HAYWARD, Calif., Feb. 22, 2011 /PRNewswire/ -- Solta Medical, Inc. (Nasdaq: SLTM), a global leader in the medical aesthetics market, today announced results for the fourth quarter and full year ended December 31, 2010. Revenue for the fourth quarter was $30.1 million, an increase of $1.7 million, or 6%, as compared to the fourth quarter of 2009. The improved results for the quarter were driven primarily by a 19% year-over-year increase in sales of treatment tips and consumables.
GAAP net loss for the quarter was $0.2 million as compared to GAAP net loss of $0.3 million reported for the fourth quarter of 2009. Non-GAAP net income was $1.7 million, or $0.03 per diluted share, for both the current quarter and for same period last year. Cash flow generated from operations for the quarter was $3.4 million.
Revenue for the twelve months ended December 31, 2010 grew 12% to $110.9 million, as compared to revenue of $98.8 million for the full year 2009.
The GAAP net loss for the year was $2.0 million, or a loss of $0.03 per share, as compared to a net loss of $11.2 million, or a loss of $0.23 per share reported for the full year 2009. Non-GAAP net income for the full year was $6.8 million, or $0.11 per diluted share as compared to a non-GAAP net loss of $0.8 million, or a loss of $0.02 per share reported for the full year 2009. Cash flow generated from operations for the full year was $10.2 million.
Solta Medical's GAAP results for the fourth quarter and full year 2010 include non-cash amortization and other acquisition related charges of $1.3 million and $6.3 million, respectively, and non-cash stock based compensation charges of $0.6 million and $2.5 million, respectively. The Company provides additional non-GAAP financial measures that exclude these charges and expenses. A reconciliation of GAAP to non-GAAP results is provided in the tables included in this release.
"Solta accomplished key operational milestones in 2010 under challenging economic conditions. We grew top-line revenue by 12%, expanded our gross margin by more than three percentage points to 63%, produced positive non-GAAP EBITDA every quarter, and generated record cash flow from operations of $10.2 million," said Stephen J. Fanning, Chairman, President & CEO. "Earlier this month, we received positive response to the introduction of our two new products at the American Academy of Dermatology meeting, Clear+Brillant and the Fraxel 1927. In 2011, we will continue to pursue strategic initiatives that address the needs of physicians, clinicians, and consumers with technologies that provide superior aesthetic and therapeutic benefits delivered in a simple, elegant, and cost effective manner. "
Financial Outlook for 2011The company provided a preliminary financial outlook for 2011 as follows:
Non-GAAP PresentationTo 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 acquisition related adjustments, severance costs, acquisition related costs, and stock-based compensation expenses. 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 the measures management 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 The Company will also host a conference call and webcast today, Tuesday, February 22, 2010, 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 866-225-8754 for domestic participants and 480-629-9692 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. Callers will need to use the Passcode 4405060#. 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 solutions for patients that enhance and expand the practice of medical aesthetics for physicians. The company offers products to address a range of skin issues under the industry's four premier brands: Thermage®, Fraxel®, Isolaz®, and CLARO®. 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. Isolaz is the only laser or light based system indicated for the treatment of inflammatory acne, comedonal acne, pustular acne, and mild-to-moderate inflammatory acne. CLARO is a personal care acne system that is the only FDA cleared over-the-counter IPL device that uses a powerful combination of both heat and light to clear skin quickly and naturally. Since 2002, over one million Thermage, Fraxel and Isolaz procedures have been performed in over 100 countries. For more information about Solta Medical, call 1-877-782-2286 or log on to www.Solta.com.
Forward-Looking StatementsThis 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 2011. 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 risk that physician adoption of our systems does not grow, the risk that customers do not continue to purchase treatment tips, the possibility that the market for the sale of new products does not develop as expected, 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-Q for the quarter ended September 30, 2010, 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 EndedTwelve Months EndedDecember 31,December 31,2010200920102009Net revenue
$30,066$28,403$110,932$98,818Cost of revenue
18,27617,43369,53258,253Operating expenses:Sales and marketing
11,17810,46042,66538,931Research and development
3,7944,14216,32416,246General and administrative
3,6253,09614,62714,659Legal settlement gain
--(2,213)-Total operating expenses
18,59717,69871,40369,836Loss from operations
(321)(265)(1,871)(11,583)Interest and other income
10530371462Interest and other expense
(55)(107)(298)(394)Gain on investments
---224Loss before income taxes
(271)(342)(1,798)(11,291)Provision (benefit) for income taxes
($190)($256)($2,020)($11,192)Net loss per share - basic
($0.00)($0.01)($0.03)($0.23)Net loss per share - diluted
($0.00)($0.01)($0.03)($0.23)Weighted average shares outstanding used in calculating net loss per share:Basic
59,635,63847,970,14958,908,61147,848,258Solta 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 EndedTwelve Months EndedDecember 31,December 31,2010200920102009GAAP Gross margin
$18,276$17,433$69,532$58,253GAAP gross margin as % of sales
61%61%63%59%Non-GAAP adjustments to gross margin:GAAP Gross margin
$18,276$17,433$69,532$58,253Amortization and other non-cash acquisition related charges
6266270241Non-GAAP gross margin
$19,221$18,337$73,627$64,251Non-GAAP gross margin as % of sales
64%65%66%65%GAAP loss from operations
($321)($265)($1,871)($11,583)Non-GAAP adjustments to net loss from operations:Amortization and other non-cash acquisition related charges
5797682,5023,244Non-GAAP income (loss) from operations
$2,363$2,339$9,856$1,564GAAP net loss($190)($256)($2,020)($11,192)Non-GAAP adjustments to net loss:Amortization and other non-cash acquisition related charges
5797682,5023,244Non-GAAP net income (loss)
$1,713$1,685$6,781($753)GAAP basic net loss per share
($0.00)($0.01)($0.03)($0.23)Non-GAAP adjustments to basic loss per share:Amortization and other non-cash acquisition related charges
$0.01$0.02$0.04$0.07Non-GAAP basic net income (loss) per share
$0.03$0.04$0.12($0.02)Non-GAAP diluted net income (loss) per share
$0.03$0.03$0.11($0.02)GAAP weighted average shares outstanding used in calculating basic net loss per share
59,635,63847,970,14958,908,61147,848,258GAAP weighted average shares outstanding used in calculating diluted net loss per share
59,635,63847,970,14958,908,61147,848,258Adjustments for dilutive potential common stock
2,510,1971,770,5252,056,496-Weighted average shares outstanding used in calculating non-GAAP diluted net income (loss) per share
62,145,83549,740,67460,965,10747,848,258Solta Medical, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands of dollars, except share and per share data)(unaudited)December 31,December 31,20102009ASSETSCurrent assets:Cash and cash equivalents
10,54914,117Prepaid expenses and other current assets
5,9064,748Total current assets
65,77945,990Property and equipment, net
6,2275,613Purchased intangible assets, net
$158,545$136,149LIABILITIES AND STOCKHOLDERS’ EQUITYLiabilities:Accounts payable
12,03010,968Current portion of deferred revenue
441529Total current liabilities
31,78531,528Deferred revenue, net of current portion
969612Term loan, net of current portion
981,626Non-current tax liabilities
36,40135,912Stockholders’ equity:Common stock, $0.001 par value:100,000,000 shares authorized 59,728,410 and 48,077,028 shares issued and outstanding at December 31, 2010 and December 31, 2009
6048Additional paid-in capital
(71,114)(69,094)Total stockholders’ equity
122,144100,237Total liabilities and stockholders’ equity
|SOURCE Solta Medical, Inc.|
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