Debt repurchase / other income
During the recently completed quarter, the company repurchased $40.4 million of its outstanding convertible debt for a total consideration of $34.9 million, and recorded a net gain of $4.6 million, including the impact of the accelerated amortization of deferred issuance costs.
The company reported net income of $8.3 million, or $0.14 per diluted share, for the second quarter, compared with a net loss of $4.1 million, or $0.15 per share, in the second quarter of fiscal 2008. Although the gain on early extinguishment of the convertible debt is included in the calculation of net income, as per the applicable accounting rules it is excluded from the calculation of net income per diluted share.
Balance sheet and cash flow
The company generated positive operating cash flow of $4.0 million during the quarter. The overall decrease of $31.8 million in cash to $69.3 million in the recently completed quarter resulted primarily from the repurchase of convertible debt referenced above.
Results and objectives
"Fiscal 2009 performance continues to be strong," commented Dan Moore, Cyberonics' President and Chief Executive Officer. "Our financial results have improved in each of the last six quarters. The company again recorded operating income, positive cash flow from operations and net income. Our core U.S. epilepsy business showed excellent growth, with revenues increasing by an estimated 32% over the prior year.
"Over the last 12 months, we estimate that approximately 3,600 new
patients have chosen VNS Therapy(TM) in the U.S. market, and approximately
5,700 worldwide. In addition, over 2,600 patients worldwide have replaced
their VNS generator up
|SOURCE Cyberonics, Inc.|
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