HAYWARD, Calif., May 1, 2012 /PRNewswire/ -- Solta Medical,
Inc. (NASDAQ: SLTM), a global leader in the medical aesthetics
market, today announced results for the first quarter ended
March 31, 2012. Revenue for the first
quarter was $32.5 million, an
increase of $6.0 million, or 23%, as
compared to the first quarter of 2011. Revenue from Liposonix, the
Company's non-invasive fat reduction system, was $7.6 million, which was generated from sales of
78 new systems, 11 system upgrades, and associated consumables. As
previously announced, the Company launched the second generation
Liposonix system in January 2012. In
addition, product revenue from treatment tips and consumables grew
sequentially from the fourth quarter of 2011 by 6% and accounted
for 52% of total revenue.
"The acceptance and feedback from physicians and their patients
on the second generation Liposonix fat reduction procedure
continues to be very positive. In fact, 20 of the key physician
opinion leaders with which we placed Liposonix systems for their
evaluation and feedback in December have purchased the system,"
said Stephen J. Fanning, Chairman,
President & CEO. "In the first quarter, much of our sales
and marketing efforts were devoted to the launch of Liposonix,
especially in North America and we
achieved a stronger than expected start. Going forward we are
enhancing our focus to promote sales growth across all our product
lines while we build on the market momentum for Liposonix. In
addition, we look forward to expanding our Liposonix
commercialization efforts in markets outside of North America over the course of the year,
pending additional regulatory clearances."
GAAP net loss for the quarter was $8.8
million as compared to GAAP net loss of $1.0 million reported for the first quarter of
2011. Non-GAAP net loss for the quarter was $0.8 million or $0.01 per share as compared to non-GAAP net
income of $0.7 million, or
$0.01 per diluted share for same
period last year.
Solta Medical's GAAP results for the first quarter include a
$4.7 million charge for a fair value
reassessment of the expected earn out payments associated with the
acquisition of Liposonix, $2.1
million of non-cash amortization and other acquisition
related charges, and $1.1 milllion of
non-cash stock based compensation charges. The Company provides
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.
Financial Outlook for 2012
The company updated its financial outlook for 2012 as
follows:
- Revenue for the full year 2012 is now expected to be in the
range of $140 million to $143 million
representing year-over-year revenue growth of 20% to 23% driven by
sales of the second generation Liposonix system.
- Non-GAAP gross margin is estimated to be in the range of 63% to
66% for the full year 2012. Non-GAAP gross margin excludes non-cash
amortization charges, non-cash stock based compensation charges,
severance costs, and acquisition related adjustments. Non-GAAP
gross margin for the first quarter was approximately 68%.
- Positive non-GAAP EBITDA for every quarter and for the
full-year 2012. Non-GAAP EBITDA excludes non-cash amortization
charges, non-cash stock based compensation charges, severance
costs, and acquisition related adjustments. Positive non-GAAP
EBITDA for the first quarter was $550,000.
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 1, 2012, 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 877-941-6010 for domestic
participants and 480-629-9770 for international participants.
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 six aesthetic energy devices to
address a range of issues, including skin resurfacing and
rejuvenation with Fraxel® and Clear + Brilliant(TM), body
contouring and skin tightening with Liposonix® and Thermage® and
acne reduction with Isolaz® and CLARO(TM). As the innovator and
leader in fractional laser technology, Fraxel delivers minimally
invasive clinical solutions to resurface aging and sun damaged
skin. Using similar fractional laser technology, Clear + Brilliant
is a unique, cost-effective treatment to prevent and improve the
early signs of photoaging. For body contouring, Liposonix is a
non-surgical treatment to reduce waist circumference with advanced
high-intensity focused ultrasound (HIFU) technology to permanently
destroy targeted fat beneath the skin. Thermage is an innovative,
non-invasive radiofrequency procedure for tightening and contouring
skin. Isolaz was 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. More than two million procedures
have been performed with Solta Medical's portfolio of products
around the world. 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
2012. 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, 2011, 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.
Web Site: http://www.Solta.com
Solta
Medical, Inc.
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(in
thousands of dollars, except share and per share
data)
|
(unaudited)
|
|
Three
Months Ended
|
|
|
March
31,
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
Net
revenue
|
$32,454
|
|
$26,451
|
|
Cost of
revenue
|
12,211
|
|
8,390
|
|
|
|
|
|
|
Gross
margin
|
20,243
|
|
18,061
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Sales and
