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

on depletion of its battery during this time period. Our estimate is that over 70% of patients are replacing their generator, an extraordinary statement as to the benefits of VNS Therapy for people with epilepsy. Further, there are many patients electing to receive a third generator.

"We continue to believe that both the U.S. and international epilepsy markets represent significant opportunities for the company to realize consistent growth in both sales and earnings in the coming years," Mr. Moore continued. "Specifically, the Cyberonics team is dedicated to development efforts to improve the efficacy of VNS Therapy for epilepsy, with particular attention to research efforts around seizure detection and stimulation parameters.

"The company has recently appointed new general managers for Europe and Latin America. Regional management is now complete worldwide, and our international priority is now clearly focused on obtaining appropriate approvals in Japan."

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. Further, the ongoing improvement to our balance sheet provides us with the flexibility to achieve sustained increases in shareholder value. The management and staff of Cyberonics remain focused on executing our strategic plan around epilepsy. We are proud of the improvement in financial results accomplished by the entire Cyberonics team over the last six quarters."

Fiscal 2009 guidance

Based on our first half performance, Cyberonics is increasing its previously provided sales guidance to between $136 million and $140 million.

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

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SOURCE Cyberonics, Inc.
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