Navigation Links
Solta Medical Reports Fourth Quarter and Full Year 2008 Results

HAYWARD, Calif., Feb. 23 /PRNewswire-FirstCall/ -- Solta Medical, Inc. (Nasdaq: SLTM), a global leader in the medical aesthetics market, today announced financial results for the fourth quarter and full year ended December 31, 2008. Revenue for the fourth quarter was $9.5 million and includes revenue from the sale of Fraxel products post-acquisition of Reliant Technologies, Inc. on December 23, 2008. On a pro forma combined basis as if the acquisition of Reliant Technologies was effective as of October 1, 2008, revenue for the fourth quarter would have been $20.1 million, which is based on Thermage standalone revenue of $8.7 million and Reliant standalone revenue of $11.4 million. This compares to revenue for both companies of $35.5 million in the fourth quarter of 2007 on a pro forma combined basis. On a pro forma combined basis, domestic revenue decreased 42% and international revenue fell 46% from the fourth quarter of 2007.

Gross margin for the quarter was $6.1 million, or 64.4% of revenue. The gross margin includes charges for excess and obsolete inventory of $355,000, loss on disposal of assets of $211,000, purchase price related adjustments from the Reliant acquisition of $263,000, and severance expense of $54,000. Fourth quarter operating expenses were $21.7 million and includes a charge for acquired in-process R&D from the Reliant acquisition of $9.1 million, severance and merger related integration expenses of $1.3 million, stock based compensation charges of $0.9 million, and loss on disposal of assets of $157,000.

The fourth quarter non-GAAP loss before interest, taxes, depreciation and amortization (EBITDA) and excluding the charges related to the Reliant acquisition and stock based compensation was approximately $3.5 million.

"Our fourth quarter results were in-line with the preliminary results provided in late January and illustrate the impact of the overall economic environment on our industry," said Stephen J. Fanning, Chairman of the Board, President and CEO of Solta Medical. "At the same time, we are constantly evaluating ways to maximize our opportunities in the marketplace and have implemented a number of initiatives. For example, we have responded to the tight worldwide credit market by expanding our partner program to include new customer rental programs for both Thermage and Fraxel systems. In addition, with the successful integration of Reliant Technologies and Thermage operations, we have expanded the partner program to include Fraxel consumables and we're offering incentives to doctors who become both Fraxel and Thermage customers. We're also executing on our new product road map and continue to generate a strong market response to the new Body Tip 16.0 for the Thermage NXT."

"As we look forward to 2009, while we expect the current market environment to remain quite challenging, we are confident about the potential of Solta Medical," continued Mr. Fanning. "By combining the two companies, we remain on track to realize approximately $19 million in cost synergies. Additionally, we continue to achieve strong average selling prices on systems and disposables. We believe that with our cost cutting initiatives, we have the financial resources needed to execute our operating plans and achieve our financial goals for 2009. As a result, we believe we are very well positioned to capitalize on any improvement in market conditions," Mr. Fanning concluded.

Financial Goals for 2009

The Company reiterated the following financial goals for 2009:

  • Realize approximately $19 million in cost synergies as a result of the acquisition of Reliant Technologies, Inc.
  • Generate positive cash flow from operations and positive EBITDA for the full year
  • Achieve a non-GAAP gross margin of 70% for the year excluding non-cash amortization charges

Non-GAAP Presentation

To supplement the condensed consolidated financial information presented on a GAAP basis, management has provided non-GAAP operating income (loss), non-GAAP EBITA, non-GAAP net income (loss) and non-GAAP earnings (loss) per share measures that exclude the impact of acquired in-process R&D, purchase price related adjustments, severance costs, merger related integration expense, stock-based compensation expenses and loss on investments, all net of income taxes. The Company believes that these non-GAAP financial measures provide investors with insight into what is used by management to conduct a more meaningful and consistent comparison of the Company's ongoing operating results and trends, compared with historical results. This presentation is also consistent with management's internal use of the measures, which it uses to measure the performance of ongoing operating results, against prior periods and against our internally developed targets. There are limitations in using these non-GAAP financial measures because they are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial measures. Investors and potential investors should consider non-GAAP financial measures only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP and the reconciliation of non-GAAP financial measures attached to this release.

