HAYWARD, Calif., Aug. 3 /PRNewswire-FirstCall/ -- Solta Medical,
Inc. (Nasdaq: SLTM), a global leader in the medical aesthetics
market, today announced results for the second quarter ended
June 30, 2010. The results for the
quarter were highlighted by year-over-over revenue growth of 10%,
generation of $7.7 million in cash
flow from operations, and complete integration of the Aesthera
acquisition into Solta operations.
Revenue for the second quarter was $30.1
million, an increase of approximately $2.7 million, or 10%, as compared to the second
quarter 2009 revenue of $27.4
million. Results for the quarter were driven by
year-over-year double-digit revenue growth in North America, Asia
Pacific, and Latin
America.
Solta Medical's GAAP reported results for the second quarter of
2010 include non-cash amortization and other charges of
$1.4 million related to the
acquisitions of Reliant Technologies and Aesthera Corporation,
non-cash stock based compensation charges of $0.6 million, and cash expenses of $0.2 million related to the acquisition of
Aesthera Corporation. The Company provides additional non-GAAP
financial measures that exclude these charges and expenses.
The GAAP gross profit for the quarter was $18.7 million, or 62% of net revenue. Non-GAAP
gross profit for the quarter was $19.9
million, or 66% of net revenue. GAAP net income for the
quarter was $1.5 million, or
$0.02 per share on a diluted basis,
as compared to GAAP net income of $0.1
million, or breakeven earnings per share on a diluted basis,
reported for the second quarter of 2009. Non-GAAP net income for
the quarter was $3.8 million, or
$0.06 per share on a diluted basis,
as compared to non-GAAP net income of $2.3
million, or $0.05 per share on
a diluted basis, reported for the second quarter of 2009. Non-GAAP
EBITDA for the second quarter was $5.0
million compared to $3.1
million in the prior year period. Cash flow from operations
for the quarter was a record $7.7
million compared to cash used in operating activities of
$2.8 million in the second quarter of
2009. The results for the quarter also include the previously
reported patent litigation settlement with Alma Lasers under which
Solta received a one-time payment of $2.25
million.
"We continue to be successful in expanding our customer base, as
well as building relationships with our existing customers," said
Stephen J. Fanning, Chairman,
President & CEO. "Year-over-year we generated
double digit revenue increases in new system sales for both
Thermage® and Fraxel® brands. In addition, we are gaining traction
in the marketplace with the Isolaz® brand through our recent
acquisition of Aesthera. We also completed the integration of
Aesthera into Solta's operations in the second quarter.
Finally, our record cash flow generated from operations of
$7.7 million reflects the operating
benefits of having three premier brands in the aesthetic device
industry, a strong IP position, and efficient management of
inventories and accounts receivable."
Financial Goals for 2010
The company provided the following financial goals for 2010
:
- Revenue for the full year 2010 of approximately $115 million which represents an increase of
approximately $16 million, or 16%,
from revenue for the full year 2009 of $98.8
million.
- Positive non-GAAP EBITDA for every quarter of 2010.
- 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.
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, acquisition related 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
The Company will also host a conference call and webcast today,
Tuesday, August 3, 2010, 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 877-941-1465 for domestic
participants and 480-629-9644 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 thirty days. This replay can be
accessed by dialing 800-406-7325 for domestic callers and
303-590-3030 for international callers. Callers will need to
use the Passcode 4331821#. To access the live webcast of the
call, go to Solta Medical's website at www.solta.com and click on
Investor Relations. An archived webcast will also be
available at www.solta.com.
About Solta Medical, Inc.
