IRVINE, Calif., Feb. 15, 2017 /PRNewswire/ --
Total Revenue Grows 5.1% in 4Q16 and 7.3% for Full Year
Emerging Products¹ Revenue Grows 25.0% in 4Q16 and 42.1% for Full Year, Reaching $82.7 Million for Full Year
2016 GAAP net income per share of $0.01, up from net loss per share of $(0.17) in 2015; Non-GAAP net income per share increases from $0.18 to $0.35for the year
Syneron Medical Ltd. (NASDAQ: ELOS), a leading global aesthetic device company, today announced financial results for the three and twelve month periods ended December 31, 2016.
Fourth Quarter 2016 Financial Highlights:
- Revenue of $82.9 million, up 5.1% year-over-year
- Emerging products1 revenue of $22.6 million, which represents the Company’s strategic growth drivers, grew 25.0% year-over-year
- Product revenue up 6.5% year-over-year; Aesthetic product revenue[2] up 11.0% year-over-year
- International product revenue grew 18.6% while North America declined 8.8% (North America Aesthetic product revenue2 declined 2.8%)
- APAC product revenue up 15.9% and EMEA product revenue up 19.8%
- Total Body Shaping revenue of $11.3 million grew 16.0% year-over-year
- GAAP net loss per share of $(0.03), compared to $0.05 net income per share in Q4 2015
- Non-GAAP net income per share of $0.14, compared to $0.07 net income per share in Q4 2015
- Cash position as of December 31, 2016 of $86.4 million with no debt; generated $6.2 million in cash flow from operations
Full Year 2016 Financial Highlights:
- Revenue of $298.1 million, up 7.3% compared to 2015
- Emerging products revenue1 of $82.7 million, up 42.1% compared to 2015 and expanding to 27.7% of revenue from 20.9% in 2015
- Product revenue up 8.6% year-over-year; Aesthetic product revenue2 up 10.6% year-over-year
- International product revenue grew 15.4% while North America declined 2.8% (North America Aesthetic product revenue2 declined 0.7%)
- APAC product revenue up 20.6% and EMEA product revenue up 7.1%
- Total Body Shaping revenue of $52.7 million, up 36.0% compared to 2015
- GAAP net income per share of $0.01, compared to $(0.17) net loss per share in 2015
- Non-GAAP net income per share of $0.35, compared to $0.18 net income per share in 2015
- Generated $8.4 million in cash flow from operations, compared to a use of $2.8 million in 2015
Amit Meridor, Chief Executive Officer of Syneron Medical, said “We ended the year with global top line growth, delivering record quarterly and annual revenue in our 12th consecutive quarter of year-over-year revenue growth. This included strong performance from our Emerging Products, which grew 42% and reached $82.7 million for the year. This trend, supports our transition into a higher growth, higher margin business. We delivered double-digit Aesthetic product revenue growth, highlighted by strong international results from the APAC and EMEA regions. In North America, our business was down slightly in the fourth quarter as we laid the groundwork for improved performance in 2017. As a result of the positive mix shift and our international growth, operating margin continued to increase despite continued investments in North American sales and marketing infrastructure. Our strong financial performance resulted in doubling non-GAAP net income per share to $0.14 in the fourth quarter. We generated $6.2 million in cash from operations in the fourth quarter and ended the year with a strong balance sheet with $86.4 million in cash and no debt.”
Financial Highlights for the Fourth Quarter Ended December 31, 2016:
Revenues in the fourth quarter 2016 were driven by 25.0% growth from the Company’s Emerging Products. Fourth quarter Emerging Products revenue included $11.3 million in revenue from the Body Shaping portfolio, which grew 16.0% year-over-year, mainly from UltraShape sales, driven by the launch of UltraShape Power.
