Provides Financial Goals for 2010 Conference Call Today at 8:30am
Eastern to Discuss Financial Results and Acquisition of Aesthera
Corporation HAYWARD, Calif., Feb. 23 /PRNewswire-FirstCall/ --
Solta Medical, Inc. (NASDAQ:SLTM), a global leader in the medical
aesthetics market, today announced results for the fourth quarter
and full year ended December 31, 2009. Revenue for the fourth
quarter was in-line with the preliminary forecast provided on
January 8, 2010. Revenue for the fourth quarter was $28.4 million,
an increase of approximately $18.9 million, or 197%, as compared to
the fourth quarter 2008 revenue of $9.5 million reflecting
increased revenue as a result of the acquisition of Reliant
Technologies, Inc. on December 23, 2008. Solta Medical's reported
results for the fourth quarter of 2009 include non-cash charges of
$1.2 million related to the acquisition of Reliant Technologies and
non-cash stock based compensation charges of $0.8 million. The GAAP
net loss for the quarter including these charges was $0.3 million,
or $0.01 per share as compared to a net loss of $15.0 million, or
$0.57 per share reported for the fourth quarter of 2008. Non-GAAP
net income for the quarter excluding these charges was $1.7
million, or $0.03 per share on a diluted basis as compared to a
non-GAAP net loss of $3.2 million, or $0.12 per share reported for
the fourth quarter of 2008. Non-GAAP EBITDA for the fourth quarter
was $2.3 million. Revenue for the twelve months ended December 31,
2009 was $98.8 million, compared with $56.7 million for the full
year 2008. Solta Medical's reported results for the full year 2009
include non-cash charges of $7.1 million related to the acquisition
of Reliant Technologies, non-cash stock based compensation charges
of $3.2 million, and severance cost of $0.1 million. The GAAP net
loss for the year including these charges was $11.2 million, or
$0.23 per share as compared to a net loss of $16.4 million, or
$0.67 per share reported for the full year 2008. Non-GAAP net loss
for the full year excluding these charges was $0.8 million, or
$0.02 per share as compared to a non-GAAP net income of $0.2
million, or $0.01 per share on a diluted basis reported for the
full year 2008. Non-GAAP EBITDA for the full year 2009 was $1.6
million. "We recently achieved some key milestones," said Stephen
J. Fanning, Chairman of the Board, President and CEO. "In the
fourth quarter, we successfully ramped up production of our latest
editions to the Fraxel and Thermage brands, the Fraxel re:store
DUAL(TM) and the Thermage CPT(TM). These new products have been
very well received by new and existing customers. In January, we
secured additional equity financing of $17.2 million that served to
further strengthen our balance sheet. In addition, today we
announced the signing of a definitive agreement to acquire Aesthera
Corporation. Aesthera's Isolaz(TM) systems, with proprietary
Photopneumatic(TM) technology for the treatment of acne, broaden
Solta's superior aesthetic solutions for physicians and further
leverage our call point and worldwide distribution system. "While
credit conditions remain difficult in the U.S. market, we were
pleased that product revenue for the quarter was split evenly
between domestic and international markets," added Mr. Fanning. "In
addition, revenue derived from Thermage and Fraxel brands was also
evenly split for the quarter." Financial Goals for 2010 The Company
provided its financial goals for 2010 as follows: -- Revenue for
the year in the range of $115 million to $120 million -- Generate
positive non-GAAP EBITDA every quarter of 2010 -- Achieve a
non-GAAP gross margin in the range of 66% to 69% for the full year
2010 excluding non-cash amortization charges and non-cash
acquisition related adjustments. The financial goals include the
acquisition of Aesthera Corporation which is expected to close by
