Full Press Release Details
NeuroMetrix, Inc. Reports Total Revenues of $10.1
Million for the Fourth Quarter of 2007, a Decrease of 29% from the Fourth
Quarter of 2006; Net Loss of $2.1 Million Incurred in the Fourth Quarter of
Mass. (BUSINESS WIRE) February 12, 2008 NeuroMetrix, Inc. (Nasdaq:
NURO), a medical device company advancing patient care through the development
and marketing of innovative medical device products that aid physicians in the
diagnosis and treatment of diseases of the nervous system and neurovascular
disorders and provide regional anesthesia and pain control, announced today the
financial results for the three-month and twelve-month periods ended December 31,
2007. Total revenues for the three months ended December 31, 2007, the Company s
fourth quarter, were $10.1 million, compared with $14.2 million for the fourth
quarter of 2006, representing a decline of 29%.
During the three-month periods ended December 31, 2007 and 2006,
89% and 87% of revenues, respectively, were derived from biosensor sales, 8%
and 13% of revenues, respectively, were derived from diagnostic device sales
and 3% and 0% of revenues, respectively, were derived from DigiScope
sales. Sales and marketing efforts for
the DigiScope, a product used for the detection of retinal abnormalities
including diabetic retinopathy, were launched in early 2007.
revenues for the twelve months ended December 31, 2007 were $44.6 million,
compared with $55.2 million for the twelve months ended December 31, 2006,
representing a decline of 19%. During
the twelve months ended December 31, 2007 and 2006, 88% and 86% of
revenues, respectively, were derived from biosensor sales, 10% and 14% of
revenues, respectively, were derived from diagnostic device sales and 2% and 0%
of revenues, respectively, were derived from DigiScope sales.
gross margin percentage for the fourth quarter of 2007 was 71.8% of revenues,
compared with 74.9% of revenues for the fourth quarter of 2006. In the fourth
quarter of 2007, the gross margin percentage for biosensors was 73.1% of
revenues, compared with 73.7% of revenues in the fourth quarter of 2006, due to
lower sales volumes. The gross margin percentage for diagnostic devices was
70.6% of revenues for the fourth quarter of 2007, compared with 82.9% of
revenues for the fourth quarter of 2006, due to lower average selling prices
and lower volumes. Overall gross margins
in the fourth quarter of 2007 were also adversely impacted by the gross margins
on the DigiScope, which were 30.7%. We
acquired substantially all of the assets of EyeTel Imaging, Inc.,
including all rights to the DigiScope, on December 26, 2007 for 1,050,295
shares of NeuroMetrix common stock, $175,000 in cash and the assumption of
certain specified liabilities of less than $1.0 million. Prior to the acquisition, we had been selling
the DigiScope in the primary diabetes care market under a sales and marketing
license agreement with EyeTel. As a
result of the acquisition, we expect that the gross margin on DigiScope
revenues will increase in future quarters.
gross margin percentage for the twelve months ended December 31, 2007 was
73.0% of revenues, compared with 75.5% of revenues for the twelve months ended December 31,
2006. For the twelve months ended December 31, 2007, the gross margin
percentage for biosensors was 73.6% of revenues, compared with 74.4% of
revenues for the same period in 2006, due to lower sales volumes. The gross
margin percentage for diagnostic devices was 78.5% of revenues for the twelve
months ended December 31, 2007, compared with 82.5% of revenues for the
same period in 2006, due to lower average selling prices and lower sales
volumes. Overall gross margins for the
twelve months ended December 31, 2007 were also adversely impacted by the
gross margins on the DigiScope, which were 24.2%.
net loss for the fourth quarter of 2007 was approximately $2.1 million,
compared with net income of approximately $1.0 million for the fourth quarter
of 2006, including stock-based compensation expense of $764,000 and $653,000
for the fourth quarter of 2007 and 2006, respectively.
the twelve months ended December 31, 2007, our general and administrative
expenses increased approximately $3.0 million compared with the same period in
2006 as a result of professional services relating to the government
investigations previously disclosed by the Company and also relating to
reimbursement matters. These expenses
were partially offset by the reversal of approximately $1.7 million in sales
net loss for the twelve month period ended December 31, 2007 was
approximately $8.4 million, compared with net income of approximately $4.3
million for the same period in 2006, including stock-based compensation expense
of approximately $3.1 million and approximately $2.7 million for the twelve
months ended December 31, 2007 and 2006, respectively.
Basic and diluted net loss per share was $(0.17) for the three months ended December 31, 2007, compared with basic and diluted net income per share of $0.08 for the three months ended December 31, 2006.
Basic and diluted net loss per share was $(0.66) for the twelve months ended December 31, 2007, compared with basic and diluted net income per share of $0.34 and $0.33, respectively, for the twelve months ended December 31, 2006.
and cash equivalents and short-term investments totaled $29.7 million as of December 31,
2007, compared with $40.3 million as of December 31, 2006.
N. Gozani, M.D., Ph.D., NeuroMetrix s President & CEO commented, At
its recent meeting on February 9, 2008, which was open to the public, the
American Medical Association ( AMA ) CPT editorial panel reviewed
recommendations from a work group established by the AMA approximately one year
ago to study reimbursement coding for nerve conduction studies using equipment
with automated features, including the NC-stat System, and other traditional
equipment. We had hoped that the AMA CPT
editorial panel would have determined that the existing Category I CPT codes
were applicable to nerve conduction studies performed with the NC-stat System
or assigned a series of new Category I CPT codes for such studies. However, at the meeting, the only proposal voted on by the AMA CPT
editorial panel was a proposal to establish a new Category III CPT code for
nerve conduction studies performed using equipment with particular types of
automated features, including the NC-stat System. The result of the vote was not announced at
the meeting and has not yet been released. In the event the AMA CPT editorial
panel voted to establish a new Category III CPT code, NeuroMetrix and certain professional
medical societies may appeal the decision, although there is no assurance that
a more favorable result could be obtained upon appeal. Ultimately, any new code
relating to the NC-stat System will not become effective until after it is
published by the AMA. Should a Category III CPT code be published that
describes nerve conduction studies performed with the NC-stat System, then it
would likely result in limited or no Medicare reimbursement for nerve
conduction studies performed using the NC-stat System since there is the
potential that no specified reimbursement values would be assigned to these
codes, and it could also adversely
impact reimbursement by other third-party payers.
the fourth quarter of 2007, we made two important announcements that we believe