skietz
10 years ago
Cynosure Reports Record Quarterly Revenue of $86.3 Million for the Fourth Quarter of 2014
1 hours 35 minutes ago - DJNF
WESTFORD, Mass., Feb. 10, 2015 /PRNewswire/ -- Cynosure, Inc. (Nasdaq: CYNO), which designs, manufactures and markets medical devices for aesthetic procedures and precision surgical applications worldwide, today reported financial results for the three and 12 months ended December 31, 2014.
Financial Highlights
-- Q4 revenue up 16 percent year-over-year to $86.3 million
-- Q4 GAAP net income of $23.0 million, or $1.05 per diluted share,
reflecting the release of income tax valuation allowance
-- Q4 non-GAAP net income of $7.9 million, or $0.36 per diluted share,
excluding the release of income tax valuation allowance, acquisition
costs and amortization expenses
-- Q4 cash from operations of $22.2 million; $133.4 million in cash and
investments at December 31, 2014
-- Full-year 2014 revenue of $292.4 million, up 29 percent
"We capped an outstanding year in 2014 with a solid fourth quarter, driven by record revenues and continued profitability," said Cynosure Chairman and Chief Executive Officer Michael Davin. "Equally important, we continue to generate strong operating cash flow and strengthen our balance sheet, while at the same time stepping up R&D and marketing investments as we focus on accelerating the pace at which our products are coming to market."
"For example, we recently submitted, two months ahead of our original schedule, the 510(k) premarket notification to the U.S. Food and Drug Administration for our newest flagship technology, a 1060 nm laser for the non-invasive reduction of fat, with a goal of introducing the product in the second half of 2015," Davin said. "We have expanded our engineering team and are investing in other product development initiatives. To address growing demand and new markets, we continue to broaden our distribution network, entering 2015 with the largest North American direct field sales force in the Company's history. To serve physicians in the women's health market, we are adding a 13-person specialty sales force to market MonaLisa Touch(TM) in North America."
Management's Comments on 2014
"Demand for our flagship picosecond laser, PicoSure(R) , remains a key driver of our North American laser business, which was up 29 percent in the fourth quarter of 2014 from the fourth quarter of 2013," Davin said. "PicoSure has become the gold standard for tattoo removal and benign pigmented lesions since its U.S. introduction less than two years ago. Over the past two quarters we have seen increasing orders for PicoSure's disposable FOCUS lens array, spurred by recent regulatory clearances for the treatment of wrinkles and acne scarring. We expect to introduce a 532 nm wavelength laser delivery system for PicoSure at the annual meeting of the American Academy of Dermatology in March which will be upgradable to the installed base. We also expect to introduce a third wavelength delivery system for PicoSure in the second half of the year. Internationally, our Asian subsidiaries and third-party distributors contributed to our top-line growth in the quarter, partly reflecting the addition of the new radiofrequency surgical assets we acquired from Ellman International in the third quarter."
"The Ellman transaction is just one of several major accomplishments for Cynosure in 2014, a year of growth, expansion and diversification," Davin said. "We completed the integration of Palomar Medical Technologies, an acquisition that helped us become one of the world's premier energy-based aesthetic companies. We secured new international regulatory clearances for certain of our products, including PicoSure and Smartlipo Triplex. We introduced MonaLisa Touch, a carbon dioxide (CO2) laser for the treatment of vaginal atrophy, a condition that affects primarily postmenopausal women, breast cancer survivors and women who have undergone hysterectomies. In addition, we demonstrated continued scientific leadership with 35 clinical research presentations at the American Society for Laser Medicine and Surgery Annual Conference."
Results for the Three Months Ended December 31, 2014
Total revenues for the fourth quarter of 2014 were $86.3 million, an increase of 16 percent compared with $74.5 million for the fourth quarter of 2013.
Net income for the fourth quarter of 2014 was $23.0 million, or $1.05 per diluted share, compared with net income of $7.3 million, or $0.33 per diluted share, for the fourth quarter of 2013. Net income for the fourth quarter of 2014 included an income tax benefit of $19.6 million, or $0.89 per diluted share, resulting from the release of the income tax valuation allowance relating to net deferred tax assets.
On a non-GAAP basis, excluding the income tax benefit relating to the release of the income tax valuation allowance, acquisition costs and amortization, fourth-quarter 2014 net income was $7.9 million, or $0.36 per diluted share, compared with non-GAAP net income of $9.2 million, or $0.41 per diluted share, in the same period of 2013.
Cynosure had $133.4 million in cash and investments at December 31, 2014, compared with $113 million at the end of the third quarter of 2014 and $129 million at year-end 2013.
Recent Highlights
-- Submission of 510(k) for Non-Invasive Fat Reduction: Cynosure has
submitted to the U.S. Food and Drug Administration a 510(k) application
to market its newest flagship product, a 1060 nm laser for the
non-invasive reduction of fat. The application is supported by clinical
data from approximately 100 patients treated with the device at two U.S.
sites.
-- Exclusive Agreement to Market MonaLisa Touch: Cynosure signed an
exclusive agreement with El.En. S.p.A. to market and distribute in North
America the MonaLisa Touch, a carbon dioxide (CO2) laser for the
treatment of vaginal atrophy, a condition that affects primarily
postmenopausal women, breast cancer survivors and women who have
undergone hysterectomies. Cynosure launched the MonaLisa Touch in
January.
-- Favorable Clinical Data: A multi-center trial showed a statistically
significant improvement in the vaginal health of women treated with the
MonaLisa Touch. The multicenter trial assessed the use of CO2 fractional
laser therapy on 30 women with menopause-related symptoms such as dryness,
pain, itching, painful urination and painful intercourse. Preliminary
trial data was presented in December at the 2014 Pelvic Anatomy and
Gynecologic Surgery Symposium.
Business Outlook
"We achieved 29 percent revenue growth and solid profitability in 2014 by successfully executing on our strategy of organic growth, complementary acquisitions and prudent balance sheet management," Davin said. "Today, we are financially and operationally stronger than at any point in our history. With the rollout of MonaLisa Touch and the planned introduction of our new non-invasive technology for fat removal in the second half of this year, we believe we are well positioned for momentum in 2015 and beyond."
Fourth-Quarter Financial Results Conference Call
In conjunction with the announcement of its fourth-quarter and year-end 2014 financial results, Cynosure will host a conference call for investors and analysts at 9:00 a.m. ET today. On the call, Chairman and CEO Michael Davin and Timothy Baker, the Company's President and Chief Financial Officer, will discuss Cynosure's financial results and provide a business overview. Those who wish to listen to the conference call webcast should visit the "Investors" section of the Company's website at www.cynosure.com. The live call can also be accessed by dialing (877) 709-8155 or (201) 689-8881. If you are unable to listen to the live call, the webcast will be archived for one year on the Company's website.
About Cynosure, Inc.
Cynosure develops, manufactures, and markets aesthetic treatment systems that enable plastic surgeons, dermatologists and other medical practitioners to perform non-invasive and minimally invasive procedures to remove hair, treat vascular and benign pigmented lesions, remove multi-colored tattoos, revitalize the skin, liquefy and remove unwanted fat through laser lipolysis, reduce cellulite, clear nails infected by toe fungus, ablate sweat glands and improve vaginal health. Cynosure also markets radiofrequency energy sourced medical devices for precision surgical applications such as facial plastic and general surgery, gynecology, ear, nose, and throat procedures, ophthalmology, oral and maxillofacial surgery, podiatry and proctology. Cynosure's product portfolio is composed of a broad range of energy sources including Alexandrite, diode, Nd: YAG, picosecond, pulse dye, Q-switched lasers, intense pulsed light and radiofrequency technology. Cynosure sells its products globally under the Cynosure, Palomar, ConBio and Ellman brand names through a direct sales force in the United States, Canada, Mexico, France, Germany, Spain, the United Kingdom, Australia, China, Japan and Korea, and through international distributors in approximately 120 other countries. For corporate or product information, visit Cynosure's website at www.cynosure.com.
Forward-Looking Statements
(MORE TO FOLLOW) Dow Jones Newswires
February 10, 2015 08:00 ET (13:00 GMT)
skietz
10 years ago
Cynosure Reports Record Third-Quarter Revenue of $71.5 Million, Up 18% Year-Over-Year
3 hours 54 minutes ago - DJNF
WESTFORD, Mass., Oct. 28, 2014 /PRNewswire/ -- Cynosure, Inc. (Nasdaq: CYNO), which designs, manufactures and markets medical devices for aesthetic procedures and precision surgical applications worldwide, today reported financial results for the three months ended September 30, 2014.
Third-Quarter 2014 Highlights
-- Revenue up 18% year-over-year to $71.5 million
-- Non-GAAP net income of $5.5 million, or $0.25 per diluted share,
excluding amortization expenses, acquisition costs and unrealized
foreign exchange loss
-- GAAP net income of $3.1 million, or $0.14 per diluted share, including
amortization expenses, acquisition costs and unrealized foreign exchange
loss
-- $113 million in cash and investments at September 30, 2014
-- Repurchased $6.6 million of common stock under share repurchase program
-- Acquired assets of RF medical device manufacturer Ellman International,
Inc.
"Cynosure delivered record third-quarter revenue of $71.5 million, up 18 percent year-over-year as revenue in each of our direct sales channels improved from the same period in 2013," said Cynosure Chairman and Chief Executive Officer Michael Davin. "North American laser revenue increased 17 percent, revenue from our Asia Pacific subsidiaries rose 46 percent, while our European direct sales channel was up 7 percent. Product and technology innovation, expanded indications and new international marketing clearances continue to drive favorable results for the Company."
"Demand for our flagship PicoSure(R) Picosecond Laser Workstation continues to exceed our expectations," Davin continued. "Based on enthusiastic customer feedback and patient and physician satisfaction, we believe this technology is becoming the gold standard for the removal of tattoos and benign pigmented lesions. New FDA marketing clearances, combined with recent international regulatory approvals in Korea, Taiwan and Australia, demonstrate the successful execution of our strategy to drive growth for PicoSure worldwide."
Recent Highlights
-- Ellman International, Inc. Acquisition. During the third quarter,
Cynosure announced that it acquired the assets of Ellman International,
Inc. for approximately $13.2 million in cash. Based in Hicksville, NY,
Ellman develops, manufactures and markets advanced radiofrequency (RF)
technology for precision surgical and aesthetic procedures and offers a
line of aesthetic lasers.
-- PicoSure System Receives FDA Clearance for New Indications. The Company
received clearance from the U.S. Food and Drug Administration to market
the PicoSure system, previously approved for the removal of tattoos and
benign pigmented lesions, for the additional indications of acne scarring
as well as the treatment of fine lines and wrinkles.
-- Share Repurchase Program. During the third quarter, the Company
repurchased $6.6 million of common stock under its $35 million share
repurchase program. Approximately $4 million remained available under the
program at September 30, 2014.
"We ended the third quarter of 2014 with cash and investments of $113 million and generated cash from operations of $14.1 million during the quarter," Davin said. "We continued to effectively maintain our balance sheet strength while returning capital to our stockholders and investing to profitably grow the business."
Business Outlook
"Looking ahead, Cynosure is well-positioned to deliver top-line growth and increased profitability," Davin said. "Our healthy, unencumbered balance sheet supports our strategy to drive growth organically and through strategic acquisitions. We are on schedule to launch our next flagship platform in 2015 for non-invasive fat removal, and we believe this large addressable market represents a significant growth opportunity for the Company."
Third-Quarter Financial Results Conference Call
In conjunction with the announcement of its third-quarter 2014 financial results, Cynosure will host a conference call for investors and analysts at 9:00 a.m. ET today. On the call, Michael Davin and Timothy Baker, the Company's President and Chief Financial Officer, will discuss Cynosure's financial results and provide a business overview. Those who wish to listen to the conference call webcast should visit the "Investors" section of the Company's website at www.cynosure.com. The live call can also be accessed by dialing (877) 709-8155 or (201) 689-8881. If you are unable to listen to the live call, the webcast will be archived for one year on the Company's website.
About Cynosure, Inc.
Cynosure designs, manufactures and markets medical devices for aesthetic procedures and precision surgical applications worldwide that enable plastic surgeons, dermatologists and other medical practitioners to perform non-invasive and minimally invasive procedures to remove hair, treat vascular and benign pigmented lesions, remove multi-colored tattoos, revitalize the skin, liquefy and remove unwanted fat through laser lipolysis, reduce cellulite, clear nails infected by toe fungus and ablate sweat glands. Cynosure's product portfolio is composed of a broad range of energy sources including Alexandrite, diode, Nd: YAG, picosecond, pulse dye, Q-switched lasers, intense pulsed light and radiofrequency technology. Cynosure sells its products globally under the Cynosure, Palomar, ConBio and Ellman brand names through a direct sales force in the United States, Canada, Mexico, France, Germany, Spain, the United Kingdom, Australia, China, Japan and Korea, and through international distributors in approximately 120 other countries. For corporate or product information, visit Cynosure's website at www.cynosure.com.
Forward-Looking Statements
Any statements in this press release about future expectations, plans and prospects for Cynosure, Inc., including Cynosure's intention to repurchase shares of its common stock from time to time under the share repurchase program, Cynosure's intention to broaden its reach through expanded indications and marketing programs, research and development projects, and Cynosure's active pipeline of potential acquisition opportunities, as well as other statements containing the words "believes," "anticipates," "plans," "expects," "will" and similar expressions, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the market price of Cynosure's stock prevailing from time to time, the nature of other investment opportunities presented to the Company from time to time, the Company's cash flows from operations, levels of demand for procedures performed with Cynosure products and for Cynosure products themselves, competition in the aesthetic laser industry, general business and economic conditions, effects of acquisitions that Cynosure has made or may make, Cynosure's ability to develop and commercialize new products, Cynosure's reliance on sole source suppliers, the inability to accurately predict the timing or outcome of regulatory decisions, and economic, market, technological and other factors discussed in Cynosure's most recent Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q for the first and second quarters of 2014, which are filed with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent Cynosure's views as of the date of this press release. Cynosure anticipates that subsequent events and developments will cause its views to change. However, although Cynosure may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Cynosure's views as of any date subsequent to the date of this press release.
Contact:
Timothy Baker Scott Solomon
President and Chief Financial Officer Vice President
Cynosure, Inc. Sharon Merrill Associates
(978) 256-4200 (617) 542-5300
TBaker@cynosure.com CYNO@investorrelations.com
Consolidated Statements of Income (Unaudited)
---------------------------------------------------------------------------------------
(In thousands, except per share data)
Three Months Ended September 30, Nine Months Ended September 30,
2014 2013 2014 2013
-------------- ---------------- --------------- ------------------
Revenues $ 71,530 $ 60,692 $ 206,107 $ 151,473
Cost of revenues 31,232 26,558 89,721 65,865
-------------- ---------------- --------------- ------------------
Gross profit 40,298 34,134 116,386 85,608
Operating
expenses
Selling and
marketing 21,721 17,364 62,710 44,198
Research and
development 5,746 5,033 16,319 12,350
Amortization of
intangible
assets
acquired 740 451 2,166 948
General and
administrative 6,841 12,712 22,197 42,189
-------------- ---------------- --------------- ------------------
Total operating
expenses 35,048 35,560 103,392 99,685
Income (loss)
from
operations 5,250 (1,426) 12,994 (14,077)
Interest
(expense)
income, net (342) 25 (1,034) 80
Other (expense)
(MORE TO FOLLOW) Dow Jones Newswires
October 28, 2014 08:00 ET (12:00 GMT)
TheFinalCD
11 years ago
Cynosure Announces Successful Settlement of Patent Infringement Lawsuits Against Tria Beauty
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WESTFORD, Mass., Dec. 16, 2013 /PRNewswire/ -- Cynosure, Inc. (Nasdaq:CYNO), which develops and markets laser- and light-based aesthetic treatment systems for high-volume applications, today announced that it will receive $10 million plus future royalty payments under a comprehensive settlement agreement with Tria Beauty, Inc. that ends the patent infringement litigation between Tria and Palomar Medical Technologies, which Cynosure acquired in June 2013.
"This agreement resolves the litigation involving certain Palomar patents, eliminating potential future legal expense to enforce those patents," said Michael R. Davin, Cynosure's President and CEO. "Equally important, the settlement fully values our intellectual property rights by fairly compensating Cynosure and its shareholders for sales of products based on our proprietary hair-removal technology."
The settlement includes two non-exclusive patent license agreements between Cynosure and Tria:
•The first agreement grants Tria a non-exclusive, worldwide license to U.S. Patent Nos. 5,735,844 and 5,595,568 and foreign counterparts for consumer hair removal products. These patents were acquired from Palomar by Cynosure. As part of the agreement, Tria will pay Cynosure $8.5 million. The first payment of $3.4 million is to be made by December 20, 2013. The second payment of $5.1 million is to be made on the earlier of September 15, 2014 or five business days following an initial public offering by Tria or a change of control of Tria. In addition, Cynosure will receive a royalty-free license to certain Tria patents outside the consumer field.
•The second agreement grants Tria a non-exclusive, royalty bearing, worldwide license to the claims of certain Palomar patents, including but not limited to U.S. Patent Nos. 8,182,473, 8,328,794, and 8,328,796, for consumer hair removal products. These patent claims cover the hair removal products that were the subject of the second lawsuit between Palomar and Tria. As part of the agreement, Tria will pay Cynosure $1.5 million covering sales made prior to October 1, 2013. The first payment of $600,000 is to be made by December 20, 2013. The second payment of $900,000 is to be made on the earlier of December 20, 2014 or five business days following an initial public offering by Tria or a change of control of Tria. In addition, Cynosure will receive a 3% royalty on U.S. sales made after October 1, 2013 through September 30, 2021 with respect to U.S. Patent Nos. 8,182,473, 8,328,794, and 8,328,796 or through the expiration of any other licensed Palomar patent if such expiration is after September 30, 2021, unless the second agreement is terminated earlier.
About Cynosure, Inc.
Cynosure develops and markets aesthetic treatment systems that enable plastic surgeons, dermatologists and other medical practitioners to perform non-invasive and minimally invasive procedures to remove hair, treat vascular and benign pigmented lesions, remove multi-colored tattoos, revitalize the skin, liquefy and remove unwanted fat through laser lipolysis, reduce cellulite, treat toe fungus and ablate sweat glands. Cynosure's product portfolio is composed of a broad range of energy sources including Alexandrite, diode, Nd: YAG, picosecond, pulse dye, and Q-switched lasers and intense pulsed light. Cynosure sells its products globally under the Cynosure, Palomar and ConBio brand names through a direct sales force in the United States, Canada, Mexico, France, Germany, Spain, the United Kingdom, Australia, China, Japan and Korea, and through international distributors in approximately 100 other countries. For corporate or product information, visit Cynosure's website at www.cynosure.com.
Forward-Looking Statements
Any statements in this press release relating to the settlement agreement between the Company and Tria Beauty, Inc. constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors including risks related to, among other things, the amount of future payments the Company expects to receive in connection with its settlement of its patent litigation, the date through which such payments may be received by the Company, the Company's ability to avoid future legal expenses as a result of the settlement, and the enforceability of the Company's intellectual property as well as other factors discussed in Cynosure's most recent Annual Report on Form 10-K and subsequently filed Quarterly Report on Form 10-Q for the third quarter of 2013, which are filed with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent Cynosure's views as of the date of this press release. Cynosure anticipates that subsequent events and developments will cause its views to change. However, although Cynosure may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so.
Contact:
Patricia A. Davis
Scott Solomon
SVP, General Counsel & Secretary
Vice President
Cynosure, Inc.
Sharon Merrill Associates
(978) 256-4200
(617) 542-5300
pdavis@cynosure.com
CYNO@investorrelations.com
SOURCE Cynosure, Inc.
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