Navigation Links
Solta Medical Reports Third Quarter 2009 Results
Date:11/3/2009

HAYWARD, Calif., Nov. 3 /PRNewswire-FirstCall/ -- Solta Medical, Inc. (Nasdaq: SLTM), a global leader in the medical aesthetics market, today announced results for the third quarter ended September 30, 2009. Revenue for the quarter was in-line with the preliminary forecast provided on September 28th.

Revenue for the third quarter was $17.8 million, an increase of approximately $4.7 million, or 36%, as compared to the third quarter 2008 reflecting increased revenue as a result of the acquisition of Reliant Technologies, Inc. on December 23, 2008, and partially offset by production and regulatory approval delays on new products during the third quarter.

"As we have previously disclosed, we received 510K clearance for the Fraxel re:store DUAL system in mid-October and resolved our production delays on the Thermage CPT system at the end of the third quarter. We are fulfilling back orders from customers and shipping both products," said Stephen J. Fanning, Chairman of the Board, President and CEO of Solta Medical. "Our illumiNATION tour continues to bring these latest breakthroughs in Thermage and Fraxel systems directly to physicians as it makes it way from city-to-city across the U.S. and Europe. The tour has generated a very enthusiastic response to our new products by physicians, prospective patients, and the media. As a result, we are gaining momentum in the market place," added Mr. Fanning.

Solta Medical's reported results for the third quarter of 2009 include non-cash purchase price related charges, primarily amortization of acquired intangible assets, of $1.2 million and non-cash stock based compensation charges of $0.8 million. The GAAP net loss for the quarter including these charges was $6.2 million, or $0.13 per share as compared to a net loss of $1.1 million, or $0.05 per share reported for the third quarter of 2008. The non-GAAP net loss for the quarter excluding these charges was $4.2 million, or $0.09 per share as compared to non-GAAP net income of $0.7 million, or $0.03 per share reported for the third quarter of 2008.

Financial Goals for 2009

The Company updated its financial goals for 2009 as follows:

  • Revenue for the year in the range of $95 million to $98 million
  • Realize up to $25 million in cost synergies as a result of the acquisition of Reliant Technologies, Inc. This represents an increase of $6 million from the originally stated goal in January 2009 of $19 million in cost synergies.
  • Generate positive EBITDA for the full year 2009
  • Achieve a non-GAAP gross margin in the range of 64% to 66% for the full year 2009 excluding non-cash amortization charges and non-cash purchase price related charges.

Non-GAAP Presentation

To supplement the condensed consolidated financial information presented on a GAAP basis, management has provided non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP EBITDA, non-GAAP net income (loss) and non-GAAP earnings (loss) per share measures that exclude the impact of purchase price related charges, severance costs, merger related costs, extraordinary loss on investments, and stock-based compensation expenses, 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, Tuesday, November 3, 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 877-941-1465 for domestic participants and 480-629-9678 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 800-406-7325 for domestic callers and 303-590-3030 for international callers. Both callers will need to use the Passcode 4171632#. To access the live webcast of the call, go to Solta Medical's website at www.solta.com and click on Investor Relations. An archived webcast will also be available at www.solta.com.

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 which 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 worldwide. Thermage and Fraxel are the perfect complement for any aesthetic practice. Our products are available in over 100 countries. For more information about Solta Medical, call 877-782-2286 or log on to www.Solta.com.

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 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 market for the sale of these new products and initiatives does not develop as expected, the remaining risks and uncertainties with the integration process, 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, 2008, its Form10-Q for the quarter ended June 30, 2009, 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. Solta Medical 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.
                      CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 (in thousands of dollars, except share and per share data)
                                        (unaudited)

                                     Three Months Ended      Nine Months Ended
                                       September 30,            September 30,
                                      2009        2008        2009       2008
                                      ----        ----        ----       ----

     Net revenue                   $17,753     $13,020     $70,415    $47,132
     Cost of revenue                 7,311       3,209      29,595     11,662
                                     -----       -----      ------     ------
     Gross margin                   10,442       9,811      40,820     35,470
                                    ------       -----      ------     ------

     Operating expenses:
     Sales and marketing             8,958       5,915      28,471     20,330
     Research and development        4,239       2,150      12,104      7,054
     General and administrative      3,793       2,575      11,563     10,173
                                     -----       -----      ------     ------
        Total operating expenses    16,990      10,640      52,138     37,557
                                    ------      ------      ------     ------

     Loss from operations           (6,548)       (829)    (11,318)    (2,087)
     Interest and other income         195         635         432      1,781
     Interest and other expense       (136)          -        (287)         -
     Gain (loss) on investments        159        (863)        224       (863)
                                       ---        ----         ---       ----
     Loss before income taxes       (6,330)     (1,057)    (10,949)    (1,169)
     Provision (benefit) for
      income taxes                     (84)         89         (13)       175
                                       ---         ---         ---        ---

     Net loss                      $(6,246)    $(1,146)   $(10,936)   $(1,344)
                                   =======     =======    ========    =======

