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Cutera Reports Fourth Quarter 2009 Results
GlobeNewswire
2010-02-08
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(R) 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 September December
31, 30, 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 September December
31, 30, 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 September December
31, 30, 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 September December
31, % of 30, % of 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 7,346 10,480
-------- 66% --------- 60% -------- 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 1,287 1,434
-------- 10% --------- 11% -------- 8%
$15,416 $12,171 $17,897
======== ========= ========
CONTACT: Cutera, Inc.
Ron Santilli, Chief Financial Officer
415-657-5500
Integrated Corporate Relations, Inc.
Investor Relations
John Mills
310-954-1100
john.mills@icrinc.com
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