Solta Medical Inc. (NSDQ:SLTM) posted fourth-quarter sales of $28.4 million for the three months ended Dec. 31, 2009, up 197 percent compared with $9.5 million during the same period in 2008. Net losses narrowed to $256,000, compared with $15 million during Q4 2008.
Solta also said it agreed to acquire Pleasanton, Calif.-based Aesthera Corp. for $5.25 million in Solta stock and cash, plus potential milestone payments of $750,000. The deal also contains provisions for so-called "stretch" milestones of up to $10 million if Aesthera achieves revenues of $14 million to $21 million in the 12 months beginning April 1.
Press Release
Solta Medical Reports Fourth Quarter and Full Year 2009 Results
Provides Financial Goals for 2010
HAYWARD, Calif., Feb. 23 /PRNewswire-FirstCall/ — Solta Medical, Inc. (Nasdaq: SLTM), a global leader in the medical aesthetics market, today announced results for the fourth quarter and full year ended December 31, 2009. Revenue for the fourth quarter was in-line with the preliminary forecast provided on January 8, 2010.
Revenue for the fourth quarter was $28.4 million, an increase of approximately $18.9 million, or 197%, as compared to the fourth quarter 2008 revenue of $9.5 million reflecting increased revenue as a result of the acquisition of Reliant Technologies, Inc. on December 23, 2008. Solta Medical’s reported results for the fourth quarter of 2009 include non-cash charges of $1.2 million related to the acquisition of Reliant Technologies and non-cash stock based compensation charges of $0.8 million. The GAAP net loss for the quarter including these charges was $0.3 million, or $0.01 per share as compared to a net loss of $15.0 million, or $0.57 per share reported for the fourth quarter of 2008. Non-GAAP net income for the quarter excluding these charges was $1.7 million, or $0.03 per share on a diluted basis as compared to a non-GAAP net loss of $3.2 million, or $0.12 per share reported for the fourth quarter of 2008. Non-GAAP EBITDA for the fourth quarter was $2.3 million.
Revenue for the twelve months ended December 31, 2009 was $98.8 million, compared with $56.7 million for the full year 2008. Solta Medical’s reported results for the full year 2009 include non-cash charges of $7.1 million related to the acquisition of Reliant Technologies, non-cash stock based compensation charges of $3.2 million, and severance cost of $0.1 million. The GAAP net loss for the year including these charges was $11.2 million, or $0.23 per share as compared to a net loss of $16.4 million, or $0.67 per share reported for the full year 2008. Non-GAAP net loss for the full year excluding these charges was $0.8 million, or $0.02 per share as compared to a non-GAAP net income of $0.2 million, or $0.01 per share on a diluted basis reported for the full year 2008. Non-GAAP EBITDA for the full year 2009 was $1.6 million.
“We recently achieved some key milestones,” said Stephen J. Fanning, Chairman of the Board, President and CEO. ”In the fourth quarter, we successfully ramped up production of our latest editions to the Fraxel and Thermage brands, the Fraxel re:store DUAL™ and the Thermage CPT™. These new products have been very well received by new and existing customers. In January, we secured additional equity financing of $17.2 million that served to further strengthen our balance sheet. In addition, today we announced the signing of a definitive agreement to acquire Aesthera Corporation. Aesthera’s Isolaz™ systems, with proprietary Photopneumatic™ technology for the treatment of acne, broaden Solta’s superior aesthetic solutions for physicians and further leverage our call point and worldwide distribution system.
“While credit conditions remain difficult in the U.S. market, we were pleased that product revenue for the quarter was split evenly between domestic and international markets,” added Mr. Fanning. “In addition, revenue derived from Thermage and Fraxel brands was also evenly split for the quarter.”
Financial Goals for 2010
The Company provided its financial goals for 2010 as follows:
- Revenue for the year in the range of $115 million to $120 million
- Generate positive non-GAAP EBITDA every quarter of 2010
- Achieve a non-GAAP gross margin in the range of 66% to 69% for the full year 2010 excluding non-cash amortization charges and non-cash acquisition related adjustments.
The financial goals include the acquisition of Aesthera Corporation which is expected to close by March 31, 2010.
