Cyberonics Inc. (CYBX) filed Quarterly Report for the period ended 2010-07-30.
Cyberonics Inc. has a market cap of $616.6 million; its shares were traded at around $22.27 with a P/E ratio of 18.4 and P/S ratio of 3.6. CYBX is in the portfolios of Carl Icahn of Icahn Capital Management LP, Jim Simons of Renaissance Technologies LLC, RS Investment Management, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:U.S. net product sales for the thirteen weeks ended July 30, 2010 increased by $6.9 million, or 22.4%, as compared to the thirteen weeks ended July 24, 2009, due to a sales volume increase of 13.2% and increased average selling prices of 9.2%. The average selling price increased due to continued higher market penetration of our new product models, the DemipulseTM generator (single pin) and the Demipulse DuoTM generator (dual pin) and a price increase of 4% in January 2010. International net product sales for the thirteen weeks ended July 30, 2010 decreased by $0.6 million, or 8.7%, as compared to the thirteen weeks ended July 24, 2009, due to decreased average selling prices of 11.4%, offset by a sales volume increase of 2.6%. The average selling prices decreased due a higher proportion of sales to distributors and an unfavorable foreign currency impact of 4.6%.
In September 2005 we issued $125.0 million of Senior Subordinated Convertible Notes, (the “Convertible Notes”), at the rate of 3% per year on the principal amount, payable semi-annually, in arrears, in cash on March 27 and September 27 of each year. See “Note 7. Convertible Notes” in the Notes to Consolidated Financial Statements for a description of the Convertible Notes. Interest expense of approximately $108,000 for the thirteen weeks ended July 30, 2010 decreased by 79%, as compared to interest expense of approximately $503,000 for the thirteen weeks ended July 24, 2009 due to the decline in the average outstanding balance of our Convertible Notes during the respective periods.
Other expense, net, of $72,312 for the thirteen weeks ended July 30, 2010 consisted of net foreign currency transaction losses associated primarily with a slight strengthening of the U.S. dollar against the euro. Other income, net, of $492,889 for the thirteen weeks ended July 24, 2009, consisted of net foreign currency transaction gains primarily associated with the weakening of the U.S. dollar against the euro.
Cash decreased by approximately $2.6 million, to $56.7 million, during the thirteen weeks ended July 30, 2010. This decrease was primarily due to the repurchase of our Convertible Notes costing $8.2 million, the acquisitions of intellectual property of $2.6 million and the purchase of treasury stock of $2.6 million, offset by cash provided by operations of $7.5 million and the proce
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