Full Press Release Details
Reports Q1 2010 Financial Results
Mass. (BUSINESS WIRE) May 11, 2010 NeuroMetrix, Inc. (Nasdaq: NURO),
a health care company transforming patient care through neurotechnology, today
announced its financial results for the three months ended March 31,
revenues for the first quarter of 2010 were $3.7 million, compared with $6.8
million for the first quarter of 2009. Revenues in the quarter were comprised
of 16% medical equipment sales and 84% consumables sales in comparison with 10%
and 90%, respectively, for the first quarter of 2009. Medical equipment sales
consist of nerve conduction testing devices (NC-stat and ADVANCE ) and related
modules, and service agreement revenues. Consumables sales include single use
nerve-specific electrodes, EMG needles, and other accessories. Gross margin in
the first quarter of 2010 was 64.1% of total revenues compared with 71.6% for
the first quarter of 2009. Net loss for the first quarter of
2010 was $4.7 million, or $(0.20) per share. In comparison, net loss for the
first quarter of 2009 was $1.2 million, or $(0.09) per share.
previously discussed by the Company, recent changes in Medicare reimbursement
coding for nerve conduction studies performed with pre-configured electrode
arrays (CPT 95905) created downward pressure on revenues in the first quarter
of 2010. First quarter highlights included:
published in the 2010 Medicare physician s fee schedule. This reimbursement code provides clarity but
generally results in lower reimbursement. The Company believes that the
majority of Medicare fiscal intermediaries now cover medically appropriate
nerve conduction studies billed using this CPT code.
electrode price, consisting of increases in some electrodes and decreases in
others, was implemented by the Company.
This resulted in an overall 12% reduction in electrode average selling
price from the fourth quarter of 2009. Per-study electrode usage declined by 5.5%
from the fourth quarter of 2009.
in the fourth quarter of 2009 were 29% higher than customer electrode usage.
Further, in the first quarter of 2010, the Company did not offer discounts on
volume purchases of electrodes as it had done in the fourth quarter of 2009 and
previously. The Company believes these two factors contributed to reduced
electrode orders from its installed base of customers during the first quarter
base of active accounts was 4,309 at the end of the quarter. This was a
contraction of 4.1% from 4,493 accounts at the beginning of the quarter. The
Company placed 86 new systems in the quarter, a 15% increase from the fourth
performed using NC-stat and ADVANCE devices were 36,529 in the first quarter.
This was an increase of 2.5% from 35,649 studies in the preceding quarter.
continued implementation of its field clinical team which is focused on
providing customers with on-site clinical support and education.
N. Gozani, M.D., Ph.D., NeuroMetrix President & CEO commented: We are
now in the process of building our NC-stat business around the new
reimbursement dynamics created by CPT 95905. Our focus continues to be on
selling NC-stat into primary care and ADVANCE into specialist markets including
orthopedics, neurology, and physical medicine and rehabilitation. The first
quarter saw a step decrease in revenue related to anticipated and necessary
changes in the business. However, we are encouraged that despite these
substantial changes, our core operating metrics of patient studies and customer
accounts were largely preserved. We believe we have an effective strategy in
place but it may take several quarters to see meaningful trends emerge.
Company to Host Live Conference Call and Webcast
management will host a conference call today, May 11, 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 866-783-2144 (domestic), or
857-350-1603 (international). The confirmation code is 76170602. 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. To date, our focus has been primarily on the assessment of
neuropathies. We are also developing devices and pharmaceutical agents to treat
peripheral nerve and spinal cord injuries.
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. 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
NeuroMetrix s current expectations and beliefs concerning future developments
and their potential effects on the Company. There can be no assurance that
future developments affecting NeuroMetrix will be those that NeuroMetrix has
anticipated. These forward-looking statements involve a number of risks,
uncertainties (some of which are beyond NeuroMetrix s control) or other
assumptions that may cause actual results or performance to be materially
different from those expressed or implied by these forward-looking statements.
These risks and uncertainties include the factors described under the heading
Item 1A. Risk Factors in the Company s Annual Report on Form 10-K for
the fiscal year ended December 31, 2009 and any updates contained in subsequent
Quarterly Reports on Form 10-Q, as well as other documents that may
be filed by NeuroMetrix from time to time with the Securities and Exchange
Commission. NeuroMetrix is providing the information in this press release only
as of the date hereof, and expressly disclaims any intent or obligation to
update the information included in this press release or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.