Cyberonics Lifts Forecast

The company says sales for the quarter ended April 29 will be at least $26 million.
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Cyberonics

(CYBX)

on Tuesday revised its fourth-quarter guidance, saying revenue would be higher than expected and its loss would be lower than forecast.

The Houston-based medical devices company said sales for the quarter ended April 29 would be at least $26 million, rather than the previous prediction of $21 million to $25 million. The projected loss will be 31 cents or lower, compared with the previous estimate of 35 cents to 50 cents.

The consensus estimate of analysts polled by Thomson First Call was a fourth-quarter loss of 42 cents a share on revenue of $23.2 million.

The announcement sent Cyberonics' stock up 96 cents, or 2.6%, to $38.09. Cyberonics said formal financial results will be issued in June.

The biggest test for Cyberonics comes at the end of this month when the Food and Drug Administration is scheduled to act on the company's application for a medical device to treat depression. The device, called VNS Therapy, is a surgically implantable unit -- about the size of a pacemaker -- that delivers mild electric shocks to a nerve in the brain. VNS was approved by the FDA in 1997 as a treatment for epileptic seizures.

The FDA

gave conditional approval to VNS as a depression treatment in early February, subject to several conditions, after having voted against the device last August.