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The maker of the VNS therapy device, used to control epileptic seizures and treat depression, narrowed its quarterly loss to $1.0 million, or 4 cents a share, from $19.4 million, or 76 cents a share, a year ago.Analysts on average expected a loss of 9 cents a share, before items, according to Reuters Estimates.Wednesday gains breathe new life into the company shares, which have been battered by about 48 percent since the start of 2007.During the past year, Cyberonics has failed to gain Medicare reimbursement for use of its device to treat depression, settled claims related to the improper issue of stock options, posted dismal quarterly results and cut jobs to reduce expenses.we are excited about getting close to profitability, we only close, and we expect to grow our profitability from the fourth quarter well in to 2009 and beyond, Chief Executive Dan Moore said in a conference call. Sales declined, citing the lack of reimbursement for the VNS device used for treating depression.Last year, the Centers for Medicare Medicaid Services said that data failed to show the VNS device worked for patients with treatment resistant depression.CEO Moore said the company has hired an investment banker to help it seek a partner to steer its depression program towards reimbursement.Cyberonics is also planning to conduct a clinical study, expected to commence in 2008, for the device in depression patients.JOB CUTS HELP Total operating expenses fell to $23.9 million during the third quarter from $45.4 million due to the company previously announced workforce cut of 12 percent, Cyberonics said in a statement.The company posted an operating profit of $300,000 during the third quarter. The company said this was its first operating profit in the last three years.Shares of the Houston, Texas based company rose to a high of $11.54 web link , before falling back to trade up $1.58 at $11.31 in afternoon trade on Nasdaq.

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