Cyberonics reports record worldwide net sales of $81.0 million for first fiscal quarter 2016

Cyberonics, Inc. (NASDAQ: CYBX) today announced results for the quarter ended July 24, 2015.

Quarterly highlights

Operating results for the first quarter of fiscal 2016 compared to the first quarter of fiscal 2015, and other achievements, include:

• Record worldwide net sales of $81.0 million, an increase of 12.5%, and 14.4% on a constant currency basis;
• Record U.S. net product sales of $67.7 million, an increase of 15.1%;
• International net sales of $13.3 million, an increase of 0.9%, and 11.4% on a constant currency basis;
• Worldwide unit growth of 8.9%, with U.S. unit growth of 6.6%, and international unit growth of 14.6%;
• Adjusted non-GAAP income from operations increased by 26.4% to a $27.8 million;
• Adjusted non-GAAP income per diluted share of $0.72 compared with adjusted non-GAAP income per diluted share of $0.53, an increase of 35.8%; and
• Substantial merger-related progress.

Results and objectives

"The Cyberonics team delivered record net sales of $81 million in the last quarter," commented Dan Moore, Cyberonics' President and Chief Executive Officer. "U.S. sales reached a new record of $68 million, an increase of 15%. This increase was driven by very strong demand for the AspireSR^® generator following approval in June, a month into the quarter. The AspireSR^® generator accounted for 38% of all units sold in the U.S. in the quarter and approximately 50% of the units sold since launch. Initial sales of the AspireSR^® generator suggest that the rate of adoption exceeds those of the AspireHC^® and Demipulse^® generators. Our entire company worked diligently to make this product available to patients as quickly as possible and in the quantities demanded by our customers.

"International growth continued, with units increasing by 15% and revenue growth by 11% on a constant currency basis. The AspireSR^® generator penetration again increased over the previous quarter, accounting for 27% of all international unit sales in the first quarter.

"As previously announced, we initiated a limited commercial launch of the VITARIA™ System in Europe to treat patients suffering from chronic heart failure. Our initial effort has focused on identifying and educating customers, setting up a registry and establishing reimbursement. We are pleased with our progress.

"Reported numbers for net income include the partial impairment of our investment in cerboMed, although this impairment has been excluded for non-GAAP comparisons.

"Activities surrounding the pending merger with Sorin have continued to progress, particularly with respect to regulatory filings, organization and integration. We continue to be excited by the opportunities that lie ahead for LivaNova," concluded Mr. Moore.