Cynosure, Inc., which designs, manufactures and markets medical devices for aesthetic procedures and precision surgical applications worldwide, today reported financial results for the three months ended September 30, 2014.
Third-Quarter 2014 Highlights
- Revenue up 18% year-over-year to $71.5 million
- Non-GAAP net income of $5.5 million, or $0.25 per diluted share, excluding amortization expenses, acquisition costs and unrealized foreign exchange loss
- GAAP net income of $3.1 million, or $0.14 per diluted share, including amortization expenses, acquisition costs and unrealized foreign exchange loss
- $113 million in cash and investments at September 30, 2014
- Repurchased $6.6 million of common stock under share repurchase program
- Acquired assets of RF medical device manufacturer Ellman International, Inc.
‘Cynosure delivered record third-quarter revenue of $71.5 million, up 18% year-over-year as revenue in each of our direct sales channels improved from the same period in 2013,’ said Cynosure Chairman and Chief Executive Officer Michael Davin. ‘North American laser revenue increased 17%, revenue from our Asia Pacific subsidiaries rose 46%, while our European direct sales channel was up 7%. Product and technology innovation, expanded indications and new international marketing clearances continue to drive favorable results for the Company.’
‘Demand for our flagship PicoSure® Picosecond Laser Workstation continues to exceed our expectations,’ Davin continued. ‘Based on enthusiastic customer feedback and patient and physician satisfaction, we believe this technology is becoming the gold standard for the removal of tattoos and benign pigmented lesions. New FDA marketing clearances, combined with recent international regulatory approvals in Korea, Taiwan and Australia, demonstrate the successful execution of our strategy to drive growth for PicoSure worldwide.’
- Ellman International, Inc. Acquisition. During the third quarter, Cynosure announced that it acquired the assets of Ellman International, Inc. for approximately $13.2 million in cash. Based in Hicksville, NY, Ellman develops, manufactures and markets advanced radiofrequency (RF) technology for precision surgical and aesthetic procedures and offers a line of aesthetic lasers
- PicoSure System Receives FDA Clearance for New Indications. The Company received clearance from the U.S. Food and Drug Administration to market the PicoSure system, previously approved for the removal of tattoos and benign pigmented lesions, for the additional indications of acne scarring as well as the treatment of fine lines and wrinkles
- Share Repurchase Program. During the third quarter, the Company repurchased $6.6 million of common stock under its $35 million share repurchase program. Approximately $4 million remained available under the program at September 30, 2014.
‘We ended the third quarter of 2014 with cash and investments of $113 million and generated cash from operations of $14.1 millionduring the quarter,’ Davin said. ‘We continued to effectively maintain our balance sheet strength while returning capital to our stockholders and investing to profitably grow the business.’
‘Looking ahead, Cynosure is well-positioned to deliver top-line growth and increased profitability,’ Davin said. ‘Our healthy, unencumbered balance sheet supports our strategy to drive growth organically and through strategic acquisitions. We are on schedule to launch our next flagship platform in 2015 for non-invasive fat removal, and we believe this large addressable market represents a significant growth opportunity for the Company.’