Total Aesthetic revenue in the fourth quarter 2016 grew 8.5% and North America Aesthetic product revenue was down 2.8%. Fourth quarter 2016 revenue did not include any sales from the Company’s dental laser subsidiary, which was sold in May 2016. In the fourth quarter 2015, the Company had $0.9 million in sales from the dental laser subsidiary. In addition, fourth quarter 2016 revenue did not include any sales from the Company’s CoolTouch OEM business, which was discontinued in 2015.
GAAP Gross Margin for the fourth quarter 2016 was 53.5%, compared to 55.0% in the fourth quarter 2015. Non-GAAP Gross Margin for the fourth quarter 2016 was 54.5%, compared to 56.5% in the fourth quarter 2015. This reflects international revenue growth, mainly in the APAC and EMEA regions, differences in product mix, compared to the fourth quarter 2015.
GAAP Operating Income for the fourth quarter 2016 was $0.2 million, compared to $2.2 million in the fourth quarter 2015. Non-GAAP Operating Income for the fourth quarter 2016 was $6.3 million, compared to $3.0 million in the fourth quarter 2015. GAAP Operating Margin for the fourth quarter 2016 was 0.3%, compared to 2.8% for the fourth quarter of 2015. Non-GAAP Operating Margin for the fourth quarter 2016 was 7.6%, compared to 3.8% in the fourth quarter 2015. This increase reflects growth from the Company’s higher margin Emerging Products, cost efficiencies, and revenue growth from the Company’s existing international distribution channels, which has lower operating expenses for the Company.
GAAP Net Loss and GAAP Net Loss per Share in the fourth quarter 2016 was a net loss of $(0.9) million, or $(0.03) net loss per share, compared to net income of $2.0 million, or $0.05 per share, in the fourth quarter 2015. Non-GAAP net income and Non-GAAP net income per Share in the fourth quarter 2016 was $5.0 million, or $0.14 per share, compared to non-GAAP net income of $2.4 million, or $0.07 per share, in the fourth quarter 2015.
Cash Position As of December 31, 2016, the Company’s overall cash position, including cash and cash equivalents, short-term bank deposits and marketable securities, grew to $86.4 million from $82.9 million as of September 30, 2016.
Use of Non-GAAP Measures:
This press release provides financial measures for gross profit, operating income (loss), net income (loss) and net income (loss) per share, which exclude expenses related to stock-based compensation expense, amortization of acquired intangible assets, fair value adjustment to investment in JV, re-measurement of contingent consideration fair value, impairments of a subsidiary’s goodwill and intangible assets, net gain from sale of a subsidiary, restructuring severance expenses, legal settlements and related fees, and tax benefit, and are therefore not calculated in accordance with Generally Accepted Accounting Principles (GAAP).
Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance because it reflects our ongoing operational results, operating income (loss), net income (loss) and net income (loss) per share, and exclude the impact of items or trends that are not considered core influences on the results of operations, financial position or cash flows. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for or superior to the financial information prepared and presented in accordance with GAAP. Management uses non-GAAP measures to make operational and investment decisions and to evaluate the Company’s performance and, therefore, believes it important to make these non-GAAP adjustments available to investors. A reconciliation of each GAAP to non-GAAP financial measure discussed in this press release is contained in the accompanying financial tables.
Conference Call:
Syneron management will host its fourth quarter 2016 earnings conference call today at 8:30 a.m. ET. Syneron will be broadcasting live via the Investor Relations section of its website, www.investors.syneron.com. To access the call, enter the Syneron Investor Relations website, then click on the webcast link “Q4 2016 Results Webcast.”
Participants are encouraged to log on at least 15 minutes prior to the conference call in order to download the applicable audio software. The call can be heard live or with an on-line replay which will follow. Those interested in participating in the call and the question and answer session should dial 877-280-1254 in the U.S., and 1-646-254-3366 from outside of the U.S. The conference pass code is: 2212875.
About Syneron Candela:
Syneron Candela is a leading global aesthetic device company with a comprehensive product portfolio and a global distribution footprint.
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