FOR IMMEDIATE RELEASE
Neil Berkman Associates
||Chris Chavez, President & CEO
Advanced Neuromodulation Systems Reports
Record Quarterly Revenue of $38.7 Million and EPS of $0.25
Neuro Revenue Increased 26.1% Versus
Second Quarter of 2004 and 21.4% Sequentially
DALLAS, TEXAS, July 28, 2005 Advanced Neuromodulation Systems, Inc. (ANS)
today announced record revenue for the second quarter of 2005, as sales of
neuromodulation products increased 26.1% compared to the second quarter of 2004 and 21.4%
sequentially. The Company also reported earnings per fully diluted share of $0.25.
Second Quarter Results
For the three months ended June 30, 2005, revenue increased 26.9% to a record $38,693,000
from $30,488,000 for the second quarter of 2004. Sales of neuro products increased 26.1% to
$34,855,000 for this years second quarter compared to $27,633,000 for last years second
quarter, and increased 21.4% compared to the first quarter of 2005. This growth was driven by
strong sales of ANS Genesis® and GenesisXPTM implantable spinal cord stimulation
(SCS) systems for the treatment of chronic pain, as well as expanded market availability
beginning late in the quarter of the Companys new flagship rechargeable implantable pulse
generator (IPG) system, the EonTM Neurostimulation System.
Gross margin was 72.9% for this years second quarter compared to 72.5% for the second
quarter of 2004. Research and development spending increased 55.6% to $4,465,000 from
$2,870,000 to support ANS new product and new indication development initiatives. Marketing
expense was about unchanged as a percentage of revenue for this years second quarter versus
last year, while G&A expense increased to 10.4% of revenue from 8.9% last year, reflecting
higher legal and recruiting and relocation expenses.
Net income for the second quarter of 2005 increased 17.6% to $5,086,000, or $0.25 per
diluted share, from $4,323,000, or $0.21 per diluted share, for the second quarter of 2004.
At June 30, 2005, ANS had total cash and marketable securities of approximately $154.5
million. ANS has no debt. To date, the Company has repurchased 923,674 shares of its common
stock under a 2,000,000-share repurchase authorization.
First Half Results
For the six months ended June 30, 2005, revenue increased 24.3% to a record $71,029,000
from $57,121,000 for the first half of 2004. Neuro sales increased 22.6% to $63,572,000
compared to $51,861,000 last year. Net income for the first six months of 2005 was
$63,655,000, or $3.06 per diluted share. This compares to net income for the first six months
of 2004 of $8,292,000, or $0.39 per diluted share. Net income for this years first half
included a pre-tax gain of $85,244,000 from the previously announced sale of Cyberonics, Inc.
common stock acquired in August 2004.
Expanded Market Launch Of Eon Neurostimulation System
On June 21, 2005, ANS announced an expanded U.S. market launch of its newest rechargeable
IPG system, the Eon Neurostimulation System, after successfully completing a market test and
NEUROMODULATION SYSTEMS, INC.
6901 PRESTON ROAD/PLANO, TEXAS 75024/972-309-8000/ FAX: 972-309-8150