Cynosure Reports 41% Revenue Increase: 10th Consecutive Quarter of Reve...( - Gross Margin Increases 430 Basis Po...)

- Gross Margin Increases 430 Basis Points from the First Quarter of 2007 to

66.3%

- Company Prepares to Launch Newest Generation of Laser Lipolysis

Technology

WESTFORD, Mass., April 29 /PRNewswire-FirstCall/ -- Cynosure, Inc. (Nasdaq: CYNO), a leading developer and manufacturer of a broad array of light-based aesthetic treatment systems, today announced record revenues and gross margin for the quarter ended March 31, 2008.

First-Quarter 2008 Financial Results

Revenues increased approximately 41% to a record $36.8 million in the first quarter of 2008 from $26.1 million in the first quarter of 2007. Gross profit margin increased to 66.3% of total revenues compared with 62.0% for the same period in 2007. Net income in the first quarter of 2008 increased approximately 130% to $4.9 million, or $0.38 per diluted share, compared with net income of $2.1 million, or $0.17 per diluted share, in the first quarter of 2007.

Non-GAAP net income, which excludes stock-based compensation expense and its related income tax effects, was $5.7 million, or $0.45 per diluted share, in the first quarter of 2008, compared with non-GAAP net income of $3.1 million, or $0.25 per diluted share, in the first quarter of 2007. Please refer to the financial reconciliations included in this news release for a reconciliation of GAAP results to non-GAAP results for the three month periods ended March 31, 2008 and 2007.

"We produced another excellent quarter, as our flagship solutions for laser lipolysis, anti-aging and hair removal all posted double-digit percentage revenue gains," said Cynosure President and Chief Executive Officer Michael Davin. "Laser product rev
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