Solta tanks amid mixed quarter, CEO shuffle

August 12, 2013 By Arezu Sarvestani Leave a Comment

Despite a relatively strong 2nd-quarter financial report, shares of Solta Medical (NSDQ:SLTM) took a dive last week, losing more than 16% of its share value in a matter of days.

The Hayward, Calif.-based device maker posted profits of $3.8 million, or 5¢ per diluted share, on sales of $43.2 million during the 3 months ended June 30. That compares with losses of $26.3 million, or 43¢ per share, on sales of $37.3 million during the same period last year.

Adjusted for 1-time expenses, the company reported earnings of 2¢ per share, blowing away the expectations of analysts, who had projected a 3¢-loss for the quarter. Nonetheless, news of the CEO change and uncertainty about the future scared Wall Street away in a flurry.

Stephen Fanning stepped down from his role as company president, CEO and board member, according to a press statement, to be replaced in the interim by current board chairman Mark Sieczkarek. A search for a new chief is underway.

The company also lowered its full-year guidance to $165 million in revenue, compared to its previous estimate of $180 million. Adjusted earnings are now expected to be approximately $10 million for the full year, compared to previous estimates at $13-16 million.

"While Q2/13 was mixed, a CEO change and lowered guidance for 2013 sets up for a tumultuous six months," analysts at Canaccord Genuity wrote, lowering their guidance from a "hold" to a "buy" rating. "Given uncertainty surrounding the new CEO’s strategy, we believe it wise to recommend investors wait until more clarity before adding to or taking new positions."

SLTM shares closed at $2.25 on Thursday, August 8, down 16.7% from the pre-earnings value of $2.70 on the morning of Monday, August 5. Shares had lost another few points by midday Friday, trading at $2.21 as of about 1:20 p.m.

MTD Micro Molding late president to be inducted into Plastics Hall of Fame
MTD Micro Molding this week announced that its late president Dennis Tully will be inducted into the Plastics Academy’s Plastics Hall of Fame. Tully is one of six posthumous inductees this year, who are elected by living members of the Hall of Fame after a screening process. “These new posthumous inductees proudly represent the length… […]
This neural implant can be both remotely charged and programmed
Engineers at Rice University’s Brown School of Engineering are touting the first neural implant capable of being programmed and charged remotely with a magnetic field. Kaiyuan Yang, Jacob Robinson, Zhanghao Yu and Joshua Chen collaborated to develop the integrated MagNI (magnetoelectric neural implant) microsystem, which could allow imbedded devices such as a spinal cord stimulator… […]
Integer shares up after Street-beating Q4
Integer Holdings (NYSE:ITGR) shares were up at close today on fourth-quarter results that topped the consensus forecast, despite a big dip in profits. The Plano, Texas-based company posted profits of $11 million, or 33¢ per share, on sales of $325.6 million for the three months ended Dec. 31, 2019, for a 57.2% bottom-line slide on sales… […]
These young medtech companies raised the most money in 2019
Medical device industry insiders may very well remember 2019 as the year that IPOs came back — but another sign that the U.S. economy has left the Great Recession far behind. Among the top investment deals in the space, half involved public offerings, according to the MoneyTree report from PricewaterhouseCoopers (PwC) and CB Insights. Total investments in… […]
Teleflex Medical OEM acquires medical tubing company
Teleflex Medical OEM (Wayne, Pa.), today announced the acquisition of IWG High Performance Conductors (HPC), a medical tubing and wire components manufacturer. The addition bolsters Teleflex Medical OEM’s position in the arena of custom-engineered medical devices and its ability to provide clients with technologies used in electrophysiology, drug- and stent-delivery and neurovascular interventions, according to… […]
Integer expands to Israel
Integer Holdings (NYSE:ITGR) today announced it has acquired medtech manufacturer Inomec, formally establishing its presence in Israel. The Plano, Texas-based company said the acquisition will enable it to create an R&D and sales center in the region and adds important catheter design, clinical and pilot manufacturing capabilities to its portfolio. “Acquiring Inomec strengthens our research… […]
Why non-magnetic capacitors matter in medical imaging
The quality of an MRI image depends on the homogeneity, or uniformity, of the magnetic field. Component material choice is paramount; even the smallest trace of magnetism inside an MRI scanner can disrupt the field and harm the quality of an MRI image. Peter Matthews, Knowles Precision Devices Magnetic resonance imaging (MRI) equipment uses a… […]
This heart valve can adapt as a child grows
Boston Children’s Hospital is touting a new design that could allow children to maintain the same prosthetic heart valve until adulthood, which could also benefit adults with heart valve defects. Current prosthetic heart valves implanted in children with congenital heart disease are fixed in size, which requires multiple open-heart surgeries during childhood to replace the… […]
Simulating Reality With 3D Printed Medical Models
The medical breakthroughs that cure disease, restore health and prolong life aren’t created in a vacuum. They rely on the convergence of visionary minds and cutting-edge technology. This case study explores how the Jacobs Institute is leveraging 3D printing technology from Stratasys® to elevate medical device innovation and training, using ultrarealistic anatomical models created by… […]
These ‘smart’ bandages could heal chronic woulds
UConn biomedical engineers are touting a wirelessly controlled “smart” bandage and corresponding platform for delivering medications to chronic, non-healing wounds. UConn’s School of Dental Medicine, School of Medicine and School of Engineering comprise the biomedical engineering department, which contributed to developing the smart bandage. Ali Tamayol, an associate professor at UConn, led the development of… […]
How to cook up a successful medtech company
New medical device companies need much more than money to get their businesses started. A medtech-specific accelerator can help with seed funding and positioning for a Series A round. Shai Policker, MEDX Xelerator As we dive into 2020, the medtech sector will continue to offer tremendous opportunity for innovators and investors alike, with growth projected… […]