March 31, 2010. Non-GAAP Presentation To supplement the condensed
consolidated financial information presented on a GAAP basis,
management has provided non-GAAP gross margin, 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 acquisition related adjustments, severance costs, merger related
costs, extraordinary loss on investments, 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, February
23, 2010, at 8:30 a.m. Eastern Time (5:30 a.m. Pacific) to discuss
the financial results, the pending acquisition of Aesthera
Corporation, and other current corporate developments. The dial-in
number for the conference call is 877-941-8610 for domestic
participants and 480-629-9819 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 800-406-7325 for domestic callers and 303-590-3030 for
international callers. Both callers will need to use the Passcode
4230356#. 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
worldwide. Thermage and Fraxel are the perfect complement for any
aesthetic practice. Our products are available in over 100
countries. 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 financial goals for
2010. 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
market for the sale of these new products and initiatives does not
develop as expected, the remaining risks and uncertainties with the
integration process, 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, its Form10-Q for
the quarter ended September 30, 2009, 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 Twelve Months Ended December
31, December 31, 2009 2008 2009 2008 ---- ---- ---- ---- Net
revenue $28,403 $9,549 $98,818 $56,681 Cost of revenue 10,970 3,404
40,565 15,066 ------ ----- ------ ------ Gross margin 17,433 6,145
58,253 41,615 ------ ----- ------ ------ Operating expenses: Sales
and marketing 10,460 6,671 38,931 27,001 Research and development
4,142 2,448 16,246 9,502 General and administrative 3,096 3,489
14,659 13,662 Acquired in-process R&D - 9,060 - 9,060 ------
------ ------ ------ Total operating expenses 17,698 21,668 69,836
59,225 ------ ------ ------ ------ Loss from operations (265)
(15,523) (11,583) (17,610) Interest and other income 30 553 462
2,334 Interest and other expense (107) (15) (394) (15) Gain (loss)
on investments - (225) 224 (1,088) ------ ------ ------ ------ Loss
before income taxes (342) (15,210) (11,291) (16,379) Provision
(benefit) for income taxes (86) (166) (99) 14 --- ---- --- --- Net
loss ($256) ($15,044) ($11,192) ($16,393) ===== ======== ========
======== Net loss per share - basic ($0.01) ($0.57) ($0.23) ($0.67)
====== ====== ====== ====== Net loss per share - diluted ($0.01)
($0.57) ($0.23) ($0.67) ====== ====== ====== ====== Weighted
average shares outstanding used in calculating net loss per share:
Basic 47,970,149 26,393,189 47,848,258 24,506,673 ==========
========== ========== ========== Diluted 47,970,149 26,393,189
47,848,258 24,506,673 ========== ========== ========== ==========
Solta Medical, Inc. NON-GAAP RECONCILIATION OF GROSS MARGIN,
OPERATING INCOME (LOSS), EBITDA, NET INCOME (LOSS) AND NET INCOME
(LOSS) PER SHARE (in thousands, except share and per share data)
(unaudited) Three Months Ended Twelve Months Ended December 31,
December 31, 2009 2008 2009 2008 ---- ---- ---- ---- GAAP Gross
margin $17,433 $6,145 $58,253 $41,615 Non-GAAP adjustments to gross
margin: Purchase price related charges 838 - 5,757 - Stock-based
compensation 66 47 241 190 --- --- --- --- Non-GAAP gross margin
$18,337 $6,192 $64,251 $41,805 ======= ====== ======= =======
Non-GAAP gross margin as % of sales 65% 65% 65% 74% === === === ===
GAAP loss from operations ($265) ($15,523) ($11,583) ($17,610)
Non-GAAP adjustments to net loss from operations: Acquired
in-process R&D - 9,060 - 9,060 Purchase price related charges
1,173 290 7,077 290 Severance expenses - 977 118 977 Merger-related
