Full Press Release Details
NeuroMetrix Reports Q2 2012 Results
Commercial Progress in Diabetes Market
WALTHAM, Mass., July 26, 2012 (BUSINESS WIRE) -- NeuroMetrix,
Inc. (Nasdaq: NURO), a medical device company focused on the diagnosis and treatment of the neurological complications of diabetes,
today reported business and financial highlights for the quarter and six months ended June 30, 2012.
There was encouraging progress in the diabetes business as the
Company accelerated sales of NC-stat DPNCheck , its diagnostic test for the evaluation of peripheral neuropathies
such as diabetic peripheral neuropathy (DPN). DPN affects over 50% of people with diabetes and causes significant morbidity including
pain, increased risk of falling in the elderly, and is the primary trigger for diabetic foot ulcers which may require lower extremity
amputations. The Company also reported progress in commercializing its R&D pipeline with the SENSUS pain management
device which is targeted for market launch in the fourth quarter of 2012.
Recent highlights include:
"Our recent successes in managed care and retail health
are encouraging," said Shai N. Gozani M.D., Ph.D., President and Chief Executive Officer of NeuroMetrix. "Our challenge
is to leverage growing product recognition into broader adoption, particularly in managed care, while remaining on track with the
SENSUS commercial launch. We continue to see an attractive diabetes franchise opportunity focused on DPN."
The Company reported its financial results for the second quarter
of 2012. Total revenues were $2.2 million compared with $2.6 million for the second quarter of 2011. Revenues increased sequentially
from $2.1 million in the first quarter of 2012. Diabetes products contributed revenue of $648,000 with the balance of $1.6 million
in revenue derived from the legacy neurodiagnostic business now managed to optimize cash flow. Gross margin in the second quarter
of 2012 was 55% of total revenues compared with 57% of total revenues for the second quarter of 2011. Operating expenses for the
second quarter of 2012 were $4.0 million compared to $3.9 million in the second quarter of 2011. Net loss for the second quarter
of 2012 was $2.8 million, or $0.22 per share. The Company reported a net loss of $2.4 million for the second quarter of 2011, or
$0.63 per share. NeuroMetrix reported net cash usage of $1.9 million in the second quarter of 2012 and ended the period with cash
resources of $13.3 million.
For the six month period ended June 30, 2012, the Company reported
revenues of $4.3 million and a net loss of $5.5 million, or $0.53 per share. In the comparable six month period ended June 30,
2011, the Company recorded revenues of $5.5 million and a net loss of $5.1 million, or $1.33 per share.
Company to Host Live Conference Call and Webcast
NeuroMetrix management will host a conference call today, July
26, 2012 at 8:00 a.m., Eastern time. To access the call, dial 866-813-5647 (domestic), or 847-619-6249 (international). The confirmation
code is 32913623. 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 888-843-7419 (domestic) or 630-652-3042 (international), and the confirmation code is 32913623.
NeuroMetrix is an innovative medical
device company that develops and markets home use and point-of-care devices, associated consumables, and support software for
the treatment and management of diabetes and its complications. The company is focused on nerve related complications of diabetes,
called diabetic neuropathies, which affect over 50% of people with diabetes. If left untreated, diabetic neuropathies trigger
foot ulcers that may require amputation, cause disabling chronic pain, and increase the risk of falling in the elderly. The annual
cost of diabetic neuropathies has been estimated at $14 billion in the United States. The company's products are used by
physicians and other clinicians in retail health settings such as pharmacies, and by managed care organizations to optimize patient
care and reduce healthcare costs. The company markets the NC-stat DPNCheck device, which is a rapid, accurate, and quantitative
point-of-care test for diabetic neuropathy. This product is used to detect diabetic neuropathy at an early stage and to guide
treatment. The company is in late stage development of SENSUS, a pain management device. The company has additional therapeutic
products in its pipeline. For more information, please visit http://www.neurometrix.com.
Safe Harbor Statement
The 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 the company's or management's expectations
relating to the adoption of NC-stat DPNCheck, our ability to build a successful business focused on diabetic peripheral neuropathy,
and our hope of expanding our commercial sales channel of our diabetic neuropathy products. While the company believes the forward-looking
statements contained in this press release are accurate, there are a number of factors that could cause actual events or results
to differ materially from those indicated by such forward-looking statements, including, without limitation, our estimates of future
performance, including the expected timing of the launch of our SENSUS product; the timing, costs and other limitations involved
in obtaining regulatory clearance or approval for our SENSUS product; and our ability to successfully develop, receive regulatory
clearance or approval, commercialize and achieve market acceptance for any of our products. There can be no assurance that future
developments will be those that the company has anticipated. Such forward-looking statements involve known and unknown risks, uncertainties
and other factors including those risks, uncertainties and factors referred to in the company's most recent Annual Report
on Form 10-K as well as other documents that may be filed from time to time with the Securities and Exchange Commission or otherwise
made public. The company 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.
Chief Financial Officer
Condensed Statements of Operations
| Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Revenues | $ | 2,205,831 | $ | 2,571,840 | $ | 4,287,373 | $ | 5,476,686 | ||||||||
| Cost of revenues | 983,350 | 1,110,073 | 2,118,294 | 2,365,648 | ||||||||||||
| Gross margin | 1,222,481 | 1,461,767 | 2,169,079 | 3,111,038 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 1,020,726 | 1,123,509 | 1,998,792 | 2,220,331 | ||||||||||||
| Sales and marketing | 1,595,642 | 1,479,519 | 3,129,743 | 3,354,129 | ||||||||||||
| General and administrative | 1,382,268 | 1,301,476 | 2,573,332 | 2,683,571 | ||||||||||||
| Total operating expenses | 3,998,636 | 3,904,504 | 7,701,867 | 8,258,031 | ||||||||||||
| Loss from operations | (2,776,155 | ) | (2,442,737 | ) | (5,532,788 | ) | (5,146,993 | ) | ||||||||
| Interest income | 4,027 | 6,019 | 8,325 | 13,018 | ||||||||||||
| Net loss | $ | (2,772,128 | ) | $ | (2,436,718 | ) | $ | (5,524,463 | ) | $ | (5,133,975 | ) | ||||
| Net loss per common share, basic and diluted | $ | (0.22 | ) | $ | (0.63 | ) | $ | (0.53 | ) | $ | (1.33 | ) |
Note: per share amounts have been
adjusted to reflect the Company's
1:6 reverse stock-split which
occurred on September 1, 2011.
Condensed Balance Sheets
| June 30, 2012 | December 31, 2011 | |||||||
| Cash and cash equivalents | $ | 13,324,824 | $ | 10,290,446 | ||||
| Other current assets | 1,972,847 | 3,204,860 | ||||||
| Noncurrent assets | 384,776 | 725,477 | ||||||
| Total assets | $ | 15,682,447 | $ | 14,220,783 | ||||
| Current liabilities | $ | 2,419,659 | $ | 3,012,916 | ||||
| Noncurrent liabilities | 152,573 | 119,346 | ||||||
| Stockholders' equity | 13,110,215 | 11,088,521 | ||||||
| Total liabilities and stockholders' equity | $ | 15,682,447 | $ | 14,220,783 |