HOUSTON, Feb. 26, 2015 /PRNewswire/ -- Cyberonics, Inc.
(NASDAQ:CYBX) today announced results for the quarter ended
January 23, 2015.
Quarterly highlights1
Operating results for the third quarter of fiscal 2015 compared
to the third quarter of fiscal 2014 and other achievements
include:
- Worldwide net sales of $72.1
million, an increase of 9% on an adjusted basis;
- U.S. net sales reached $57.6
million, an increase of 9%, with units increasing by
6%;
- Adjusted for the single country order, international sales
increased by 18% on a constant currency basis, with units
increasing by 18%2;
- Income from operations of $23.7
million, an increase of 12%;
- Adjusted non-GAAP net income of $15.7
million, an increase of 13%;
- Adjusted non-GAAP income per diluted share of $0.59 compared with income per diluted share of
$0.51, an increase of 16%;
- Increased adoption of AspireSR® generator; and
- CE Mark approval of the VITARIA generator, which provides
Autonomic Regulation Therapy ("ART") for chronic heart
failure.
Results and objectives
"Our strong sales results for the third quarter of fiscal 2015
reflect improvement in our U.S. revenues and one of our best ever
international quarters," commented Dan
Moore, President and Chief Executive Officer. "We
achieved record sales for our fiscal third quarter in our U.S.
business.
"International sales again reflected excellent growth over the
adjusted sales in the prior year, with unit sales increasing by 18%
and net sales increasing to $14.5
million, 18% on a constant currency basis.
International growth was fueled by Europe, Latin
America, Japan, and
Asia Pacific regions.
Changes in currency reduced net sales by approximately $1 million when compared with the same quarter in
the prior year.
"Sales of the AspireSR generator accounted for more than 21% of
unit sales in Europe and EMMEA,
and penetration continued to increase. The AspireSR generator
is the first closed-loop VNS Therapy® system and is an important
addition to our product portfolio.
"We are pleased to announce that we have received CE Mark
approval to market VITARIA in Europe to treat patients suffering from
chronic heart failure. We are commencing a limited commercial
launch effort in this quarter. Our second study,
ANTHEM-HFpEF, focused on heart failure patients with preserved
ejection fraction, is progressing well," concluded Mr. Moore.
Stock Repurchase Update
Cyberonics purchased 277,000 shares on the open market in the
third quarter of fiscal 2015, and as of quarter end, at
January 23, 2015.
Fiscal 2015 guidance
Cyberonics is reaffirming the fiscal 2015 guidance provided in
our earnings release dated November 20,
2014, despite the significant currency headwinds affecting
international sales, except as noted below.
Operating income, net income and earnings per share in fiscal
2015 will be impacted by the transaction costs related to the
expected merger with Sorin S.p.A.
Please refer to the GAAP and non-GAAP reconciliation table on
the last page of this release.
Additional details will be provided during today's conference
call and in an investor presentation, which is available in the
investor relations section of Cyberonics' corporate website at
www.cyberonics.com.
1 The financial and operating results for the
thirteen and thirty-nine weeks ended January
23, 2015 and January 24, 2014
include and exclude certain items for the purposes of non-GAAP
comparisons. As discussed below under "Use of Non-GAAP Financial
Measures" in this release, the company refers to and makes
comparisons with certain non-GAAP financial measures. Investors
should consider non-GAAP measures in addition to, and not as a
substitute for or superior to, financial performance measures
prepared in accordance with GAAP. Please refer to the attached
non-GAAP reconciliation. Numbers may be affected by rounding.
2 The financial and operating results for the
thirteen and thirty-nine weeks ended January
24, 2014 exclude 100 units sold and $2.1 million net sales recognized on an
individual sale to a single country for the purposes of non-GAAP
comparisons. As discussed below under "Use of Non-GAAP Financial
Measures" in this release, the company refers to and makes
comparisons with certain non-GAAP financial measures. Investors
should consider non-GAAP measures in addition to, and not as a
substitute for or superior to, financial performance measures
prepared in accordance with GAAP. Please refer to the attached
non-GAAP reconciliation. Numbers may be affected by rounding.
