BRISBANE, Calif., Feb. 8, 2010 (GLOBE NEWSWIRE) -- Cutera, Inc. (Nasdaq:CUTR), a leading provider of laser and other energy-based aesthetic systems for practitioners worldwide, today reported financial results for the fourth quarter ended December 31, 2009.
Financial Highlights for the fourth quarter of 2009 include:
- Revenue increased sequentially by 27% to $15.4 million, compared to $12.2 million in the third quarter of 2009
- Gross margin improved to 62%, compared to 60% in the third quarter of 2009
- Net income was breakeven, or $0.00 per share, which included a $351,000 ($292,000 net of tax, or $0.02 per diluted share), charge associated with the postponement of it's TruSculpt product launch
- Cash generated from operations was $3.2 million in the fourth quarter of 2009
Kevin Connors, President and CEO of Cutera, stated, "We continue to see encouraging signs in our business, which is reflected in our past two quarters of sequential revenue growth. Revenue grew sequentially over the third quarter of 2009 in several geographical markets, with significant contribution from Australia. We are pleased with the improved fourth quarter 2009 gross margins, profitability, and cash generation resulting from higher revenue and the restructuring efforts implemented in the first half of 2009. We are continuing to target the core market segments of dermatologists and plastic surgeons ─ as well as other established medical offices ─ because we believe they offer us the best growth opportunities in the current market environment."
"We are optimistic about the recently announced strategic alliances with Sound Surgical Technologies LLC ─ to distribute their VASER® Lipo System in Europe and Canada ─ and Obagi Medical Products, Inc. (Nasdaq:OMPI) ─ to distribute their prescription-based, topical skin health systems through the physician-dispense channel in Japan. These alliances leverage our distribution network and enhance our product offering in selected international markets."
Mr. Connors concluded, "We remain focused on key initiatives to increase revenue levels in 2010 and leverage our business model, which we expect will result in improved profitability. While the near-term prospects for our industry are difficult to predict, we believe that our worldwide distribution network, strong balance sheet with $106.9 million in cash and investments – with no debt, a broad portfolio of products, and various research and development projects underway, offer continuing, long-term opportunities for our company."
Conference Call:
The conference call to discuss these results is scheduled to begin at 2:00 p.m. PT (5:00 p.m. ET) on February 8, 2010. The call will be broadcast live over the Internet hosted at the Investor Relations section of Cutera's website at www.cutera.com, and will be archived online within one hour of its completion and continue through 8:59 p.m. PT (11:59 p.m. ET) on February 22, 2010. In addition, you may call (877) 407-0784 to listen to the live broadcast. Participating in the call will be Kevin Connors, President and Chief Executive Officer, and Ron Santilli, Executive Vice President and Chief Financial Officer.
About Cutera, Inc.
Brisbane, California-based Cutera is a leading provider of laser and other energy-based aesthetic systems for practitioners worldwide. Since 1998, Cutera has been developing innovative, easy-to-use products that enable physicians and other qualified practitioners to offer safe and effective aesthetic treatments to their patients. For more information, call 1-888-4CUTERA or visit www.cutera.com.
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Specifically, statements concerning Cutera's ability to grow its business, increase revenue, manage costs and expenses, generate additional cash, increase profitability, develop and commercialize existing and new products and applications, and statements regarding long-term prospects and opportunities are forward-looking statements within the meaning of the Safe Harbor. Forward-looking statements are based on management's current, preliminary expectations and are subject to risks and uncertainties, which may cause Cutera's actual results to differ materially from the statements contained herein. Potential risks and uncertainties that could affect Cutera's business and cause its financial results to differ materially from those contained in the forward-looking statements include the current economic uncertainty, which may reduce consumer demand for its products, cause potential customers to delay their purchase decisions and make it more difficult for some potential customers to obtain credit financing; its ability to increase revenue, manage costs and expenses and improve sales productivity and performance worldwide; its ability to successfully develop and acquire new products and applications and market them to both its installed base and new customers; the length of the sales cycle process; unforeseen events and circumstances relating to its operations; government regulatory actions; and those other factors described in the section entitled, "Risk Factors," in its most recent Form 10-Q as filed with the Securities and Exchange Commission on November 2, 2009. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Cutera undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events. Cutera's fourth quarter ended December 31, 2009 financial performance, as discussed in this release, is preliminary and unaudited, and subject to adjustment.
