Cyberonics 1Q profit rises as device sales improve
HOUSTON (AP) — Neurological device maker Cyberonics Inc. said Tuesday that its net income rose 17 percent in its fiscal first quarter, on rising sales of its epilepsy and depression treatment implants.
Cyberonics reported greater revenue from new products and replacements, and it said sales of its new AspireHC epilepsy device improved. The company said unit sales rose 9 percent, and sales of epilepsy products in the U.S. rose 13 percent. Cyberonics' implants treat epilepsy and depression by delivering electrical stimulation to the vagus nerve.
Cyberonics said its net income for the three months ended July 27 rose to $8.1 million, or 29 cents per share, from $6.9 million, or 24 cents per share in the year-ago first quarter.
That growth was held back by a $2.5 million charge to reflect a decrease in the value of its investment in Neurovista Corp.
Revenue jumped 15 percent, to $60.3 million from $52.7 million.
Analysts, on average, expected Cyberonics to report net income of 36 cents per share and $58.5 million in revenue.
Cyberonics said it still expects to earn between $1.49 to $1.59 per share for the full fiscal year. The company is projecting revenue of $241 million to $244 million.
Wall Street was forecasting net income of $1.55 per share, on average, with estimates ranging from $1.52 to $1.57.
Analysts expect full-year revenueof $243.4 million, on average, with estimates ranging from $240.8 million to $245.5 million.
Shares of Cyberonics rose $1.03, or 2.3 percent, to end at $46.36 on Tuesday.