Use of non-GAAP financial measures
In this press announcement, management has disclosed financial
measurements that present financial information not in accordance
with Generally Accepted Accounting Principles ("GAAP"). These
measurements are not a substitute for GAAP measurements, although
company management uses these measurements as aids in monitoring
the company's ongoing financial performance quarter to quarter and
year to year on a regular basis and for benchmarking against other
medical technology companies. Where used, adjusted non-GAAP
net sales, adjusted non-GAAP income from operations, adjusted
non-GAAP net income and adjusted non-GAAP diluted income per share
measure the net sales, income from operations, net income and
diluted income per share of the company including and excluding
items management considers unusual. Management uses and
presents these measures because management believes that they
facilitate an understanding of the financial impact of unusual
items on the company's short- and long-term financial trends.
Management also uses adjusted non-GAAP items to forecast and to
evaluate the operational performance of the company, as well as to
compare results of current periods to prior periods on a consistent
basis. Adjusted earnings before interest, tax, depreciation
and amortization (EBITDA) measures the adjusted non-GAAP income
from operations of the company and excludes the aforementioned
items, as well as non-cash equity compensation and other income
(expense) items.
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
as a substitute for, or superior to, financial performance measures
prepared in accordance with GAAP.
Please refer to the attached reconciliations between GAAP and
non-GAAP financial measures.
Third-Quarter Results Webcast and Conference Call
Instructions
Please note the change to the time of the call:
Earlier today, Cyberonics also announced a proposed transaction
with Sorin Group to create a premier global medical technology
company. Cyberonics and Sorin will host a conference call
today, February 26, 2015, beginning
at 7:00 a.m. Central Time
(8:00 a.m. Eastern Time), to discuss
the transaction, review Cyberonics' results of operations for the
fiscal year 2015 third quarter and answer questions from analysts
and investors. This call has been changed from its previously
scheduled time of 8:00 a.m. Central
Time (9:00 a.m. Eastern
Time).
The conference call will be available to interested parties
through a live audio webcast in the investor relations section of
Cyberonics' corporate website at www.cyberonics.com. To
listen to the conference call live by telephone, dial 877-638-4557
(if dialing from within the U.S.) or 914-495-8522 (if dialing from
outside the U.S.). The conference ID is 61678386.
Within 24 hours of the webcast, a replay will be available under
the "Events & Presentations" section of the Investor Relations
portion of the Cyberonics website, where it will be archived and
accessible for approximately 12 months.
About Cyberonics, Inc. and the VNS Therapy System
Cyberonics, Inc. is a medical device company with core expertise
in neuromodulation. The company developed and markets the VNS
Therapy System, which is FDA-approved for the treatment of
medically refractory epilepsy and treatment-resistant
depression. The VNS Therapy System uses an implanted medical
device that delivers pulsed electrical signals to the vagus
nerve. Cyberonics offers the VNS Therapy System in selected
markets worldwide. Cyberonics also has CE Mark for VITARIA which
provides autonomic regulation therapy for the treatment of chronic
heart failure.
Additional information on Cyberonics and the VNS Therapy System
is available at www.cyberonics.com.
Important Information for Investors and Shareholders
This press release is for informational purposes only and is not
intended to and does not constitute an offer to sell or the
solicitation of an offer to subscribe for or buy or an invitation
to purchase or subscribe for any securities or the solicitation of
any vote in any jurisdiction pursuant to the proposed transactions
or otherwise, nor shall there be any sale, issuance or transfer of
securities in any jurisdiction in contravention of applicable law.
No offer of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the Securities
Act of 1933, as amended, and applicable European regulations.
