Full Press Release Details
NeuroMetrix, Inc. Reports Total Revenues of $8.5 Million
for the Second Quarter of 2008
Decrease of 26% from the second quarter of 2007
Cash and investment position of $22.8 Million
- Commercial launch of ADVANCE System to neurologists and other specialists
- Medical equipment sales focused on specialist physicians
with peripheral nerve expertise
Mass. (BUSINESS WIRE) August 5, 2008 NeuroMetrix, Inc. (Nasdaq:
NURO), a science-based medical device company advancing patient care through
the development and marketing of innovative medical device products that aid physicians
in the assessment and treatment of diseases and injuries of peripheral nerves,
and that provide regional anesthesia and pain control, announced today
its financial results for the three- and six-month periods ended June 30,
revenues for the three months ended June 30, 2008, the Company s second
quarter, were $8.5 million, compared with $11.5 million for the second quarter
of 2007, representing a decline of 26%.
During the three-month periods ended June 30, 2008 and 2007, 90%
and 87% of revenues, respectively, were derived from consumables sales, 6% and
11% of revenues, respectively, were derived from medical equipment sales and 4%
and 2% of revenues, respectively, were derived from DigiScope sales. In prior quarters, medical equipment sales
were identified as diagnostic device sales and consumables sales were
identified as biosensor sales. Medical
equipment sales include revenues from sales of NC-stat devices and NC-stat
docking stations and the ADVANCE device and related modules. Consumables sales includes revenues from
sales of nerve specific electrodes (i.e., biosensors) and, in future periods,
is expected to also include revenues from other consumables that are being
developed for use with the ADVANCE System.
revenues for the six months ended June 30, 2008 were $17.6 million,
compared with $23.2 million for the six months ended June 30, 2007,
representing a decline of 24%. During
the six month periods ended June 30, 2008 and June 30, 2007, 89% and
87% of revenues, respectively were derived from consumable sales, 7% and 11% of
revenues, respectively, were derived from medical equipment sales and 4% and 2%
of revenues, respectively, were derived from DigiScope sales.
gross margin percentage for the second quarter of 2008 was 70.7% of revenues,
compared with 73.3% of revenues for the second quarter of 2007. In the second
quarter of 2008, the gross margin percentage for consumables was 72.5% of
revenues, compared with 73.4% of revenues in the second quarter of 2007, due to
lower sales volumes and increased discounting. The gross margin percentage for
medical equipment was 58.8% of revenues for the second quarter of 2008,
compared with 80.7% of revenues for the second quarter of 2007, due to lower
average selling prices, in part, resulting from the introduction and transition
of existing customers to the ADVANCE System which began commercial sales in
late May. The gross margin percentage
for the DigiScope for the second quarter of 2008 was 48.5% compared with 20.3%
in the second quarter of 2007. The increase in gross margins for the DigiScope
resulted from the acquisition of EyeTel Imaging, Inc. in December 2007.
gross margin percentage for the six months ended June 30, 2008 was 71.6%
of revenues, compared with 73.5% of revenues for the six months ended June 30,
2007. For the six months ended June 30, 2008, the gross margin percentage
for consumables was 73.1% of revenues, compared with 73.6% of revenues for the
six months ended June 30, 2007, due to lower sales volumes and increased
discounting. The gross margin percentage for medical equipment was 66.8% of
revenues for the six months ended June 30, 2008, compared with 81.4% of
revenues for the six months ended June 30, 2007, due to lower average
selling prices as discussed above. The
gross margin percentage for the Digiscope was 49.3% of revenues for the six
months ended June 30, 2008, compared with 19.2% of revenues for the six
months ended June 30, 2007. The
increase in gross margins for the DigiScope resulted from the acquisition of
EyeTel Imaging, Inc. in December 2007.
net loss for the second quarter of 2008 was approximately $4.9 million,
including a write-down of $1.4 million of our investment in Cyberkinetics
Neurotechnology Systems Inc., compared with a net loss of approximately $1.3
million for the second quarter of 2007. The net loss for the six month period ended June 30,
2008 was $15.7 million, including a goodwill impairment charge of $5.8 million
and write-down of $2.1 million of our investment in Cyberkinetics, compared
with net loss of $2.7 million for the six month period ended June 30,
Basic and diluted net loss per share was $(0.36) for the three months ended June 30, 2008, compared with basic and diluted net loss per share of $(0.10) for the three months ended June 30, 2007. Basic and diluted net loss per share was $(1.15) for the six months ended June 30, 2008, compared with basic and diluted net loss per share of $(0.21) for the six months ended June 30, 2007.
and cash equivalents and short-term investments totaled $22.8 million as of June 30,
2008 compared with $29.7 million as of December 31, 2007.
N. Gozani, M.D., Ph.D., NeuroMetrix s President & CEO commented, Our
revenues in the second quarter of 2008 were down approximately 26% from the
same period in 2007 primarily due to reimbursement uncertainty surrounding the
NC-stat System, the reduction in our direct sales force in the second quarter
of 2008, and the termination of our independent sales agency relationships
during the second half of 2007. During
the last quarter, our active customer count, which is a twelve-month look back
at accounts utilizing our neurodiagnostic instruments, decreased by about 100
to 5,480 physician practices and clinics as of the end of the second quarter of
2008. The average consumables usage per
customer during the second quarter of 2008 was unchanged from the prior
July 1, 2008 the American Medical Association ( AMA ) CPT Editorial Panel
electronically published new Category III CPT codes on its public website.
Although the Editorial Panel voted on a Category III code describing nerve
conduction studies performed with pre-configured electrodes at its February 2008
meeting, there were no Category III CPT codes published relating to nerve
conduction studies performed using the NC-stat System. The Editorial Panel may publish CPT codes or
coding recommendations at a future date for nerve conduction study procedures
such as those utilized with the NC-stat System.
The publication by the AMA of new CPT codes or other coding
recommendations for nerve conduction studies could adversely impact reimbursement
for procedures using the NC-stat System.
Our business continues to be adversely impacted by uncertainty
surrounding reimbursement for nerve conduction studies performed using the
NC-stat System, and therefore NC-stat revenues may continue to decline during
continue to believe that nerve conduction studies have an important role in
primary care and will actively support the family and internal medicine
physicians currently using the NC-stat to optimize their clinical care of
patients. However, until reimbursement clarity emerges on CPT coding and