Cynosure Announces Preliminary Financial Results for the First Quarter of 2009
April 15 2009 - 8:30AM
PR Newswire (US)
Company Further Reduces 2009 Operating Expenses to Address
Continued Industry Weakness; WESTFORD, Mass., April 15
/PRNewswire-FirstCall/ -- Cynosure, Inc. (NASDAQ:CYNO), a leading
developer and manufacturer of a broad array of light-based
aesthetic treatment systems, today announced preliminary, unaudited
financial results for the quarter ended March 31, 2009. Reflecting
continued softness in the aesthetic laser industry, Cynosure
expects first-quarter 2009 revenues to be in the range of $14
million to $15 million, compared with revenues of $36.8 million in
the first quarter of 2008. The company expects to report a GAAP net
loss for the first quarter of 2009 of $3.8 million to $4.3 million,
or $0.30 to $0.34 per share, compared with GAAP net income of $4.9
million, or $0.38 per diluted share, for the three months ended
March 31, 2008. "The global economic recession continued to
negatively affect our business throughout the first quarter, which
historically has been our weakest quarter of the year," said
Cynosure President and Chief Executive Officer Michael Davin.
"While we experienced pockets of order strength in the first
quarter, particularly in March, overall aesthetic laser capital
equipment spending was down significantly. We attribute this
decline to the continued restrictive credit environment and general
caution among aesthetic practitioners and consumers, who remain
uncertain about the duration of this economic downturn." "We are
continuing to adjust our operating expenses in response to the
current market conditions and reduced revenue levels," Davin said.
"In recent weeks we have cut an additional 25 positions from our
worldwide workforce. This reduction has been partially offset by
the opening in February of our direct sales office in Korea and the
associated hiring of 11 employees, bringing our current total
worldwide headcount to 271 employees. In addition, we have
continued to reduce our planned spending for various programs in
2009. Overall, we expect our cost-reduction initiatives this year
to produce an annualized operating expense savings to Cynosure of
approximately $14 million to $18 million, which exceeds the
projected $8 million to $10 million in savings we forecasted
earlier in the year." "While the global recession has created some
significant near-term hurdles for our industry, we remain committed
to the steps we believe are central to our long-term success,"
Davin said. "Over the past several years, our emphasis on
technology innovation, product development and strong distribution
has enabled us to grow into one of the industry's largest
companies. We have benefitted from positive momentum on the
scientific front, as evidenced by the Smartlipo MPX data presented
recently at the American Society for Laser Medicine and Surgery
Annual Conference. In the quarters ahead, we will continue to focus
on aligning our expenses with our revenue levels, while working to
maintain our technology and product position. It remains our goal
to manage the business profitably in 2009." Company to Host
First-Quarter 2009 Conference Call on May 5 Cynosure plans to
announce its financial results for the quarter ended March 31, 2009
before the opening of the market on Tuesday, May 5 and host a
conference call that day at 9:00 a.m. ET. Those who wish to listen
to the conference call webcast should visit the "Investor
Relations" section of the company's website at
http://www.cynosure.com/. The live call also can be accessed by
dialing (877) 407-5790 or (201) 689-8328. If you are unable to
listen to the live call, the webcast will be archived on the
company's website. About Cynosure, Inc. Cynosure, Inc. develops and
markets aesthetic treatment systems that are used by physicians and
other practitioners to perform non-invasive and minimally invasive
procedures to remove hair, treat vascular and pigmented lesions,
rejuvenate the skin, liquefy and remove unwanted fat through laser
lipolysis and temporarily reduce the appearance of cellulite.
Cynosure's products include a broad range of laser and other
light-based energy sources, including Alexandrite, pulsed dye,
Nd:YAG and diode lasers, as well as intense pulsed light. Cynosure
was founded in 1991. For corporate or product information, contact
Cynosure at 800-886-2966, or visit http://www.cynosure.com/.
Forward-Looking Statements Any statements in this press release
about future expectations, plans and prospects for Cynosure, Inc.,
including statements about the company's preliminary results for
the first quarter of 2009, ability to reduce expenses or
expectations regarding future results, as well as other statements
containing the words "believes," "anticipates," "plans," "expects,"
"will" and similar expressions, constitute forward-looking
statements within the meaning of The Private Securities Litigation
Reform Act of 1995. Actual results may differ materially from those
indicated by such forward-looking statements as a result of various
important factors, including the global economic recession and its
effects on the aesthetic laser industry, Cynosure's reliance on
sole source suppliers, the inability to accurately predict the
timing or outcome of regulatory decisions, changes in consumer
preferences, competition in the aesthetic laser industry, and
economic, market, technological and other factors discussed in
Cynosure's most recent Annual Report on Form 10-K, which is filed
with the Securities and Exchange Commission. In addition, the
forward-looking statements included in this press release represent
Cynosure's views as of the date of this press release. Cynosure
anticipates that subsequent events and developments will cause its
views to change. However, while Cynosure may elect to update these
forward-looking statements at some point in the future, it
specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as
representing Cynosure's views as of any date subsequent to the date
of this press release. Contact: Scott Solomon Vice President Sharon
Merrill Associates, Inc. 617.542.5300 DATASOURCE: Cynosure, Inc.
CONTACT: Scott Solomon, Vice President of Sharon Merrill
Associates, Inc., +1-617-542-5300, Web Site:
http://www.cynosure.com/
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