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Cyberonics Reports Record Sales and Operating Profit in Fiscal 2010 Second Quarter
Date:11/18/2009

ed stimulation parameters. Again, these efforts will be discussed in greater detail at the investor day presentation.

"With respect to international markets, the Japanese authorities completed a quality audit at our Houston office in the first week of September and a clinical audit in Japan in November."

Mr. Moore concluded, "We are maintaining our longer term goals for our epilepsy business, which include consistent annual unit growth in the range of 10% to 20% and the achievement of an operating margin of 25% by fiscal 2011."

Fiscal 2010 guidance

Based on our first half performance, Cyberonics is increasing its previously provided guidance range for income from operations from $24 million to $27 million to $28 million to $30 million, and increasing its guidance range for net sales from $157 million to $161 million to $159 million to $162 million.

Additional details will be provided during the upcoming conference call and in the accompanying presentation slides, as described below.

Use of Non-GAAP Financial Measures

Management has disclosed financial measurements in this press announcement that present financial information that is not in accordance with Generally Accepted Accounting Principles (GAAP). These measurements are not substitutes for GAAP measurements, although company management uses these measurements as an aid in monitoring the company's on-going financial performance from quarter-to-quarter and year-to-year on a regular basis and for benchmarking against other medical technology companies. Non-GAAP net income and non-GAAP diluted earnings per share measure the income of the company excluding the gain on early extinguishment of the company's convertible debt, which is considered by management to be outside of the normal on-going operations of the company. Non-GAAP net income also measures the income of the company excluding the income tax benefit resulting
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SOURCE Cyberonics, Inc.
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