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Cyberonics Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: November 19, 2012 02:07PM

Cyberonics Inc. (CYBX) filed Quarterly Report for the period ended 2012-10-26. Cyberonics, Inc. has a market cap of $1.45 billion; its shares were traded at around $52.23 with a P/E ratio of 32.4 and P/S ratio of 6.6.



Highlight of Business Operations:

U.S. net product sales for the thirteen weeks ended October 26, 2012 increased by $6.8 million, or 15.3%, as compared to the thirteen weeks ended October 28, 2011, due to a sales volume increase of 11.9% and increased average selling prices of 3.4%. The average selling price increased due to continued higher market penetration of our AspireHC generator and price increases in January 2012.

International net product sales for the thirteen weeks ended October 26, 2012 increased by $2.4 million, or 28.3%, as compared to the thirteen weeks ended October 28, 2011, due to increased sales volume of 28.6%. The average selling price decreased by 0.3% due to an unfavorable foreign currency impact of $0.4 million, offset by favorable impact of reduced product discounting and a higher proportion of direct sales as opposed to sales to distributors. On a constant currency basis, international sales increased by 33.0%.

U.S. net product sales for the twenty-six weeks ended October 26, 2012 increased by $14.4 million, or 16.3%, as compared to the twenty-six weeks ended October 28, 2011, due to a sales volume increase of 12.2% and an increased average selling price of 4.1%. The average selling price increased due to continued higher market penetration of our AspireHC generator and price increases in January 2012.

International net product sales for the twenty-six weeks ended October 26, 2012 increased by $2.6 million, or 14.6%, as compared to the twenty-six weeks ended October 28, 2011, due to a sales volume increase of 13.5% and an increased average selling price of 1.1%. The average selling prices increased due to the favorable impact of reduced product discounting and a higher proportion of direct sales as opposed to sales to distributors, offset by an unfavorable foreign currency impact of $1.2 million. On a constant currency basis, international sales increased by 21.2%.

Our cost of sales as a percent of net sales for the twenty-six ended October 26, 2012 decreased by 2.1 percentage points to 8.3% when compared to the twenty-six weeks ended October 28, 2011. This decrease was primarily the result of the discontinuance of the 3% epilepsy patent royalty fee after the patent expiration date of July 16, 2011. We paid no royalty fees pursuant to the epilepsy patent during the twenty-six weeks ended October 26, 2012; whereas, we paid $1.2 million in royalty fees during the twenty-six weeks ended October 28, 2011. The decrease was also partially due to product withdrawal costs of the AspireHC and AspireSR generators that were included in the cost of sales for the quarter ended July 29, 2011. Refer to the ‘Product Withdrawal paragraph below for more information. Finally, the decrease was also partially due to the savings realized after the purchase of our headquarters building during the quarter ended October 28, 2011.

Read the The complete Report



Stocks Discussed: CYBX,
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