Navigation Links
Thermage Announces Fourth Quarter and Full Year 2007 Financial Results
Date:2/19/2008

Fourth Quarter Revenue Up 12% Fourth Quarter 2007 Gross Profit Margin Increases to 76.5% vs. 72.3% in

Fourth Quarter 2006

HAYWARD, Calif., Feb. 19 /PRNewswire-FirstCall/ -- Thermage, Inc. (Nasdaq: THRM), a leader in non-invasive tissue tightening in the aesthetic industry, reported today its financial results for the fourth quarter and full year ended December 31, 2007.

Revenue for the fourth quarter of 2007 was $16.6 million, up 12% from $14.8 million for the fourth quarter of 2006. Gross profit for the fourth quarter of 2007 increased to $12.7 million, or 76.5% of revenue, from $10.7 million, or 72.3% of revenue, for the same quarter of 2006. The Company reported GAAP net income of $1.0 million for the 2007 fourth quarter, or $0.04 per diluted share, versus net income of $1.4 million, with no income allocable to common stockholders, for the same quarter of the prior year. Non-GAAP (1) net income for the fourth quarter of 2007 was $2.1 million, or $0.08 per diluted share, compared to non-GAAP (1) net income of $0.3 million, or $0.02 per diluted share, for the fourth quarter of 2006.

For the full year 2007, revenue was a record $63.1 million, up 16% from $54.3 million for the full year 2006. Net income in 2007 was $2.8 million, or $0.11 per diluted share, compared with a net loss of $3.9 million, or $(0.60) per share, for 2006. Non-GAAP (1) net income for 2007 was $7.6 million, or $0.30 per diluted share, compared with a non-GAAP (1) net loss of $1.2 million, or $(0.07) per share, for 2006.

"We had a strong finish to 2007, characterized by continued revenue growth both domestically and internationally, excellent sales of our disposable treatment tips and high g (4) (6)

Notes receivable from stockholders - (125)

Accumulated other comprehensive

income 19 -

Accumulated deficit (41,509) (44,189)

Total stockholders' equity 58,118 49,121

Total liabilities and stockholders'

equity $68,727 $59,875

ross profit margins," said Stephen J. Fanning, Chairman, President and Chief Executive Officer. "Revenues for the full year grew 15% in the U.S. market and 17% in international markets. Sales of tips and consumables were up 15% from the fourth quarter last year and represented 76% of total revenue for the quarter. This, along with higher average selling prices on both systems and tips, helped drive our gross profit margin to over 76% for the fourth quarter."

"Our financial results demonstrate the achievements we made during the year in introducing new products that effectively address the demand for skin tightening and body contouring," Mr. Fanning continued. "In 2007, we introduced the ThermaCool NXT(TM) system and launched four new procedures and associated treatment tips. We are excited about the pending launch of our cellulite tip. Reaction among clinicians and patients who have used the tip has been positive, and we look forward to initial shipments in mid-March. With the cellulite tip and other products in the pipeline, we look forward to another year of continued growth. During 2008, we will continue to focus on bringing innovation to the aesthetic market, improving the value proposition for our doctors, and increasing patient satisfaction."

Guidance:

Management currently expects 2008 revenue to be in a range of $69 million to $73 million, an increase of 10% to 15% over revenue for the full year 2007. The Company expects typical seasonality during the year, with the second and fourth quarter representing the strongest quarters. In addition, during the fourth quarter of 2007, the Company largely completed the expansion and bifurcation of its U.S. sales force and believes that the contributions from the realigned team will increase as the year progresses. The Company also expects higher legal and regulatory compliance fees in 2008 versus 2007. As a result, net income for the full year 2008 on a GAAP basis is expected to be between $0.07 and $0.12 per diluted share. Non-GAAP (1) net income for the full year 2008, which excludes estimated stock based compensation charges of approximately $4.8 million, is expected to be in a range of $0.25 to $0.30 per diluted share. The per share earnings amounts are based on weighted average shares of 26 million.

