Full Press Release Details
Corporate Relations, Inc.
Reports Fourth Quarter 2009 Results
Calif., February 8, 2010 -- 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
Financial Highlights for the
fourth quarter of 2009 include:
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
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
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 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.
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.
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 |