HAYWARD, Calif., May 5 /PRNewswire-FirstCall/ -- Solta Medical,
Inc. (NASDAQ:SLTM), a global leader in the medical aesthetics
market, today announced results for the first quarter ended March
31, 2009. Revenue for the first quarter was $25.2 million, an
increase of approximately $9.0 million, or 56%, as compared to the
first quarter 2008 reflecting increased revenue as a result of the
acquisition of Reliant Technologies, Inc. on December 23, 2008.
"Our first quarter performance reflects the successful integration
of our Reliant acquisition as demonstrated by a nearly 50/50 split
in revenue derived from our Thermage and Fraxel product lines,"
said Stephen J. Fanning, Chairman of the Board, President and CEO
of Solta Medical. "We generated strong international sales growth
during the quarter, and in the U.S. market our dual sales force
concept has been well received by customers." The Company reported
a net loss of $4.8 million, or $0.10 per share for the first
quarter of 2009 compared to a net loss of $2.2 million, or $0.09
per share reported in the first quarter of 2008. The Company's
reported results for the first quarter of 2009 include non-cash
acquisition-related charges of $3.3 million, non-cash stock based
compensation charges of $0.8 million, and severance costs of $0.1
million. The GAAP net loss for the quarter including these charges
was $4.8 million, or $0.10 per share as compared to a net loss of
$2.2 million, or $0.09 per share reported for the first quarter of
2008. The non-GAAP net loss for the quarter excluding these charges
was $0.6 million, or $0.01 per share as compared to a non-GAAP net
loss of $0.3 million, or $0.01 per share reported for the first
quarter of 2008. "On a pro forma combined basis as if the
acquisition of Reliant was in effect from October 1, 2008, our
first quarter revenue of $25.2 million grew sequentially by
approximately $5.1 million, or 25%, from the fourth quarter of
2008," added Mr. Fanning. "In addition, our team is managing
expenses, delivering strong gross margins, and continuing to drive
innovation that benefits both our physicians and their patients."
"Also important to note, in March we secured a long-term bank
credit facility for $9.0 million with Silicon Valley Bank. We
believe that with our cost containment initiatives, as well as our
bank credit facility, we have the financial resources needed to
execute our operating plans and achieve our financial goals for
2009," Mr. Fanning concluded. Financial Goals for 2009 The Company
reiterated 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 positive non-GAAP EBITDA for the full year
-- Achieve a non-GAAP gross margin of 70% for the year excluding
non-cash amortization charges and other non-cash purchase price
related adjustments Non-GAAP Presentation To supplement the
condensed consolidated financial information presented on a GAAP
basis, management has provided non-GAAP gross profit, non-GAAP
operating income (loss), non-GAAP EBITDA, non-GAAP net income
(loss) and non-GAAP earnings (loss) per share measures that exclude
the impact of purchase price related adjustments, severance costs,
and stock-based compensation expenses, all net of income taxes. The
Company believes that these non-GAAP financial measures provide
investors with insight into what is used by management to conduct a
more meaningful and consistent comparison of the Company's ongoing
operating results and trends, compared with historical results.