Non-GAAP Presentation:

(1) To supplement the condensed financial information presented on a GAAP

basis, management has provided non-GAAP net income and loss, and

non-GAAP earnings per share measures that exclude the impact of all

stock-based compensation expenses, and amounts recorded for

revaluation of preferred stock warrant liabilities, all net of income

taxes. The calculation of non-GAAP net earnings per share in the years

ended December 31, 2007 and 2006 also includes adjustments for

dilutive potential common stock and assumes the conversion into common

stock of the Company's shares of convertible preferred stock, which

automatically converted into shares of common stock upon the Company's

initial public offering in November 2006. 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 measure, which it uses to

measure the performance of ongoing operating results, against prior

periods and against our internally developed targets. A table

reconciling the GAAP financial measures to the non-GAAP measures is

included in the condensed consolidated financial information attached

to this release.

Conference Call

The conference call is scheduled to begin at 1:30 p.m. PST (4:30 p.m. EST) on February 19, 2008. The call will be broadcast live over the Internet hosted at the Investor Relations section of the Company's website at http://www.thermage.com. In addition, you may call to listen to the live broadcast: 800-366-7417 for domestic participants and 303-262-2191 for international participants. Participating in the call will be Stephen J. Fanning, Chairman, President and Chief Executive Officer, and Jack Glenn, Chief Financial Officer.

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 or 303-590-3000 for international callers. The passcode for both is 11108594#. An archived web cast will also be available at http://www.thermage.com.

About Thermage, Inc.

Thermage's innovative technology provides a unique non-invasive procedure designed to tighten and contour skin, significantly expanding the non-invasive aesthetic applications physicians can offer to the rapidly growing "anti-aging" market. For more information, call 1-510-259-7117 or visit http://www.thermage.com.

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Specifically, statements concerning Thermage's ability to continue to grow demand for Thermage treatments, timing of a cellulite product launch, as well as financial guidance for fiscal year 2007 are forward-looking statements within the meaning of the Safe Harbor. Forward-looking statements are based on management's current, preliminary expectations and are subject to risks and uncertainties, which may cause Thermage's actual results to differ materially from the statements contained herein including but not limited to market acceptance and demand of current and future products among physicians and patients, risks inherent with third-party supply and distribution networks, risks inherent to future sales growth, and the ability to execute proposed initiatives. Further information on potential risk factors that could affect Thermage's business and its financial results are detailed in its Form 10-Q as filed with the Securities and Exchange Commission on November 9, 2007. 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.

Thermage, Inc

NON-GAAP RECONCILIATION OF NET INCOME PER SHARE

(unaudited)

Range of Estimates

From To

2008 GAAP diluted net income per

share (a) $0.07 $0.12

Stock-based compensation (b) 0.18 0.18

2008 Non-GAAP diluted net income per

share (a) $0.25 $0.30

(a) Reflects weighted average outstanding used in calculating diluted net

income per share of 26 million.

(b) Represents the Company's estimate of stock-based compensation

charges, net of taxes

Thermage, Inc.

CONDENSED STATEMENTS OF OPERATIONS

(in thousands of dollars, except share and per share data)

(unaudited)

Three Months Ended Years Ended

December 31, December 31,

2007 2006 2007 2006

Net revenue $16,582 $14,751 $63,101 $54,320

Cost of revenue 3,895 4,087 15,976 15,259

Gross margin 12,687 10,664 47,125 39,061

Operating expenses

Sales and marketing 6,990 6,136 26,195 24,071

Research and development 2,119 2,510 9,099 9,639

General and administrative 3,138 2,628 11,300 9,973

Total operating expenses 12,247 11,274 46,594 43,683

Income (loss) from

operations 440 (610) 531 (4,622)

Interest and other income 674 393 2,520 768

Interest, warrants and

other income (expense) - 1,606 - (55)