     Net loss per share - basic     $(0.13)     $(0.05)     $(0.23)    $(0.06)
                                    ======      ======      ======     ======

     Net loss per share -  diluted  $(0.13)     $(0.05)     $(0.23)    $(0.06)
                                    ======      ======      ======     ======

     Weighted average shares
      outstanding used in
      calculating net loss per
      share:
       Basic                    47,855,428  24,067,548  47,807,180  23,861,079
                                ==========  ==========  ==========  ==========
       Diluted                  47,855,428  24,067,548  47,807,180  23,861,079
                                ==========  ==========  ==========  ==========



                                Solta Medical, Inc.
     NON-GAAP RECONCILIATION OF GROSS MARGIN, OPERATING INCOME (LOSS), EBITDA,
                 NET INCOME (LOSS) AND NET INCOME (LOSS) PER SHARE
                   (in thousands, except share and per share data)
                                    (unaudited)

                                  Three Months Ended      Nine Months Ended
                                     September 30,          September 30,
                                   2009        2008        2009        2008
                                   ----        ----        ----        ----
    GAAP Gross margin           $10,442      $9,811     $40,820     $35,470
    Non-GAAP adjustments to
     gross margin:
    Purchase price related
     charges                        895           -       4,919           -
    Stock-based compensation         61          53         175          96
                                    ---         ---         ---         ---
    Non-GAAP gross margin       $11,398      $9,864     $45,914     $35,566
                                =======      ======     =======     =======
    Non-GAAP gross margin as
     % of sales                      64%         76%         65%         75%
                                    ===         ===         ===         ===

    GAAP loss from operations   $(6,548)      $(829)   $(11,318)    $(2,087)
    Non-GAAP adjustments to
     net loss from operations:
    Purchase price related
     charges                      1,229           -       5,904           -
    Severance expenses                -           -         118           -
    Merger-related costs              -         165           -       1,134
    Stock-based compensation        823         887       2,476       2,789
                                    ---         ---       -----       -----
    Non-GAAP income (loss)
     from operations            $(4,496)       $223     $(2,820)     $1,836
    Depreciation expenses           650         336       2,045       1,002
                                    ---         ---       -----       -----
    Non-GAAP EBITDA             $(3,846)       $559       $(775)     $2,838
                                =======        ====       =====      ======

    GAAP net loss               $(6,246)    $(1,146)   $(10,936)    $(1,344)
    Non-GAAP adjustments to
     net loss:
    Purchase price related
     charges                      1,229           -       5,904           -
    Severance expenses                -           -         118           -
    Merger-related costs              -         131           -       1,075
    Loss on investments               -         863           -         863
    Stock-based compensation        823         887       2,476       2,789
                                    ---         ---       -----       -----
    Non-GAAP net income (loss)  $(4,194)       $735     $(2,438)     $3,383
                                =======        ====     =======      ======

    GAAP basic net loss per
     share                       $(0.13)     $(0.05)     $(0.23)     $(0.06)
    Non-GAAP adjustments to
     basic income (loss) per
     share:
    Purchase price related
     charges                       0.03           -        0.12           -
    Severance expenses                -           -           -           -
    Merger-related costs              -       $0.01           -        0.05
    Loss on investments               -       $0.03           -        0.03
    Stock-based compensation       0.02       $0.04        0.06        0.12
                                   ----       -----        ----        ----
    Non-GAAP basic net
     income (loss) per share     $(0.09)      $0.03      $(0.05)      $0.14
                                 ======       =====      ======       =====

    Non-GAAP diluted net
     income (loss) per share     $(0.09)      $0.03      $(0.05)      $0.14
                                 ======       =====      ======       =====

    GAAP weighted average
     shares outstanding used
     in calculating basic
     net loss per share      47,855,428  24,067,548  47,807,180  23,861,079
                             ==========  ==========  ==========  ==========

    GAAP weighted average
     shares outstanding used
     in calculating diluted
     net loss per share      47,855,428  24,067,548  47,807,180  23,861,079
    Adjustments for dilutive
     potential common stock           -     838,410           -   1,057,632
                                    ---     -------         ---   ---------
    Weighted average shares
     outstanding used in
     calculating non-GAAP
     diluted net income
     (loss) per  share       47,855,428  24,905,958  47,807,180  24,918,711
                             ==========  ==========  ==========  ==========




                                  Solta Medical, Inc.
                         CONDENSED CONSOLIDATED BALANCE SHEETS
              (in thousands of dollars, except share and per share data)
                                      (Unaudited)

                                                 September 30,   December 31,
                                                     2009           2008
                                                     ----           ----

                                        ASSETS
     Current assets:
      Cash and cash equivalents                   $14,723         $7,556
      Marketable investments                            -         17,870
      Accounts receivable, net                      9,100          5,119
      Inventories, net                             13,363         18,304
      Prepaid expenses and other current
       assets                                       3,198          4,074
                                                    -----          -----
         Total current assets                      40,384         52,923
     Property and equipment, net                    6,036          6,841
     Purchased intangible assets, net              37,849         40,999
     Goodwill                                      47,289         48,158
     Other assets                                     265            247
                                                      ---            ---

