Investors celebrate as Cyberonics' neurostim device sales soar
Cyberonics ($CYBX) bucked sluggish sales trends elsewhere in the medical device industry and reported strong financial results for its fiscal 2013 second quarter. Investors reacted well to the news, driving the stock up more than 9% in late morning trading to $50.50 per share.
The maker of implantable neuromodulation medical devices to treat epilepsy and treatment-resistant depression said net sales reached $63 million for the quarter, up a whopping 17% from $53.7 million in sales booked over the same period last year. Net income also jumped, surpassing $13.5 million for the quarter, versus $9 million over the fiscal 2012 second quarter. Diluted income per share rose to 48 cents, up from 32 cents during the same quarter a year ago.
Company president and CEO Dan Moore touted growing sales from both existing and new products as helping to drive the growth, particularly in international markets. Cyberonics in recent months also moved to expand, with plans to build a new manufacturing facility in Costa Rica (it's second) and invest in other companies developing medical devices focused on epilepsy treatment.
Along those lines, Cyberonics recently invested in cerboMed GMBH, a German maker of an epilepsy neurostimulation tool.
- read the full earnings release