Subject to certain exceptions to be approved by the relevant
regulators or certain facts to be ascertained, the public offer
will not be made directly or indirectly, in or into any
jurisdiction where to do so would constitute a violation of the
laws of such jurisdiction, or by use of the mails or by any means
or instrumentality (including without limitation, facsimile
transmission, telephone and the internet) of interstate or foreign
commerce, or any facility of a national securities exchange, of any
such jurisdiction.
Sand Holdco Limited ("NewCo") will file with the Securities and
Exchange Commission (the "SEC") a registration statement on Form
S-4, which will include a proxy statement of Cyberonics, Inc.
("Cyberonics") that also constitutes a prospectus of NewCo (the
"proxy statement/prospectus"). INVESTORS AND SHAREHOLDERS ARE URGED
TO READ THE PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS
FILED OR TO BE FILED WITH THE SEC, CAREFULLY AND IN THEIR ENTIRETY,
WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION ABOUT SORIN S.P.A. ("Sorin Group"), CYBERONICS, NEWCO,
THE PROPOSED TRANSACTIONS AND RELATED MATTERS.
Investors and shareholders will be able to obtain free copies of
the proxy statement/prospectus and other documents filed with the
SEC by the parties through the website maintained by the SEC at
www.sec.gov. In addition, investors and shareholders will be able
to obtain free copies of the proxy statement/prospectus and other
documents filed with the SEC on Cyberonics's website at
www.cyberonics.com or within the "Investor Relations" section
or by contacting Investor Relations (for documents filed with the
SEC by Cyberonics) or on Sorin Group's website at www.sorin.com
(for documents filed with the SEC by NewCo).
The release, publication or distribution of this press release
in certain jurisdictions may be restricted by law, and therefore
persons in such jurisdictions into which this press release is
released, published or distributed should inform themselves about
and observe such restrictions.
Participants in the Distribution
Sorin Group, Cyberonics and NewCo and their respective directors
and executive officers may be deemed to be participants in the
solicitation of proxies from the shareholders of Cyberonics with
respect to the proposed transactions contemplated by the proxy
statement/prospectus. Information regarding the persons who are,
under the rules of the SEC, participants in the solicitation of
proxies from the shareholders of Cyberonics in connection with the
proposed transactions, including a description of their direct or
indirect interests, on account of security holdings or otherwise,
will be set forth in the proxy statement/prospectus when it is
filed with the SEC. Information regarding Cyberonics's directors
and executive officers is contained in Cyberonics's Annual Report
on Form 10-K for the year ended on April 25,
2014 and its Proxy Statement on Schedule 14A,
dated July 30, 2014, which are filed with the SEC and can be
obtained free of charge from the sources indicated above.
Safe harbor statement
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934, as
amended. These statements can be identified by the use of
forward-looking terminology, including "may," "believe," "will,"
"expect," "anticipate," "estimate," "plan," "intend," "forecast,"
or other similar words. Statements contained in this press
release are based on information presently available to us and
assumptions that we believe to be reasonable. We are not
assuming any duty to update this information if those facts change
or if we no longer believe the assumptions to be reasonable.
