Full Press Release Details
Corporate Relations, Inc.
Reports Third Quarter 2009 Results
Calif., November 2, 2009 -- Cutera, Inc. (NASDAQ: CUTR), a leading
provider of laser and other light-based aesthetic systems for practitioners
worldwide, today reported financial results for the third quarter ended
Financial Highlights for the
third quarter of 2009 include:
Connors, President and CEO of Cutera, stated, "We experienced an improvement in
our third quarter 2009 revenue. It is important to note that, in our industry,
traditionally the third quarter is seasonally softer than the second quarter.
Our customers continue to experience demand for our products from end users,
however, many of our current and prospective customers remain reluctant to make
major capital equipment purchases or are unable to obtain financing during these
challenging economic times. In the current market environment, we
believe that the core market of dermatologists, plastic surgeons and other
established medical offices provides us with the best opportunities in our
industry. Therefore, we are actively refocusing our sales, marketing and new
product development efforts on this market segment.
significantly improved our gross margin and operating expenses, when compared to
the second quarter of 2009. We believe these improvements are
resulting from our first half restructuring efforts, which incorporated many
cost reduction measures. We remain focused on increasing revenue levels and to
leverage our business model, which we expect will result in increased
profits. As a result of the recent restructuring activities, we
believe our current operating model will result in breakeven profit performance
when revenue is in the $14.0 - $15.0 million range."
Connors concluded, "While the near-term prospects for our industry are difficult
to predict due to the continuing economic uncertainty, we believe that our
worldwide distribution network, strong balance sheet with $104.2 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 to discuss these results is scheduled to begin at 2:00 p.m. PT
(5:00 p.m. ET) on November 2, 2009. 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 November 16, 2009. In addition, you may call
(877) 941-1427 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.
California-based Cutera is a leading provider of laser and other light-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, regain profitability, develop and commercialize
existing and new products and applications, improve the performance of its
worldwide sales and distribution network, 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 global economic crisis,
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 third quarter ended September 30, 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) | ||||||||||||
| September 30, | June 30, | December 31, | ||||||||||
| 2009 | 2009 | 2008 | ||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 34,302 | $ | 35,445 | $ | 36,540 | ||||||
| Marketable investments | 62,572 | 61,857 | 60,653 | |||||||||
| Accounts receivable, net | 2,635 | 2,828 | 5,792 | |||||||||
| Inventories | 7,884 | 8,702 | 9,927 | |||||||||
| Deferred tax asset | 244 | 4,652 | 4,257 | |||||||||
| Other current assets and prepaid expenses | 2,644 | 4,548 | 1,771 | |||||||||
| Total current assets | 110,281 | 118,032 | 118,940 | |||||||||
| Property and equipment, net | 939 | 1,101 | 1,357 | |||||||||
| Long-term investments | 7,339 | 7,640 | 9,627 | |||||||||
| Intangibles, net | 877 | 926 | 1,025 | |||||||||
| Deferred tax asset, net of current portion | - | 6,165 | 6,527 | |||||||||
| Total assets | $ | 119,436 | $ | 133,864 | $ | 137,476 | ||||||
| Liabilities and Stockholders' Equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | $ | 1,212 | $ | 1,127 | $ | 1,690 | ||||||
| Accrued liabilities | 7,281 | 7,737 | 8,848 | |||||||||
| Deferred revenue | 6,295 | 6,506 | 6,758 | |||||||||
| Total current liabilities | 14,788 | 15,370 | 17,296 | |||||||||
| Deferred rent | 1,548 | 1,603 | 1,713 | |||||||||
| Deferred revenue, net of current portion | 2,331 | 3,134 | 4,907 | |||||||||
| Income tax liability | 882 | 1,367 | 1,452 | |||||||||
| Total liabilities | 19,549 | 21,474 | 25,368 | |||||||||
| Stockholders' equity: | ||||||||||||
| Common stock | 13 | 13 | 13 | |||||||||
| Additional paid-in capital | 84,148 | 82,985 | 80,318 | |||||||||
| Retained earnings | 17,247 | 30,741 | 31,410 | |||||||||
| Accumulated other comprehensive income (loss) | (1,521 | ) | (1,349 | ) | 367 | |||||||
| Total stockholders' equity | 99,887 | 112,390 | 112,108 | |||||||||
| Total liabilities and stockholders' equity | $ | 119,436 | $ | 133,864 | $ | 137,476 |
| CUTERA, INC. | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
| (in thousands, except per share data) | ||||||||||||
| (unaudited) | ||||||||||||
| Three Months Ended | ||||||||||||
