Full Press Release Details
NeuroMetrix Reports Q3 2010 Financial Results
Progress in New Sales Channel; Reduced Cash
Mass. (BUSINESS WIRE) November 9, 2010 NeuroMetrix, Inc. (Nasdaq:
NURO), a health care company transforming patient care through neurotechnology,
today announced its financial results for the quarter ended September 30,
revenues for the third quarter of 2010 were $3.4 million, compared with $6.3
million for the third quarter of 2009. Revenues in the quarter were comprised
of 15% medical equipment sales and 85% consumables sales in comparison with 11%
and 89%, respectively, for the third quarter of 2009. Medical equipment sales
consist of nerve 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. The January 1,
2010 change in Medicare reimbursement for nerve conduction studies using
pre-configured electrodes such as those used with NC-stat contributed to the
decline in revenue between the two quarterly periods. Following the Medicare
change, electrode pricing as well as the number of electrodes used per patient
study were reduced. Electrode average selling prices were 23% lower and
electrodes sold decreased 35% in the third quarter of 2010 in comparison with
the third quarter of 2009. Gross margin in the third quarter of 2010 was 60.5%
of total revenues compared to 71.1% for the third quarter of 2009. Net loss for
the third quarter of 2010 was $3.4 million, or $(0.15) per share. In
comparison, net loss for the third quarter of 2009 was $9.3 million, or $(0.57)
the nine months ended September 30, 2010 total revenues were $10.8 million
compared with $19.9 million for the comparable period in 2009. Gross margin for
the nine months was 62.6% of total revenues compared with 71.4% for the nine
month period in 2009. Net loss for the nine month period ended September 30,
2010 was $12.7 million or ($0.55) per share. In comparison, net loss for the
comparable period in 2009 was $12.3 million or ($0.84) per share.
Company believes that physicians are generally receiving reimbursement under
the new Category 1 CPT code ( CPT 95905 ) from Medicare for medically necessary
nerve conduction studies performed using pre-configured electrode arrays. The Company also believes that physicians
are receiving reimbursement for CPT 95905 from a small number of commercial
insurers. NeuroMetrix continues to work with reimbursement experts to expand
coverage for CPT 95905 and with physicians for their adoption of patient
advance beneficiary notices where they believe that nerve conduction testing
may not be covered by commercial insurers.
third quarter included:
operations in the third quarter was reduced to $2.7 million, an improvement of
$1.6 million or 37% from the second quarter of 2010. A previously reported
reduction in force plus working capital management contributed to the
third quarter declined 11% on a sequential quarter basis. Electrode selling
base of active accounts was 4,044, down 3.0% from 4,167 accounts in the second quarter.
This rate of account erosion compares favorably with 3.3% erosion in the
preceding quarter. The Company placed 85 new systems in the quarter, net of
returns, up 10% from 77, net of returns, in the second quarter of 2010.
performed using NC-stat NCS and ADVANCE NCS/EMG devices were 32,064 in the
third quarter, a decrease of 7.4% from 34,638 studies in the preceding quarter.
are implementing the strategy we described to you in August, stated Shai N.
Gozani, MD, PhD, President and Chief Executive Officer. Our product channel is shifting to a hybrid
direct/distribution sales model combining a core of direct plus independent
sales representatives focused exclusively on selling ADVANCE NCS/EMG devices.
In terms of the U.S. market, we now have coverage in 70% of physician office
and 50% of specialty territories. Our team of field-based clinical educators
providing after-sale support to our installed base is close to fully staffed.
R&D resources are focused on supporting the ADVANCE NCS/EMG platform and we
are converting the NC-stat device into a rapid, low cost, point-of-care test
for diabetic peripheral neuropathy (DPN). We will continue to evaluate and
evolve our business strategy with the goal of leveraging our revolutionary technology
in order to return NeuroMetrix to growth and profitability.
to Host Live Conference Call and Webcast
management will host a conference call today, November 9, 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 866-202-0886 (domestic), or
617-213-8841 (international). The confirmation code is 27560953. 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 71278977.
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 rapid, low cost, point-of-care test for
diabetic peripheral neuropathy, a nerve localization 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, and 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
future developments and their potential effects on the Company. 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. 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. There can be no assurance
that future developments affecting NeuroMetrix will be those that NeuroMetrix
has anticipated. The forward-looking statements contained in this press release
include, but are not limited to, those relating to the timing and the effect of