Investors are cautioned that all such statements involve risks and
uncertainties, including without limitation, statements concerning
increasing our epilepsy market penetration and sales growth,
commencing a limited commercial launch of our VITARIA system for
ART, completing our proposed transactions with Sorin Group and
achieving our financial guidance for fiscal 2015. Our actual
results may differ materially. Important factors that may
cause actual results to differ include, but are not limited to:
continued market acceptance of the VNS Therapy System and
sales of our products; the development and satisfactory completion
of clinical studies; the achievement of regulatory approval for new
products, including use of the VNS Therapy System for the treatment
of other indications; satisfactory completion of the post-market
registry required by the U.S. Food and Drug Administration as a
condition of approval for the treatment-resistant depression
indication; adverse changes in coverage or reimbursement amounts by
the Centers for Medicare & Medicaid Services, state Medicaid
agencies and private insurers; the presence or absence of
intellectual property protection and potential patent infringement
claims; maintaining compliance with government regulations; product
liability claims and potential litigation; reliance on single
suppliers and manufacturers for certain components; the accuracy of
management's estimates of future expenses and sales; the potential
identification of material weaknesses in our internal controls over
financial reporting; and other risks detailed from time to time in
our filings with the Securities and Exchange Commission (SEC); and
factors relating to our proposed transactions with Sorin Group,
including: the failure to obtain applicable regulatory or
shareholder approvals in a timely manner or otherwise, or the
requirement to accept conditions that could reduce the anticipated
benefits of the proposed transactions as a condition to obtaining
regulatory approvals; the failure to satisfy other closing
conditions to the proposed transactions; the length of time
necessary to consummate the proposed transactions, which may be
longer than anticipated for various reasons; risks that the new
businesses will not be integrated successfully or that the combined
companies will not realize estimated cost savings, value of certain
tax assets, synergies and growth, or that such benefits may take
longer to realize than expected; the inability of Cyberonics and
Sorin Group to meet expectations regarding the timing, completion
and accounting and tax treatments with respect to the proposed
transactions; risks relating to unanticipated costs of integration,
including operating costs, customer loss or business disruption
being greater than expected; reductions in customer spending, a
slowdown in customer payments and changes in customer demand for
products and services; unanticipated changes relating to
competitive factors in the industries in which the companies
operate; the ability to hire and retain key personnel; the
potential impact of announcement or consummation of the proposed
transactions on relationships with third parties, including
customers, employees and competitors; the ability to attract new
customers and retain existing customers in the manner anticipated;
reliance on and integration of information technology systems;
changes in legislation or governmental regulations affecting the
companies; international, national or local economic, social or
political conditions that could adversely affect the companies or
their customers; conditions in the credit markets; risks to the
industries in which Cyberonics and Sorin Group operate that are
described in the "Risk Factors" section of the Annual Reports on
Form 10-K, Quarterly Reports on Form 10-Q and other documents filed
from time to time with the SEC by Cyberonics and NewCo and the
analogous section from Sorin Group's annual reports and other
documents filed from time to time with the Italian financial market
regulator (CONSOB); risks associated with assumptions the parties
make in connection with the parties' critical accounting estimates
and legal proceedings; the parties' international operations, which
are subject to the risks of currency fluctuations and foreign
exchange controls; and the potential of international unrest,
economic downturn or effects of currencies, tax assessments, tax
adjustments, anticipated tax rates, raw material costs or
availability, benefit or retirement plan costs, or other regulatory
compliance costs. The foregoing list of factors is not
exhaustive. For a detailed discussion of these and other
cautionary statements, please refer to our most recent filings with
the SEC, including our Annual Report on Form 10-K for the fiscal
year ended April 25, 2014, and our
Quarterly Reports on Form 10-Q for the fiscal quarters ended
July 25, 2014 and October 24, 2014.
Contact information
Greg Browne, CFO
Cyberonics, Inc.
100 Cyberonics Blvd.
Houston, TX 77058
Main: (281) 228-7262
Fax: (281) 218-9332
ir@cyberonics.com
|
|
CYBERONICS, INC.
