NeuroMetrix, Inc. Announces Second Quarter 2009 Financial Results WALTHAM, Mass. (BUSINESS WIRE)

Mass. (BUSINESS WIRE) August 5, 2009 NeuroMetrix, Inc. (Nasdaq:

NURO), a health care company transforming patient care through neurotechnology,

announced today its financial results for the three- and six-month periods

ended June 30, 2009.

revenues for the three months ended June 30, 2009, the Company s second

quarter, were $6.8 million, compared with $8.1 million for the second quarter

of 2008, representing a decline of 17%. During the three-month periods ended June 30,

2009 and 2008, 90% and 94% of revenues, respectively, were derived from

consumables sales, 10% and 6% of revenues, respectively, were derived from

medical equipment sales. Medical equipment sales include sales of ADVANCE

devices and related modules, NC-stat devices and related modules, and service

agreement revenues. Consumables sales include sales of nerve specific

electrodes, EMG needles, and other accessories.

revenues for the six months ended June 30, 2009 were $13.6 million,

compared with $16.9 million for the six months ended June 30, 2008,

representing a decline of 19%. During the six month periods ended June 30,

2009 and June 30, 2008, 90% and 93% of revenues, respectively, were derived

from consumable sales, 10% and 7% of revenues, respectively, were derived from

medical equipment sales.

margin as a percentage of total revenues for the second quarter of 2009 was

71.4%, compared with 71.7% for the second quarter of 2008. The gross margin

percentage for the six months ended June 30, 2009 was 71.5% of revenues,

compared with 72.6% of revenues for the six months ended June 30, 2008.

net loss for the second quarter of 2009 was approximately $1.8 million compared

with a net loss of approximately $4.9 million for the second quarter of 2008,

which included a $1.4 million write-down on an investment in Cyberkinetics

Neurotechnology Systems, Inc. ( Cyberkinetics ) and a loss from

discontinued operations of $0.7 million. The net loss for the six month period

ended June 30, 2009 was $3.0 million compared with a net loss of $15.7

million for the six month period ended June 30, 2008 including a goodwill

impairment charge of $5.8 million, a write-down of $2.1 million on our

investment in Cyberkinetics and a loss from discontinued operations of $1.4

and diluted net loss per share was $(0.13) for the three months ended June 30,

2009, compared with basic and diluted net loss per share of $(0.36) for the

three months ended June 30, 2008. Basic and diluted net loss per share was

$(0.22) for the six months ended June 30, 2009, compared with basic and

diluted net loss per share of $(1.15) for the six months ended June 30,

cash equivalents and short-term investments totaled $15.5 million as of June 30,

2009 compared with $15.9 million and $19.8 million as of March 31, 2009

and December 31, 2008, respectively.

N. Gozani, M.D., Ph.D., NeuroMetrix s President & CEO commented, Our

revenues in the second quarter of 2009 were down approximately 17% from the

same period in 2008 and essentially flat when compared to the first quarter of

2009. We believe that the decrease in our revenues from the prior year period

is due to the overall reduction in health care capital purchasing, the

continued uncertainty surrounding reimbursement for the NC-stat System, and the

40% reduction in our direct sales force in the second quarter of 2008.

continued, Consistent with our strategy of diversifying revenue sources,

approximately 16% of second quarter 2009 revenues were derived from ADVANCE

equipment and consumables sales to peripheral nerve specialists; primarily

consisting of neurologists, physical medicine and rehabilitation physicians,

and orthopedic surgeons.

to Host Live Conference Call and Webcast

Company s management team will host a live conference call and webcast at 10:00 a.m.

Eastern time on Wednesday, August 5, 2009 to discuss the Company s financial

results for the three and six month periods ended June 30, 2009. In

addition, the Company may answer questions concerning business and financial

developments and trends, and other business and financial matters affecting the

Company. The conference call may be accessed in the United States by dialing

866-510-0711 and using the confirmation code 32881658. Internationally, the

conference call may be accessed by dialing 617-597-5379 and using the same

confirmation code. The webcast, along with the earnings press release and

accompanying condensed financial statements, will be accessible from the

Company s website at http://www.neurometrix.com under the Investor Relations

tab and a replay of the webcast will be available on the Company s website. A

replay of the conference call will be available starting two hours after the

call by dialing 888-286-8010 domestically and 617-801-6888 internationally. The

confirmation code to access the replay is 33502695. The replay will be

available for three months after the conference call.

is a science-based health care company transforming patient care through

neurotechnology. We provide innovative

products for preservation and restoration of nerve and spinal cord function,

and management of pain. To date, our

focus has been primarily on the assessment of neuropathies. Neuropathies affect

the peripheral nerves and parts of the spine and are frequently caused by or

associated with carpal tunnel syndrome, diabetes, sciatica, and other clinical

disorders. We market systems for the performance of nerve conduction studies

and needle electromyography procedures. Our product pipeline includes a system

designed to deliver pharmacologic agents such as anesthetics and

corticosteroids in close proximity to nerves for regional anesthesia, pain

control and the treatment of focal neuropathies. We are also developing devices

and pharmaceutical agents to treat spinal cord injuries. For more information,

visit http://www.neurometrix.com.

statements contained in this press release include forward-looking statements

within the meaning of Section 27A of the Securities Act of 1933, as

amended, and Section 21E of the Securities Exchange Act of 1934, as amended,

including, without limitation, statements regarding NeuroMetrix s or its

management s expectations, hopes, beliefs, intentions or strategies regarding

the future. The words believe, may, will, estimate, continue, anticipate,

intend, expect, plan, hope and similar expressions may identify

forward-looking statements, but the absence of these words does not mean that a

statement is not forward-looking. The forward-looking statements contained in

this press release are based on NeuroMetrix s current expectations and beliefs

concerning future developments and their potential effects on it. There can be

no assurance that future developments affecting NeuroMetrix will be those that

NeuroMetrix has anticipated. These forward-looking statements involve a number

of risks, uncertainties (some of which are beyond NeuroMetrix s control) or

other assumptions that may cause actual results or performance to be materially

different from those expressed or implied by these forward-looking statements.