Solta Medical Issues Preliminary Revenue Outlook for the Third Quarter of 2009
September 28 2009 - 5:04PM
PR Newswire (US)
Company Expects to Enter Fourth Quarter with a Backlog of Orders
for Two New Product Lines HAYWARD, Calif., Sept. 28
/PRNewswire-FirstCall/ -- Solta Medical, Inc. (NASDAQ:SLTM), a
global leader in the medical aesthetics market, today announced
that the Company expects to report revenue for the third quarter
ending September 30, 2009 between $17.0 million to $19.0 million.
Revenue for the third quarter has been impacted due to recently
resolved production delays on the new Thermage CPT system launched
in August and the ongoing regulatory review process for the
Company's new Fraxel re:store DUAL system. As a result, the Company
has been limited in performing demonstrations of the two new
products to customers. "After their respective launches in August,
we have generated a very favorable response in previewing the
products to key customers, on the first few stops of our
illumiNATION tour, and from performing nearly 170 clinical
procedures at the Company's on-site clinic and at external sites,"
said Stephen J. Fanning, Chairman of the Board, President and CEO
of Solta Medical. "Delay in shipments of the Thermage CPT was due
to internal production delays that our team has recently resolved
and we expect shipments of this major advancement in our technology
to begin this week. Our new Fraxel re:store DUAL system continues
to progress through the regulatory review process and we are
hopeful that we will be able to begin responding to market demand
in the near future," Mr. Fanning concluded. For full year 2009,
Solta Medical expects to generate positive EBITDA, realize up to
$25 million in cost synergies as a result of the acquisition of
Reliant Technologies, Inc., and achieve a non-GAAP gross margin of
64% to 66% excluding non-cash amortization charges and non-cash
purchase price related adjustments. As a result of the revenue
shortfall in the third quarter, the Company no longer expects to
generate positive cash flow from operations for the last six months
of 2009. The Company plans to issue complete results for the third
quarter of 2009 during the first week of November 2009. At that
time, management will review and discuss the results for the
quarter, and provide an outlook for the remainder of the year. The
Company provided the preliminary forecast on the third quarter
revenue due to a presentation at the Maxim Group Growth Conference
on Tuesday, September 29. The Company's presentation is scheduled
for 10:30 a.m. Eastern Time and a webcast of the presentation may
be accessed at the Investor Relations section of the Company's
website 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 that 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® and Fraxel®.
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 in
nearly 80 countries. Thermage and Fraxel are the perfect complement
for any aesthetic practice. For more information about Solta
Medical, call 1-877-782-2286 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 the new products and initiatives and the Company's
financial goals for 2009. 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 development and release of new products and initiatives
does not proceed as anticipated, the market for the sale of these
new products and initiatives 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 confidence causing changes in consumer
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 Form 10-Q
for the quarter ended June 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. Due to the preliminary nature of the Company's results for
the third quarter, the Company is not able to provide a
reconciliation of its GAAP and non-GAAP gross margin outlook but
will include such reconciliation and related information as part of
its announcement in the first week of November. DATASOURCE: Solta
Medical, Inc. CONTACT: Jack Glenn, Chief Financial Officer of Solta
Medical, Inc., +1-510-786-6890; or Investors, Doug Sherk or Jenifer
Kirtland, , both of EVC Group, +1-415-896-6820, for Solta Medical,
Inc. Web Site: http://www.solta.com/
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