AND SUBSIDIARY
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(Unaudited)
|
|
|
For the Thirteen
Weeks Ended
|
|
For the
Thirty-Nine Weeks Ended
|
|
January 23,
2015
|
|
January 24,
2014
|
|
January 23,
2015
|
|
January 24,
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
72,065,231
|
|
$
|
68,191,414
|
|
$
|
217,486,391
|
|
$
|
207,164,890
|
Cost of
sales
|
|
6,539,867
|
|
|
6,460,148
|
|
|
19,716,131
|
|
|
19,930,287
|
Gross
profit
|
|
65,525,364
|
|
|
61,731,266
|
|
|
197,770,260
|
|
|
187,234,603
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
31,328,593
|
|
|
29,427,340
|
|
|
93,928,953
|
|
|
88,367,536
|
Research and
development
|
|
10,530,327
|
|
|
11,201,876
|
|
|
31,909,949
|
|
|
34,830,490
|
Litigation
settlement
|
|
-
|
|
|
-
|
|
|
-
|
|
|
7,442,847
|
Total operating
expenses
|
|
41,858,920
|
|
|
40,629,216
|
|
|
125,838,902
|
|
|
130,640,873
|
Income from
operations
|
|
23,666,444
|
|
|
21,102,050
|
|
|
71,931,358
|
|
|
56,593,730
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense), net
|
|
253,905
|
|
|
4,164
|
|
|
499,059
|
|
|
(78,386)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
23,920,349
|
|
|
21,106,214
|
|
|
72,430,417
|
|
|
56,515,344
|
Income tax
expense
|
|
7,378,889
|
|
|
7,206,351
|
|
|
25,096,945
|
|
|
20,053,093
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
16,541,460
|
|
$
|
13,899,863
|
|
$
|
47,333,472
|
|
$
|
36,462,251
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per
share
|
$
|
0.63
|
|
$
|
0.52
|
|
$
|
1.79
|
|
$
|
1.34
|
Diluted income per
share
|
$
|
0.62
|
|
$
|
0.51
|
|
$
|
1.77
|
|
$
|
1.32
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic income per share
|
|
26,267,203
|
|
|
26,964,861
|
|
|
26,513,226
|
|
|
27,250,740
|
Shares used in
computing diluted income per share
|
|
26,479,163
|
|
|
27,279,153
|
|
|
26,736,391
|
|
|
27,569,276
|
|
|
CYBERONICS, INC.
AND SUBSIDIARY
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited except
where indicated)
|
|
|
January 23,
2015
|
|
April 25,
2014
|
|
|
|
(Audited)
|
ASSETS
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
116,214,079
|
|
$
|
103,299,116
|
Short-term
investments
|
|
27,006,162
|
|
|
25,028,957
|
Accounts receivable,
net
|
|
47,259,762
|
|
|
50,674,041
|
Inventories
|
|
21,177,588
|
|
|
17,630,111
|
Deferred tax
assets
|
|
6,697,025
|
|
|
17,208,365
|
Other current
assets
|
|
6,665,599
|
|
|
6,590,612
|
Total Current
Assets
|
|
225,020,215
|
|
|
220,431,202
|
Property, plant and
equipment, net
|
|
40,860,214
|
|
|
39,534,873
|
Intangible assets,
net
|
|
10,853,503
|
|
|
11,654,690
|
Equity
investments
|
|
17,126,927
|
|
|
15,944,427
|
Deferred tax assets,
net
|
|
6,109,976
|
|
|
5,770,644
|
Other
assets
|
|
1,416,231
|
|
|
855,558
|
Total
Assets
|
$
|
301,387,066
|
|
$
|
294,191,394
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
Accounts payables and
accrued liabilities
|
$
|
26,285,395
|
|
$
|
29,897,697
|
Total Current
Liabilities
|
|
26,285,395
|
|
|
29,897,697
|
Long-term
Liabilities
|
|
3,985,326
|
|
|
5,193,853
|
Total
Liabilities
|
|
30,270,721
|
|
|
35,091,550
|
Total Stockholders'
Equity
|
|
271,116,345
|
|
|
259,099,844
|
Total Liabilities and Stockholders' Equity
|
$
|
301,387,066
|
|
$
|
294,191,394
|
|
|
CYBERONICS, INC.