costs - 353 - 1,487 Stock-based compensation 768 891 3,244 3,680
--- --- ----- ----- Non-GAAP income (loss) from operations $1,676
($3,952) ($1,144) ($2,116) Depreciation expenses 663 407 2,708
1,405 Non-GAAP EBITDA $2,339 ($3,545) $1,564 ($711) ====== =======
====== ===== GAAP net loss ($256) ($15,044) ($11,192) ($16,393)
Non-GAAP adjustments to net loss: Acquired in-process R&D -
9,060 - 9,060 Purchase price related charges 1,173 290 7,077 290
Severance expenses - 977 118 977 Merger-related costs - 353 - 1,487
Loss on investments - 225 - 1,088 Stock-based compensation 768 891
3,244 3,680 --- --- ----- ----- Non-GAAP net income (loss) $1,685
($3,248) ($753) $189 ====== ======= ===== ==== GAAP basic net loss
per share ($0.01) ($0.57) ($0.23) ($0.67) Non-GAAP adjustments to
basic income (loss) per share: Acquired in-process R&D - $0.34
- 0.37 Purchase price related charges 0.02 $0.01 0.15 0.01
Severance expenses - $0.05 0.00 0.04 Merger-related costs - $0.01 -
0.06 Loss on investments - $0.01 - 0.05 Stock-based compensation
0.02 $0.03 0.07 0.15 ---- ----- ---- ---- Non-GAAP basic net income
(loss) per share $0.04 ($0.12) ($0.02) $0.01 ===== ====== ======
===== Non-GAAP diluted net income (loss) per share $0.03 ($0.12)
($0.02) $0.01 ===== ====== ====== ===== GAAP weighted average
shares outstanding used in calculating basic net loss per share
47,970,149 26,393,189 47,848,258 24,506,673 ========== ==========
========== ========== GAAP weighted average shares outstanding used
in calculating diluted net loss per share 47,970,149 26,393,189
47,848,258 24,506,673 Adjustments for dilutive potential common
stock 1,770,525 - - 1,044,290 --------- --- --- --------- Weighted
average shares outstanding used in calculating non-GAAP diluted net
income (loss) per share 49,740,674 26,393,189 47,848,258 25,550,963
========== ========== ========== ========== Solta Medical, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands of dollars,
except share and per share data) (Unaudited) December December 31,
31, 2009 2008 ---- ---- ASSETS Current assets: Cash and cash
equivalents $14,744 $7,556 Marketable investments - 17,870 Accounts
receivable, net 12,381 5,119 Inventories, net 14,117 18,304 Prepaid
expenses and other current assets 4,748 4,074 ----- ----- Total
current assets 45,990 52,923 Property and equipment, net 5,613
6,841 Purchased intangible assets, net 36,799 40,999 Goodwill
47,289 48,158 Other assets 458 247 --- --- Total assets $136,149
$149,168 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities: Accounts payable $6,065 $8,080 Accrued liabilities
10,961 11,085 Accrued restructuring 7 3,549 Current portion of
deferred revenue 4,534 3,658 Short-term borrowings 9,432 12,399
Customer deposits 529 288 ------ ------ Total current liabilities
31,528 39,059 Deferred revenue, net of current portion 612 688 Term
loan, net of current portion 1,626 - Non-current tax liabilities
1,862 1,464 Other liabilities 284 133 ------ ------ Total
liabilities 35,912 41,344 ------ ------ Stockholders' equity:
Common stock, $0.001 par value: 100,000,000 shares authorized
48,077,028 and 47,758,823 shares issued and outstanding at December
31, 2009 and December 31, 2008 48 48 Additional paid-in capital
169,283 165,680 Deferred stock-based compensation - (2) Accumulated
deficit (69,094) (57,902) ------ ------ Total stockholders' equity
100,237 107,824 ------- ------- Total liabilities and stockholders'
equity $136,149 $149,168 ======== ======== DATASOURCE: Solta
Medical, Inc. CONTACT: Jack Glenn, Chief Financial Officer of Solta
Medical, Inc., +1-510-786-6890; or Investors, Doug Sherk,
+1-415-896-6820, , of EVC Group, for Solta Medical, Inc. Web Site:
http://www.solta.com/
Copyright
Solta Medical, (MM) (NASDAQ:SLTM)
Historical Stock Chart
From Sep 2024 to Oct 2024
Solta Medical, (MM) (NASDAQ:SLTM)
Historical Stock Chart
From Oct 2023 to Oct 2024