HAYWARD, Calif., Nov. 1, 2011 /PRNewswire/ -- Solta Medical, Inc. (NASDAQ: SLTM), a global leader in the medical aesthetics market, today reported product revenue grew year-over-year by 14% for the third quarter ended September 30, 2011. Sales of new systems and upgrades rose year-over-year by $1.8 million, or 19%, to $11.1 million. Revenue from treatment tips and other consumables of $14.9 million grew $1.4 million, or 11%, as compared to the third quarter of 2010, and accounted for 54% of total revenue. Total revenue for the quarter of $27.4 million increased $2.6 million, or 10%, compared to the same period last year reflecting a year-over-year decline in research funding revenue of approximately $1.0 million.
GAAP net loss for the quarter was $1.1 million, or $0.02 per share, as compared to a GAAP net loss of $1.4 million, or $0.02 per share, for the third quarter of 2010. Non-GAAP net income for the quarter was $1.5 million, or $0.02 per diluted share, as compared to non-GAAP net income of $0.5 million, or $0.01 per diluted share, for the same period last year.
Solta Medicals GAAP results for the third quarter include amortization and other acquisition related charges of $1.8 million, including transaction costs associated with the acquisition of Medicis Technologies Corporation (f/k/a LipoSonix, Inc.), and non-cash stock based compensation charges of $0.8 million. The Company provides non-GAAP financial measures that exclude these charges and expenses. A reconciliation of GAAP to non-GAAP results is provided in the tables included in this release.
Worldwide product revenue from systems and consumables grew year-over-year by 14% as we generated solid growth in North America, Asia, and Europe, said Stephen J. Fanning, Chairman, President, & CEO. The third quarter marked our eighth consecutive quarter of positive non-GAAP operating income. In addition, we demonstrated our ability to leverage our operating infrastructure, as our revenue growth of $2.6 million produced incremental non-GAAP operating income of $1.8 million.
In the third quarter, our innovative Clear + Brilliant skin rejuvenation platform continued to gain significant traction with physicians and aesthetic practitioners worldwide, continued Mr. Fanning. Based on system placements in a given quarter, we sold more Clear + Brilliant devices than any other product in the past three years.
The Company also announced that the second generation LipoSonix system has received CE Mark certification in addition to the previously announced FDA clearance of the product. Initiation of commercial launch activities for the major markets of U.S., Europe, and Asia are underway.
With the acquisition of Medicis Technologies Corporation completed today, we look forward to entering the fast growing non-invasive fat reduction market with the second generation LipoSonix system. We expect to place a number of the LipoSonix systems with key opinion leaders in December and plan for a worldwide roll-out in the first quarter of 2012, concluded Mr. Fanning.
Financial Outlook
An update to the Companys financial outlook for 2011 is as follows:
- The company currently expects revenue for the fourth quarter of 2011 to grow to $32 million to $34 million. Revenue for the full year 2011 is expected to be in the range of $115 million to $117 million. Revenue derived from the sale of LipoSonix products in the fourth quarter of 2011 is anticipated to be negligible as the Company ramps up production of the second generation LipoSonix system.
- The outlook for non-GAAP gross margin in the range of 66% to 68% for the full year 2011 remains unchanged from the Companys previously issued outlook. Non-GAAP gross margin excludes non-cash amortization charges, non-cash stock based compensation charges, and acquisition related adjustments. Non-GAAP gross margin for the nine months ended September 30, 2011 was approximately 69%.
- The outlook for positive non-GAAP EBITDA for every quarter and for the full-year 2011 remains unchanged from the Companys previously issued outlook. Non-GAAP EBITDA for the fourth quarter is expected to be slightly better than breakeven due to operating costs of the LipoSonix facility in Bothell, Washington prior to commercialization of the second generation LipoSonix system in the first quarter of 2012. Non-GAAP EBITDA excludes non-cash amortization charges, non-cash stock based compensation charges, and acquisition related adjustments related to the acquisition of LipoSonix. The company has generated positive non-GAAP EBITDA in each quarter of 2011. Non-GAAP EBITDA for the nine months ended September 30, 2011 was $6.2 million.
Non-GAAP Presentation
To supplement the condensed consolidated financial information presented on a GAAP basis, management has provided non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP EBITDA, non-GAAP net income (loss) and non-GAAP earnings (loss) per share measures that exclude the impact of [acquisition related adjustments, severance costs, acquisition related costs, and stock-based compensation expenses. The Company believes that these non-GAAP financial measures provide investors with insight into what is used by management to conduct a more meaningful and consistent comparison of the Companys ongoing operating results and trends, compared with historical results. This presentation is also consistent with the measures management uses to measure the performance of ongoing operating results against prior periods and against our internally developed targets. There are limitations in using these non-GAAP financial measures because they are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial measures. Investors and potential investors should consider non-GAAP financial measures only in conjunction with the Companys consolidated financial statements prepared in accordance with GAAP and the reconciliation of non-GAAP financial measures attached to this release.
Conference Call Information
The Company will also host a conference call and webcast today, Tuesday, November 1, 2011, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific) to discuss the financial results and current corporate developments. The dial-in number for the conference call is 877-941-0843 for domestic participants and 480-629-9819 for international participants.
To access the live webcast of the call, go to Solta Medicals website at www.solta.com and click on Investor Relations. An archived webcast will also be available at www.solta.com.
About Solta Medical, Inc.
Solta Medical, Inc. is a global leader in the medical aesthetics market providing innovative, safe, and effective solutions for patients that enhance and expand the practice of medical aesthetics for physicians. The company offers products to address a range of skin issues under the industry’s four premier brands: Thermage®, Fraxel®, LipoSonix®, Isolaz®, and CLARO®. 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. LipoSonix system uses advanced highintensity focused ultrasound (HIFU) technology to permanently destroy targeted fat just beneath the skin in the treatment areas of the abdomen and flanks as a noninvasive, nonsurgical approach to aesthetic waist circumference reduction. Isolaz is the first laser or light based system indicated for the treatment of inflammatory acne, comedonal acne, pustular acne, and mild-to-moderate inflammatory acne. CLARO is a personal care acne system that is the first FDA cleared over-the-counter IPL device that uses a powerful combination of both heat and light to clear skin quickly and naturally. Since 2002, over one million Thermage, Fraxel and Isolaz procedures have been performed in over 100 countries. For more information about Solta Medical, call 1-877-782-2286 or log on to www.Solta.com.
