Full Press Release Details
Reports Third Quarter 2009 Financial Results
Mass. (BUSINESS WIRE) November 5, 2009 NeuroMetrix, Inc. (Nasdaq:
NURO), a health care company transforming patient care through neurotechnology,
today announced its third quarter financial results.
revenues for the quarter were $6.3 million, compared with $7.1 million for the third
quarter of 2008. Revenues in the quarter were comprised of 11% medical
equipment sales and 89% consumables sales in comparison with 6% and 94%,
respectively, for the third 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 quarter was 71.1% of total revenues compared with 70.6% for the third
quarter of 2008. Net loss for the quarter was $9.3 million ($0.57 per
share) and included a charge of $7.4 million for the revaluation of warrants
that were issued in the September financing to fair value as of September 30,
2009. In comparison, net loss for the third quarter of 2008 was $7.9 million
($0.57 per share) and included a $0.2 million investment impairment charge and
a $5.5 million loss from discontinued operations.
the nine months ended September 30, 2009 total revenues were $19.9 million
compared with $23.9 million for the comparable period in 2008. Revenues for the
nine months were comprised of 11% medical equipment sales and 89% consumables
sales in comparison with 7% and 93%, respectively, for the nine months ended September 30,
2008. Gross margin for the nine months was 71.4% of total revenues compared
with 72.0% for the nine month period in 2008. Net loss for the nine month
period ended September 30, 2009 was $12.3 million ($0.84 per share) and included
the charge of $7.4 million for the revaluation of warrants. In comparison,
net loss for the comparable period in 2008 was $23.6 million ($1.72 per share)
and included a $2.2 million investment impairment charge and a $7.0 million
loss from discontinued operations.
and investments totaled $32.0 million as of September 30, 2009.
which raised $17.3 million, net of expenses, through the sale of 8.8 million
common shares plus warrants to purchase common shares. A warrant liability of
$14.5 million was recorded at the financing date and revalued to $21.9 million
at September 30, 2009. Subsequently the warrants were modified and the
warrant liability was reclassified into stockholders equity.
expansion into the United Kingdom market with a $300,000 order of ADVANCE
Systems, including consumables, by the Company s orthopedic distributor.
consumables revenue to $5.6 million from $6.1 million in Q2 2009 reflecting
seasonality and a decline in customer inventory replenishment likely due to
overall economic conditions and health care uncertainty.
FDA 510(k) clearance
for the ASCEND Stimulator. Additional 510(k) submissions to expand
intended use in support of commercial launch are planned for 2010.
Officer added to management team.
the Physician Fee Schedule for 2010 was published by the Centers for Medicare
and Medicaid Services ( CMS ) and included a new category I CPT code for nerve
conduction studies performed with preconfigured electrode arrays such as are
utilized with the NC-stat device.
the third quarter we made important progress in strengthening our balance
sheet, improving management depth, expanding our international business, and
advancing ASCEND toward commercialization said Shai N. Gozani, M.D., Ph.D.,
NeuroMetrix President & CEO. Further, we were pleased that the
recently published Medicare Physician Fee Schedule for 2010 included a CPT code
for nerve conduction studies performed with the NC-stat device.
Company to Host Live Conference Call and Webcast
management will host a conference call at 8:00 a.m. Eastern time today to
discuss the Company s financial results, business and financial developments
and trends, and other matters affecting the Company. 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
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 it. 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, 2008 and any updates contained in its subsequently filed quarterly reports
on Form 10-Q and other SEC filings. These forward-looking statements speak
only as of the date hereof, and the Company expressly disclaims any intent or
obligation to update these forward-looking statements.