NeuroMetrix, Inc. (Nasdaq: NURO), a health care company transforming patient care through neurotechnology, today announced its financial results for the three months and year ended December 31, 2009.
“We see an opportunity to reinvigorate and expand our installed base of customers”
Total revenues for the fourth quarter of 2009 were $6.2 million, compared with $7.2 million for the fourth quarter of 2008. Revenues in the quarter were comprised of 9% medical equipment sales and 91% consumables sales in comparison with 14% and 86%, respectively, for the fourth quarter of 2008. Medical equipment sales consist of nerve conduction testing devices (ADVANCE™ and NC-stat®) and related modules, and service agreement revenues. Consumables sales include single use nerve-specific electrodes, EMG needles, and other accessories. Gross margin in the fourth quarter of 2009 was 70.5% of total revenues compared with 67.8% for the fourth quarter of 2008. Net income for the fourth quarter of 2009 was $0.4 million, or $0.02 per share, and included a gain of $2.2 million, or $0.10 per share, relating to the revaluation of warrants issued in the Company’s September 2009 financing. In comparison, net loss for the fourth quarter of 2008 was $4.1 million, or $(0.30) per share.
For the year ended December 31, 2009, total revenues were $26.1 million, compared with $31.1 million in 2008. Revenues for 2009 were comprised of 10% medical equipment sales and 90% consumables sales in comparison with 9% and 91%, respectively, for the year ended December 31, 2008. Gross margin for 2009 was 71.2% of total revenues compared with 71.0% for 2008. Net loss for 2009 was $11.9 million, or $(0.71) per share and included a net charge of $5.2 million, or $0.31 per share, for the revaluation of warrants issued in the September 2009 financing. In comparison, net loss for 2008 was $27.7 million, or $(2.02) per share.
During the fourth quarter of 2009, the Centers for Medicare and Medicaid Services (“CMS”) published a new Category I CPT code in the 2010 Physician’s Fee Schedule for nerve conduction studies performed with preconfigured electrode arrays, such as those utilized with the NC-stat System. The Company believes that this CPT code may streamline Medicare reimbursement for medically appropriate nerve conduction studies performed using the NC-stat System, and could also be a positive influence on reimbursement by commercial insurers.
The Company has recently undertaken a number of initiatives to address market opportunities, including the following: