,409
Accounts receivable 2,627,004 548,542
Inventories 1,212,688 1,005,356
Prepaid expenses 392,152 126,799
TOTAL CURRENT ASSETS 49,993,070 9,591,745
Securities held to maturity 1,539,309 212,408
Property and equipment, net 877,018 362,333
Other assets, net 147,262 83,251
Total $52,556,659 $10,249,737
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $662,509 $365,351
Accrued liabilities 3,053,203 1,462,914
TOTAL CURRENT LIABILITIES 3,715,712 1,828,265
Stockholders' equity
Preferred stock, $.01 par value per
share; 2,500,000 shares authorized;
no shares issued and outstanding --- ---
Common stock, $.01 par value per
share; 25,000,000 shares authorized;
16,637,999 and 13,322,175 shares
issued and outstanding at
December 31, 1997 and June 30, 1997,
respectively 166,380 133,222
Additional paid-in capital 105,261,253 57,338,856
Deferred compensation (54,188) (63,750)
Accumulated deficit (56,582,327) (49,167,002)
Cumulative translation adjustments 49,829 180,146
TOTAL STOCKHOLDERS' EQUITY 48,840,947 8,421,472
Total $52,556,659 $10,249,737
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