WESTFORD, Mass., May 5, 2015 /PRNewswire/ -- Cynosure, Inc. (Nasdaq: CYNO), which designs, manufactures and markets medical devices for aesthetic procedures and precision surgical applications worldwide, today reported financial results for the three months ended March 31, 2015.
First-Quarter Highlights:
- North America product revenue growth of 45 percent
- Non-GAAP earnings of $0.15 per share; GAAP earnings break-even
- Cash and investments of $126.6 million at March 31, 2015
“Cynosure delivered 21 percent year-over-year top-line growth in the first quarter, reflecting higher laser revenue in North America, which was up 45 percent from the same period last year,” said Michael Davin, Cynosure’s Chairman and Chief Executive Officer. “While we believe our international performance was temporarily affected by external factors including economic weakness in Europe and unfavorable currency movements, these were more than offset by our strong domestic results. We also continue to advance the development of new products that expand and diversify our business.
“We are expanding our leadership in the non-invasive aesthetic market with the development of new technology, including our new non-invasive body contouring product, which is designed to eliminate fat by disrupting adipose tissue,” Davin said. “Our 510(k) for this device was submitted to the U.S. Food and Drug Administration in January, and pending regulatory clearance we are targeting launch later in the second half of 2015. Our 510(k) submission is supported by clinical data in multicenter studies from approximately 100 subjects. Researchers saw a statistically significant reduction in adipose layer thickness six and 12 weeks post-treatment. In a separate pilot clinical study, our hyperthermic lipolysis technique compared favorably with cryolipolysis in average fat reduction at three and six months post-treatment.
“We’ve also made good progress in building the marketing foundation for MonaLisa Touch, our first product specifically for women’s health and wellness,” Davin said. “After securing exclusive North American distribution rights to the product, we recently completed hiring 13 specialty sales reps to market MonaLisa Touch to physicians. Through a physician marketing strategy that includes trade shows, workshops and webinars, we are driving awareness about the availability of the MonaLisa Touch treatment and generating interest in the product from a number of key opinion leaders. The initial response in the marketplace has been positive.”
First-Quarter 2015 Financial Results
Revenue was $74.9 million, an increase of 21 percent from the prior-year period. Product revenue in North America grew 45 percent to $31.3 million. International product revenue was $25.2 million, down 10 percent year-over-year due in part to a $1.7 million decrease based on unfavorable foreign currency exchange rates. Revenue from parts, service, disposables and royalty revenues increased 50 percent to $18.4 million, which included the final $3 million payment due under a previously disclosed settlement agreement with Tria Beauty.
Operating income was $2.1 million, up 53 percent year-over-year. On a non-GAAP basis, excluding acquisition costs and amortization of intangibles, income from operations was $5.1 million, up 4 percent from the first quarter of 2014.
On a GAAP basis, the Company reported break-even net income for the first quarter of 2015, or $0.00 per share, compared with net income of $0.7 million, or $0.03 per diluted share, for the prior-year period. GAAP earnings included a $1.7 million unrealized loss on foreign currency and a $0.1 million unrealized gain on foreign currency for the 2015 and 2014 periods, respectively.
Excluding acquisition costs, amortization of intangibles and unrealized foreign exchange impact, non-GAAP net income for the first quarter of 2015 was $3.3 million, or $0.15 per diluted share, compared with $3.2 million, or $0.14 per diluted share, for the first quarter of 2014, primarily reflecting increased investments in sales and marketing associated with new products and the hiring of a specialty sales force for MonaLisa Touch in the first quarter of this year.
Cash and investments at March 31, 2015 was $126.6 million, compared with $133.4 million at year-end 2014.
Business Outlook
“Our commitment to invest in innovation, develop unique new products and capitalize on new market opportunities continues to produce positive results for Cynosure,” Davin said. “With the rollout of our new 532 nm laser delivery system for PicoSure® announced in February, the momentum of MonaLisa Touch and, pending regulatory clearance, the anticipated launch of our new non-invasive technology for fat removal, we look forward to a strong and successful year.”
First-Quarter Financial Results Conference Call
In conjunction with the announcement of its first-quarter 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 President, Chief Operating Officer 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 “Investors” 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 for one year on the Company’s website.
About Cynosure, Inc.
Cynosure develops, manufactures, and markets aesthetic treatment systems that enable plastic surgeons, dermatologists and other medical practitioners to perform non-invasive and minimally invasive procedures to remove hair, treat vascular and benign pigmented lesions, remove multi-colored tattoos, revitalize the skin, liquefy and remove unwanted fat through laser lipolysis, reduce cellulite, clear nails infected by toe fungus, ablate sweat glands and improve vaginal health. Cynosure also markets radiofrequency energy sourced medical devices for precision surgical applications such as facial plastic and general surgery, gynecology, ear, nose, and throat procedures, ophthalmology, oral and maxillofacial surgery, podiatry and proctology. Cynosure’s product portfolio is composed of a broad range of energy sources including Alexandrite, diode, Nd: YAG, picosecond, pulse dye, Q-switched lasers, intense pulsed light and radiofrequency technology. Cynosure sells its products globally under the Cynosure, Palomar, ConBio and Ellman brand names through a direct sales force in the United States, Canada, Mexico, France, Morocco, Germany, Spain, the United Kingdom, Australia, China, Japan and Korea, and through international distributors in approximately 120 other countries. For corporate or product information, visit Cynosure’s website at www.cynosure.com.
Forward-Looking Statements
Any statements in this press release about future expectations, plans and prospects for Cynosure, Inc., including Cynosure’s expectations with respect to timing of product launches, as well as other statements containing the words “believes,” “look forward,” “anticipates,” “plans,” “expects,” “will” and similar expressions, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the market price of Cynosure’s stock prevailing from time to time, the nature of other investment opportunities presented to the Company from time to time, the Company’s cash flows from operations, levels of demand for procedures performed with Cynosure products and for Cynosure products themselves, competition in the aesthetic laser industry, general business and economic conditions, effects of acquisitions that Cynosure has made or may make, Cynosure’s ability to develop and commercialize new products, Cynosure’s reliance on sole source suppliers, the inability to accurately predict the timing or outcome of regulatory decisions, and economic, market, technological and other factors discussed in Cynosure’s most recent Annual Report on Form 10-K, which is filed with the Securities and Exchange Commission.
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