WESTFORD, Mass., July 24, 2012 /PRNewswire/ -- Cynosure, Inc. (NASDAQ: CYNO) today announced financial results for the three months ended June 30, 2012.
Revenues increased 50% to a record $39.6 million in the second quarter of 2012 from $26.3 million for the same period in 2011. Net income for the second quarter was $2.7 million, or $0.20 per diluted share, compared with a net loss of $1.3 million, or $0.10 per basic and diluted share, for the second quarter of 2011.
"We are pleased with the response of physicians and patients to our new minimally invasive Cellulaze Cellulite Laser Workstation, which helped to generate a 92 percent increase in our North American laser revenue contributing to the highest quarterly revenue in the Company's history," said Michael Davin, Cynosure's President and Chief Executive Officer. "In just six months since its U.S. launch, Cellulaze is now established as the premier aesthetic treatment for cellulite reduction, driven by the clinical success of the product. In addition to the workstation itself, we are seeing a growing revenue contribution from Cellulaze's disposable components: the single-use SideLaze3D fiber and the ThermaGuide intelligent delivery system. International growth continued, as laser revenue from the international markets increased 36 percent from the second quarter of last year, powered by demand for our overall product line including our MedLite® C6 and SmoothShapes® XV systems. We were especially pleased with our performance in key markets such as the Asia-Pacific region as well as our third-party distribution network."
Gross profit margin for the three months ended June 30, 2012 increased to 58.2%, compared with 57.2% for the same period of 2011. The year-over-year improvement is primarily the result of increased revenue contribution from North America, where average selling prices tend to be higher.
Total operating expenses for the second quarter of 2012 of $19.3 million were 49% of revenues, compared with $16.3 million, or 62% of revenues, for the second quarter of 2011. The $3 million change primarily reflects increased selling and marketing expenses related to increased sales, as well as increased research and development expenses associated with the ConBio acquisition and clinical research and the development of the Company's picosecond Alexandrite laser platform technology.
"Our strong financial results are a direct reflection of our ongoing success in leveraging our fixed cost base, even as we continue to invest in R&D," Davin said. "This marks our third consecutive GAAP profitable quarter and our 10th consecutive quarter of year-over-year revenue growth. Our focus remains on increasing sales and continuing to manage costs effectively to further enhance profitability. We continue to maintain a healthy capital position as we exited the quarter with approximately $80 million in cash, cash equivalents and marketable securities, up $6.3 million from year-end 2011."
Cynosure announced on July 18th that it received 510(k) clearance from the U.S. Food and Drug Administration to market a home-use over the counter device for the treatment of facial wrinkles. The device was developed in partnership with Unilever, a leading global consumer goods company. The device, which is indicated for the treatment of both periorbital and perioral wrinkles, is expected to be launched commercially by Unilever in 2013.
"Although we expect traditional seasonality to play a factor in our third-quarter results, we believe that we are on track for a strong second half," Davin said. "Cellulaze has enjoyed an enthusiastic response from both aesthetic plastic surgeons and their patients, and we expect that to continue. We recently achieved a significant regulatory milestone for our first home-use aesthetic laser product bringing us one step closer to launching the product into the market through our Unilever partnership. We believe that with our diverse product-mix and improved operating efficiency, Cynosure is well-positioned to extend our current momentum."
Second-Quarter Financial Results Conference Call
In conjunction with its second-quarter 2012 financial results, Cynosure will host a conference call for investors and analysts at 9:00 a.m. ET today. On the call, Michael Davin and Timothy Baker, the Company's Executive Vice President and Chief Financial Officer, will discuss Cynosure's financial results and provide a business overview. Those who wish to listen to the conference call webcast should visit the "Investor Relations" section of the Company's website at www.cynosure.com. The live call can also be accessed by dialing (877) 709-8155 or (201) 689-8881. If you are unable to listen to the live call, the webcast will be archived on the Company's website.
Cynosure, Inc. develops and markets aesthetic treatment systems that are used by physicians and other practitioners to perform non-invasive and minimally invasive procedures to remove hair, treat vascular and pigmented lesions, rejuvenate the skin, liquefy and remove unwanted fat through laser lipolysis, reduce the appearance of cellulite and treat Onychomycosis. Cynosure's products include a broad range of laser and other light-based energy sources, including Alexandrite, pulse dye, Q-switched, Nd:YAG and diode lasers, as well as intense pulsed light. Cynosure was founded in 1991. For corporate or product information, contact Cynosure at 800-886-2966, or visit www.cynosure.com.