Cyberonics Inc. (NASDAQ: CYBX) reported its fiscal first-quarter financial results before the markets opened on Thursday. The company had $0.53 in earnings per share (EPS) on $81 million in revenue, compared to consensus estimates from Thomson Reuters of $0.62 in EPS and revenue of $76.78 million. In the same period of the previous year, it posted EPS of $0.53 on $72.00 million in revenue.
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The company had record worldwide sales in the first quarter, an increase of 12.5%, and an increase of 14.4% on a constant currency basis.
Separately the company gave an update on its merger. Cyberonics announced that it will hold a special meeting of its stockholders on September 22 to consider and vote on the merger and certain other related matters.
The transaction has already been approved by the boards of directors of both Cyberonics and Sorin, as well as the Sorin stockholders. The last key to the puzzle is Cyberonics shareholders. This merger is expected to close in the calendar fourth quarter of 2015.
Dan Moore, president and CEO of Cyberonics, commented on earnings:
The Cyberonics team delivered record net sales of $81 million in the last quarter. U.S. sales reached a new record of $68 million, an increase of 15%. This increase was driven by very strong demand for the AspireSR generator following approval in June, a month into the quarter. The AspireSR generator accounted for 38% of all units sold in the U.S. in the quarter and approximately 50% of the units sold since launch. Initial sales of the AspireSR generator suggest that the rate of adoption exceeds those of the AspireHC and Demipulse generators. Our entire company worked diligently to make this product available to patients as quickly as possible and in the quantities demanded by our customers.
On the books, the company had cash, cash equivalents and short-term investments that totaled 169.4 million, compared to $151.2 million at the end of the 2015 fiscal year.
Shares of Cyberonics were up 7.6% at $65.01 Thursday morning. The stock has a consensus analyst price target of $74.17 and a 52-week trading range of $48.19 to $76.48.
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