Conference Call Information

Solta Medical will host a conference call and webcast today, Monday, February 23, 2009, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific) to discuss the financial results and current corporate developments. The dial-in number for the conference call is 800-218-0204 for domestic participants and 303-228-2960 for international participants.

A taped replay of the conference call will also be available beginning approximately one hour after the call's conclusion and will remain accessible for seven days. This replay can be accessed by dialing 800-405-2236 for domestic callers and 303-590-3000 for international callers. Both callers will need to use the Passcode 11125653#. To access the live webcast of the call, go to Solta Medical's website at and click on Investor Relations. An archived webcast will also be available at

About Solta Medical, Inc.

Solta Medical, Inc. is a global leader in the medical aesthetics market providing innovative, safe, and effective anti-aging solutions for patients that enhance and expand the practice of medical aesthetics for physicians.

The company offers products to address aging skin under the industry's two premier brands: Thermage(R) and Fraxel(R). Thermage is an innovative, non-invasive radiofrequency procedure for tightening and contouring skin. As the leader in fractional laser technology, Fraxel delivers minimally invasive clinical solutions to resurface aging and sun damaged skin. Since 2002, over one million Thermage and Fraxel procedures have been performed in nearly 80 countries. Thermage and Fraxel are the perfect complement for any aesthetic practice. For more information about Solta Medical, call 1-877-782-2286 or log on to

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding our expectations regarding the market environment, our positioning to capitalize on improvements in the market environment, the adequacy of our financial resources and our financial goals for 2009. Forward-looking statements are based on management's current, preliminary expectations and are subject to risks and uncertainties, which may cause Solta Medical's actual results to differ materially from the statements contained herein. Factors that might cause such a difference include the possibility that the development and release of new products and initiatives do not proceed as anticipated, the market for the sale of these new products and initiatives does not develop as expected, the remaining risks and uncertainties with the integration process, the risks related to our future liquidity if we fail to achieve adequate levels of revenue or sustained profitability, if unanticipated expenses or other uses of cash arise or if we are not able to maintain compliance with borrowing facility covenants and the risks relating to Solta Medical's ability to achieve its stated financial goals as a result of, among other things, economic conditions and consumer and physician confidence causing changes in consumer and physician spending habits that affect demand for our products and treatments. Further information on potential risk factors that could affect Solta Medical's business and its financial results are detailed in its Form 10-K for the year ended December 31, 2007, its Form 10-Q for the quarter ended September 30, 2008 and other reports as filed from time to time with the Securities and Exchange Commission. Undue reliance should not be placed on forward-looking statements, especially guidance on future financial performance, which speaks only as of the date they are made. Thermage undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events.

                                Solta Medical, Inc.
               (in thousands of dollars, except share and per share data)

                                     Three Months Ended   Twelve Months Ended
                                        December 31,          December 31,
                                    2008       2007        2008       2007

    Net revenue                    $9,549    $16,582     $56,681    $63,101
    Cost of revenue                 3,404      3,895      15,066     15,976

    Gross margin                    6,145     12,687      41,615     47,125

    Operating expenses:
    Sales and marketing             6,671      6,990      27,001     26,195
    Research and development        2,448      2,119       9,502      9,099
    Acquired in-process R&D         9,060          -       9,060          -
    General and administrative      3,489      3,138      13,662     11,300

        Total operating expenses   21,668     12,247      59,225     46,594

    Income (loss) from
     operations                   (15,523)       440     (17,610)       531
    Interest and other income         553       674        2,334      2,520
    Interest expense                  (15)         -         (15)         -
    Loss on investments              (225)         -      (1,088)         -

    Income (loss) before income
     taxes                        (15,210)     1,114     (16,379)     3,051
    Provision for income taxes        166       (124)         (9)      (271)

    Net income (loss)           $(15,044)       $990    $(16,388)    $2,780

    Net income (loss) per
     share - basic                 $(0.57)     $0.04      $(0.67)     $0.12