| CUTERA, INC. | |||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||
| (in thousands) | |||
| (unaudited) | |||
| December 31, | September 30, | December 31, | |
| 2009 | 2009 | 2008 | |
| Assets | |||
| Current assets: | |||
| Cash and cash equivalents | $22,829 | $34,302 | $36,540 |
| Marketable investments | 76,780 | 62,572 | 60,653 |
| Accounts receivable, net | 3,327 | 2,635 | 5,792 |
| Inventories | 6,408 | 7,884 | 9,927 |
| Deferred tax asset | 175 | 244 | 4,257 |
| Other current assets and prepaid expenses | 2,785 | 2,644 | 1,771 |
| Total current assets | 112,304 | 110,281 | 118,940 |
| Property and equipment, net | 847 | 939 | 1,357 |
| Long-term investments | 7,275 | 7,339 | 9,627 |
| Intangibles, net | 829 | 877 | 1,025 |
| Deferred tax asset, net of current portion | 97 | -- | 6,527 |
| Total assets | $121,352 | $119,436 | $137,476 |
| Liabilities and Stockholders' Equity | |||
| Current liabilities: | |||
| Accounts payable | $1,081 | $1,212 | $1,690 |
| Accrued liabilities | 9,048 | 7,281 | 8,848 |
| Deferred revenue | 6,160 | 6,295 | 6,758 |
| Total current liabilities | 16,289 | 14,788 | 17,296 |
| Deferred rent | 1,493 | 1,548 | 1,713 |
| Deferred revenue, net of current portion | 1,968 | 2,331 | 4,907 |
| Income tax liability | 749 | 882 | 1,452 |
| Total liabilities | 20,499 | 19,549 | 25,368 |
| Stockholders' equity: | |||
| Common stock | 13 | 13 | 13 |
| Additional paid-in capital | 85,248 | 84,148 | 80,318 |
| Retained earnings | 17,254 | 17,247 | 31,410 |
| Accumulated other comprehensive income (loss) | (1,662) | (1,521) | 367 |
| Total stockholders' equity | 100,853 | 99,887 | 112,108 |
| Total liabilities and stockholders' equity | $121,352 | $119,436 | $137,476 |
| CUTERA, INC. | |||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||
| (in thousands, except per share data) | |||
| (unaudited) | |||
| Three Months Ended | |||
| December 31, | September 30, | December 31, | |
| 2009 | 2009 | 2008 | |
| Net revenue | $15,416 | $12,171 | $17,897 |
| Cost of revenue | 5,783 | 4,910 | 7,045 |
| Gross profit | 9,633 | 7,261 | 10,852 |
| Operating expenses: | |||
| Sales and marketing | 6,100 | 5,112 | 6,568 |
| Research and development | 1,888 | 1,684 | 1,933 |
| General and administrative | 2,063 | 2,121 | 2,723 |
| Total operating expenses | 10,051 | 8,917 | 11,224 |
| Loss from operations | (418) | (1,656) | (372) |
| Interest and other income, net | 174 | 288 | 555 |
| Other-than-temporary impairments on long-term investments | -- | -- | (1,182) |
| Loss before income taxes | (244) | (1,368) | (999) |
| Provision (benefit) for income taxes | (251) | 12,126 | (764) |
| Net income (loss) | $7 | ($13,494) | ($235) |
| Net income (loss) per share: | |||
| Basic | $0.00 | ($1.01) | ($0.02) |
| Diluted | $0.00 | ($1.01) | ($0.02) |
| Weighted-average number of shares used in per share calculations: | |||
| Basic | 13,427 | 13,382 | 12,797 |
| Diluted | 13,610 | 13,382 | 12,797 |
| CUTERA, INC. | |||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
| (in thousands) | |||
| (unaudited) | |||
