Westford, Mass.-based Cynosure reported losses of $1.3 million, or 6¢ per share, on sales of $60.7 million for the 3 months ended Sept. 30. Compared with profits of $3.4 million during Q3 2012, that represents a 63.7% top-line increase.
Adjusted to exclude 1-time items, earnings per share were 23¢, well ahead of the 9¢ Wall Street analysts were expecting.
It was the 1st full quarter since Cynosure’s acquisition of rival Palomar Medical for $294 million in March, chairman, president & CEO Michael Davin said.
"Primarily related to the acquisition of Palomar, 3rd-quarter 2013 laser revenues were up 62% to $50.1 million compared with $31.0 million for the same period of 2012, reflecting growth in both North American and international distribution channels," Davin said in prepared remarks. "We have made excellent progress in the integration of Palomar Medical Technologies since the acquisition closed on June 24th," Davin said. "Along with integrating the North American sales teams, we have integrated a number of other areas including R&D, engineering, marketing, compliance, quality assurance, clinical, field & depot service, finance and legal. The integration of our IT systems is well underway. We also have streamlined our international direct sales forces, consolidating offices in Europe and the Asia-Pacific region."
The company expects to close the sale of Palomar’s former headquarters in Burlington, Mass., during the 4th quarter, Davin added.
Cynosure said its board authorized a $25 million share repurchasing plan, which Davin said "reflects our ongoing commitment to improving the investment value of our stock while at the same time growing our business."
"Looking ahead, we expect to complete the integration of the remainder of the organization by year-end 2013. On the manufacturing front, we plan to complete the transition of the Palomar product line to our Westford facility and to contract manufacturing by the 2nd half of next year, a move that we expect will result in greater efficiencies and cost savings. The acquisition remains on track to achieve $8 million to $10 million in cost synergies and to be accretive in 2014," he said.
CYNO shares were down 6.1% to $23.20 apiece as of about 11:30 a.m. today.