HOUSTON, Jan. 12 /PRNewswire-FirstCall/ -- Cyberonics, Inc. (Nasdaq: CYBX - News; "Company") noted today that its financial statements for the fiscal year ended April 28, 2006, included in the Company's Annual Report on Form 10-K ("Form 10-K") filed on January 5, 2007, contain a going concern modification to the audit opinion from its independent accounting firm, KPMG LLP. As previously disclosed and discussed in Note 3 to the consolidated financial statements in the Form 10-K, the going concern modification is based on the Company's recurring losses from operations, a notice of alleged acceleration of its $125 million senior subordinated convertible notes, and a potential default of its $40 million line of credit based on the alleged acceleration.