Solta Medical, Inc. is a global leader in the medical aesthetics
market providing innovative, safe, and effective solutions for
patients that enhance and expand the practice of medical aesthetics
for physicians. The company offers products to address a range of
skin issues under the industry's three premier brands: Thermage®,
Fraxel® and Isolaz®. 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. Isolaz is the only laser or light based system indicated for
the treatment of inflammatory acne, comedonal acne, pustular acne,
and mild-to-moderate inflammatory acne. Since 2002, approximately
one million Thermage, Fraxel and Isolaz procedures have been
performed in over 100 countries. For more information about Solta
Medical, call 1-877-782-2286 or log on to 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 expanding distribution of
Aesthera's Isolaz systems and 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 risk that physician
adoption of our systems does not grow, the risk that customers do
not continue to purchase treatment tips, the possibility that the
market for the sale of new products 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 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, 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
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
$30,080
|
|
$27,417
|
|
$56,015
|
|
$52,662
|
|
Cost of revenue
|
11,358
|
|
10,777
|
|
20,500
|
|
22,284
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
18,722
|
|
16,640
|
|
35,515
|
|
30,378
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Sales and marketing
|
11,429
|
|
9,038
|
|
21,317
|
|
19,513
|
|
Research and
development
|
4,276
|
|
3,949
|
|
8,395
|
|
7,865
|
|
General and
administrative
|
3,228
|
|
3,452
|
|
7,712
|
|
7,770
|
|
Legal settlement gain
|
(2,241)
|
|
—
|
|
(2,213)
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
16,692
|
|
16,439
|
|
35,211
|
|
35,148
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
2,030
|
|
201
|
|
304
|
|
(4,770)
|
|
Interest and other
income
|
15
|
|
41
|
|
22
|
|
302
|
|
Interest and other
expense
|
(289)
|
|
(104)
|
|
(439)
|
|
(151)
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes
|
1,756
|
|
138
|
|
(113)
|
|
(4,619)
|
|
Provision for income
taxes
|
247
|
|
53
|
|
311
|
|
71
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$1,509
|
|
$85
|
|
($424)
|
|
($4,690)
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share —
basic
|
$0.03
|
|
$0.00
|
|
($0.01)
|
|
($0.10)
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share —
diluted
|
$0.02
|
|
$0.00
|
|
($0.01)
|
|
($0.10)
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding used in calculating net
|
|
|
|
|
|
|
|
|
income (loss) per
share:
|
|
|
|
|
|
|
|
|
Basic
|
59,437,038
|
|
47,806,228
|
|
58,229,078
|
|
47,782,656
|
|
Diluted
|
61,530,085
|
|
47,920,161
|
|
58,229,078
|
|
47,782,656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
GAAP Gross margin
|
$18,722
|
|
$16,640
|
|
$35,515
|
|
$30,378
|
|
Non-GAAP adjustments to gross
margin:
|
|
|
|
|
|
|
|
|
Amortization and other non-cash
acquisition related charges
|
1,142
|
|
1,048
|
|
2,002
|
|
4,024
|
|
Stock-based
compensation
|
68
|
|
61
|
|
142
|
|
114
|
|
Non-GAAP gross margin
|
$19,932
|
|
$17,749
|
|
$37,659
|
|
$34,516
|
|
Non-GAAP gross margin as % of
sales
|
66%
|
|
65%
|
|
67%
|
|
66%
|
|
|
|
|
|
|
|
|
|
|
GAAP income (loss) from
operations
|
$2,030
|
|
$201
|
|
$304
|
|
($4,770)
|
|
Non-GAAP adjustments to net
income (loss) from operations:
|
|
|
|
|
|
|
|
|
Amortization and other non-cash
acquisition related charges
|
1,430
|
|
1,383
|
|
2,651
|
|
4,675
|
|
Severance expenses
|
55
|
|
—
|
|
55
|
|
118
|
|
Acquisition-related
expenses
|
139
|
|
—
|
|
963
|
|
—
|
|
Stock-based
compensation
|
618
|
|
864
|
|
1,320
|
|
1,653
|
|
