The bad news for the Westford-based cosmetic laser firm is the 61 percent revenue plunge it posted for the three months ended March 31, slightly more than the 60 percent decrease it predicted.
First-quarter sales fell to $14.8 million, down from $36.7 million during the first quarter of 2008. The drop was enough to reverse a net gain of $4.8 million during the first three months of 2008 into a $4 million loss for the quarter.
Company officials blamed the declines on the market for cosmetic laser treatments, which they said slowed due to the credit crunch, which restricts customers’ ability to purchase equipment.
And it can’t help that 59 percent of Massachusetts hospitals reported a drop in elective surgeries in 2008 and into the beginning of fiscal 2009, according to The Boston Globe.
Whatever its cause, the slump affected Cynosure’s business dramatically enough that it’s been shedding jobs over the past two months. The company laid off 17 percent of its staff in February and cut another 25 employees, about 10 percent of its total workforce, in March. Cynosure employs 271 workers, down from 288 at the end of 2008, after adding 11 employees to its new direct sales operation in Korea.
Cynosure said the latest cuts are aimed at saving $14 million to $18 million annually.
Officials said the first two months of 2009 were “very slow,” but that orders began picking up in March. They pointed to the continued cost savings from the restructuring and its strong sales team and product portfolio as points of strength.