Income (loss) before income

taxes 1,114 1,389 3,051 (3,909)

Provision for income taxes (124) - (271) -

Net income (loss) $990 $1,389 $2,780 $(3,909)

Income (loss) allocable to

common stockholders $990 $0 $2,780 $(3,909)

Net income (loss) per share

- basic $0.04 $0.00 $0.12 $(0.60)

Net income (loss) per share

- diluted $0.04 $0.00 $0.11 $(0.60)

Weighted average shares

outstanding used in

calculating net income

(loss) per common share:

Basic 23,508,356 13,578,831 23,241,031 6,561,648

Diluted 24,847,858 13,578,831 24,884,458 6,561,648

Thermage, Inc

NON-GAAP RECONCILIATION OF NET INCOME (LOSS) AND NET INCOME (LOSS) PER

SHARE

(in thousands, except share and per share data)

(unaudited)

Three Months Ended Years Ended

December 31, December 31,

2007 2006 2007 2006

GAAP net income (loss) $990 $1,389 $2,780 $(3,909)

Non-GAAP adjustments to

net income (loss):

Stock-based compensation

(c) 1,093 855 4,798 3,517

Impact of change in fair

value of preferred stock

warrant liabilities (d) - (1,912) - (837)

Total non-GAAP adjustments

to net income (loss) 1,093 (1,057) 4,798 2,680

Non-GAAP net income (loss) $2,083 $332 $7,578 $(1,229)

GAAP basic net income

(loss) per share $0.04 $0.00 $0.12 $(0.60)

Non-GAAP adjustments to

basic income (loss) per

share:

Stock-based compensation

(c) 0.05 0.04 0.21 0.21

Impact of change in fair

value of preferred stock

warrant liabilities (d) - (0.10) - (0.05)

Impact of higher weighted

average shares due to

assumed conversion of

preferred shares (e) - 0.08 - $0.37

Non-GAAP basic net income

(loss) per share $0.09 $0.02 $0.33 $(0.07)

Non-GAAP diluted net

income (loss) per share $0.08 $0.02 $0.30 $(0.07)

GAAP weighted average

shares outstanding used

in calculating basic net

income (loss) per common

share 23,508,356 13,578,831 23,241,031 6,561,648

Adjustments to reflect

assumed weighted average

effect of conversion of

preferred stock - 5,976,573 - 10,519,868

Weighted average shares

outstanding used in

calculating non-GAAP

basic net income (loss)

per common share 23,508,356 19,555,404 23,241,031 17,081,516

GAAP weighted average

shares outstanding used

in calculating diluted

net income (loss) per

common share 24,847,858 13,578,831 24,884,458 6,561,648

Adjustments to reflect

assumed weighted average

effect of conversion of

preferred stock - 5,976,573 - 10,519,868

Adjustments for dilutive

potential common stock 528,193 2,486,873 552,160 -

Weighted average shares

outstanding used in

calculating non-GAAP

diluted net income (loss)

per common share 25,376,051 22,042,277 25,436,618 17,081,516

(c) Includes all employee and non-employee stock-based compensation

charges

(d) Includes the impact of adjustments related to the revaluation of the

Company's preferred stock warrant liability during the period.

(e) Assumes the conversion of the Company's convertible preferred stock

into shares of common stock at the beginning of the period.

Thermage, Inc.

