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Cyberonics Reports Strong Sales Growth and Profitability in Fiscal 2009 Second Quarter
Date:11/19/2008

HOUSTON, Nov. 19 /PRNewswire-FirstCall/ -- Cyberonics, Inc. (Nasdaq: CYBX) today announced results for the quarter ended October 24, 2008.

Quarterly highlights

Results for the second quarter of fiscal 2009 compared to the second quarter of fiscal 2008 include:

    -- Net sales of $36.0 million, a 24% increase from $28.9 million,
    -- Net U.S. product sales attributable to the epilepsy indication
       increased by an estimated 32% to $28.6 million, unit sales grew by 11%,
    -- Gross profit margin increased to 85.6% from 84.2%,
    -- Adjusted net income of $3.74 million (excluding a gain of $4.61 million
       on early extinguishment of debt), and net income of $8.35 million
       compared with a net loss of $4.08 million.

As discussed below under "Use of Non-GAAP Financial Measure," the company presents a non-GAAP financial measure, adjusted net income, in this release. Investors should consider non-GAAP measures in addition to, and not as a substitute for, or superior to, financial performance measures prepared in accordance with GAAP. Please refer to the attached reconciliation between GAAP and non-GAAP financial measures.

Sales

Worldwide sales for the second quarter of fiscal 2009 were $36.0 million compared to $28.9 million in the comparable period of fiscal 2008, representing an increase of 24%. Product sales in the quarter attributable to the epilepsy indication were an estimated $35.0 million, a 28% increase, or $7.6 million, over the second quarter of fiscal 2008. Product sales exclude income from licensing.

U.S. product sales attributable to the epilepsy indication increased to an estimated $28.6 million, compared with $21.7 million in the comparable period of fiscal 2008, an increase of $6.9 million, or 32%.

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SOURCE Cyberonics, Inc.
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