DOW JONES NEWSWIRES
Cyberonics Inc.'s (CYBX) fiscal fourth-quarter profit jumped 78%
on reboundng sales and higher margins as the medical-device
company's results topped Wall Street's expectations.
Shares increased 6.6% to $20 in after-hours trading. The stock
is down 8% this year.
The company has been trying to expand to treat depression and
also is exploring ways for its implantable pacemaker-like devices
to detect and potentially respond better to seizures, but faces
possible competition from the larger Medtronic Inc. (MDT) and
privately held NeuroPace.
For the quarter ended April 30, Cyberonics reported a profit of
$11.6 million, or 41 cents a share, up from $6.5 million, or 22
cents a share, a year earlier. Revenue climbed 24% to $47.7
million.
Analysts estimated earnings of 33 cents on revenue of $44.6
million, according to a poll by Thomson Reuters.
Gross margin rose to 88.5% from 86.7% on higher production
volumes, improved manufacturing efficiencies and a higher average
selling price because of more sales of higher-margin items.
U.S. sales, the vast majority of Cyberonics' business, climbed
25%. International sales grew 20%, or 10% excluding changes in
currency values.
The U.S. epilepsy business saw 14% unit growth, and overall
sales in the epilepsy business grew more than 15% for the 10th
quarter in a row.
Looking ahead, Cyberonics expects fiscal-year revenue of $182
million to $187 million, which encompasses analysts' average
estimate of $184.9 million.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com