Raises 2013 Financial
Guidance
- Total revenue of $29.5 million, up 64% year-over year
and 12% sequentially
- System revenue of $15.9 million, up 87% year-over-year
and 22% sequentially
- Consumable revenue of $13.6 million, up 44%
year-over-year and 2% sequentially
- 181 systems shipped, bringing total system installed
base to 1,912
ZELTIQ® (Nasdaq:ZLTQ), a medical technology company focused on
developing and commercializing products utilizing its proprietary
controlled-cooling technology platform, today announced financial
results for the third quarter 2013.
Mark Foley, President and Chief Executive Officer, said, "Our
outstanding Q3 performance resulted from a growing leadership
position in the market along with the continued execution of our
sales team in the large and underpenetrated non-invasive, fat
reduction market. We had our second highest system placement
quarter to-date and our highest system placement quarter, ever, in
our North America market. Our continued efforts to drive
utilization were further evidenced in two new practice partnering
initiatives that we launched in the quarter – CoolSculpting
University and CoolConnect™. The ZELTIQ Training Center, which is
the home of our CoolSculpting University training program, and
CoolConnect™, which is our connectivity and data management
product, have both received very positive reviews from our
customers. Our focus on outstanding patient outcomes continues to
gain momentum through our Treatment to Transformation clinical
protocol and we are very pleased with the progress we are making on
our various programs."
Mr. Foley continued, "Based on our strong third quarter results
and year-to-date performance, we have increased confidence in our
business and have raised our full year revenue guidance to
approximately 40% year-over-year growth, up from 20%. As we look
ahead, we are excited about the long-term market opportunity and
believe we have the right people, technology and tools in place for
continued revenue growth."
Third Quarter Financial Review
Total net revenue for the third quarter 2013 was $29.5 million,
consisting of $15.9 million of system revenue and $13.6 million of
consumable revenue. This compares to total net revenue of $17.9
million for the third quarter 2012, consisting of $8.5 million of
system revenue and $9.4 million of consumable revenue. Second
quarter 2013 total net revenue was $26.3 million, consisting of
$13.0 million of system revenue and $13.4 million of consumable
revenue. Cycles shipped increased 48% to 114,768 for the third
quarter 2013, compared to 77,500 for the third quarter 2012, and up
2% sequentially compared to the 112,794 cycles shipped for the
second quarter 2013.
Gross profit was $21.2 million, or 72% of revenue, for the third
quarter 2013, compared to gross profit of $12.0 million, or 67% of
revenue, for the third quarter 2012. Second quarter 2013 gross
profit was $18.5 million, or 70% of revenue.
Operating expenses for the third quarter 2013 were $24.1
million, compared to $17.1 million for the third quarter 2012 and
$22.1 million for the second quarter 2013.
Net loss for the third quarter 2013 was $2.8 million, compared
to $5.2 million for the third quarter 2012 and $3.6 million for the
second quarter 2013. Net loss for the third quarter 2013 was
$0.08 per share, compared to a net loss of $0.15 per share for the
third quarter 2012, and a net loss of $0.10 per share for the
second quarter 2013. Weighted average diluted shares
outstanding for the third quarter 2013, third quarter 2012, and
second quarter 2013 was 36.2 million, 35.1 million and 36.0
million, respectively.
Cash and cash equivalents, short-term investments, and long-term
investments were $55.9 million as of September 30, 2013 compared to
$52.5 million as of June 30, 2013.
Full Year 2013 Financial Guidance
ZELTIQ is updating its previously stated financial guidance for
the full year 2013:
- Revenue growth of approximately 40%; up from prior guidance of
20%
- Consumable revenue between 45% and 50% of total revenue;
unchanged from prior guidance
- Gross margin of approximately 69%; up from prior guidance of
67%
- Operating expenses of approximately 90% of total revenue; down
from prior guidance of approximately 96%
- Weighted average basic shares of common stock outstanding of
approximately 36 million; unchanged from prior guidance
Conference Call
ZELTIQ will hold a conference call on Wednesday, October 30,
2013, at 4:30 p.m. ET to discuss the results. The dial-in numbers
are (877) 280-7291 for domestic callers and (707) 287-9361 for
international callers. A live webcast of the conference call will
be available online from the investor relations page of the
company's corporate website at www.coolsculpting.com.
After the live webcast, the call will remain available on
ZELTIQ's website, www.coolsculpting.com, until ZELTIQ releases its
fourth quarter 2013 financial results. In addition, a telephonic
replay of the call will be available until November 5, 2013. The
replay dial-in numbers are (855) 859-2056 for domestic callers and
(404) 537-3406 for international callers. Please use the
replay conference ID number 84243689.
About ZELTIQ®
ZELTIQ is a medical technology company focused on developing and
commercializing products utilizing its proprietary
controlled-cooling technology platform. ZELTIQ's first commercial
product, the CoolSculpting System, is designed to selectively
reduce stubborn fat that may not respond to diet or exercise.
