HAYWARD, Calif., May 3, 2011 /PRNewswire/ -- Solta Medical, Inc.
(NASDAQ: SLTM), a global leader in the medical aesthetics market,
today announced results for the first quarter ended March 31, 2011. Revenue for the first quarter was
$26.5 million, a 2% increase as
compared to the first quarter of 2010. Revenue from the sales of
treatment tips and consumables grew 18% as compared to the first
quarter of 2010, and accounted for 63% of total revenue. As a
result of the strong treatment tip and consumable revenue growth,
gross margin as a percentage of revenue on both a GAAP and non-GAAP
basis rose year-over-year by over 350 basis points to 68% and 72%,
respectively.
GAAP net loss for the quarter was $1.0
million as compared to GAAP net loss of $1.9 million reported for the first quarter of
2010. Non-GAAP net income for the quarter was $0.7 million or $0.01 per diluted share as compared to non-GAAP
net income of $0.8 million, or
$0.01 per diluted share for same
period last year.
Solta Medical's GAAP results for the first quarter include
non-cash amortization and other acquisition related charges of
$1.1 million and non-cash stock based
compensation charges of $0.7 million.
The Company provides additional non-GAAP financial measures that
exclude these charges and expenses. A reconciliation of GAAP to
non-GAAP results is provided in the tables included in this
release.
"The strength of our unique recurring revenue business model was
evident again in our first quarter performance," said Stephen J. Fanning, Chairman, President &
CEO. "Our Thermage®, Fraxel®, and Isolaz® brands continue to
be the aesthetic procedures that consumers request by name and the
procedures physicians perform by choice. At the same time,
our first quarter performance was impacted by the earthquake and
resulting crises in Japan."
"During the second quarter, we plan to begin initial shipments
outside North America of our
innovative, new Clear + Brilliant product as well as expand the
distribution of our personal care acne device, CLARO®," added Mr.
Fanning.
Financial Outlook for 2011
The company reiterated its financial outlook for the full year
2011 as follows:
- Revenue for the full year 2011 in the range of $118 million to $123 million, representing an
increase 6% to 11% from 2010 revenue. The company expects
year-over-year revenue growth of low single digits for the first
six months of 2011 due to events in Japan, to be followed by year-over-year
revenue growth in the range of 10% to 15% for the last half of
2011. The higher rate of revenue growth in the second half of the
year is projected to be driven by the introduction and expanded
distribution of new products.
- Non-GAAP gross margin in the range of 66% to 68% for the full
year 2011. Non-GAAP gross margin excludes non-cash amortization
charges, non-cash stock based compensation charges, and acquisition
related adjustments.
- Positive non-GAAP EBITDA for every quarter and for the
full-year 2011. Non-GAAP EBITDA excludes non-cash amortization
charges, non-cash stock based compensation charges, and acquisition
related adjustments. For the first quarter non-GAAP EBITDA totaled
$1.5 million.
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. 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 the measures management 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, May 3, 2011, 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 877-941-0150 for domestic
participants and 480-629-9670 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. Callers will need to use the Passcode
4434307#. 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 four premier brands: Thermage®,
Fraxel®, Isolaz®, and CLARO®. 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 first laser or light based system
indicated for the treatment of inflammatory acne, comedonal acne,
pustular acne, and mild-to-moderate inflammatory acne. CLARO is a
personal care acne system that is the first FDA cleared
over-the-counter IPL device that uses a powerful combination of
both heat and light to clear skin quickly and naturally. Since
2002, over 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 our financial outlook for
2011. 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, 2010, 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,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
Net revenue
|
$26,451
|
|
$25,935
|
|
Cost of revenue
|
8,390
|
|
9,142
|
|
|
|
|
|
|
Gross margin
|
18,061
|
|
16,793
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Sales and
marketing
|
11,818
|
|
9,888
|
|
Research and
development
|
3,565
|
|
4,119
|
|
General and
administrative
