Full Press Release Details
Reports 2009 Financial Results
Mass. (BUSINESS WIRE) February 10, 2010 NeuroMetrix, Inc. (Nasdaq:
NURO), a health care company transforming patient care through neurotechnology,
today announced its financial results for the three months
and year ended December 31, 2009.
revenues for the fourth quarter of 2009 were $6.2 million, compared with $7.2
million for the fourth quarter of 2008. Revenues in the quarter were comprised
of 9% medical equipment sales and 91% consumables sales in comparison with 14%
and 86%, respectively, for the fourth quarter of 2008. Medical equipment sales
consist of nerve conduction testing devices (ADVANCE and NC-stat ) and related
modules, and service agreement revenues. Consumables sales include single use
nerve-specific electrodes, EMG needles, and other accessories. Gross margin in
the fourth quarter of 2009 was 70.5% of total revenues compared with 67.8% for
the fourth quarter of 2008. Net income for the fourth quarter of
2009 was $0.4 million, or $0.02 per share, and included a gain of $2.2 million,
or $0.10 per share, relating to the revaluation of warrants issued in the
Company s September 2009 financing. In comparison, net loss for the fourth
quarter of 2008 was $4.1 million, or $(0.30) per share.
the year ended December 31, 2009, total revenues were $26.1 million,
compared with $31.1 million in 2008. Revenues for 2009 were comprised of 10%
medical equipment sales and 90% consumables sales in comparison with 9% and
91%, respectively, for the year ended December 31, 2008. Gross margin for
2009 was 71.2% of total revenues compared with 71.0% for 2008. Net loss for
2009 was $11.9 million, or $(0.71) per share and included a net charge of
$5.2 million, or $0.31 per share, for the revaluation of warrants issued in the
September 2009 financing. In comparison, net loss for 2008 was $27.7
million, or $(2.02) per share.
the fourth quarter of 2009, the Centers for Medicare and Medicaid Services
( CMS ) published a new Category I CPT code in the 2010 Physician s Fee
Schedule for nerve conduction studies performed with preconfigured electrode
arrays, such as those utilized with the NC-stat System. The Company believes that
this CPT code may streamline Medicare reimbursement for medically appropriate
nerve conduction studies performed using the NC-stat System, and could also be
a positive influence on reimbursement by commercial insurers.
Company has recently undertaken a number of initiatives to address market
opportunities, including the following:
Organizing North America
Sales into a Physician s Office sales group supporting primary care, internal
medicine, endocrinology, and rheumatology, and a Neurointerventional sales
group supporting neurology, physical medicine and rehabilitation and orthopedics.
Initiating a field clinical
education group to supplement the Physician s Office sales force and provide
direct clinical support to customers.
Redirecting Physician s
Office sales representatives to focus primarily on new account acquisition.
Merging the corporate
customer service and account management groups into a single customer support
Adding an employee on-site in
the United Kingdom to manage European sales, as well as extending customer
service hours to support European customers.
Developing several clinical
outcomes studies relating to use of pre-configured electrode arrays, which the
Company anticipates will be launched in 2010.
see an opportunity to reinvigorate and expand our installed base of customers,
said Shai N. Gozani, M.D., Ph.D., NeuroMetrix President & CEO.
Publication of the new Category I CPT code was a positive development that
should help our business in the long term.
Physician reimbursement under the CPT code is lower than under the prior
codes, which will necessitate some changes in our business model that will put
downward pressure on revenues and margins in the near term. However, we have taken steps that we believe
may lead to an increase in the number of physicians using our products and an
increase in electrode utilization within accounts. The range of issues our
customers face, which include changes in reimbursement, decreased patient
visits, and uncertainty arising from the national debate on health care reform,
make 2010 a difficult year to predict. We are working to position ourselves to
rebuild demand and, over time, return the Company to a growth track.
Company to Host Live Conference Call and Webcast
management will host a conference call today, February 10, 2010 at 8:00 a.m.,
Eastern time, to discuss the Company s financial results, business and
financial developments, as well as other forward-looking information about the
Company s business. To access the call, dial 800-659-1942 (domestic), or
617-614-2710 (international). The confirmation code is 65018804. The call will
also be webcast and will be accessible from the Company s website at http://www.neurometrix.com under the
Investor Relations tab. A replay of the conference call will be available for
three months starting two hours after the call by dialing 888-286-8010
(domestic) or 617-801-6888 (international), and the confirmation code is
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 pain control. 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 peripheral nerve and spinal cord
injuries. For more information, visit http://www.neurometrix.com.
Safe Harbor Statement
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