WESTFORD, Mass., Oct. 26 /PRNewswire-FirstCall/ -- Cynosure, Inc.
(Nasdaq: CYNO) today announced financial results for the three
months ended September 30, 2010.
Revenues for the third quarter of 2010 increased to $19.1 million from $17.9
million in the same period of 2009. On a sequential
basis, reflecting the traditional seasonality of the July-September
period, third-quarter 2010 revenue declined from $21.5 million in the second quarter of 2010.
Net loss for the third quarter of 2010 narrowed to $0.5 million, or $0.04 per basic and diluted share, from a net
loss of $1.9 million, or $0.15 per basic and diluted share, for the
comparable period of 2009, reflecting the success of Cynosure's
continued cost-reduction initiatives.
The company's net loss for the third quarter of 2010 included an
income tax provision of $33,000,
compared with an income tax benefit of $1.0
million recorded in the third quarter of 2009. The
change from a benefit to a provision in the 2010 period was a
result of the company's establishment of a valuation allowance in
the fourth quarter of 2009 against the company's net domestic
deferred tax assets and taxable income generated in foreign
jurisdictions.
Fueled by continued operating expense savings, the company
reduced its loss from operations in the third quarter of 2010 to
$1.0 million, which included
stock-based compensation of $900,000.
This compares with a loss from operations in the third
quarter of 2009 of $3.3 million,
which included stock-based compensation of $1.5 million.
"Our international business continues to perform well and
delivered a strong third quarter up 27 percent compared with the
third quarter of 2009," said Michael
Davin, Cynosure's President and Chief Executive Officer.
"Our Asian and European subsidiaries, as well as our international
distributors, each posted year-over-year revenue gains.
International sales accounted for 55 percent of our product
revenue in the quarter. Positive results overseas offset the
performance of our North American business, which continues to be
adversely affected by economic uncertainty and the difficult credit
environment. Nevertheless, we were encouraged that average
selling prices (ASPs) in North
America remained stable in the third quarter and customer
service revenue increased."
Gross profit for the third quarter of 2010 was $10.7 million, or 56.1 percent of revenue,
compared with 58.4 percent of revenue for the same period in 2009.
The change in gross margin from the year-ago period reflects
a larger revenue contribution from international markets,
particularly the company's third-party distributors, which carry
lower ASPs than products sold through direct distribution channels.
Total operating expenses for the third quarter of 2010 decreased
$2.1 million, or 16 percent, to
$11.7 million from $13.8 million for the same period of 2009.
Through the first nine months of 2010, total operating
expenses were $38.3 million, down
$7.8 million compared with
$46.1 million for the comparable
period of 2009.
"Cynosure generated positive cash flow from operations for the
sixth consecutive quarter in Q3, reflecting our effective balance
sheet management and successful cost-reduction initiatives," Davin
said. "Operating expenses through the first nine months of the year
were 17 percent lower than the same period a year ago, and we have
already exceeded our goal of lowering annualized operating expenses
by $5 million to $7 million over
2009. Meanwhile, our cash, marketable securities and
investments totaled $95.4 million at
September 30, 2010, an increase of
approximately $3.4 million from
December 31, 2009, which includes the
effect of purchasing $1.1
million of stock under our previously announced stock
repurchase plan."
Recent Highlights
"During the quarter, we continued to successfully pursue our
strategy of expanding our international market presence," Davin
said. "In recent months, for example, regulators in
Australia approved the
dual-wavelength Smartlipo MPX laser body sculpting workstation,
while in Canada we received
authorization to market our Affinity QS™ workstation to treat
multi-color tattoos and pigmented lesions and the Smartlipo
Triplex™ for advanced laser lipolysis and high definition body
contouring."
"In addition to expanding our overseas offerings, in the third
quarter we continued to make excellent progress in our ongoing
partnership with Unilever to develop aesthetic products for home
use," Davin said. "We have achieved all of the milestones to
date and the program remains on schedule for commercialization in
2012."
Market Outlook
"From both a financial and an operational perspective, we
believe we are in a strong position as we conclude 2010," Davin
said. "Driven by international markets, our revenues through the
first nine months of the year are 11 percent ahead of the same
period in 2009. We have successfully reduced expenses in line
with the current economic climate while retaining our focus on
developing innovative products supported by proprietary
technology."