AND SUBSIDIARY
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
For the
Thirty-Nine Weeks Ended
|
|
|
January 23,
2015
|
|
|
January 24,
2014
|
|
|
|
|
|
|
Cash Flow From
Operating Activities:
|
|
|
|
|
|
Net income
|
$
|
47,333,472
|
|
$
|
36,462,251
|
Non-cash items
included in net income:
|
|
|
|
|
|
Depreciation
|
|
3,671,834
|
|
|
3,180,707
|
Amortization of
intangible assets
|
|
801,187
|
|
|
969,047
|
Stock-based
compensation
|
|
9,446,537
|
|
|
8,392,443
|
Deferred income tax
expense
|
|
6,625,892
|
|
|
(1,053,779)
|
Deferred license
revenue amortization
|
|
-
|
|
|
(1,467,869)
|
Other
|
|
(200,008)
|
|
|
27,994
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts receivable,
net
|
|
1,099,489
|
|
|
(2,255,045)
|
Inventories
|
|
(4,020,544)
|
|
|
(197,717)
|
Other current and
non-current assets
|
|
(786,931)
|
|
|
(2,368,733)
|
Current and
non-current liabilities
|
|
(469,302)
|
|
|
(3,941,016)
|
Net cash provided by
operating activities
|
|
63,501,626
|
|
|
37,748,283
|
Cash Flow From
Investing Activities:
|
|
|
|
|
|
Purchase of short-term
investments
|
|
(31,984,889)
|
|
|
(39,984,639)
|
Maturities of
short-term investments
|
|
30,088,978
|
|
|
29,990,389
|
Equity
investments
|
|
(1,182,500)
|
|
|
(5,356,225)
|
Intangible asset
purchases
|
|
-
|
|
|
(3,789,000)
|
Purchases of property,
plant and equipment
|
|
(5,489,521)
|
|
|
(12,960,959)
|
Net cash used in
investing activities
|
|
(8,567,932)
|
|
|
(32,100,434)
|
Cash Flow From
Financing Activities:
|
|
|
|
|
|
Proceeds from exercise
of options for common stock
|
|
3,014,296
|
|
|
8,283,999
|
Cash settlement of
compensation-based stock units
|
|
(786,361)
|
|
|
(936,115)
|
Purchase of treasury
stock
|
|
(46,665,412)
|
|
|
(59,306,059)
|
Realized excess tax
benefit – stock-based compensation
|
|
3,134,190
|
|
|
17,157,916
|
Net cash used in
financing activities
|
|
(41,303,287)
|
|
|
(34,800,259)
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(715,444)
|
|
|
43,874
|
Net increase
(decrease) in cash and cash equivalents
|
|
12,914,963
|
|
|
(29,108,536)
|
Cash and cash
equivalents at beginning of period
|
|
103,299,116
|
|
|
120,708,572
|
Cash and cash
equivalents at end of period
|
$
|
116,214,079
|
|
$
|
91,600,036
|
|
|
RECONCILIATION
BETWEEN GAAP AND NON-GAAP FINANCIAL MEASURES
|
|
(Unaudited)
|
|
The following tables
set forth the reconciliation between U.S. GAAP and our non-GAAP
financial measures for net sales, income from operations, net
income and diluted income per share (unaudited):
|
|
|
|
|
|
For the Thirteen
Weeks Ended
|
|
For the
Thirty-Nine Weeks Ended
|
|
January 23,
2015
|
|
January 24,
2014
|
|
January 23,
2015
|
|
January 24,
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
72,065,231
|
|
$
|
68,191,414
|
|
$
|
217,486,391
|
|
$
|
207,164,890
|
Single
country order
|
|
-
|
|
|
(2,100,000)
|
|
|
-
|
|
|
(2,100,000)
|
Adjusted non-GAAP net
sales
|
$
|
72,065,231
|
|
$
|
66,091,414
|
|
$
|
217,486,391
|
|
$
|
205,064,890
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
$
|
23,666,444
|
|
$
|
21,102,050
|
|
$
|
71,931,358
|
|
$
|
