Syneron Medical Ltd. (NSDQ:ELOS) posted fourth-quarter sales of $14.4 million for the three months ended Dec. 31, 2009, up 1.6 percent compared with $14.2 million during the same period in 2008. Net losses narrowed 72.6 percent to $4.3 million, compared with $15.9 million during Q4 2008:
Press Release
Syneron Reports Fourth Quarter and Full Year 2009 Results
Closed Acquisition of Candela Corporation in January 2010
YOKNEAM, ISRAEL — (MARKET WIRE) — 02/11/2010 — Syneron Medical Ltd. (
Syneron: Fourth Quarter 2009 Highlights: -- Revenue of $14.4 million, up 1.6% from the fourth quarter 2008 -- Gross margin of 70.6%, up from 54.7% in the fourth quarter 2008 and 67.0% in the third quarter 2009 -- Achieved break-even cash flow from operating activities -- Year-over-year average days sales outstanding reduced by 154 days to 97 days as of December 31, 2009 Candela: Fiscal Second Quarter 2010 Highlights: -- Revenue of $32.3 million, up 12.2% from 2009 -- Gross margin of 40.4% up from 35.3% in 2009 -- Achieved break-even from operating activities excluding transaction expenses and stock based compensation expenses
Syneron Medical Ltd. (
company, today announced financial results for the fourth quarter and full
year ended December 31, 2009. The fourth quarter 2009 financial results are
for Syneron Medical solely. The combined financial results with Candela
Corporation which was acquired on January 5, 2010 are included in the
pro-forma financial results section of the press release assuming the
merger with Candela Corporation had occurred on October 1, 2009.
Syneron Fourth Quarter 2009 Financial Results
Revenue for the fourth quarter 2009 was $14.4 million, up 1.6% compared to
$14.2 million in the fourth quarter 2008 and $14.3 million in the third
quarter 2009.
Gross margin for the fourth quarter 2009 was 70.6 % compared to 54.7% in
the same period last year and 67.0% in the third quarter 2009. Gross margin
increased for the fourth consecutive quarter, driven by stable selling
prices and increased sales from the Company’s new higher margin consumable
products.
Operating expenses for the fourth quarter 2009 were $15.6 million, down
33.6% from $23.4 million during the fourth quarter of 2008. The
year-over-year decrease primarily reflected a planned reduction in general
and administrative and sales and marketing expenses. The Company continues
to invest in research and development in order to drive new product
innovation that supports its customers. Research and development expense
was $4.3 million for the fourth quarter of 2009, up from $3.2 million in
the fourth quarter 2008. The increase reflected the acquisition and
consolidation of financial results for Primaeva, RBT and Fluorinex and the
development of an innovative RF aesthetic device for skin tightening.
GAAP net loss for the fourth quarter 2009 was $4.3 million, or $0.16 per
basic and diluted share, compared to a net loss of $15.9 million, or $0.58
per basic and diluted share, in the fourth quarter of 2008. The fourth
quarter 2009 net loss includes $0.8 million in stock based compensation and
a $0.7 million expense related to the merger with Candela Corporation,
completed on January 5, 2010. Merger-related expenses are included in the
GAAP results in accordance with ASC 805 (originally issued as SFAS 141®)
“Business Combinations” which is effective for business combinations
occurring after January 1, 2009.
On a non-GAAP basis, excluding stock-based compensation, net loss for the
fourth quarter 2009 was $3.5 million, or $0.13 per basic and diluted share,
compared to a net loss of $13.7 million, or $0.50 per basic and diluted
share, during the fourth quarter 2008.
Cash and cash equivalents, including short-term and long-term bank
deposits, were $206.4 million at December 31, 2009. The Company achieved
break-even cash flow from operating activities for the fourth quarter of
2009. Trade receivables as of December 31, 2009 were $13.8 million, a
decrease of 57.8% compared to $32.6 million as of December 31, 2008. During
the fourth quarter 2009, inventories decreased for the fourth consecutive
quarter to $8.6 million, representing a 32.1% decrease from the fourth
quarter 2008. On December 31, 2009, average days sales outstanding
(calculated on a quarterly basis) were 97 compared to 251 in the fourth
quarter of 2008 and 115 in the third quarter 2009. Equity at the end of
fourth quarter 2009 was $227.3 million.
Lou Scafuri, Chief Executive Officer of Syneron, commented, “Fourth quarter
2009 results from both Syneron and Candela demonstrate our ability to
achieve revenue growth in what has been a challenging global economic
environment. With two strong franchises, a global distribution and a
complementary customer base, we are in excellent position to benefit from
an improvement in the aesthetic space and overall economic environment.”
Mr. Scafuri continued, “We are particularly pleased with the high demand
for Syneron’s eMatrix™ product, featuring Sublative Rejuvenation. Fourth
quarter 2009 revenues do not fully reflect the sales potential for
eMatrix™ as demand for the tip outpaced our manufacturing capacity. We
have now reached full capacity in supplying systems featuring the new
Sublative rejuvenation tips as momentum in demand and product awareness
continue to build. The robust improvement in gross margins and positive
cash flow from operations reflects our successful corporate restructuring
and cost control initiatives. In addition, our balance sheet continues to
strengthen with lower inventory and our fourth consecutive quarter of
significant reductions in average days of sales outstanding.”
Syneron Fourth Quarter 2009 Pro Forma Financial Results
For the combined companies, the following financials assume the merger with
Candela Corporation had occurred on October 1, 2009.
Pro forma revenue for the fourth quarter 2009 was $46.7 million and gross
margin was 48.5%.
Pro-forma operating expenses were $31.5 million in the fourth quarter 2009.
Pro forma net loss for the fourth quarter 2009 was $7.7 million, or $0.22
per basic and diluted share on a GAAP basis, and $4.6 million, or $0.13 per
basic and diluted share, on a non-GAAP basis excluding stock based
compensation expenses and $1.8 million in non-recurring transaction
expenses related to the merger with Candela.
Mr. Scafuri concluded, “The acquisition of Candela represents a major
aggressive step to advantageously position Syneron in an industry of
change. We enter 2010 as the global aesthetic device market leader in terms
of size, breadth and depth of offering, with a balanced revenue mix across
market segments and geographies and significant recurring revenues. We will
continue to prioritize customer support and product innovation that brings
the most attractive and comprehensive product portfolio to all of our
customers. With the largest and most comprehensive worldwide distribution
and sales network, best in class products and solid financial profile, we
believe there is tremendous opportunity to drive growth and clear market
leadership over the next several years.”