Syneron Medical Reports Revenue of $63.4 Million for the First Quarter 2015
Total revenue up 12% y/y, or 17% in constant currency
Product revenue up 19% y/y, or 23% in constant currency, including North America up 32% and international up 13% (21% constant currency)
YOKNEAM, Israel, May 13, 2015 /PRNewswire/ -- Syneron Medical Ltd. (NASDAQ: ELOS), a leading global aesthetic device company, today announced financial results for the three month period ended March 31, 2015.
First Quarter 2015 and Recent Non-GAAP1 Highlights:
- UltraShape™ launch-to-date U.S. installed base at more than 150 systems, including 31 systems sold in the first quarter and 25 more systems in the month of April.
- Generated $2.7 million in PicoWay™ sales and expanded FDA clearance to include the treatment of pigmented lesions.
- Introduced Profound™ RF micro-needle technology for minimally invasive sub-mental and face lift treatments.
- Revenue of $63.4 million, up 12% year-over-year, or 17% in constant currency.
- North American product sales grew 32% year-over-year.
- International sales grew 8%, including 15% product growth in the EMEA region and 12% product growth in the Asia-Pacific region.
- Non-GAAP gross margin of 53.2%, or 55.0% in constant currency, compared to 53.5% in Q1 2014.
- Non-GAAP net income of $0.6 million, or $0.02 per share.
- Ended quarter with $99.8 million overall cash position, and no debt.
1 The first quarter 2015 year-over-year comparisons are on a non-GAAP basis, excluding items set forth in the section titled "Non-GAAP Financial Highlights for the First Quarter Ended March 31, 2015."
Revenue: First quarter 2015 revenue was $63.4 million, up 12%, compared to $56.8 million in the first quarter 2014. First quarter 2015 constant currency revenue growth was 17%, when excluding the negative impact of $2.8 million related to the change in foreign currency exchange rates as compared to the first quarter 2014.
Amit Meridor, Chief Executive Officer of Syneron, said, "We had a good start to the year across our global business, achieving constant currency global revenue growth of 17%. This included strong product revenue in all regions, led by 32% growth in North America and double-digit constant currency growth in the EMEA and Asia-Pacific regions. During the quarter we continued to see strong interest in UltraShape and positive trends in per procedure Focal Treatment Zone (FTZ) consumable utilization from the installed base. We launched our full UltraShape marketing campaign in early April, which translated into increasing system sales trends. As of end of April we sold 56 systems in North America from January 1 and we remain on track with our UltraShape revenue plan for the year. In the first full quarter selling PicoWay we continue to see strong interest, giving us confidence in the sales growth potential of Picoway, which was enhanced by the recently received FDA clearance for treatment of pigmented lesions. Looking forward, we are well positioned to benefit from the growth potential for UltraShape and PicoWay, and we expect to drive incremental growth from the recently introduced Profound device. Profound is a unique, minimally invasive micro-needle RF treatment for sub-mental loose skin and skin tightening on the face, which achieves, in a single treatment, clinical results equivalent to 37% of face lift surgery. We are building a small, specialized sales team that will be dedicated to Profound and we began its launch during the second quarter."
Non-GAAP Financial Highlights for the First Quarter Ended March 31, 2015:
Gross Margin for the first quarter 2015 was 53.2%, slightly less than 53.5% in the first quarter 2014, reflecting the contradictory effects of favorable geographic mix, with strong product growth, particularly in North America, offset mainly by a negative impact of 1.8% due to changes in foreign currency exchange rates. Excluding change in foreign currency exchange rates, gross margin for the first quarter 2015 was 55.0%, benefitting from the contribution of the newly introduced high margin UltraShape and PicoWay products.
Operating Income for the first quarter 2015 was $1.1 million, compared to $1.9 million in the first quarter 2014. This reflects the Company's investments in sales and marketing expenses related to the significant expansion of the Company's North American sales force, including the establishment of a dedicated body shaping team. It also includes a negative impact of $0.8 million due to changes in foreign currency exchange rates.
Net Income and Earnings Per Share in the first quarter 2015 were $0.6 million, or $0.02 per share, compared to net income of $1.3 million, or $0.04 per share in the first quarter 2014.
Net income and earnings per share for the first quarter 2015 are adjusted to exclude the following items, which are detailed in the Company's financial tables presented at the end of this press release:
- Amortization of acquired intangible assets of $1.5 million
- Stock-based compensation of $0.9 million
- Re-measurement of contingent consideration fair value of $0.06 million
- Income tax benefit of $0.4 million
GAAP Financial Highlights for the First Quarter Ended March 31, 2015:
Gross Margin for the first quarter 2015 was 51.6%, slightly less than 51.7% in the first quarter 2014, reflecting the contradictory effects of favorable geographic mix, with strong product growth, particularly in North America, offset by unfavorable product mix and a negative impact of 1.7% due to changes in foreign currency exchange rates. Excluding change in foreign currency exchange rates, gross margin for the first quarter 2015 was 53.3%, benefitting from the contribution of the newly introduced high margin UltraShape and PicoWay products.
Operating loss for the first quarter 2015 was $1.4 million, compared to $0.8 million in the first quarter 2014. This reflects the Company's investments in sales and marketing expenses related to the significant expansion of the Company's North American sales force, including the establishment of a dedicated body shaping team. It also includes a negative impact of $0.8 million due to changes in foreign currency exchange rates.
Net Loss and Loss Per Share in the first quarter 2015 was $1.5 million, or $0.04 per share, compared to $1.1 million, or $0.03 per share in the first quarter 2014.
Cash Position: As of March 31, 2015, the Company's overall cash position including cash, short-term bank deposits and marketable securities amounted to $99.8 million, compared to $110.4 million as of December 31, 2014. Cash use in the first quarter 2015 included investments in inventory to support anticipated growth in 2015 and to account for the Company's strong fourth quarter results, as well as other non-recurring payments, along with investment in a new ERP system. The reduction in cash position also included the repurchase of 328,358 shares of Syneron stock during the first quarter 2015 at an average price of $11.93 for $3.9 million under the Company's previously authorized $20 million share repurchase program. Since December 2014, the Company has repurchased a total of 376,642 shares at an average price of $11.69 for $4.4 million under this program.
Use of Non-GAAP Measures
This press release provides financial measures for gross margin, operating margin, operating "income (loss), net income (loss) and earnings (loss) per share, which exclude expenses related to amortization of acquired intangible assets, stock-based compensation, re-measurement of contingent consideration fair value, impairment of intangible assets, Fair Market Value (FMV) adjustment, tax benefit, changes in foreign currency exchange rates, and legal settlement, 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 ongoing operational results, operating 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 non-GAAP measures when evaluating the business internally and, therefore, believes 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.
Conference Call
Syneron management will host its first quarter 2015 earnings conference call today at 8:30 a.m. ET. Syneron will be broadcasting live via the Investor Relations section of its website, www.investors.syneron.com. To access the call, enter the Syneron Investor Relations website, then click on the webcast link "Q1 2015 Results Webcast."
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 877-280-2296 in the U.S., and 212-444-0412 from overseas. The conference pass code is: 8072668.
About Syneron Candela:
Syneron Candela is a 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 non-invasive fat destruction, body contouring, hair removal, wrinkle reduction, tattoo removal, improving 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 three distinct brands, Syneron, Candela and CoolTouch, and has a wide portfolio of trusted, leading products including UltraShape, VelaShape, GentleLase, VBeam Perfecta, PicoWay and elos Plus.
Founded in 2000, the corporate, R&D, and manufacturing headquarters for Syneron Candela are located in Israel. Syneron Candela also has R&D and manufacturing operations in the U.S. The company markets, services and supports its products in 86 countries. It has offices in North America, France, Germany, Italy, Portugal, Spain, UK, Australia, China, Japan, and Hong Kong and distributors worldwide.
For additional information, please visit http://www.syneron-candela.com.
SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS
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.
Forward-looking statements in this press release include optimism about increased sales of Ultrashape, being on track with the Company's revenue plan for the year, being well positioned to benefit from the growth potential for UltraShape and PicoWay, and driving incremental growth from the Profound device, which is expected to launch during the second quarter of 2015. 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 risks associated with the successful build-out of our North American sales force and its ability to enable us to generate more North American revenue and improve margins, the market acceptance of our new products, including the UltraShape, PicoWay and Profound products, our ability to grow non-core market revenues, changes in foreign currency exchange rates, the continued stabilization of the Europe and Middle East and Asia Pacific markets, as well as those 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, UltraShape, 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.
| Syneron Medical Ltd. |
||||||
| Unaudited Condensed Consolidated Statements of Operations |
||||||
| (in thousands, except per share data) |
||||||
| For the three-months ended |
||||||
| March 31, |
March 31, |
|||||
| 2015 |
2014 |
|||||
| Revenues |
$ 63,399 |
$ 56,813 |
||||
| Cost of revenues |
30,714 |
27,414 |
||||
| Gross profit |
32,685 |
29,399 |
||||
| Operating expenses: |
||||||
| Sales and marketing |
21,390 |
17,318 |
||||
| General and administrative |
6,935 |
6,250 |
||||
| Research and development |
5,658 |
6,238 |
||||
| Other expenses, net |
56 |
399 |
||||
| Total operating expenses |
34,039 |
30,205 |
||||
| Operating loss |
(1,354) |
(806) |
||||
| Financial Income (expenses), net |
(243) |
164 |
||||
| Loss before tax on income (tax benefit) |
(1,597) |
(642) |
||||
| Taxes on income (tax benefit) |
(128) |
450 |
||||
| Net loss |
$ (1,469) |
$ (1,092) |
||||
| Loss per share: |
||||||
| Basic and Diluted |
||||||
| Net loss per share |
$ (0.04) |
$ (0.03) |
||||
| Weighted average shares outstanding: |
||||||
| Basic and Diluted |
36,722 |
36,653 |
||||
| Syneron Medical Ltd. |
||||||
| Condensed Consolidated Balance Sheets |
||||||
| (in thousands) |
||||||
| March 31, |
December 31, |
|||||
| 2015 |
2014 (*) |
|||||
| (Unaudited) |
||||||
| Assets |
||||||
| Current assets: |
||||||
| Cash and cash equivalents |
$ 49,514 |
$ 57,189 |
||||
| Short-term bank deposits |
5,354 |
6,415 |
||||
| Available-for-sale marketable securities |
28,155 |
30,055 |
||||
| Trade receivable, net |
53,244 |
55,898 |
||||
| Other accounts receivables and prepaid expenses |
13,485 |
15,168 |
||||
| Inventories |
38,906 |
36,894 |
||||
| Total current assets |
188,658 |
201,619 |
||||
| Long-term assets: |
||||||
| Severance pay fund |
522 |
514 |
||||
| Long-term deposits and others |
312 |
267 |
||||
| Long-term available-for-sale marketable securities |
16,785 |
16,785 |
||||
| Investment in affiliated company |
20,130 |
20,130 |
||||
| Property and equipment, net |
7,626 |
7,011 |
||||
| Intangible assets, net |
20,213 |
21,698 |
||||
| Goodwill |
25,285 |
25,285 |
||||
| Deferred taxes |
13,771 |
13,525 |
||||
| Total long-term assets |
104,644 |
105,215 |
||||
| Total assets |
$ 293,302 |
$ 306,834 |
||||
| Liabilities and Stockholders' Equity |
||||||
| Current liabilities: |
||||||
| Accounts payable |
$ 20,809 |
$ 21,948 |
||||
| Deferred revenues |
12,973 |
14,054 |
||||
| Other accounts payable and accrued expenses |
27,030 |
32,595 |
||||
| Total current liabilities |
60,812 |
68,597 |
||||
| Long-term liabilities: |
||||||
| Contingent consideration liability |
5,039 |
4,983 |
||||
| Deferred revenues |
2,101 |
3,782 |
||||
| Warranty accruals |
814 |
860 |
||||
| Accrued severance pay |
589 |
507 |
||||
| Deferred taxes |
- |
140 |
||||
| Total long-term liabilities |
8,543 |
10,272 |
||||
| Stockholders' equity: |
223,947 |
227,965 |
||||
| Total liabilities and stockholders' equity |
$ 293,302 |
$ 306,834 |
||||
| (*) |
Derived from audited financial statements |
|||||
| Syneron Medical Ltd. |
|||||||||||||
| Unaudited Condensed Consolidated Statements of Cash Flows |
|||||||||||||
| (in thousands) |
|||||||||||||
| For the three-months ended |
|||||||||||||
| March 31 |
March 31 |
||||||||||||
| 2015 |
2014 |
||||||||||||
| Cash flows from operating activities: |
|||||||||||||
| Net loss |
$ (1,469) |
$ (1,092) |
|||||||||||
| Adjustments to reconcile net loss to net cash |
|||||||||||||
| Non-cash items reported in discontinued operations |
|||||||||||||
| Share-based compensation |
929 |
771 |
|||||||||||
| Depreciation and amortization |
2,226 |
2,051 |
|||||||||||
| Realized loss, changes in accrued interest and amortization |
175 |
181 |
|||||||||||
| Revaluation of contingent liability |
56 |
399 |
|||||||||||
| Changes in operating assets and liabilities: |
|||||||||||||
| Trade receivable, net |