| Three Months Ended | |||
| December 31, | September 30, | December 31, | |
| 2009 | 2009 | 2008 | |
| Cash flows from operating activities: | |||
| Net income (loss) | $7 | ($13,494) | ($235) |
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|||
| Stock-based compensation | 840 | 895 | 1,237 |
| Tax benefit from stock-based compensation | 111 | 111 | 66 |
| Excess tax deficit related to stock-based compensation | (23) | -- | (390) |
| Depreciation and amortization | 196 | 211 | 233 |
| Provision for excess and obsolete inventories | 363 | (256) | 470 |
| Other-than-temporary impairments on long-term investments | -- | -- | 1,182 |
| Change in allowance for doubtful accounts | (25) | (3) | (97) |
| Change in deferred tax asset and deferred tax liability | (28) | 10,506 | (2,032) |
| Other | -- | -- | 5 |
| Changes in assets and liabilities: | |||
| Accounts receivable | (667) | 196 | 791 |
| Inventories | 1,113 | 1,074 | (1,644) |
| Other current assets and prepaid expenses | 339 | 2,539 | 1,067 |
| Accounts payable | (131) | 85 | (430) |
| Accrued liabilities | 1,767 | (575) | (1,467) |
| Deferred rent | (55) | 64 | 18 |
| Deferred revenue | (498) | (1,014) | (505) |
| Income tax liability | (133) | (485) | (145) |
| Net cash provided by (used in) operating activities | 3,176 | (146) | (1,876) |
| Cash flows from investing activities: | |||
| Acquisition of property and equipment | (56) | -- | (165) |
| Proceeds from sales of marketable and long-term investments | 7,120 | 4,442 | 5,135 |
| Proceeds from maturities of marketable investments | 975 | 8,315 | 11,915 |
| Purchase of marketable and long-term investments | (22,860) | (13,911) | (5,737) |
| Net cash (used in) provided by investing activities | (14,821) | (1,154) | 11,148 |
| Cash flows from financing activities: | |||
| Proceeds from exercise of stock options and employee stock purchase plan | 149 | 157 | 195 |
| Excess tax benefit related to stock-based compensation | 23 | -- | 390 |
| Net cash provided by financing activities | 172 | 157 | 585 |
| Net (decrease) increase in cash and cash equivalents | (11,473) | (1,143) | 9,857 |
| Cash and cash equivalents at beginning of period | 34,302 | 35,445 | 26,683 |
| Cash and cash equivalents at end of period | $22,829 | $34,302 | $36,540 |
| CUTERA, INC. | ||||||
| CONSOLIDATED REVENUE HIGHLIGHTS | ||||||
| (in thousands, except percentage data) | ||||||
| (unaudited) | ||||||
| Three Months Ended | ||||||
| December 31, | % of | September 30, | % of | December 31, | % of | |
| 2009 | Revenue | 2009 | Revenue | 2008 | Revenue | |
| Revenue By Geography: | ||||||
| United States | $5,298 | 34% | $4,825 | 40% | $7,417 | 41% |
| International | 10,118 | 66% | 7,346 | 60% | 10,480 | 59% |
| $15,416 | $12,171 | $17,897 | ||||
| Revenue By Product Category: | ||||||
| Products | $8,529 | 55% | $6,322 | 52% | $11,388 | 64% |
| Product upgrades | 2,036 | 13% | 1,352 | 11% | 2,028 | 11% |
| Service | 3,327 | 22% | 3,210 | 26% | 3,047 | 17% |
| Titan refills | 1,524 | 10% | 1,287 | 11% | 1,434 | 8% |
| $15,416 | $12,171 | $17,897 | ||||