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

on-GAAP Financial Measure

Management has disclosed a financial measurement in this press announcement that present financial information that is not in accordance with Generally Accepted Accounting Principles (GAAP). This measurement is not a substitute for GAAP measurements, although company management uses this measurement 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 measures 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. Management uses and presents non-GAAP net income because management believes that in order to properly understand the company's short and long-term financial trends, the impact of this unusual item should be eliminated from on-going operating activities. Management also uses non-GAAP net income to forecast and evaluate the operational performance of the company as well as to compare results of current periods to prior periods on a consistent basis.

Non-GAAP financial measures used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. Investors should consider non-GAAP measures in addition to, and not 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.

Fiscal Year 2009 Second Quarter Results Conference Call Instructions

A conference call to discuss fiscal year 2009 second quarter results will be held at 9:00 AM EST on Thursday, November 20, 2008. To listen to the conference call live by telephone dial 877-313-803
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SOURCE Cyberonics, Inc.
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