marketing
|
13,946
|
|
11,818
|
|
Research
and development
|
5,305
|
|
3,565
|
|
General
and administrative
|
4,660
|
|
3,726
|
|
Remeasurement of contingent consideration
liability
|
4,700
|
|
—
|
|
|
|
|
|
|
Total
operating expenses
|
28,611
|
|
19,109
|
|
|
|
|
|
|
Loss from
operations
|
(8,368)
|
|
(1,048)
|
|
Interest
income
|
3
|
|
14
|
|
Interest
expense
|
(351)
|
|
(53)
|
|
Other
income and expense, net
|
(26)
|
|
127
|
|
|
|
|
|
|
Loss
before income taxes
|
(8,742)
|
|
(960)
|
|
Provision
for income taxes
|
57
|
|
65
|
|
|
|
|
|
|
Net
loss
|
($8,799)
|
|
($1,025)
|
|
|
|
|
|
|
Net loss
per share — basic and diluted
|
($0.14)
|
|
($0.02)
|
|
|
|
|
|
|
Weighted
average shares outstanding used in calculating net loss
|
|
|
|
|
per
share:
|
|
|
|
|
Basic and
diluted
|
61,352,524
|
|
59,900,703
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
GAAP Gross
margin
|
$20,243
|
|
$18,061
|
|
GAAP gross
margin as % of sales
|
62%
|
|
68%
|
|
Non-GAAP
adjustments to gross margin:
|
|
|
|
|
GAAP Gross
margin
|
$20,243
|
|
$18,061
|
|
Amortization and other non-cash acquisition related
charges
|
1,658
|
|
845
|
|
Stock-based compensation
|
112
|
|
69
|
|
Non-GAAP
gross margin
|
$22,013
|
|
$18,975
|
|
Non-GAAP
gross margin as % of sales
|
68%
|
|
72%
|
|
|
|
|
|
|
GAAP loss
from operations
|
($8,368)
|
|
($1,048)
|
|
Non-GAAP
adjustments to net loss from operations:
|
|
|
|
|
Amortization and other non-cash acquisition related
charges
|
2,017
|
|
1074
|
|
Remeasurement of contingent consideration
liability
|
4,700
|
|
—
|
|
Acquisition-related expenses
|
93
|
|
—
|
|
Severance
expenses
|
30
|
|
—
|
|
Stock-based compensation
|
1,140
|
|
669
|
|
Non-GAAP
income (loss) from operations
|
($388)
|
|
$695
|
|
Depreciation expenses
|
938
|
|
782
|
|
Non-GAAP
EBITDA
|
$550
|
|
$1,477
|
|
|
|
|
|
|
GAAP net
loss
|
($8,799)
|
|
($1,025)
|
|
Non-GAAP
adjustments to net loss:
|
|
|
|
|
Amortization and other non-cash acquisition related
charges
|
2,017
|
|
1,074
|
|
Remeasurement of contingent consideration
liability
|
4,700
|
|
—
|
|
Acquisition-related expenses
|
93
|
|
—
|
|
Severance
expenses
|
30
|
|
—
|
|
Stock-based compensation
|
1,140
|
|
669
|
|
Non-GAAP
net income (loss)
|
($819)
|
|
$718
|
|
|
|
|
|
|
GAAP basic
net loss per share
|
($0.14)
|
|
($0.02)
|
|
Non-GAAP
adjustments to basic loss per share:
|
|
|
|
|
Amortization and other non-cash acquisition related
charges
|
$0.03
|
|
$0.02
|
|
Remeasurement of contingent consideration
liability
|
$0.08
|
|
$0.00
|
|
Acquisition-related expenses
|
$0.00
|
|
$0.00
|
|
Severance
expenses
|
$0.00
|
|
$0.00
|
|
Stock-based compensation
|
$0.02
|
|
$0.01
|
|
Non-GAAP
basic net income (loss) per share
|
($0.01)
|
|
$0.01
|
|
|
|
|
|
|
Non-GAAP
diluted net income (loss) per share
|
($0.01)
|
|
$0.01
|
|
|
|
|
|
|
GAAP
weighted average shares outstanding used in calculating basic net
loss per share
|
61,352,524
|
|
59,900,703
|
|
|
|
|
|
|
GAAP
weighted average shares outstanding used in calculating diluted net
loss per share
|
61,352,524
|
|
59,900,703
|
|
Adjustments for dilutive potential common
stock
|
-
|
|
4,282,730
|
|
Weighted
average shares outstanding used in calculating non-GAAP diluted net
income (loss) per share
|
61,352,524
|
|
64,183,433
|
|
|
|
|
|
|
Solta
Medical, Inc.
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
(in
thousands of dollars, except share and per share
data)
|
(unaudited)
|
|
|
|
|
|
March
31,
|
|
December 31,
|
|
2012
|
|
2011
|
|
|
|
|
ASSETS
|
Current
assets:
|
|
|
|
Cash and
cash equivalents
|
$11,785
|
|
$17,417
|
Accounts
receivable
|
14,299
|
|
13,282
|
Inventories
|
17,354
|
|
16,524
|
Prepaid
expenses and other current assets
|
8,137
|
|
8,626
|
|
|
|
|
Total
current assets
|
51,575
|
|
55,849
|
Property
and equipment, net
|
6,767
|
|
6,818
|
Purchased
intangible assets, net
|
47,616
|
|
49,352
|
Goodwill
|
96,620
|
|
96,620
|
Other
assets
|
659
|
|
659
|
|
|
|
|
Total
assets
|
$203,237
|
|
$209,298
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
Liabilities:
|
|
|
|
Accounts
payable
|
$6,535
|
|
$5,767
|
Accrued
liabilities
|
15,176
|
|
16,126
|
Current
portion of contingent consideration liability
|
16,000
|
|
—
|
Current
portion of deferred revenue
|
4,233
|
|
4,521
|
Short-term
borrowings
|
6,103
|
|
7,441
|
Customer
deposits
|
1,182
|
|
610
|
|
|
|
|
Total
current liabilities
|
49,229
|
|
34,465
|
Deferred
revenue, net of current portion
|
721
|
|
824
|
Term loan,
net of current portion
|
15,473
|
|
16,959
|
Non-current tax liabilities
|
2,986
|
|
2,975
|
Contingent
consideration liability
|
16,500
|
|
27,800
|
Other
liabilities
|
122
|
|
92
|
|
|
|
|
Total
liabilities
|
85,031
|
|
83,115
|
|
|
|
|
Stockholders' equity:
|
|
|
|
Common
stock, $0.001 par value:
|
|
|
|
100,000,000 shares authorized
|
|
|
|
61,541,881,and 61,130,740 shares issued and
outstanding at March 31, 2012 and December 31, 2011
|
62
|
|
61
|
Additional
paid-in capital
|
199,386
|
|
198,565
|
Accumulated deficit
|
(81,242)
|
|
(72,443)
|
|
|
|
|
Total
stockholders' equity
|
118,206
|
|
126,183
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$203,237
|
|
$209,298
|
|
|
|
|
|
|
|
|
SOURCE Solta Medical, Inc.