Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K (2ND QUARTER RESULTS AND EXECUTIVE BONUS PLAN - CYBERONICS INC | form8_k.htm |
| EX-99.2 - PRESS RELEASE OF CYBERONICS, INC. DATED NOVEMBER 28, 2009 - CYBERONICS INC | ex99_2.htm |
EXHIBIT
99.1
CYBERONICS
PROVIDES UPDATE ON TAX POSITION
HOUSTON,
Texas, November 16, 2009 -- Cyberonics, Inc. (NASDAQ:CYBX) today announced an
update with respect to its tax position.
In its
fiscal second quarter ended October 23, 2009, Cyberonics expects to record a
non-cash GAAP tax benefit of approximately $40 million resulting from the
reversal of its tax valuation allowance related to net operating
losses. The recognition of this tax benefit follows from the
determination that U.S. operations have achieved sustainable profitability and
expect to continue to be profitable for a reasonable period. The
non-cash tax benefit represents approximately 40 percent of the valuation
allowance previously recorded against the company’s deferred tax
asset.
Cyberonics
expects that, except for the impact of benefit referred to above, its effective
income tax rate will range from 1 to 2 percent for fiscal 2010 and approximately
37 percent for fiscal 2011, subject to the possible future recognition of
additional tax valuation allowance benefits. In both years, the
company expects that cash income tax expense will range from 1 to 2 percent of
taxable income, although future changes in our tax net operating loss limitation
position could affect this expectation.
“We are
pleased to have reached the point in our financial turnaround where it is
appropriate to recognize a significant part of the value of our net operating
loss carry-forwards,” said Greg Browne, Chief Financial Officer. “Our
balance sheet already reflects improved cash and debt positions, and
shareholders equity will, as a result of this recognition, provide additional
confirmation of the underlying strength of our capital structure.”
Further
details will be provided on the company’s scheduled conference call with
investors to review fiscal 2010 second quarter results on November 19,
2009.
About Cyberonics, Inc. and
VNS TherapyTM
Cyberonics,
Inc. (NASDAQ:CYBX) is a medical technology company with core expertise in
neuromodulation. The company developed and markets the Vagus Nerve
Stimulation (VNS) Therapy™ System, which is FDA-approved for the treatments of
refractory epilepsy and treatment-resistant depression. The VNS
Therapy System uses a surgically implanted medical device that delivers pulsed
electrical signals to the vagus nerve. Cyberonics markets the VNS Therapy System
in selected markets worldwide.
Additional
information on Cyberonics, Inc. and VNS Therapy™ is available at
www.cyberonics.com and www.vnstherapy.com.
Safe harbor
statement
This
press release contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended and Section 21E of the Securities
Exchange Act of 1934, as amended. These statements can be identified
by the use of forward-looking terminology, including "may," "believe," "will,"
"expect," "anticipate," "estimate," "plan," "intend," and "forecast," or other
similar words. Statements contained in this press release are based
upon information presently available to us and assumptions that we believe to be
reasonable. We are not assuming any duty to update this information
should those facts change or should we no longer believe the assumptions to be
reasonable. Investors are cautioned that all such statements involve
risks and uncertainties, including without limitation, statements concerning
recording a non-cash GAAP tax benefit, continued profitability of our U.S.
operations, expected income tax rates and cash tax expense rates for fiscal 2010
and 2011, improving shareholders’ equity, and strengthening our capital
structure. Our actual results may differ materially. Important
factors that may cause actual results to differ include, but are not limited to:
continued market acceptance of VNS Therapy and sales of our product; the
development and satisfactory completion of clinical trials and/or market test
and/or regulatory approval of VNS Therapy for the treatment of other
indications; the development of, or failure to develop, new products, including,
but not limited to, products incorporating seizure detection and new stimulation
parameters; satisfactory completion of post-market studies required by the U.S.
Food and Drug Administration as a condition of approval for the
treatment-resistant depression indication; adverse changes in coverage or
reimbursement amounts by third-parties; intellectual property protection and
potential infringement claims; maintaining compliance with government
regulations and obtaining necessary government approvals for new indications;
product liability claims and potential litigation; reliance on single suppliers
and manufacturers for certain components; the accuracy of management's estimates
of future expenses and sales; the results of the previously disclosed
governmental inquiries; the potential identification of material weaknesses in
our internal controls over financial reporting; risks and costs associated with
such governmental inquiries and any litigation relating thereto or to our stock
option grants, procedures, and practices (including the previously disclosed
private litigation); uncertainties associated with stockholder litigation; and
other risks detailed from time to time in our filings with the Securities and
Exchange Commission (SEC). For a detailed discussion of these and
other cautionary statements, please refer to our most recent filings with the
SEC, including our Annual Report on Form 10-K for the fiscal year ended April
24, 2009 and our Quarterly Report on Form 10-Q for the fiscal quarter ended July
24, 2009.
Contact
information
Greg
Browne, CFO
Cyberonics,
Inc.
100
Cyberonics Blvd.
Houston,
TX 77058
Main: (281)
228-7262/Fax: (281) 218-9332
ir@cyberonics.com
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