WESTFORD, Mass., July 29, 2014 /PRNewswire/ -- Cynosure, Inc. (Nasdaq: CYNO), which develops and markets laser- and light-based aesthetic treatment systems for high-volume applications, today reported financial results for the three months ended June 30, 2014. Second-quarter 2014 financial results incorporate the acquisition of Palomar Medical Technologies, which was completed on June 24, 2013.
Second-Quarter 2014 Financial Highlights
- Total revenues increased 45% to $72.6 million
- Non-GAAP net income of $7.1 million, or $0.32 per diluted share, which excludes acquisition costs and amortization expenses
- GAAP net income of $4.6 million, or $0.20 per diluted share, including acquisition costs and amortization expenses
- $123 million in cash and investments at June 30, 2014
- Purchased $9 million of stock under share repurchase program
- Successfully completed Palomar integration as scheduled at one-year anniversary
"Revenue increased 45% year-over-year and 17% sequentially to $72.6 million in the second quarter of this year, a record high for our core business," said Cynosure President and CEO Michael Davin. "Our results reflected the successful integration of the Palomar product line into our distribution channels both within and outside North America, as well as strong contributions from key products including PicoSure®, our flagship product for the removal of tattoos and benign pigmented lesions which was recently cleared for the treatment of acne scarring."
"During the second quarter we also finalized the remaining steps in our integration of Palomar, a significant accomplishment in just 12 months given the size and scale of the acquisition," Davin said. "With the expansion of our Westford facility complete, all of our Massachusetts employees are now under one roof. Additionally, we have fully transitioned the Palomar product line to our contract manufacturing model, which we expect to result in greater operational and manufacturing efficiency as we move through the second half of the year."
Recent Highlights
- PicoSure Receives FDA Clearance for New Indication. The Company last week announced that it has received 510(k) clearance from the U.S. Food and Drug Administration to market PicoSure for the treatment of acne scars with the FOCUS lens array, the Company's new disposable energy delivery system. In 2012, PicoSure became the world's first picosecond device to receive FDA clearance for the removal of tattoos and benign pigmented lesions.
- Share Repurchase Program. During the second quarter, the Company repurchased $9 million in stock under its $35 million share repurchase program. Approximately $10.6 million remained available under the program at June 30, 2014.
- International Regulatory Clearances. The Company received more than a dozen international regulatory clearances during the quarter for its aesthetic laser workstations and disposable products. These included regulatory authorization to market the Cellulaze Cellulite Laser Workstation in Taiwan; Cellulaze and the RevLite SI in Argentina; and the Apogee+® Aesthetic Workstation, Elite+ Aesthetic Workstation, Smartlipo Triplex and Cellulaze in Mexico.
Business Outlook
"In the coming quarters, we plan to focus on broadening our reach through expanded indications and marketing programs, an enhanced North American sales force and technology innovations that enable our customers to offer their patients new aesthetic treatment options," Davin said. "On the international front, we continue to pursue new regulatory clearances to expand our product footprint in key countries, and to further enhance our sales channels. In parallel with our organic growth initiatives, we have an active pipeline of potential acquisition opportunities that would enable us to further enhance our market leadership."
Second-Quarter Financial Results Conference Call
In conjunction with the announcement of its second-quarter 2014 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, 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 and markets laser and light-based 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 and ablate sweat glands. Cynosure's product portfolio is composed of a broad range of energy sources including Alexandrite, diode, Nd: YAG, picosecond, pulse dye, and Q-switched lasers and intense pulsed light. Cynosure sells its products globally under the Cynosure, Palomar and ConBio brand names through a direct sales force in the United States, Canada, Mexico, France, 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 intention to repurchase shares of its common stock from time to time under the share repurchase program, Cynosure's intention to broaden its reach through expanded indications and marketing programs, expectations of greater operational and manufacturing efficiency as a result of the transition of the Palomar product line to Cynosure's contract manufacturing model, research and development projects, Cynosure's active pipeline of potential acquisition opportunities, as well as other statements containing the words "believes," "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, Cynosure's ability to achieve anticipated synergies in calendar 2014, 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 and subsequently filed Quarterly Report on Form 10-Q for the first quarter of 2014, which are filed with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent Cynosure's views as of the date of this press release. Cynosure anticipates that subsequent events and developments will cause its views to change. However, although Cynosure may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Cynosure's views as of any date subsequent to the date of this press release.
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