Full Press Release Details
Reports Total Revenues of $6.8 Million for the First Quarter of 2009
Mass. (BUSINESS WIRE) May 6, 2009 NeuroMetrix, Inc. (Nasdaq: NURO), a
health care company transforming patient care through neurotechnology, announced
today its financial results for the three-month period ended March 31,
revenues for the three months ended March 31, 2009, the Company s first
quarter, were $6.8 million, compared with $8.7 million for the first quarter of
2008, representing a decline of 22%. During the three-month periods ended March 31,
2009 and 2008, 90% and 91% of revenues, respectively, were derived from
consumables sales, 10% and 9% 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.
margins as a percentage of total revenues for the first quarter of 2009 were
72%, compared with 73% for the first quarter of 2008. In the first quarter of
2009, the gross margins as a percentage of total revenues decreased primarily
due to greater discounting. The increased discounting, which resulted in lower
average selling prices is, in part, related to ADVANCE transition pricing for
certain existing customers who are specialist physicians with peripheral nerve
net loss for the first quarter of 2009 was approximately $1.2 million compared
with a net loss of approximately $10.8 million for the first quarter of 2008,
which included a $5.8 million charge for impairment of goodwill, a $0.7 million
write-down on an investment in Cyberkinetics Neurotechnology Systems, Inc.
and a loss from discontinued operations of $0.7 million. Basic and diluted net
loss per share was $(0.09) for the three months ended March 31, 2009
compared with basic and diluted net loss per share of $(0.79) for the three
months ended March 31, 2008.
and cash equivalents and short-term investments totaled $15.9 million as of March 31,
2009 compared with $19.8 million as of December 31, 2008. During the
quarter, the Company settled and paid $3.7 million to the US Department of
Justice and used $0.4 million of cash to acquire certain assets from
Cyberkinetics Neurotechnology Systems, Inc.
N. Gozani, M.D., Ph.D., NeuroMetrix s President & CEO commented, Our
revenues in the first quarter of 2009 were down approximately 22% from the same
period in 2008 and down 5% sequentially from the fourth quarter of 2008. We believe that the decrease in our revenues
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. During
the first quarter of 2009, our active customer count, which is a twelve-month
look back at accounts utilizing our neurodiagnostic instruments, decreased by
approximately 180 to 5,000 physician practices and clinics as of the end of the
first quarter of 2009 from the fourth quarter of 2008. However, the average
consumables usage per active customer increased during the first quarter of
2009 as did the total consumables usage from the prior quarter.
added, We are now actively marketing the ADVANCE System into the neurology,
physical medicine and rehabilitation (PM&R), neurosurgery, orthopedic and
hand surgery, and pain medicine markets through our direct sales organization.
As of the end of the first quarter of 2009, 7% of our active customers were
using ADVANCE. We are encouraged by market reaction and have gained important
insight into certain product enhancements that we believe could accelerate
adoption. We have also made progress toward refining our sales focus by
reorganizing our field sales into three market channels: neurology,
neurointerventional, and physician office. The neurology market includes
neurologists and physical medicine and rehabilitation (PM&R) physicians.
further stated, We recently announced the acquisition of certain technological
and intellectual property assets from Cyberkinetics Neurotechnology Systems, Inc.
This acquisition includes all of Cyberkinetics rights and
regulatory filings for the Andara Oscillating Field Stimulator (OFS )
technology for treatment of acute spinal cord injury, an investigational device
designed to stimulate spinal cord repair and restore sensation; the rights to
develop and commercialize a therapeutic product for peripheral nerve injury
based on the Andara OFS neurostimulation technology; development and
commercialization rights to certain derivatives of the pharmacological agent
4-aminopyridine that may be useful in the treatment of central and peripheral
nervous system injury and disease; and certain other intellectual property and
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, May 6, 2009 to discuss the Company s financial
results for the three-month period ended March 31, 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 800-638-4817
and using the confirmation code 44139479. Internationally, the conference call
may be accessed by dialing 617-614-3943 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 45211200. The replay will be available for three
months after the conference call.
is a science-based health care company transforming patient care through
neurotechnology. 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 neurostimulation-based devices that promote nerve fiber regeneration
in acute peripheral nerve and spinal cord injuries. For more information, visit
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,