    Net income (loss) per
     share - diluted               $(0.57)     $0.04      $(0.67)     $0.11

    Weighted average shares
     outstanding used in
     calculating net income
     (loss) per share:
      Basic                    26,393,189 23,508,356  24,506,673 23,241,031
      Diluted                  26,393,189 24,847,858  24,506,673 24,884,458

                                Solta Medical, Inc.
                       (LOSS) AND NET INCOME (LOSS) PER SHARE
                   (in thousands, except share and per share data)

                                   Three Months Ended     Twelve Months Ended
                                      December 31,           December 31,
                                   2008       2007         2008        2007

    Income (loss) from
     operations                $(15,523)      $440     $(17,610)       $531
    Non-GAAP adjustments to
     income (loss) from
    Acquired in-process R&D       9,060          -        9,060           -
    Purchase price related
     adjustments                    222          -          222           -
    Severance expenses              977          -          977           -
    Merger related costs            353          -        1,434           -
    Stock-based compensation        891      1,093        3,680       4,798
    Non-GAAP income from
     operations                 $(4,020)    $1,533      $(2,237)     $5,329
    Non-GAAP income from
     operations                 $(4,020)    $1,533      $(2,237)     $5,329
    Depreciation  expenses          407        318        1,405       1,386
    Non-GAAP EBITDA             $(3,613)    $1,851        $(832)     $6,715

    GAAP net income (loss)     $(15,044)      $990     $(16,388)     $2,780
    Non-GAAP adjustments to
     net income (loss):
    Acquired in-process R&D,
     net of taxes                 9,060          -        9,060           -
    Purchase price related
     adjustments, net of taxes      222          -          222           -
    Severance expenses, net
     of taxes                       977          -          977           -
    Merger related costs,
     net of taxes                   353          -        1,428           -
    Stock-based compensation,
     net of taxes                   891      1,093        3,680       4,798
    Loss on investments,
     net of taxes                    39          -          902           -
    Non-GAAP net income (loss)  $(3,502)    $2,083        $(119)     $7,578
    GAAP basic net income
     (loss) per share            $(0.57)     $0.04       $(0.67)      $0.12
    Non-GAAP adjustments
     to basic income (loss)
     per share:
    Acquired in-process R&D        0.34          -         0.37           -
    Purchase price related
     adjustments                   0.01          -         0.01           -
    Severance                      0.04          -         0.04           -
    Merger related costs           0.01          -         0.06           -
    Stock-based compensation       0.03       0.05         0.15        0.21
    Loss on investments            0.00          -         0.04           -
    Non-GAAP basic net income
     (loss) per share            $(0.13)     $0.09       $(0.00)      $0.33
    Non-GAAP diluted net income
     (loss) per share            $(0.13)     $0.08       $(0.00)      $0.30
    GAAP weighted average
     shares outstanding used
     in calculating basic net
     income (loss) per share 26,393,189 23,508,356   24,506,673  23,241,031
    Adjustments for dilutive
     potential common stock           -  1,867,695    2,136,613   2,198,587
    Weighted average shares
     outstanding used in
     calculating non-GAAP
     diluted net income.
     (loss) per  share       26,393,189 25,376,051   26,643,286  25,439,618

                            Solta Medical, Inc.
           (in thousands of dollars, except share and per share data)

                                             December 31,      December 31,
                                                 2008              2007

    Current assets:
      Cash and cash equivalents                  $7,555           $13,650
      Marketable investments                     17,870            38,707
      Accounts receivable, net                    5,119             4,809
      Inventories, net                           18,304             6,639
      Prepaid expenses and other current
       assets                                     2,900             1,782

        Total current assets                     51,748            65,587
    Property and equipment, net                   6,841             3,000
    Purchased intangible assets, net             40,999                 -
    Goodwill                                     48,088                 -
    Other assets                                    247               140

        Total assets                           $147,923           $68,727

      Accounts payable                           $8,064            $1,341
      Accrued liabilities                        14,629             6,850
      Current portion of deferred revenue         3,658             1,544
      Current portion of notes payable and
       other obligations                         12,404                 -
      Customer deposits                             288                18