(564) |
(1,486) |
|||||||||||
| Inventories |
(1,938) |
(835) |
|||||||||||
| Other accounts receivables |
1,615 |
1,496 |
|||||||||||
| Deferred taxes |
(403) |
(458) |
|||||||||||
| Accounts payable |
(852) |
(2,073) |
|||||||||||
| Deferred revenue |
2,473 |
1,030 |
|||||||||||
| Accrued warranty accruals |
(2,468) |
(780) |
|||||||||||
| Other accrued liabilities |
(5,426) |
(3,939) |
|||||||||||
| Net cash used in operating activities |
(5,646) |
(4,735) |
|||||||||||
| Cash flows from investing activities: |
|||||||||||||
| Purchases of property and equipment |
(1,136) |
(456) |
|||||||||||
| Proceeds from the sale or maturity of marketable securities |
7,700 |
20,386 |
|||||||||||
| Purchase of marketable securities |
(5,853) |
(13,008) |
|||||||||||
| Proceeds from short-term bank deposits, net |
1,060 |
4,944 |
|||||||||||
| Acquisition of a subsidiary |
- |
(11,016) |
|||||||||||
| Other investing activities |
(45) |
(28) |
|||||||||||
| Net cash provided by investing activities |
1,726 |
822 |
|||||||||||
| Cash flows from financing activities: |
|||||||||||||
| Repurchase of shares from shareholders |
(3,918) |
- |
|||||||||||
| Proceeds from exercise of stock options |
915 |
254 |
|||||||||||
| Net cash provided by (used in) financing activities |
(3,003) |
254 |
|||||||||||
| Effect of exchange rates on cash and cash equivalents |
(752) |
210 |
|||||||||||
| Net decrease in cash and cash equivalents |
(7,675) |
(3,449) |
|||||||||||
| Cash and cash equivalents at beginning of period |
57,189 |
37,583 |
|||||||||||
| Cash and cash equivalents at end of period |
$ 49,514 |
$ 34,134 |
|||||||||||
| Syneron Medical Ltd. |
||||||
| Unaudited Non-GAAP Financial Measures and Reconciliation |
||||||
| (in thousands, except per share data) |
||||||
| For the three-months ended |
||||||
| March 31 |
March 31 |
|||||
| 2015 |
2014 |
|||||
| GAAP gross profit |
$ 32,685 |
$ 29,399 |
||||
| Stock-based compensation |
50 |
66 |
||||
| Amortization of intangible assets |
1,010 |
950 |
||||
| Non-GAAP gross profit |
$ 33,745 |
$ 30,415 |
||||
| GAAP operating loss |
$ (1,354) |
$ (806) |
||||
| Stock-based compensation |
929 |
770 |
||||
| Amortization of intangible assets |
1,485 |
1,251 |
||||
| Remeasurement of contingent consideration |
56 |
399 |
||||
| Other non-recurring items |
(5) |
277 |
||||
| Non-GAAP operating income |
$ 1,111 |
$ 1,891 |
||||
| GAAP net loss |
$ (1,469) |
$ (1,092) |
||||
| Stock-based compensation |
929 |
770 |
||||
| Amortization of intangible assets |
1,485 |
1,251 |
||||
| Remeasurement of contingent consideration |
56 |
399 |
||||
| Other non-recurring items |
(5) |
277 |
||||
| Tax benefit |
(390) |
(277) |
||||
| Non-GAAP net income |
$ 606 |
$ 1,328 |
||||
| 0.00 |
||||||
| Income (Loss) per share: |
||||||
| Basic |
||||||
| GAAP net loss per share |
$ (0.04) |
$ (0.03) |
||||
| Stock-based compensation |
0.03 |
0.02 |
||||
| Amortization of intangible assets |
0.04 |
0.03 |
||||
| Remeasurement of contingent consideration |
- |
0.01 |
||||
| Other non-recurring items |
- |
0.01 |
||||
| Tax benefit |
(0.01) |
(0.01) |
||||
| Non-GAAP net income per share |
$ 0.02 |
$ 0.03 |
||||
| Diluted |
||||||
| GAAP net loss per share |
$ (0.04) |
$ (0.03) |
||||
| Legal settlement costs |
||||||
| Stock-based compensation |
0.03 |
0.02 |
||||
| Amortization of intangible assets |
0.04 |
0.03 |
||||
| Remeasurement of contingent consideration |
0.00 |
0.01 |
||||
| Other non-recurring items |
- |
0.02 |
||||
| Tax benefit |
(0.01) |
(0.01) |
||||
| Non-GAAP net income per share |
$ 0.02 |
$ 0.04 |
||||
| Weighted average shares outstanding: |
||||||
| Basic |
36,770 |
36,653 |
||||
| Diluted |
37,328 |
37,387 |
||||
Logo - http://photos.prnewswire.com/prnh/20120528/535447
SOURCE Syneron Medical Ltd.
Related Links
http://www.syneron-candela.com
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article