Syneron Reports Second Quarter 2011 Results
(firmenpresse) - YOKNEAM, ISRAEL -- (Marketwire) -- 08/11/11 --
Syneron Medical Ltd. (NASDAQ: ELOS), the leading global aesthetic device company, today announced second quarter 2011 financial results for the three month period ended June 30, 2011.
Revenue of $60.6 million, up 24.1%
EBU segment revenue of $6.1 million, growing to more than 10% of total revenue
International revenue of $39.7 million, up 29.9%
North America revenue of $20.9 million, up 14.5%
Non-GAAP gross margin of 52.0%, up from 48.9%
Non-GAAP net income of $0.2 million and non-GAAP earnings per share of $0.01, compared to a non-GAAP net loss of $3.7 million and a non-GAAP loss per share of $0.11 in the second quarter of 2010
PAD segment non-GAAP operating income of $3.2 million, compared to a loss of $1.7 million in the second quarter of 2010
Cash and investments portfolio of $212.2 million at June 30, 2011
Louis P. Scafuri, CEO of Syneron, commented, "During the second quarter we strengthened and expanded our industry leadership position and continued to gain market share. We benefitted from our innovative and diversified product portfolio, including the successful launch of the new GentleLASE PRO high speed hair removal system. Our strong top-line performance was coupled with continued prudent expense management, allowing us to deliver another quarter of strong operating profit in our Professional Aesthetic Device, or PAD, segment.
"Second quarter top-line results also benefitted from rapid growth of our Emerging Business Units, or EBU, which more than doubled on a sequential basis. This growth was driven by the ongoing international rollout of the m? home-use hair removal system, the launch of the Tända ZAP™ advanced acne clearing device and increased sales of our elure™ Advanced Skin Lightening products. We are very pleased with the strong growth and diversification provided by the EBU segment and expect that it will continue to play an increasingly important role in our overall business. In summary, we believe Syneron is best positioned in the Aesthetic market place to further advance our global market leadership."
Second quarter 2011 revenue was $60.6 million, an increase of 24.1% compared to $48.8 million in second quarter 2010 and a 21.6% sequential increase over first quarter 2011. International revenue in second quarter 2011 was $39.7 million, an increase of 29.9% compared to $30.6 million in second quarter 2010 and an 18.9% sequential increase over first quarter 2011. Second quarter 2011 revenue in North America was $20.9 million, an increase of 14.5% compared to $18.2 million in second quarter 2010 and a 27.4% increase over first quarter 2011.
Second quarter 2011 non-GAAP gross margin was 52.0%, compared to 48.9% in second quarter 2010 and 53.5% in first quarter 2011. The significant increase in non-GAAP gross margin compared to the second quarter of 2010 was primarily driven by higher sales mix of Syneron products and consumables, which benefited from increased cross selling and higher production and sales volume. The sequential decline in non-GAAP gross margin was mainly due to the penetration phase of the m? home-use hair removal system into new European markets and stronger Candela sales to distributors.
Second quarter 2011 non-GAAP operating income was $0.3 million, compared to a non-GAAP operating loss of $3.3 million in second quarter 2010. Second quarter 2011 non-GAAP operating income represented 0.5% of revenue in the quarter, compared to a non-GAAP operating loss of 6.8% of revenue in second quarter 2010.
The significant improvement in non-GAAP operating income (loss) was primarily driven by the increase in gross margin and operational efficiency and cost cutting measures implemented since the first quarter 2010.
Second quarter non-GAAP 2011 net income was $0.2 million, compared to a non-GAAP net loss of $3.7 million in second quarter 2010.
Second quarter 2011 non-GAAP earnings per share (basic and diluted) was $0.01, compared to a non-GAAP loss per share of $0.11 in second quarter 2010.
Non-GAAP net income and earnings per share for second quarter 2011 are adjusted to exclude the following one-time income and expenses, which are detailed in the Company's financial tables:
Income from a re-valuation of contingent liabilities related to the Company's previous acquisitions of $3.1 million
Amortization of acquired intangible assets of $2.1 million
Stock-based compensation of $0.9 million
Post acquisition severance payment of $0.8 million
Other one-time charges and non-recurring costs of $0.7 million
Second quarter 2011 gross margin was 50.3%, compared to 47.2% in second quarter 2010 and 51.4% in first quarter 2011. The significant increase in GAAP gross margin compared to the second quarter of 2010 was primarily driven by higher sales mix of Syneron products and consumables, which benefited from increased cross selling and higher production and sales volume. The sequential decline in GAAP gross margin was mainly due to the penetration phase of the m? home-use hair removal system into new European markets and stronger Candela sales to distributors.
Second quarter 2011 operating loss was $1.1 million, compared to an operating loss of $6.5 million in second quarter 2010.
The significant improvement in operating loss was primarily driven by the increase in gross margin and operational efficiency and cost cutting measures implemented since first quarter 2010.
Second quarter 2011 net loss was $0.3 million, compared to a net loss of $6.2 million in second quarter of 2010.
Second quarter 2011 loss per share was $0.01, compared to a loss per share of $0.18 in second quarter 2010.
As of June 30, 2011, cash and cash equivalents, including short-term and long-term bank deposits and investments in marketable securities, were $212.2 million.
Asaf Alperovitz, Chief Financial Officer of Syneron, commented, "Second quarter PAD operating margin remained strong despite increased sales and marketing efforts to support the launch of our GentleLASE PRO. On a consolidated basis, the positive PAD results allowed us to achieve our third consecutive quarter of non-GAAP profitability. The year-over-year improvement in gross margin was driven by a higher mix of Syneron products and continued procedure growth with our systems that utilize consumable components. The sequential decrease in gross margin was mainly a result of increased sales contribution from the EBU segment, which currently has margins below the overall average, primarily due to the penetration phase of our m? home-use hair removal system into new European markets, where we sell to our distribution partners. We view the growing contribution from the EBU segment as a positive indicator of its growth potential and will continue to invest in expanding this business."
This press release provides financial measures for gross margin, operating income (loss), net income (loss), earnings (loss) per share, which exclude one-time expenses relating to the mergers with Candela Corporation and Primaeva Medical Inc, an expense charge related to stock-based compensation and amortization, one-time severance and other one-time charges and non-recurring costs, and are therefore not calculated in accordance with generally accepted accounting principles (GAAP). Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance because it reflects our operational results and enhances management's and investors' ability to evaluate the Company's gross margin, operating income (loss), net income (loss) and earnings (loss) per share. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management uses both GAAP and non-GAAP measures when evaluating the business internally and, therefore, felt it important to make these non-GAAP adjustments available to investors. A reconciliation of each GAAP to non-GAAP financial measure discussed in this press release is contained in the accompanying financial tables.
Syneron management will host its second quarter 2011 earnings conference call today at 8:30 a.m. ET. Syneron will be broadcasting live via the Investor Relations section of its Website, . To access the call, enter the Syneron Website, then click on the Investor Relations -- Overview and select "Q2 2011 Results Web Cast."
Participants are encouraged to log on at least 15 minutes prior to the conference call in order to download the applicable audio software. The call can be heard live or with an on-line replay which will follow. Those interested in participating in the call and the question and answer session should dial 877-844-6886 in the U.S., and 970-315-0315 from overseas. The conference pass code is: 84051695.
Syneron Medical Ltd. (NASDAQ: ELOS) is the leading global aesthetic device company with a comprehensive product portfolio and a global distribution footprint. The Company's technology enables physicians to provide advanced solutions for a broad range of medical-aesthetic applications including body contouring, hair removal, wrinkle reduction, rejuvenation of the skin's appearance through the treatment of superficial benign vascular and pigmented lesions, and the treatment of acne, leg veins and cellulite. The Company sells its products under two distinct brands, Syneron and Candela. Founded in 2000, the corporate, R&D, and manufacturing headquarters for Syneron Medical Ltd. are located in Israel. Syneron also has R&D and manufacturing operations in the US. The Company markets and services and supports its products in 90 countries. It has offices in North America, France, Germany, Italy, Portugal, Spain, UK, Australia, China, Japan, and Hong Kong and distributors worldwide. Additional information can be found at .
Any statements contained in this document regarding future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Further, any statements that are not statements of historical fact (including statements containing "believes," "anticipates," "plans," "expects," "may," "will," "would," "intends," "estimates" and similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including the risk that the businesses of Syneron and Candela may not be integrated successfully; the risk that the merger transaction with Candela may involve unexpected costs or unexpected liabilities; the risk that synergies from the merger transaction may not be fully realized or may take longer to realize than expected; the risk that disruptions from the merger transaction make it more difficult to maintain relationships with customers, employees, or suppliers; as well as the risks set forth in Syneron Medical Ltd.'s most recent Annual Report on Form 20-F, and the other factors described in the filings that Syneron Medical Ltd. makes with the SEC from time to time. If one or more of these factors materialize, or if any underlying assumptions prove incorrect, Syneron Medical Ltd.'s actual results, performance or achievements may vary materially from any future results, performance or achievements expressed or implied by these forward-looking statements.
In addition, the statements in this document reflect the expectations and beliefs of Syneron Medical Ltd. as of the date of this document. Syneron Medical Ltd. anticipates that subsequent events and developments will cause its expectations and beliefs to change. However, while Syneron Medical Ltd. may elect to update these forward-looking statements publicly in the future, it specifically disclaims any obligation to do so. The forward-looking statements of Syneron Medical Ltd. do not reflect the potential impact of any future dispositions or strategic transactions that may be undertaken. These forward-looking statements should not be relied upon as representing Syneron Medical Ltd.'s views as of any date after the date of this document.
Syneron, the Syneron logo, eMatrix and elos are trademarks of Syneron Medical Ltd. and may be registered in certain jurisdictions. The elos (Electro-Optical Synergy) technology is a proprietary technology of Syneron Medical Ltd. All other names are the property of their respective owners.
*PAD: Professional Aesthetic Device segment, which includes the results of the Syneron and Candela device businesses
**EBU: Emerging Business Units. Products in the EBU include m? home-use hair removal system, elure Advanced Skin Lightening products, Tända LED systems, Light Instruments' dental laser devices along with pipeline products that include the Company's strategic home-use device partnership with Procter & Gamble and Fluorinex teeth whitening and fluorination.
Asaf Alperovitz
Chief Financial Officer
+ 972 73 244 2283
Email:
Zack Kubow
The Ruth Group
646-536-7020
Email:
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Datum: 11.08.2011 - 11:40 Uhr
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