|
3,726
|
|
4,512
|
|
|
|
|
|
|
Total operating
expenses
|
19,109
|
|
18,519
|
|
|
|
|
|
|
Loss from
operations
|
(1,048)
|
|
(1,726)
|
|
Interest income
|
14
|
|
6
|
|
Interest
expense
|
(53)
|
|
(60)
|
|
Other income and expense,
net
|
127
|
|
(89)
|
|
|
|
|
|
|
Loss before income
taxes
|
(960)
|
|
(1,869)
|
|
Provision for income
taxes
|
65
|
|
64
|
|
|
|
|
|
|
Net loss
|
($1,025)
|
|
($1,933)
|
|
|
|
|
|
|
Net loss per share — basic
and diluted
|
($0.02)
|
|
($0.03)
|
|
|
|
|
|
|
Weighted average shares
outstanding used in calculating net
|
|
|
|
|
loss per share:
|
|
|
|
|
Basic and
diluted
|
59,900,703
|
|
57,007,696
|
|
|
|
|
|
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
|
|
|
March
31,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
GAAP Gross margin
|
$18,061
|
|
$16,793
|
|
GAAP gross margin as % of
sales
|
68%
|
|
65%
|
|
Non-GAAP adjustments to gross
margin:
|
|
|
|
|
GAAP Gross margin
|
$18,061
|
|
$16,793
|
|
Amortization and other non-cash
acquisition related charges
|
845
|
|
860
|
|
Stock-based
compensation
|
69
|
|
74
|
|
Non-GAAP gross margin
|
$18,975
|
|
$17,727
|
|
Non-GAAP gross margin as % of
sales
|
72%
|
|
68%
|
|
|
|
|
|
|
GAAP loss from
operations
|
($1,048)
|
|
($1,726)
|
|
Non-GAAP adjustments to net loss
from operations:
|
|
|
|
|
Amortization and other non-cash
acquisition related charges
|
1,074
|
|
1,221
|
|
Acquisition-related
expenses
|
-
|
|
824
|
|
Stock-based
compensation
|
669
|
|
702
|
|
Non-GAAP income from
operations
|
$695
|
|
$1,021
|
|
Depreciation expenses
|
782
|
|
656
|
|
Non-GAAP EBITDA
|
$1,477
|
|
$1,677
|
|
|
|
|
|
|
GAAP net loss
|
($1,025)
|
|
($1,933)
|
|
Non-GAAP adjustments to net
loss:
|
|
|
|
|
Amortization and other non-cash
acquisition related charges
|
1,074
|
|
1,221
|
|
Acquisition-related
expenses
|
-
|
|
824
|
|
Stock-based
compensation
|
669
|
|
702
|
|
Non-GAAP net income
|
$718
|
|
$814
|
|
|
|
|
|
|
GAAP basic net loss per
share
|
($0.02)
|
|
($0.03)
|
|
Non-GAAP adjustments to basic
loss per share:
|
|
|
|
|
Amortization and other non-cash
acquisition related charges
|
$0.02
|
|
$0.02
|
|
Acquisition-related
expenses
|
-
|
|
$0.01
|
|
Stock-based
compensation
|
$0.01
|
|
$0.01
|
|
Non-GAAP basic net income per
share
|
$0.01
|
|
$0.01
|
|
|
|
|
|
|
Non-GAAP diluted net income per
share
|
$0.01
|
|
$0.01
|
|
|
|
|
|
|
GAAP weighted average shares
outstanding used in calculating basic
|
|
|
|
|
net loss per
share
|
59,900,703
|
|
57,007,696
|
|
|
|
|
|
|
GAAP weighted average shares
outstanding used in calculating diluted
|
|
|
|
|
net loss per
share
|
59,900,703
|
|
57,007,696
|
|
Adjustments for dilutive
potential common stock
|
4,282,730
|
|
1,407,199
|
|
Weighted average shares
outstanding used in calculating non-GAAP
|
|
|
|
|
diluted net income per
share
|
64,183,433
|
|
58,414,895
|
|
|
|
|
|
Solta
Medical, Inc.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(in
thousands of dollars, except share and per share
data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
ASSETS
|
|
Current assets:
|
|
|
|
|
Cash and cash
equivalents
|
$34,904
|
|
$36,898
|
|
Accounts
receivable
|
12,330
|
|
12,426
|
|
Inventories
|
12,050
|
|
10,549
|
|
Prepaid expenses and other
current assets
|
6,968
|
|
5,906
|
|
|
|
|
|
|
Total current
assets
|
66,252
|
|
65,779
|
|
Property and equipment,
net
|
5,839
|
|
6,227
|
|
Purchased intangible
assets, net
|
35,743
|
|
36,809
|
|
Goodwill
|
49,481
|
|
49,481
|
|
Other assets
|
242
|
|
249
|
|
|
|
|
|
|
Total assets
|
$157,557
|
|
$158,545
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|
Liabilities:
|
|
|
|
|
Accounts
payable
|
$5,766
|
|
$6,358
|
|
Accrued
liabilities
|
10,997
|
|
12,030
|
|
Current portion of
deferred revenue
|
3,816
|
|
3,428
|
|
Short-term
borrowings
|
9,254
|
|
9,528
|
|
Customer
deposits
|
577
|
|
441
|
|
|
|
|
|
|
Total current
liabilities
|
30,410
|
|
31,785
|
|
Deferred revenue, net of
current portion
|
911
|
|
969
|
|
Term loan, net of current
portion
|
-
|
|
98
|
|
Non-current tax
liabilities
|
3,385
|
|
3,372
|
|
Other
liabilities
|
157
|
|
177
|
|
|
|
|
|
|
Total
liabilities
|
34,863
|
|
36,401
|
|
|
|
|
|
|
Stockholders’
equity:
|
|
|
|
|
Common stock, $0.001 par
value:
|
|
|
|
|
100,000,000 shares
authorized
|
|
|
|
|
60,470,148 and 59,728,410
shares issued and outstanding at March 31, 2011 and December 31,
2010
|
60
|
|
60
|
|
Additional paid-in
capital
|
194,773
|
|
193,198
|
|
Accumulated
deficit
|
(72,139)
|
|
(71,114)
|
|
|
|
|
|
|
Total stockholders’
equity
|
122,694
|
|
122,144
|
|
|
|
|
|
|
Total liabilities and
stockholders’ equity
|
$157,557
|
|
$158,545
|
|
|
|
|
|
SOURCE Solta Medical, Inc.