Cyberonics recently announced their 4th quarter and fiscal year results. The medical technology company has been gaining traction with their novel Vagus Nerve Stimulation (VNS) Therapy System. Overall company sales totaled $167.8 million. The gross profit for the 4th Qtr of fiscal 2010 represented 88.5% of net sales, compared to 86.8% in 2009. The increase was due to the company streamlining manufacturing processes and becoming energy efficient. The Company also posted an adjusted EBITDA of $15.0 million, a 52% increase from $9.9 million from 2009.
In these tough economic times, it’s always good to see companies reducing debt, and Cyberonics reduced their debt by $47 million. While the expenses went up slightly, from $26.8 million in 2009 to $30 million in 2010, a portion of the increases were due to an extra week being calculated into 2010. The balance of the difference in operating expenses were due to an increase in product development expenses related to their epilepsy product lines.
One of the exciting developments this past year was that Cyberonics actually bought back company stock through a repurchase program. As of April 30th, 2010, the company bought back 86,700 shares of common stock (CYBX). The Board of Directors have approved to buy back up to 1 million shares, with expectations to end the program by the end of the company’s 2011 fiscal year.