| September 30, | June 30, | September 30, | ||||||||||
| 2009 | 2009 | 2008 | ||||||||||
| Net revenue | $ | 12,171 | $ | 11,665 | $ | 19,110 | ||||||
| Cost of revenue | 4,910 | 5,130 | 7,823 | |||||||||
| Gross profit | 7,261 | 6,535 | 11,287 | |||||||||
| Operating expenses: | ||||||||||||
| Sales and marketing | 5,112 | 6,071 | 8,076 | |||||||||
| Research and development | 1,684 | 1,495 | 1,828 | |||||||||
| General and administrative | 2,121 | 3,616 | 2,583 | |||||||||
| Total operating expenses | 8,917 | 11,182 | 12,487 | |||||||||
| Loss from operations | (1,656 | ) | (4,647 | ) | (1,200 | ) | ||||||
| Interest and other income, net | 288 | 511 | 733 | |||||||||
| Other-than-temporary impairments on long-term investments | - | - | (2,372 | ) | ||||||||
| Loss before income taxes | (1,368 | ) | (4,136 | ) | (2,839 | ) | ||||||
| Provision (benefit) for income taxes | 12,126 | (1,772 | ) | (86 | ) | |||||||
| Net loss | $ | (13,494 | ) | $ | (2,364 | ) | $ | (2,753 | ) | |||
| Net loss per share: | ||||||||||||
| Basic | $ | (1.01 | ) | $ | (0.18 | ) | $ | (0.22 | ) | |||
| Diluted | $ | (1.01 | ) | $ | (0.18 | ) | $ | (0.22 | ) | |||
| Weighted-average number of shares used in per share calculations: | ||||||||||||
| Basic | 13,382 | 13,317 | 12,780 | |||||||||
| Diluted | 13,382 | 13,317 | 12,780 |
| CUTERA, INC. | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
| (in thousands) | ||||||||||||
| (unaudited) | ||||||||||||
| Three Months Ended | ||||||||||||
| September 30, | June 30, | September 30, | ||||||||||
| 2009 | 2009 | 2008 | ||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net loss | $ | (13,494 | ) | $ | (2,364 | ) | $ | (2,753 | ) | |||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
| Stock-based compensation | 895 | 1,456 | 1,326 | |||||||||
| Tax benefit (deficit) from stock-based compensation | 111 | (86 | ) | 100 | ||||||||
| Depreciation and amortization | 211 | 225 | 220 | |||||||||
| Provision for excess and obsolete inventories | (256 | ) | 130 | (78 | ) | |||||||
| Other-than-temporary impairments on long-term investments | - | - | 2,372 | |||||||||
| Change in allowance for doubtful accounts | (3 | ) | 498 | 60 | ||||||||
| Change in deferred tax asset and deferred tax liability | 10,506 | 139 | 168 | |||||||||
| Changes in assets and liabilities: | ||||||||||||
| Accounts receivable | 196 | 1,936 | 2,611 | |||||||||
| Inventories | 1,074 | 1,014 | (66 | ) | ||||||||
| Other current assets and prepaid expenses | 2,539 | (1,054 | ) | 173 | ||||||||
| Accounts payable | 85 | (408 | ) | 206 | ||||||||
| Accrued liabilities | (575 | ) | (429 | ) | (1,634 | ) | ||||||
| Deferred rent | 64 | (55 | ) | 19 | ||||||||
| Deferred revenue | (1,014 | ) | (957 | ) | 336 | |||||||
| Income tax liability | (485 | ) | (54 | ) | (191 | ) | ||||||
| Net cash provided by (used in) operating activities | (146 | ) | (9 | ) | 2,869 | |||||||
| Cash flows from investing activities: | ||||||||||||
| Acquisition of property and equipment | - | (36 | ) | (317 | ) | |||||||
| Proceeds from sales of marketable and long-term investments | 4,442 | 9,774 | 8,774 | |||||||||
| Proceeds from maturities of marketable investments | 8,315 | 1,100 | 8,480 | |||||||||
| Purchase of marketable and long-term investments | (13,911 | ) | (11,342 | ) | (13,590 | ) | ||||||
| Net cash provided by (used in) investing activities | (1,154 | ) | (504 | ) | 3,347 | |||||||
| Cash flows from financing activities: | ||||||||||||
| Proceeds from exercise of stock options and employee stock purchase plan | 157 | 165 | 3 | |||||||||
| Net cash provided by financing activities | 157 | 165 | 3 | |||||||||
| Net increase (decrease) in cash and cash equivalents | (1,143 | ) | (348 | ) | 6,219 | |||||||
| Cash and cash equivalents at beginning of period | 35,445 | 35,793 | 20,464 | |||||||||
| Cash and cash equivalents at end of period | $ | 34,302 | $ | 35,445 | $ | 26,683 |
| CUTERA, INC. | |||||||||||||||||||
| CONSOLIDATED REVENUE HIGHLIGHTS | |||||||||||||||||||
| (in thousands, except percentage data) | |||||||||||||||||||
| (unaudited) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | |||||||||||||||||
| 2009 | 2009 | 2008 | |||||||||||||||||
| Revenue By Geography: | |||||||||||||||||||
| United States | $ | 4,825 | 40% | $ | 4,551 | 39% | $ | 9,498 | 50% | ||||||||||
| International | 7,346 | 60% | 7,114 | 61% | 9,612 | 50% | |||||||||||||
| $ | 12,171 | $ | 11,665 | $ | 19,110 | ||||||||||||||
| Revenue By Product Category: | |||||||||||||||||||
| Products | $ | 6,322 | 52% | $ | 5,664 | 49% | $ | 12,920 | 68% | ||||||||||
| Product upgrades | 1,352 | 11% | 1,201 | 10% | 1,948 | 10% | |||||||||||||
| Service | 3,210 | 26% | 3,397 | 29% | 2,920 | 15% | |||||||||||||
| Titan refills | 1,287 | 11% | 1,403 | 12% | 1,322 | 7% | |||||||||||||
| $ | 12,171 | $ | 11,665 | $ | 19,110 |