Solta Medical, Inc. Announces Preliminary Financial Results for the Fourth Quarter of 2008
January 28 2009 - 4:05PM
PR Newswire (US)
Provides Financial Goals for 2009 HAYWARD, Calif., Jan. 28
/PRNewswire-FirstCall/ -- Solta Medical, Inc. (NASDAQ:SLTM), a
global leader in the medical aesthetics market, today announced
preliminary financial results for the fourth quarter ended December
31, 2008 and provided financial goals for 2009. Solta Medical
revenue for the fourth quarter is expected to be in the range of
$9.3 million to $9.6 million and includes revenue from the sale of
Fraxel products post-acquisition of Reliant Technologies, Inc. on
December 23, 2008. On a pro forma combined basis as if the
acquisition of Reliant Technologies was effective October 1, 2008,
revenue for the fourth quarter is estimated to have been between
$19.9 million to $20.2 million. This compares to revenue for both
companies of $35.5 million in the fourth quarter of 2007 on a pro
forma combined basis. The Company expects to report a net loss for
the quarter in the range of $14 million to $19 million on a GAAP
basis. The net loss includes write-off of acquired in-process
research and development of between $8 million to $13 million,
severance, integration and other charges related to the acquisition
of Reliant of $1.5 million, stock based compensation charges of
$0.9 million, provisions for excess and obsolete inventory of $0.5
million, and amortization of intangible assets of $0.1 million.
Fourth quarter earnings before interest, depreciation and
amortization (EBITDA) and excluding the charges related to the
Reliant acquisition is expected to be a loss of approximately $3.1
million. The results for the quarter were impacted by poor global
economic conditions, a tight credit environment, and the completion
of the Reliant acquisition late in the quarter. "The fourth quarter
of 2008 was challenging for many companies including Solta
Medical," said Stephen J. Fanning, Chairman of the Board, President
and CEO of Solta Medical. "Despite the continued difficult
environment, initial response to our new Body Tip16.0 for the
Thermage NXT has been very positive. In addition, we have a number
of new products and initiatives for 2009 that will continue to
innovate, expand, and improve the aesthetic solutions we offer
physicians and patients. With the integration of Reliant nearly
complete, we look forward to competing in the market place with two
premier brands in Fraxel and Thermage, and one of the largest U.S.
sales forces in the industry." The Company also provided the
following financial goals for 2009: -- Realize approximately $19
million in cost synergies as a result of the acquisition of Reliant
Technologies, Inc. -- Generate positive cash flow from operations
and EBITDA for the year -- Achieve a gross margin of 70% for the
year excluding non-cash amortization of capitalized manufacturing
profit in inventory related to the Reliant acquisition 4Q08
Earnings and Conference Call Information Solta Medical plans to
release its complete financial results for the fourth quarter ended
December 31, 2008, after the market close on Monday, February 23,
2009. The Company will also host a conference call and webcast on
Monday, February 23, 2009, at 4:30 p.m. Eastern Time (1:30 p.m.
Pacific) to discuss the financial results and current corporate
developments. The dial-in number for the conference call is
800-218-0204 for domestic participants and 303-228-2960 for
international participants. A taped replay of the conference call
will also be available beginning approximately one hour after the
call's conclusion and will remain accessible for seven days. This
replay can be accessed by dialing 800-405-2236 for domestic callers
and 303-590-3000 for international callers. Both callers will need
to use the Passcode 11125653#. To access the live webcast of the
call, go to Solta Medical's website at http://www.solta.com/ and
click on Investor Relations. An archived webcast will also be
available at http://www.solta.com/. About Solta Medical, Inc. Solta
Medical, Inc. is a global leader in the medical aesthetics market
providing innovative, safe, and effective anti-aging solutions for
patients that enhance and expand the practice of medical aesthetics
for physicians. The company offers products to address aging skin
under the industry's two premier brands: Thermage(R) and Fraxel(R).
Thermage is an innovative, non-invasive radiofrequency procedure
for tightening and contouring skin. As the leader in fractional
laser technology, Fraxel delivers minimally invasive clinical
solutions to resurface aging and sun damaged skin. Since 2002, over
one million Thermage and Fraxel procedures have been performed in
nearly 80 countries. Thermage and Fraxel are the perfect complement
for any aesthetic practice. For more information about Solta
Medical, call 1-877-782-2286 or log on to http://www.solta.com/.
Forward-Looking Statements This press release contains
forward-looking statements within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995, including statements
regarding the new products and initiatives in the works for 2009
and the Company's financial goals for 2009. Forward-looking
statements are based on management's current, preliminary
expectations and are subject to risks and uncertainties, which may
cause Solta Medical's actual results to differ materially from the
statements contained herein. Factors that might cause such a
difference include the possibility that the development and release
of new products and initiatives does not proceed as anticipated,
the market for the sale of these new products and initiatives does
not develop as expected, and the risks relating to Solta Medical's
ability to achieve its stated financial goals as a result of, among
other things, economic conditions and consumer confidence causing
changes in consumer spending habits that affect demand for our
products and treatments. Further information on potential risk
factors that could affect Solta Medical's business and its
financial results are detailed in its Form 10-K for the year ended
December 31, 2007, its Form 10-Q for the quarter ended September
30, 2008 and other reports as filed from time to time with the
Securities and Exchange Commission. Undue reliance should not be
placed on forward-looking statements, especially guidance on future
financial performance, which speaks only as of the date they are
made. Thermage undertakes no obligation to update publicly any
forward-looking statements to reflect new information, events or
circumstances after the date they were made, or to reflect the
occurrence of unanticipated events. Contact Information: Jack Glenn
Chief Financial Officer 510-786-6890 Investor Contacts: Doug
Sherk/Jenifer Kirtland EVC Group 415-896-6820 DATASOURCE: Solta
Medical, Inc. CONTACT: Jack Glenn, Chief Financial Officer of Solta
Medical, Inc., +1-510-786-6890; or investors, Doug Sherk, or
Jenifer Kirtland, , both of EVC Group, +1-415-896-6820, for Solta
Medical, Inc. Web Site: http://www.solta.com/
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