Third-Quarter Financial Results Conference Call
Cynosure will host a conference call for investors and analysts
at 9:00 a.m. ET today. On the
call, Michael Davin and Timothy Baker, the company's Executive Vice
President and Chief Financial Officer, will discuss the company's
financial results and provide a business overview. Those who wish
to listen to the conference call webcast should visit the "Investor
Relations" section of the company's website at www.cynosure.com.
The live call can also 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, pulse 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 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 anticipated financial 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 economy and lending environment and their effects on the
aesthetic laser industry, Cynosure's history of operating losses,
its 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,
economic, market, technological and other factors discussed in
Cynosure's most recent Annual Report on Form 10-K and Quarterly
Report on Form 10-Q, which are 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.
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Contact:
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Scott Solomon
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Vice President
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Sharon Merrill Associates,
Inc.
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Phone: (617) 542-5300
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CYNO@investorrelations.com
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Consolidated Statements of
Income (Unaudited)
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(In thousands, except per share
data)
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Three Months
Ended Sept 30,
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Nine Months
Ended Sept 30,
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2010
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2009
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2010
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2009
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Revenues
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$ 19,051
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$ 17,937
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$ 59,433
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$ 53,566
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Cost of revenues
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8,367
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7,460
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25,529
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21,997
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Gross profit
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10,684
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10,477
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33,904
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31,569
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Operating
expenses
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Selling and marketing
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7,069
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8,743
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24,116
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29,696
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Research and development
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1,899
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1,564
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5,454
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5,001
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General and
administrative
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2,688
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3,511
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8,751
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11,440
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Total operating
expenses
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11,656
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13,818
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38,321
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46,137
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Loss from
operations
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(972)
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(3,341)
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(4,417)
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(14,568)
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Interest income, net
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41
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83
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139
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454
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Other income (expense),
net
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504
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371
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(197)
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705
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Loss before income
taxes
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(427)
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(2,887)
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(4,475)
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(13,409)
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Income tax provision
(benefit)
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33
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(972)
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274
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(5,149)
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Net loss
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$ (460)
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$ (1,915)
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$ (4,749)
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$ (8,260)
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Diluted net loss per
share
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$ (0.04)
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$ (0.15)
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$ (0.37)
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$ (0.65)
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Diluted weighted average shares
outstanding
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12,653
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12,712
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12,691
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12,708
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Basic net loss per
share
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$ (0.04)
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$ (0.15)
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$ (0.37)
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$ (0.65)
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Basic weighted average shares
outstanding
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12,653
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12,712
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12,691
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12,708
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Condensed Consolidated Balance
Sheet (Unaudited)
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(In thousands)
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Sept
30,
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December
31,
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2010
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2009
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(unaudited)
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Assets:
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Cash, cash equivalents and
short-term marketable securities
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$ 90,533
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$
68,505
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Short-term investments and
related financial instruments
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-
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18,454
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Accounts receivable,
net
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10,899
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11,773
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Inventories
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20,294
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21,815
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Prepaid expenses and other
current assets
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3,867
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6,441
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Deferred tax asset, current
portion
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356
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160
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Total current assets
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125,949
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127,148
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Property and equipment,
net
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8,903
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10,567
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Long-term marketable
securities
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4,839
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5,008
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Other noncurrent
assets
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2,205
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2,510
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Total assets
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$ 141,896
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$
145,233
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Liabilities and stockholders’
equity:
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Accounts payable and accrued
expenses
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$ 14,909
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$
14,357
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Amounts due to related
parties
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2,106
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1,350
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Deferred revenue
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2,900
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4,269
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Capital lease
obligations
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164
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264
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Total current
liabilities
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20,079
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20,240
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Capital lease obligations, net
of current portion
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64
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171
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Deferred revenue, net of current
portion
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386
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620
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Other long-term
liabilities
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302
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372
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Total stockholders’
equity
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121,065
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123,830
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Total liabilities and
stockholders’ equity
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$ 141,896
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$
145,233
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SOURCE Cynosure, Inc.
Copyright . 26 PR Newswire