Wednesday, November 4, 2009

Solta Medical Reports Third Quarter 2009 Results

Solta Medical Reports Third Quarter 2009 Results

Provides full year 2009 revenue guidance of $95 million to $98 million

HAYWARD, Calif., Nov. 3 /PRNewswire-FirstCall/ — Solta Medical, Inc. (Nasdaq: SLTM), a global leader in the medical aesthetics market, today announced results for the third quarter ended September 30, 2009. Revenue for the quarter was in-line with the preliminary forecast provided on September 28th.

Revenue for the third quarter was $17.8 million, an increase of approximately $4.7 million, or 36%, as compared to the third quarter 2008 reflecting increased revenue as a result of the acquisition of Reliant Technologies, Inc. on December 23, 2008, and partially offset by production and regulatory approval delays on new products during the third quarter.

“As we have previously disclosed, we received 510K clearance for the Fraxel re:store DUAL system in mid-October and resolved our production delays on the Thermage CPT system at the end of the third quarter. We are fulfilling back orders from customers and shipping both products,” said Stephen J. Fanning, Chairman of the Board, President and CEO of Solta Medical. “Our illumiNATION tour continues to bring these latest breakthroughs in Thermage and Fraxel systems directly to physicians as it makes it way from city-to-city across the U.S. and Europe. The tour has generated a very enthusiastic response to our new products by physicians, prospective patients, and the media. As a result, we are gaining momentum in the market place,” added Mr. Fanning.

Solta Medical's reported results for the third quarter of 2009 include non-cash purchase price related charges, primarily amortization of acquired intangible assets, of $1.2 million and non-cash stock based compensation charges of $0.8 million. The GAAP net loss for the quarter including these charges was $6.2 million, or $0.13 per share as compared to a net loss of $1.1 million, or $0.05 per share reported for the third quarter of 2008. The non-GAAP net loss for the quarter excluding these charges was $4.2 million, or $0.09 per share as compared to non-GAAP net income of $0.7 million, or $0.03 per share reported for the third quarter of 2008.

Financial Goals for 2009

The Company updated its financial goals for 2009 as follows:

  • Revenue for the year in the range of $95 million to $98 million
  • Realize up to $25 million in cost synergies as a result of the acquisition of Reliant Technologies, Inc. This represents an increase of $6 million from the originally stated goal in January 2009 of $19 million in cost synergies.
  • Generate positive EBITDA for the full year 2009
  • Achieve a non-GAAP gross margin in the range of 64% to 66% for the full year 2009 excluding non-cash amortization charges and non-cash purchase price related charges.

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 purchase price related charges, severance costs, merger related costs, extraordinary loss on investments, and stock-based compensation expenses, all net of income taxes. 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 Company's ongoing operating results and trends, compared with historical results. This presentation is also consistent with management's internal use of the measures, which it 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 Company's consolidated financial statements prepared in accordance with GAAP and the reconciliation of non-GAAP financial measures attached to this release.

Posted via web from Laser Treatment MD

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