Non-GAAP income from
operations
|
$4,272
|
|
$2,448
|
|
$5,293
|
|
$1,676
|
|
Depreciation expenses
|
742
|
|
670
|
|
1,398
|
|
1,395
|
|
Non-GAAP EBITDA
|
$5,014
|
|
$3,118
|
|
$6,691
|
|
$3,071
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
|
$1,509
|
|
$85
|
|
($424)
|
|
($4,690)
|
|
Non-GAAP adjustments to net
income (loss):
|
|
|
|
|
|
|
|
|
Amortization and other non-cash
acquisition related charges
|
1,430
|
|
1,383
|
|
2,651
|
|
4,675
|
|
Severance expenses
|
55
|
|
—
|
|
55
|
|
118
|
|
Acquisition-related
expenses
|
139
|
|
—
|
|
963
|
|
—
|
|
Stock-based
compensation
|
618
|
|
864
|
|
1,320
|
|
1,653
|
|
Non-GAAP net income
|
$3,751
|
|
$2,332
|
|
$4,565
|
|
$1,756
|
|
|
|
|
|
|
|
|
|
|
GAAP basic net income (loss) per
share
|
$0.03
|
|
$0.00
|
|
($0.01)
|
|
($0.10)
|
|
Non-GAAP adjustments to basic
income (loss) per share:
|
|
|
|
|
|
|
|
|
Amortization and other non-cash
acquisition related charges
|
$0.02
|
|
$0.03
|
|
$0.05
|
|
$0.10
|
|
Severance expenses
|
$0.00
|
|
—
|
|
$0.00
|
|
$0.00
|
|
Acquisition-related
expenses
|
$0.00
|
|
—
|
|
$0.02
|
|
—
|
|
Stock-based
compensation
|
$0.01
|
|
$0.02
|
|
$0.02
|
|
$0.04
|
|
Non-GAAP basic net income per
share
|
$0.06
|
|
$0.05
|
|
$0.08
|
|
$0.04
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted net income per
share
|
$0.06
|
|
$0.05
|
|
$0.08
|
|
$0.04
|
|
|
|
|
|
|
|
|
|
|
GAAP weighted average shares
outstanding used in calculating basic net income (loss) per
share
|
59,437,038
|
|
47,806,228
|
|
58,229,078
|
|
47,782,656
|
|
|
|
|
|
|
|
|
|
|
GAAP weighted average shares
outstanding used in calculating diluted net income (loss) per
share
|
61,530,085
|
|
47,920,161
|
|
58,229,078
|
|
47,782,656
|
|
Adjustments for dilutive
potential common stock
|
888,109
|
|
447,282
|
|
2,049,456
|
|
400,552
|
|
Weighted average shares
outstanding used in calculating non-GAAP diluted net income per
share
|
62,418,194
|
|
48,367,443
|
|
60,278,534
|
|
48,183,208
|
|
|
|
|
|
|
|
|
|
Solta Medical,
Inc.
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
(in thousands of dollars,
except share and per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
ASSETS
|
|
Current assets:
|
|
|
|
|
Cash and cash
equivalents
|
$36,978
|
|
$14,744
|
|
Accounts receivable
|
10,971
|
|
12,381
|
|
Inventories
|
13,448
|
|
14,117
|
|
Prepaid expenses and other
current assets
|
3,925
|
|
4,748
|
|
|
|
|
|
|
Total current assets
|
65,322
|
|
45,990
|
|
Property and equipment,
net
|
5,973
|
|
5,613
|
|
Purchased intangible assets,
net
|
38,180
|
|
36,799
|
|
Goodwill
|
48,710
|
|
47,289
|
|
Other assets
|
267
|
|
458
|
|
|
|
|
|
|
Total assets
|
$158,452
|
|
$136,149
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’
EQUITY
|
|
Liabilities:
|
|
|
|
|
Accounts payable
|
$6,596
|
|
$6,065
|
|
Accrued liabilities
|
12,191
|
|
10,968
|
|
Current portion of deferred
revenue
|
3,788
|
|
4,534
|
|
Short-term borrowings
|
9,480
|
|
9,432
|
|
Customer deposits
|
514
|
|
529
|
|
|
|
|
|
|
Total current
liabilities
|
32,569
|
|
31,528
|
|
Deferred revenue, net of current
portion
|
662
|
|
612
|
|
Term loan, net of current
portion
|
874
|
|
1,626
|
|
Non-current tax
liabilities
|
1,901
|
|
1,862
|
|
Other
liabilities
|
217
|
|
284
|
|
|
|
|
|
|
Total liabilities
|
36,223
|
|
35,912
|
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
Common stock, $0.001 par
value:
|
|
|
|
|
100,000,000 shares
authorized
|
|
|
|
|
59,514,034 and 48,077,028 shares
issued and outstanding at June 30, 2010 and December 31,
2009
|
60
|
|
48
|
|
Additional paid-in
capital
|
191,687
|
|
169,283
|
|
Accumulated deficit
|
(69,518)
|
|
(69,094)
|
|
|
|
|
|
|
Total stockholders’
equity
|
122,229
|
|
100,237
|
|
|
|
|
|
|
Total liabilities and
stockholders’ equity
|
$158,452
|
|
$136,149
|
|
|
|
|
|
SOURCE Solta Medical, Inc.
Copyright g. 3 PR Newswire