CONDENSED BALANCE SHEETS

(in thousands of dollars, except share and per share data)

(Unaudited)

December 31, December 31,

2007 2006

ASSETS

Current assets:

Cash and cash equivalents $13,650 $45,915

Marketable investments 38,707 -

Accounts receivable, net 4,809 3,285

Inventories, net 6,639 5,219

Prepaid expenses and other current

assets 1,782 1,717

Total current assets 65,587 56,136

Property and equipment, net 3,000 3,638

Other assets 140 101

Total assets $68,727 $59,875

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Accounts payable $1,341 $1,398

Accrued liabilities 6,850 7,372

Current portion of deferred revenue 1,544 1,151

Customer deposits 18 62

Total current liabilities 9,753 9,983

Deferred revenue, net of current

portion 601 716

Other liabilities 255 55

Total liabilities 10,609 10,754

Stockholders' equity:

Common stock, $0.001 par value:

100,000,000 shares authorized

23,605,415 and 22,906,851 shares

issued and outstanding at 2007 and

2006, respectively 24 23

Additional paid-in capital 99,588 93,418

Deferred stock-based compensation
'/>"/>

SOURCE Thermage, Inc.
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Thermage, Inc. Announces Fourth Quarter 2007 Results Release Date and Conference Call
2. Thermage, Inc. Appoints John F. Glenn as Chief Financial Officer
3. Thermage Announces Third Quarter Financial Results
4. Thermage, Inc. Announces Distribution Agreement With Eclipse Medical, Ltd.
5. Thermage, Inc. to Present at the Maxim Group Growth Conference
6. XTENT Announces 2007 Financial Results
7. VA Secretary Announces New Walla Walla Facility
8. TrailBlazer Announces Final Medicare Administrative Contractor Schedule for Claims Processing in Four States
9. Pennsylvania Department of Public Welfare Announces Grant Opportunity for Regional Autism Centers
10. Paine & Partners, LLC Announces Sale of Byram Healthcare to OPG Groep N.V.
11. MedCath Announces Venture With Two New Jersey Hospitals
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:5/31/2016)... Florida (PRWEB) , ... May 31, 2016 , ... ... Jay Butch of CertainTeed Corporation, he knew it was something that contractors should ... state-of-the-art and cutting-edge as it gets,” says Butch, CertainTeed’s Director of Contractor Programs. ...
(Date:5/31/2016)... ... ... Effective leaders not only drive service to the next level, they also ... Northbound CEO Mike Neatherton and COO Paul Alexander will be taking part in the ... The Journey to Authenticity” with Onsite Workshops CEO Miles Adcock and Vice President of ...
(Date:5/31/2016)... Francisco, CA (PRWEB) , ... May 31, 2016 , ... ... cases for digital-minded professionals, announces the waxed-canvas and leather Duo Dopp Kit , ... durable waxed canvas or ballistic nylon, the Duo is smartly designed for ...
(Date:5/31/2016)... ... May 31, 2016 , ... Interest is on the rise for ... as an orthogonal tool for RNAi hit validation. A key reason may be that ... rapid generation of CRISPR RNA (crRNA) collections in arrayed formats. , Arrayed ...
(Date:5/31/2016)... ... 31, 2016 , ... MinerEye today announced that it has ... report by Gartner1 Inc. , Each year, Gartner identifies new Cool Vendors in ... vendors and their products and services. , According to Gartner, “Gartner's Cool Vendors ...
Breaking Medicine News(10 mins):
(Date:5/31/2016)... 2016 194 Mitgliedsstaaten ... Eliminierung von viraler Hepatitis    Am ... eingegangen, virale Hepatitis bis 2030 zu eliminieren. ... Assembly haben sich die Staaten einstimmig dafür entschieden, ... Viral Hepatitis Strategy) zu verabschieden, was das bisher ...
(Date:5/30/2016)... ALBANY, New York , May 30, 2016 /PRNewswire/ ... new market report titled, "Advanced (3D/4D) Visualization Systems Market ... Forecast 2016 - 2024." According to the report, the ... US$ 1.8 Bn in 2015 and is anticipated to ... 2024 to reach US$ 3.2 Bn in 2024. ...
(Date:5/30/2016)... According to a new ... by Type (Stability, Raw Materials, Method Validation, Microbial, ... Companies, Medical Device Companies) - Global Forecast to ... growth during the last decade and is expected ... 2016 and 2021 to reach USD 4.13 Billion ...
Breaking Medicine Technology: