Shares of Westford, Mass.-based Cynosure (NSDQ:CYNO) have been on a bit of a Wall Street roller coaster ride in the days following the company’s Q2 financial release, in which the device maker posted a dramatic swing to the red and a quarter up-tick in revenues.
Cynosure reported a $9 million loss, or 54¢ lost per share, on sales of $50.1 million for the 3 months ended June 30, 2013. That’s a 26.6% spike in sales compared to the $39.6 million in revenue during the same period last year, when Cynosure posted $2.7 million in profits, or 20¢ per diluted share.
The missing profits went in part to support Cynosure’s June acquisition of rival device maker Palomar Medical, a deal valued at $287 million in cash and stock. Excluding those and other 1-time costs, Cynosure posted adjusted earning of 29¢ per share, beating Wall Street’s consensus estimates by a full 12¢.
Palomar figures large in Cynosure plans, and chairman & CEO Michael Davin was bullish about the company’s near-future prospects.
"We believe our acquisition of Palomar combines two outstanding companies, creating an aesthetic industry leader with good momentum and exciting growth opportunities," David said in prepared remarks. "We have already made measurable progress in bringing Cynosure and Palomar together as one organization, and expect to complete the integration in the next several quarters. With our planned implementation of $8 million to $10 million in synergies, we continue to expect the acquisition to be accretive in 2014."
New of Cynosure’s strong prospects sent CYNO shares from an open of $28.61 on July 31, 2013, to as high as $29.35 before closing at $28.00, a 2.2% increase on the day. By the next morning shares had crept up to $28.61, but dwindles over the next few days to come back down to close at $25.88 last night, a 7.6% drop from the July 31 open.