        Total current liabilities                39,043             9,753
      Deferred revenue, net of current portion      688               601
      Long-term debt, less current portion           33                 -
      Other  liabilities                            330               255

        Total liabilities                        40,094            10,609

    Stockholders' equity:
      Common stock, $0.001 par value:
        100,000,000 shares authorized
        47,758,823 and 23,605,415 shares
         issued and outstanding at
         December 31, 2008 and
         December 31, 2007, respectively             48                24
      Additional paid-in capital                165,680            99,588
      Deferred stock-based compensation              (2)               (4)
      Accumulated other comprehensive
       income (loss)                                  -                19
      Accumulated deficit                       (57,897)          (41,509)

        Total stockholders' equity              107,829            58,118

        Total liabilities and
         stockholders' equity                  $147,923           $68,727

SOURCE Solta Medical, Inc.
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. Solta Medical, Inc. Announces Preliminary Financial Results for the Fourth Quarter of 2008
2. Video: Solta Medical Introduces Advanced Thermage Body Tip 16.0 for Faster Body Shaping and Contouring Treatments
3. Thermage, Inc. Announces Name Change to Solta Medical, Inc.
4. Ugandan Children Receive Life-Saving Treatment For Heart Defects At Children's National Medical Center
5. New Procedures to Drive Growth of $5 Billion Global Medical Aesthetic Industry
6. Command Medical Products, Inc. Welcomes James Carnall
7. Dr. Garth Gemar, M.D. Named Medical Director of Southwest Ambulance
8. Alsius Corporation Announces Agreement to Sell Assets to ZOLL Medical Corporation
9. Abbott Receives European Commission Clearance on Acquisition of Advanced Medical Optics
10. Barry Arbuckle, PhD, MemorialCare Medical Centers CEO and Immediate Past Chair, California Hospital Association, Speaks Out on California Budget Passage
11. High Achieving Los Angeles Charter School to Hold Health Fair Offering Free Medical Screening, Treatment and Information to Students and Their Families
Post Your Comments:
(Date:10/13/2017)... , ... October 13, 2017 , ... ... the certification process to promote standards of excellence for the field of eating ... for March 22 – 25, 2018 in Orlando, Florida at the Omni Resort ...
(Date:10/13/2017)... ... 13, 2017 , ... Many families have long-term insurance that covers care for ... a waiver for care if the client has a cognitive impairment diagnosis. , ... care, is often waived, so the benefits from their insurance start immediately,” said Mechell ...
(Date:10/13/2017)... ... October 13, 2017 , ... Talented ... the lowdown on sciatica in a new episode of "Success Files," which is ... events and innovation and investigates each subject in-depth with passion and integrity. , ...
(Date:10/12/2017)... CA (PRWEB) , ... October 12, 2017 , ... ... Cheng, are now treating sleep apnea using cutting-edge Oventus O2Vent technology. ... a serious sleep disorder characterized by frequent cessation in breathing. Oral appliances can ...
(Date:10/12/2017)... , ... October 12, 2017 , ... ... a leader in post-acute health care, have expanded their existing home health joint ... Health. , AccentCare has been operating a joint venture home health company with ...
Breaking Medicine News(10 mins):
(Date:9/25/2017)... R.I. , Sept. 25, 2017  EpiVax, ... assessment, vaccine design, and immune-engineering today announced the ... on the development of personalized therapeutic cancer vaccines. ... has provided exclusive access to enabling technologies to ... Eng., MBA will lead EpiVax Oncology as Chief ...
(Date:9/22/2017)... ROCKVILLE, Md. , Sept. 22, 2017  As ... by Republican Senators Bill Cassidy (R-LA) and ... Kalorama Information notes that the medical device industry is ... the medical device tax, the 2.3% excise tax on ... Act.  But they also want covered patients, increased visits ...
(Date:9/19/2017)... medical device company developing a non-invasive, robotically assisted, platform therapy that uses pulsed sound energy ... ... Jim Bertolina, PhD ... Tom Tefft ... executive Josh Stopek , PhD, who has led R&D and business development teams at ...
Breaking Medicine Technology: