Cyberonics 3Q income rises, company boosts outlook
HOUSTON (AP) — Cyberonics Inc. said Friday that its net income climbed 39 percent in the fiscal third quarter as it sold more of its nerve stimulation devices, and it raised its outlook for the year.
Cyberonics makes implants that are designed to treat epilepsy and depression by delivering electrical stimulation to the vagus nerve.
Net income in the November-January quarter rose to $13.2 million, or 47 cents per share, from $9.5 million, or 34 cents per share. Revenue rose grew 15 percent, to $62.7 million from $54.5 million.
Analysts expected profit of 38 cents per share on $60.6 million in revenue, according to FactSet.
Revenue from the company's newest Aspire implant improved and accounted for 20 percent of its U.S. device sales in the third quarter.
Cyberonics took two Aspire generators off the market in 2011 because it discovered the devices weren't delivering as much electrical stimulation as they were supposed to. It received approval for a redesigned version of the product in January 2012.
Cyberonics now expects profit of $1.66 to $1.72 per share this fiscal year, which ends in April. It had previously predicted $1.56 to $1.62 per share, and analysts were expecting $1.61 per share.
It also raised its revenue guidance a range of $248 million to $250 million from $246 million to $249 million. Wall Street forecast $247.8 million.
In afternoon trading, shares of Cyberonics rose $1.66, or 3.7 percent, to $45.99.