         Total assets                            $131,823       $149,168
                                                 ========       ========

                         LIABILITIES AND STOCKHOLDERS' EQUITY
     Liabilities:
      Accounts payable                             $5,699         $8,080
      Accrued liabilities                           9,838         11,085
      Accrued restructuring                           307          3,549
      Current portion of deferred revenue           4,452          3,658
      Short-term borrowings                         7,411         12,399
      Customer deposits                               288            288
                                                      ---            ---
         Total current liabilities                 27,995         39,059
      Deferred revenue, net of current portion        526            688
      Term loan, net of current portion             1,998              -
      Non-current tax liabilities                   1,514          1,464
      Other  liabilities                              306            133
                                                      ---            ---
         Total liabilities                         32,339         41,344
                                                   ------         ------

     Stockholders' equity:
      Common stock, $0.001 par value:
         100,000,000 shares authorized
         47,866,829 and 47,758,823 shares issued
         and outstanding at September 30, 2009
         and December 31, 2008                         48             48
      Additional paid-in capital                  168,274        165,680
      Deferred stock-based compensation                 -             (2)
      Accumulated deficit                         (68,838)       (57,902)
                                                  -------        -------
         Total stockholders' equity                99,484        107,824
                                                   ------        -------

         Total liabilities and stockholders'
          equity                                 $131,823       $149,168
                                                 ========       ========


SOURCE Solta Medical, Inc.


'/>"/>
SOURCE Solta Medical, Inc.
Copyright©2009 PR Newswire.
All rights reserved


Related medicine news :

1. Solta Medical, Inc. Appoints Jeffrey Nardoci Vice President of Global Marketing
2. Solta Medical to Present at the Maxim Group Growth Conference
3. Solta Medical Launches illumiNATION tour in U.S. and Europe to Introduce New Thermage CPT(TM) and Fraxel re:store(R) Dual Systems
4. Solta Medical Launches New Fraxel re:store(R) Dual Laser System
5. Solta Medical Reports Strong Second Quarter 2009 Results
6. Solta Medical, Inc. Announces Second Quarter 2009 Results Release Date and Conference Call
7. Solta Medical, Inc. Signs Amendment to Expand Its Credit Facility With Silicon Valley Bank
8. Solta Medical, Inc. to Present at 8th Annual Needham Life Sciences Conference
9. Solta Medical Receives Regulatory Approval to Market Thermage Systems in China
10. Solta Medical, Inc. Announces First Quarter 2009 Results Release Date and Conference Call
11. Solta Medical Presents Expert Roundtable about Thermage(R) and Fraxel(R) Combination Treatments at ASLMS Annual Meeting
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/26/2016)... Michigan (PRWEB) , ... June 26, 2016 , ... On ... as sponsor of the 2016 Cereal Festival and World’s Longest Breakfast Table in Battle ... honor of the city’s history as home to some of the world’s leading providers ...
(Date:6/26/2016)... , ... June 26, 2016 , ... ... once they have been diagnosed with endometriosis. These women need a treatment plan ... require a comprehensive approach that can help for preservation of fertility and ultimately ...
(Date:6/25/2016)... ... June 25, 2016 , ... "With 30 hand-drawn hand gesture animations, FCPX users ... - CEO of Pixel Film Studios. , ProHand Cartoon’s package transforms over 1,300 ... Pro X . Simply select a ProHand generator and drag it above media or ...
(Date:6/25/2016)... , ... June 25, 2016 , ... On Friday, June ... a Bronze Wellness at Work award to iHire in recognition of their exemplary accomplishments ... of the 7th annual Maryland Workplace Health & Wellness Symposium at the BWI Marriott ...
(Date:6/24/2016)... ... ... June 19, 2016 is World Sickle Cell Observance Day. In an effort to ... treatments, Serenity Recovery Center of Marne, Michigan, has issued a pain management ... (SCD) is a disorder of the red blood cells, which can cause episodes of ...
Breaking Medicine News(10 mins):
(Date:6/23/2016)... Research and Markets has announced the addition of ... Forecast to 2022" report to their offering. ... date financial data derived from varied research sources to present ... impact on the market during the next five years, including ... sub markets, regional and country level analysis. The report provides ...
(Date:6/23/2016)... -- , , , WHEN: , ... , , , LOCATION: , , , Online, with free ... EXPERT PANELISTS:  , , , Frost & Sullivan,s Global Vice President ... Industry Analyst, Divyaa Ravishankar and Unmesh Lal, Program Manager , ... is witnessing an exceptional era. Several new demand spaces, such as ...
(Date:6/23/2016)... , June 23, 2016  Guerbet announced today that ... Supplier Horizon Award . One of ... was recognized for its support of Premier members through ... clinical excellence, and commitment to lower costs. ... this recognition of our outstanding customer service from Premier," ...
Breaking Medicine Technology: