Cynosure Provides Preliminary Financial Results for the Fourth Quarter of 2008
January 15 2009 - 8:00AM
PR Newswire (US)
Company Outlines Steps Taken to Reduce Expenses in Light of
Economic Downturn and Challenging Credit Environment WESTFORD,
Mass., Jan. 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 financial results for the fourth quarter ended December
31, 2008. Cynosure expects to report fourth-quarter 2008 revenues
of $25 million to $26 million, reflecting the global economic
downturn and weakening credit environment. This compares with
revenues of $36.6 million for the fourth quarter of 2007. The
company expects to report a GAAP net loss for the fourth quarter of
2008 of $2.2 million to $2.7 million, or $0.17 to $0.21 per share,
compared with GAAP net income of $5.3 million, or $0.41 per diluted
share, for the same period in 2007. Financial results for the
fourth quarter of 2008 are expected to include a bad debt charge of
approximately $2.5 million. This charge is related to uncollectible
accounts from certain customers affected by the overall economic
environment and the tightening of credit markets, which
subsequently caused a number of practitioners to be unable to meet
their payment obligations. Cash, cash equivalents, marketable
securities and investments at December 31, 2008 are expected to
increase approximately $3 million to approximately $95 million from
$92.3 million as of September 30, 2008. These preliminary financial
results are unaudited. Cynosure plans to announce its full audited
financial results for the three and 12 months ended December 31,
2008 before the opening of the market on Tuesday, February 10,
2009. "The effect of the global economic crisis on the aesthetic
laser industry has been swift and severe, hampering the ability of
many prospective customers to obtain financing and prompting others
to delay their capital equipment purchases until conditions
improve," said Cynosure President and Chief Executive Officer
Michael Davin. "We have responded to these economic challenges by
taking actions to reduce our cost structure to be more in line with
current sales levels. "Among these measures, we have reduced our
worldwide headcount by 17 percent to approximately 285 employees at
the end of the year," Davin said. "In addition, we have decreased
spending on various programs, implemented general cost-control
initiatives and undertaken other actions intended to lower our
operating expenses in 2009. In total, we expect these steps to
result in an annualized operating expense savings to the company of
approximately $8 million to $10 million in 2009. "Although the
current economic situation has required us to make some difficult
choices regarding our workforce, our objective as we navigate
through this unprecedented period is to maintain our leadership in
the aesthetic laser industry," Davin said. "Through product and
technology innovations, such as our Smartlipo family of
laser-assisted lipolysis workstations and our SmartSense
intelligent energy delivery system, we believe we have gained an
important edge in fast-growing applications. By continuing to
invest in key areas such as engineering and product development, we
are positioning ourselves to extend our competitive advantage in
the current environment as well as when the economy improves. At
the same time, we will continue to monitor and adjust expenses
appropriately in an effort to manage the business profitably in the
year ahead." 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 lesions, rejuvenate skin
through the treatment of shallow vascular and pigmented lesions,
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/. Safe
Harbor Any statements in this press release about future
expectations, plans and prospects for Cynosure, Inc., including
statements about the company's expectations and future financial
performance, 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 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, 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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