NeuroMetrix second quarter total revenues decrease to $2.6 million

NeuroMetrix, Inc. (Nasdaq: NURO), a science-based health care company improving patient care through neurotechnology, today reported business and financial highlights for the quarter and six months ended June 30, 2011.

NeuroMetrix is focused on applying its technological capabilities and intellectual property to the diabetes market. In the second quarter it achieved the marketing launch of NC-stat DPNCheck. This device is a fast, accurate, and quantitative point-of-care test which the Company believes may address the unmet medical need for better and cost-effective tools to detect and monitor diabetic peripheral neuropathy (DPN). Highlights for the second quarter of 2011 included:

  • The successful marketing launch at the American Diabetes Association 71st Scientific Sessions of NC-stat DPNCheck, including several scientific posters and numerous live demonstrations. A large number of US and international endocrinologists expressed interest in evaluating the product.
  • Recruitment of its direct US endocrinology and podiatry sales team. Training is scheduled for August, and the Company is working to make NC-stat DPNCheck commercially available in September.
  • A market evaluation agreement with Nipro Diagnostics, Inc. The parties announced a collaboration to assess opportunities for NC-stat DPNCheck in retail medical clinics, primarily located in chain drug stores and other retail outlets, of which there are approximately 1,200 in the United States. Nipro Diagnostics has a well established position in supplying blood glucose meters into the retail medical market.

"We are building momentum toward our commercial kick-off of NC-stat DPNCheck by the end of the third quarter," said Shai N. Gozani M.D., Ph.D., President and Chief Executive Officer of NeuroMetrix. "Early physician requests for device evaluations are now being qualified with scheduling soon to follow. For the next several quarters we will focus on endocrinologists and podiatrists because of their high concentration of diabetes patients and focus on DPN. We are therefore particularly pleased that we have completed hiring of our direct sales team which will target these two specialties."

The Company's legacy neurodiagnostic business accounts for its current revenues. It was restructured in early 2011 to reduce costs and optimize cash flow. The Company reported its financial results for the second quarter of 2011. Total revenues were $2.6 million compared with $3.9 million for the second quarter of 2010. Gross margin in the second quarter of 2011 was 57% of total revenues reflecting lower volumes in comparison with 64% of total revenues for the second quarter of 2010. The Company's restructuring initiatives lowered second quarter 2011 operating expenses to $3.9 million from $7.0 million in the second quarter of 2010. Net loss for the second quarter of 2011 was $2.4 million, or $0.11 per share. In comparison, the Company recorded a net loss of $4.5 million for the second quarter of 2010, or $0.20 per share. NeuroMetrix reported net cash consumption of $1.5 million in the second quarter of 2011 and ended the period with cash resources of $13.6 million.

In the six months ended June 30, 2011, the Company reported revenues of $5.5 million and a loss of $5.1 million or $0.22 per share. For the comparable six month period ended June 30, 2010, the Company recorded revenues of $7.4 million and a net loss of $9.3 million or $0.40 per share.

Source:

NeuroMetrix

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