Full Press Release Details
NeuroMetrix, Inc. Reports Total Revenues of $11.8 Million for
the First Quarter 2006, 74% Growth over First Quarter 2005; GAAP Net Income of
$147,000, Non-GAAP Adjusted Net Income of $885,000
WALTHAM, Mass. (BUSINESS WIRE) May 1, 2006 NeuroMetrix,
Inc. (Nasdaq: NURO), a medical device company focused on the design,
development and sale of proprietary products used to diagnose neuropathies, or
diseases of the nerves, announced today the financial results for the three
month period ended March 31, 2006.
Total revenues for the three months ended March 31,
2006, the Company s first quarter, were $11.8 million, compared with $6.8
million for the first quarter of 2005, representing an increase of 74%. During the three month periods ended March
31, 2006 and March 31, 2005, 87% and 88% of revenues, respectively, were
derived from biosensor sales and 13% and 12% of revenues, respectively, were
derived from diagnostic device sales.
The gross margin percentage for the first quarter of
2006 was 75.6% of revenues compared with 73.2% of revenues for the first
quarter of 2005. In the first quarter of
2006, the gross margin percentage for biosensors was 74.9% of revenues compared
with 73.3% of revenues in the first quarter of 2005. The gross margin percentage for diagnostic
devices was 80.3% of revenues for the first quarter of 2006, compared with
73.0% of revenues for the first quarter of 2005.
Net income calculated in accordance with U.S.
generally accepted accounting principles ( GAAP ) for the first quarter of 2006
was $147,000 compared with a net loss of $(596,000) for the first quarter of
2005. Net income for the first quarter
of 2006 and the net loss for the first quarter of 2005 included stock-based
compensation expense of $737,000 and $76,000, respectively. The large increase in stock-based
compensation expense was due to the adoption of Statement of Financial
Accounting Standards No. 123R ( FAS 123R ) in the first quarter of 2006. Excluding stock-based compensation expense,
non-GAAP adjusted net income for the first quarter of 2006 was $885,000
compared with a non-GAAP adjusted net loss of $(520,000) for the first quarter
Basic and diluted net income per share was $0.01 for
the three months ended March 31, 2006, compared with a basic and diluted net
loss per share of $(0.05) for the three months ended March 31, 2005. The basic and diluted net income (loss) per
share for the three months ended March 31, 2006 and March 31, 2005 included
stock-based compensation expense of $737,000 and $76,000, respectively. Non-GAAP adjusted basic and diluted net
income per share was $0.07 for the three months ended March 31, 2006 compared
with non-GAAP adjusted net loss per share of $(0.04) for the same period in
The following table contains
a reconciliation of non-GAAP net income (loss), adjusted to exclude stock-based
compensation expense, to GAAP net income (loss) and non-GAAP basic and diluted
net income (loss) per share, adjusted to exclude stock-based compensation
expense, to GAAP basic and diluted net income (loss) per share, during the
first quarter of 2006 and 2005.
| Three Months Ended March 31, | |||||||
| 2006 | 2005 | ||||||
| Net income (loss) reconciliation: | |||||||
| Net income (loss), as reported in accordance with GAAP | $ | 147,338 | $ | (596,314 | ) | ||
| Stock-based compensation expense | 737,213 | 75,975 | |||||
| Non-GAAP adjusted net income (loss) | $ | 884,551 | $ | (520,339 | ) | ||
| Net income (loss) per common share reconciliation: | |||||||
| Net income (loss) per common share, diluted, as reported in accordance with GAAP | $ | 0.01 | $ | (0.05 | ) | ||
| Stock-based compensation expense | 0.06 | 0.01 | |||||
| Non-GAAP adjusted net income (loss) per common share, diluted | $ | 0.07 | $ | (0.04 | ) |
Cash and cash equivalents and short-term investments
totaled $32.4 million as of March 31, 2006, compared with $32.3 million as of
Shai N. Gozani, M.D., Ph.D., NeuroMetrix s President
& CEO commented, During the first quarter of 2006, we posted strong top
line growth of 74% on a year over year basis due to continuing physician demand
for our NC-stat neuropathy diagnostic solution.
Our financial performance continued to be driven by growth in the
primary care market, where we experienced an increase of 128% in biosensor
usage on a year-over-year basis in the first quarter of 2006. We also experienced growth in the specialty
care market, with an increase in biosensor usage of 32% year over year in the
first quarter of 2006. We expanded our
overall active customer count to a total of 3,639 physician practices and
clinics, as of the end of the first quarter of 2006, compared with 2,424 at the
end of the first quarter of 2005. There
was a total of 255,500 biosensors used by our customers during the first
quarter of 2006, an increase of 86% over the 137,600 biosensors used by our
customers in the first quarter of 2005.
Dr. Gozani further commented: In support of our long term goal of top line
growth, we are in the process of expanding our sales force to a total of 46 regional
sales managers. The hiring process was
initiated in the fourth quarter of 2005 and is essentially complete. Our operating expenses increased in the first
quarter of 2006 as a result of the expansion of our sales and marketing capabilities. We believe that the strengthening of our
sales force will further advance our goal of creating a new standard of care
throughout the marketplace.
Company to Host Live Conference
The Company s management team will host a live
conference call and webcast at 10:00 a.m. Eastern time on Monday, May 1, 2006
to discuss the Company s financial results for the three month period ending
March 31, 2006. 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
1-888-396-2356 and using the confirmation code 49840293.
Internationally, the conference call may be accessed
by dialing 617-847-8709, 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 www.neurometrix.com
under the Investors tab and a replay of the webcast will be available on the
Company s website for twelve months. A replay of the conference call will be
available starting two hours after the call by dialing 1-888-286-8010,
domestically and 1-617-801-6888, internationally. The confirmation code to
access the replay is 35941457. The
replay will be available for three months following the conference call.
disclosing results calculated in accordance with GAAP, the Company has also
disclosed non-GAAP financial results that exclude stock-based compensation
expense calculated under the requirements of FAS 123R and under certain
additional accounting pronouncements. Management
believes that these non-GAAP financial results provide useful information to
investors regarding the financial performance of the Company and management
believes that this non-GAAP financial information facilitates comparisons with
historical financial results. Management
uses these non-GAAP financial results for purposes of managing the business,
planning, forecasting, determining compensation, for comparative purposes when
assessing results versus peer companies and for other purposes. Given the importance of these non-GAAP
financial results to the Company, the Company has disclosed this information to