Investors shouldn’t distress over the sudden departure of Syneron Medical (NSDQ:ELOS) chief financial officer Asaf Alperovitz, according to analysts.
The resignation of Alperovitz, who left the company "to pursue a new career opportunity," isn’t a "major reason for concern" for the Israel-based aesthetic devices maker, Leerink Swann analysts Richard Newitter and Kathleen McGrath wrote in a note to investors.
"The news is likely to come as a surprise to investors – the timing of these types of announcements almost always does," the analysts wrote. "We do not view the departure as a function of performance, especially given solid 2Q results (reported last week) which highlighted positive directional progress on the profitability improvement front."
"Nor do we think it signals a strategy shift, or operational issues, but rather Mr. Alperovitz’s aspirations for career advancement," the Swann analysts added. "In the coming days/weeks we would not be surprised to hear that Mr. Alperovitz has accepted a senior level management position at another firm."
Alperovitz had been with Syneron since September 2010, where he also served on the board of directors, according to Reuters.
Following his departure, he was replaced in the interim by board member and former CEO David Schlachet, who will hold the seat while the company finds a permanent replacement, according to a press release.
Schlachet was CEO from 2005 to 2007, prior to which he was Syneron’s CFO from 2004 to 2005. His membership on the company’s audit committee is suspended while he maintains the CFO role.
The company reassured investors that the Alperovitz’s resignation wasn’t a reflection on Syneron’s financial performance.
"We recently reported our second quarter results, which demonstrated our ability to drive revenue growth and an improving profitability profile," CEO Louis Scafuri said in pa prepared statement. "We remain on track to meet our key milestones for the remainder of the year, including the current North American launch of the elos Plus next generation multi-platform system, the expected launch of exciting new body contouring products, and additional regulatory approvals in key Asian countries for the elure Advanced Skin Brightening system."
Analysts Newitter and McGrath reiterated their "outperform" rating on the company’s stock, forecasting that the company’s sales will grow above market rates and the potential for an upside if its recently launched consumer products sell faster than expected.
ELOS shares took a hit on Wall Street, losing about 2.7% from a close of $9.80 last night, after which Alperovitz’s resignation was announced, to opening at 9.54 this morning.
Shares climbed back up and were trading at $9.80 as of about 1:10 p.m. today.