56,593,730
|
Litigation
settlement
|
|
-
|
|
|
-
|
|
|
-
|
|
|
7,442,847
|
License fee
(1)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1,467,869)
|
Adjusted non-GAAP
income from operations
|
$
|
23,666,444
|
|
$
|
21,102,050
|
|
$
|
71,931,358
|
|
$
|
62,568,708
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
16,541,460
|
|
$
|
13,899,863
|
|
$
|
47,333,472
|
|
$
|
36,462,251
|
Change in reserve for
prior year R&D tax credits
|
|
-
|
|
|
-
|
|
|
(1,300,617)
|
|
|
-
|
2014 R&D tax
credit adjustments
|
|
(777,473)
|
|
|
-
|
|
|
(337,381)
|
|
|
-
|
Tax expense
associated with change of international structure
|
|
(34,719)
|
|
|
-
|
|
|
552,951
|
|
|
-
|
Reserve for prior
year international tax liabilities
|
|
-
|
|
|
-
|
|
|
743,501
|
|
|
-
|
Litigation settlement
– net of tax
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4,776,075
|
License fee income –
net of tax (1)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(920,869)
|
Adjusted non-GAAP net
income
|
$
|
15,729,268
|
|
$
|
13,899,863
|
|
$
|
46,991,926
|
|
$
|
40,317,457
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per
share
|
$
|
0.62
|
|
$
|
0.51
|
|
$
|
1.77
|
|
$
|
1.32
|
Change in reserve for
prior year R&D tax credits
|
|
-
|
|
|
-
|
|
|
(0.05)
|
|
|
-
|
2014 R&D tax
credit adjustments
|
|
(0.03)
|
|
|
-
|
|
|
(0.01)
|
|
|
-
|
Tax expense
associated with change of international structure
|
|
(0.00)
|
|
|
-
|
|
|
0.02
|
|
|
-
|
Reserve for prior
year international tax liabilities
|
|
-
|
|
|
-
|
|
|
0.03
|
|
|
-
|
Litigation settlement
– net of tax
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.17
|
License fee income –
net of tax (1)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(0.03)
|
Adjusted non-GAAP
diluted income per share (2)
|
$
|
0.59
|
|
$
|
0.51
|
|
$
|
1.76
|
|
$
|
1.46
|
|
|
(1)
|
Completion of license
fee recognition.
|
(2)
|
Numbers may be
affected by rounding.
|
|
|
|
|
|
|
The following table
sets forth the reconciliation between adjusted non-GAAP net income
and our non-GAAP financial measure for adjusted EBITDA
(unaudited):
|
|
|
|
For the Thirteen
Weeks Ended
|
|
For the
Thirty-Nine Weeks Ended
|
|
|
January 23,
2015
|
|
January 24,
2014
|
|
January 23,
2015
|
|
January 24,
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income
|
$
|
15,729,268
|
|
$
|
13,899,863
|
|
$
|
46,991,926
|
|
$
|
40,317,457
|
|
Interest (income),
net
|
|
(50,981)
|
|
|
(39,096)
|
|
|
(131,804)
|
|
|
(128,019)
|
|
Other (income)
expense, net
|
|
(202,924)
|
|
|
34,932
|
|
|
(367,255)
|
|
|
206,405
|
|
Depreciation and
amortization
|
|
1,462,691
|
|
|
1,443,125
|
|
|
4,473,021
|
|
|
4,149,754
|
|
Stock-based
compensation
|
|
3,251,645
|
|
|
2,643,075
|
|
|
9,446,537
|
|
|
8,392,443
|
|
Income tax expense –
with impact of non-GAAP items
|
|
8,191,081
|
|
|
7,206,351
|
|
|
25,438,491
|
|
|
22,172,865
|
|
Adjusted
EBITDA
|
$
|
28,380,780
|
|
$
|
25,188,250
|
|
$
|
85,850,916
|
|
$
|
75,110,905
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cyberonics-reports-fiscal-2015-third-quarter-results-300041936.html
SOURCE Cyberonics, Inc.