CoolSculpting is based on the scientific principle that fat cells
are more sensitive to cold than the overlying skin and surrounding
tissues. It utilizes patented technology of precisely controlled
cooling to reduce the temperature of fat cells in the treated area,
which is intended to cause fat cell elimination through a natural
biological process known as apoptosis. ZELTIQ developed
CoolSculpting to safely, noticeably, and measurably reduce the fat
layer.
Forward-Looking Statements
The statements made in this press release regarding the
information under the caption "Full Year 2013 Financial Guidance"
and related statements in Mr. Foley's quote are forward-looking
statements. You should not place undue reliance on these
forward-looking statements because they involve known and unknown
risks, uncertainties and other factors that are, in some cases,
beyond ZELTIQ's control and that could materially affect the
company's actual business operations and financial performance and
condition. Factors that could materially affect ZELTIQ's business
operations and financial performance and condition include, but are
not limited to: the recent additions to the commercial sales team
may require more time than ZELTIQ expects to integrate these
employees into the company; less than anticipated growth in the
number of Physicians electing to purchase CoolSculpting Systems;
patient demand for CoolSculpting procedures may be lower than
ZELTIQ expects; product or procedure announcements by competitors
may decrease demand for CoolSculpting procedures; ZELTIQ may
incorrectly estimate or control its future expenditures; ZELTIQ's
sales and marketing plans may fail to increase sales as ZELTIQ
expects; as well as those other risks and uncertainties set forth
in ZELTIQ's Quarterly Report on Form 10-Q for the fiscal quarter
ended June 30, 2013, filed with the SEC on August 01, 2013. These
forward-looking statements speak only as of the date of this press
release. ZELTIQ expressly disclaims any obligation to update
information contained in these forward-looking statements whether
as a result of new information, future events or otherwise.
ZELTIQ Aesthetics,
Inc. |
Condensed Consolidated
Statements of Operations |
(Unaudited) |
(In thousands, except
share and per share data) |
|
|
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
September
30, |
September
30, |
|
2013 |
2012 |
2013 |
2012 |
Revenue |
$ 29,465 |
$ 17,928 |
$ 75,785 |
$ 57,597 |
Cost of revenue |
8,236 |
5,953 |
23,462 |
19,096 |
Gross profit |
21,229 |
11,975 |
52,323 |
38,501 |
Operating expenses: |
|
|
|
|
Research and development |
4,257 |
2,450 |
11,904 |
9,217 |
Sales and marketing |
15,487 |
10,881 |
42,654 |
39,632 |
General and administrative |
4,374 |
3,760 |
11,808 |
13,169 |
Total operating expenses |
24,118 |
17,091 |
66,366 |
62,018 |
Loss from operations |
(2,889) |
(5,116) |
(14,043) |
(23,517) |
Interest income, net |
17 |
11 |
60 |
100 |
Other income (expense), net |
90 |
(44) |
162 |
(108) |
Loss before provision for income taxes |
(2,782) |
(5,149) |
(13,821) |
(23,525) |
Provision for income taxes |
29 |
33 |
79 |
103 |
Net loss |
$ (2,811) |
$ (5,182) |
$ (13,900) |
$ (23,628) |
Net loss per share, basic and diluted |
$ (0.08) |
$ (0.15) |
$ (0.39) |
$ (0.69) |
Weighted average shares of common stock
outstanding used in computing net loss per share, basic and
diluted |
36,206,008 |
35,068,076 |
36,048,303 |
34,444,680 |
|
ZELTIQ Aesthetics,
Inc. |
Condensed Consolidated
Balance Sheets |
(Unaudited) |
(In
thousands) |
|
|
|
|
September 30, |
December 31, |
|
2013 |
2012 |
ASSETS |
|
|
CURRENT ASSETS: |
|
|
Cash and cash equivalents |
$ 24,219 |
$ 22,876 |
Short-term investments |
18,980 |
22,563 |
Accounts receivable, net |
6,638 |
7,133 |
Inventory |
8,418 |
10,871 |
Prepaid expenses and other current
assets |
3,943 |
3,600 |
Total current assets |
62,198 |
67,043 |
Long-term investments |
12,666 |
13,141 |
Restricted cash |
329 |
469 |
Property and equipment, net |
2,086 |
2,336 |
Intangible asset, net |
6,656 |
7,181 |
Other assets |
86 |
99 |
Total assets |
$ 84,021 |
$ 90,269 |
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
CURRENT LIABILITIES: |
|
|
Accounts payable |
$ 2,588 |
$ 4,976 |
Accrued liabilities |
16,371 |
11,076 |
Deferred revenue |
1,250 |
1,401 |
Total current liabilities |
20,209 |
17,453 |
Other non-current liabilities |
245 |
236 |
Total liabilities |
$ 20,454 |
$ 17,689 |
|
|
|
STOCKHOLDERS' EQUITY: |
|
|
Total stockholders' equity |
63,567 |
72,580 |
Total liabilities and stockholders'
equity |
$ 84,021 |
$ 90,269 |
CONTACT: Investor Relations:
Patrick F. Williams
ZELTIQ, Senior Vice President and CFO
925-474-2500
Nick Laudico
The Ruth Group
646-536-7030
nlaudico@theruthgroup.com
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