This presentation is also consistent with management's internal use
of the measures, which it uses to measure the performance of
ongoing operating results, against prior periods and against our
internally developed targets. There are limitations in using these
non-GAAP financial measures because they are not prepared in
accordance with GAAP and may be different from non-GAAP financial
measures used by other companies. These non-GAAP financial measures
should not be considered in isolation or as a substitute for GAAP
financial measures. Investors and potential investors should
consider non-GAAP financial measures only in conjunction with the
Company's consolidated financial statements prepared in accordance
with GAAP and the reconciliation of non-GAAP financial measures
attached to this release. Conference Call Information Solta Medical
will host a conference call and webcast today, Tuesday, May 5,
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 800-366-3908 for domestic
participants and 303-262-2075 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
11130432#. 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
which 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 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 our expectations regarding the market environment, the
adequacy of our financial resources and our 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 do not
proceed as anticipated, the market for the sale of these new
products and initiatives does not develop as expected, the
remaining risks and uncertainties with the integration process, the
risks related to our future liquidity if we fail to achieve
adequate levels of revenue or sustained profitability, if
unanticipated expenses or other uses of cash arise or if we are not
able to maintain compliance with borrowing facility covenants 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 and physician confidence causing changes in
consumer and physician 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, 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. Solta Medical 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. Solta Medical, Inc. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands of dollars,
except share and per share data) (unaudited) Three Months Ended
March 31, 2009 2008 Net revenue $25,245 $16,231 Cost of revenue
11,507 4,358 Gross margin 13,738 11,873 Operating expenses: Sales
and marketing 10,475 7,422 Research and development 3,916 2,731
General and administrative 4,318 4,552 Total operating expenses
18,709 14,705 Loss from operations (4,971) (2,832) Interest and
other income 261 603 Interest and other expenses (47) - Loss before
income taxes (4,757) (2,229) Provision for income taxes (18) (8)
Net loss $(4,775) $(2,237) Net loss per share - basic and diluted
$(0.10) $(0.09) Weighted average shares outstanding used in
calculating net loss per share: Basic and diluted 47,758,823
23,630,842 Solta Medical, Inc. NON-GAAP RECONCILIATION OF GROSS
MARGIN, NET LOSS AND NET LOSS PER SHARE (in thousands, except share
and per share data) (unaudited) Three Months Ended March 31, 2009
2008 GAAP Gross margin $13,738 $11,873 Non-GAAP adjustments to
gross margin: Purchase price related adjustments 2,976 -
Stock-based compensation 53 43 Non-GAAP gross margin 16,767 11,916
Non-GAAP gross margin as % of sales 66% 73% GAAP loss from
operations: $(4,971) $(2,832) Non-GAAP adjustments to loss from
operations: Purchase price related adjustments 3,292 - Severance
expenses 118 - Merger-related costs - 969 Stock-based compensation
789 979 Non-GAAP loss from operations (772) (884) Depreciation
expenses 725 311 Non-GAAP EBITDA (47) (573) GAAP net loss $(4,775)
$(2,237) Non-GAAP adjustments to net loss: Purchase price related
adjustments, net of taxes 3,292 - Severance expenses, net of taxes
118 - Merger-related costs, net of taxes - 969 Stock-based
compensation, net of taxes 789 979 Non-GAAP net loss $(576) $(289)
GAAP net loss per share $(0.10) $(0.09) Non-GAAP adjustments to net
loss per share: Purchase price related adjustments 0.07 - Severance
expenses, net of taxes 0.00 - Merger-related costs, net of taxes -
0.04 Stock-based compensation 0.02 0.04 Non-GAAP net loss per share
$(0.01) $(0.01) Weighted average shares outstanding used in
calculating GAAP and non-GAAP net loss per share 47,758,823
23,630,842 Solta Medical, Inc. CONDENSED CONSOLIDATED BALANCE
SHEETS (in thousands of dollars, except share and per share data)
(Unaudited) March 31, December 31, 2009 2008 ASSETS Current assets:
Cash and cash equivalents $8,974 $7,556 Marketable investments
8,094 17,870 Accounts receivable, net 12,854 5,119 Inventories, net
13,333 18,304 Prepaid expenses and other current assets 3,834 4,074
Total current assets 47,089 52,923 Property and equipment, net
6,438 6,841 Purchased intangible assets, net 39,948 40,999 Goodwill
48,257 48,158 Other assets 217 247 Total assets $141,949 $149,168
LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Accounts payable
$6,083 $8,080 Accrued liabilities 11,741 11,085 Accrued
restructuring 1,371 3,549 Current portion of deferred revenue 4,089
3,658 Short-term margin account borrowings 5,620 12,399 Line of
credit obligation 3,750 - Current portion of term loan 1,031 -
Customer deposits 363 288 Total current liabilities 34,048 39,059
Deferred revenue, net of current portion 512 688 Term loan, net of
current portion 1,969 - Non-current tax liabilities 1,507 1,464
Other liabilities 125 133 Total liabilities 38,161 41,344
Stockholders' equity: Common stock, $0.001 par value: 100,000,000
shares authorized 47,758,823 shares issued and outstanding at March
31, 2009 and December 31, 2008 48 48 Additional paid-in capital
166,468 165,680 Deferred stock-based compensation (1) (2)
Accumulated other comprehensive loss (50) - Accumulated deficit
(62,677) (57,902) Total stockholders' equity 103,788 107,824 Total
liabilities and stockholders' equity $141,949 $149,168 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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