Full Press Release Details
NeuroMetrix Reports Q4 2012 Results
WALTHAM, Mass., February 19, 2013 (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 twelve months ended December 31, 2012.
The Company is working to develop a high
growth, profitable diabetes franchise focused on diabetic peripheral neuropathy, or DPN. It is the most common complication
of diabetes, affecting over half of people with diabetes. DPN 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 has two diabetes products: a diagnostic test, NC-stat DPNCheck , which was
launched in the fourth quarter of 2011, and the SENSUS Pain Management System, which was launched in January 2013. The
Company also sells the ADVANCE general purpose nerve testing system.
Recent highlights include:
"We enter 2013 with two novel and proprietary diabetes
products, a focused commercial plan, and a lower cost operating structure that we can leverage with growth," said Shai N.
Gozani, M.D., Ph.D., President and Chief Executive Officer of NeuroMetrix. "We met our financial, product development and
commercial goals during 2012. Fiscal 2013 is an important year for the Company. We are optimistic about the market potential for
our products and the diabetic neuropathy space in general."
The Company reported its financial results for the fourth quarter
of 2012. Total revenues were $1.5 million compared with $2.4 million for the fourth quarter of 2011. Diabetes products contributed
revenue of $352,000 with the balance of $1,171,000 in revenue derived from the legacy ADVANCE business. Gross margin for the fourth
quarter of 2012 was 55.6 percent of total revenues compared to 49.1 percent gross margin reported in the fourth quarter of 2011.
Operating expenses for the fourth quarter of 2012 were $2.7 million compared to $3.6 million in the fourth quarter of 2011. Net
loss for the fourth quarter of 2012 was $1.9 million or $0.89 per share. The Company reported a net loss of $2.4 million for the
fourth quarter of 2011 or $3.76 per share. NeuroMetrix reported net cash usage of $2.2 million in the fourth quarter of 2012 and
ended the period with cash resources of $8.7 million. Per share amounts have been adjusted for the effects of the reverse split.
For the year ended December 31, 2012, the Company reported revenues
of $7.6 million and a net loss of $10.0 million or $5.22 per share. In the year ended December 31, 2011, the Company recorded revenues
of $10.4 million and a net loss of $10.0 million or $15.53 per share.
Company to Host Live Conference Call and Webcast
NeuroMetrix management will host a conference call today, February
19, 2013 at 8:00 a.m., Eastern time. To access the call, dial 866-825-3308 (domestic), or 617-213-8062
(international). The confirmation code is 23668017. 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 85981713.
NeuroMetrix is an innovative medical device company that
develops and markets home use and point-of-care devices for the treatment and management of 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 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 also markets the SENSUS Pain Management System for treating chronic
pain, focusing on physicians managing patients with painful diabetic neuropathy. 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 and SENSUS, 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, 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.
SVP and Chief Financial Officer
Condensed Statements of Operations
| Quarter Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Revenues | $ | 1,523,152 | $ | 2,359,863 | $ | 7,575,289 | $ | 10,396,775 | ||||||||
| Cost of revenues | 676,522 | 1,200,302 | 3,588,806 | 4,722,069 | ||||||||||||
| Gross profit | 846,630 | 1,159,561 | 3,986,483 | 5,674,706 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 566,637 | 827,639 | 3,545,790 | 3,877,526 | ||||||||||||
| Sales and marketing | 1,140,660 | 1,523,809 | 5,727,482 | 6,688,591 | ||||||||||||
| General and administrative | 1,014,831 | 1,228,369 | 4,735,238 | 5,111,616 | ||||||||||||
| Total operating expenses | 2,722,128 | 3,579,817 | 14,008,510 | 15,677,733 | ||||||||||||
| Loss from operations | (1,875,498 | ) | (2,420,256 | ) | (10,022,027 | ) | (10,003,027 | ) | ||||||||
| Interest income | 2,662 | 3,968 | 14,474 | 21,922 | ||||||||||||
| Net loss | $ | (1,872,836 | ) | $ | (2,416,288 | ) | $ | (10,007,553 | ) | $ | (9,981,105 | ) | ||||
| Net loss per common share data, basic and diluted | $ | (0.89 | ) | $ | (3.76 | ) | $ | (5.22 | ) | $ | (15.53 | ) |
Note: per share amounts have been
adjusted to reflect the Company's
1:6 reverse stock-split which
occurred on February 15, 2013.
Condensed Balance Sheets
| December 31, 2012 | December 31, 2011 | |||||||
| Cash and cash equivalents | $ | 8,699,478 | $ | 10,290,446 | ||||
| Other current assets | 1,873,588 | 3,204,860 | ||||||
| Noncurrent assets | 304,381 | 725,477 | ||||||
| Total assets | $ | 10,877,447 | $ | 14,220,783 | ||||
| Current liabilities | $ | 2,005,606 | $ | 3,012,916 | ||||
| Noncurrent liabilities | 71,419 | 119,346 | ||||||
| Stockholders' equity | 8,800,422 | 11,088,521 | ||||||
| Total liabilities and stockholders' equity | $ | 10,877,447 | $ | 14,220,783 |