form8k.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 

FORM 8-K
 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
 
November 5, 2012
Date of Report (date of earliest event reported)
 
 

Cutera, Inc.
(Exact name of Registrant as specified in its charter)
 

 
Delaware
000-50644
77-0492262
(State or other jurisdiction of incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification Number)
 
3240 Bayshore Blvd.
Brisbane, California 94005
(Address of principal executive offices)
 
(415) 657-5500
(Registrant’s telephone number, including area code)
 
N/A
(Former name or former address, if changed since last report)
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 


 
 

 
 
Item 2.02. Results of Operations and Financial Condition.
 
On November 5, 2012, we are issuing a press release and holding a conference call regarding our financial results for the third quarter ended September 30, 2012. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.
 
This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
 
Item 9.01.
Financial Statements and Exhibits.
 
(d)
Exhibits.
 
Exhibit No.
 
Description
 
 
Press Release of Cutera, Inc. dated as of November 5, 2012.
 

 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
   
CUTERA, INC.
 
       
Date: November 5, 2012
 
/s/ KEVIN P. CONNORS
 
   
Kevin P. Connors
 
   
President and Chief Executive Officer
 
 
 

ex99_1.htm

EXHIBIT 99.1


 
FOR IMMEDIATE RELEASE

CONTACTS:

Cutera, Inc.
Ron Santilli
Chief Financial Officer
415-657-5500

Investor Relations
John Mills
Integrated Corporate Relations, Inc.
310-954-1105
john.mills@icrinc.com

Cutera Reports Third Quarter 2012 Results
Revenue Grew 28% Year-Over-Year

BRISBANE, Calif., November 5, 2012 ─ Cutera, Inc. (NASDAQ: CUTR), a leading provider of laser and other energy-based aesthetic systems for practitioners worldwide, today reported financial results for the third quarter ended September 30, 2012.

Key financial highlights for the third quarter of 2012, compared to same period last year, are as follows:
 
·
Revenue grew 28%, to $19.4 million.
 
·
Net loss was $892,000, or $0.06 per diluted share, which included $1.2 million of non-cash stock-based compensation, amortization of intangibles, and depreciation.
 
·
truSculpt product commenced shipments mid-quarter and contributed to revenue growth
 
·
Board of Directors approved a stock repurchase program for up to $10 million pursuant to a 10b5-1 plan.

Kevin Connors, president and CEO of Cutera, stated, “This is our sixth consecutive quarter of revenue growth in excess of 22%, compared to the same period one year ago.  We continue to see growth in most of our major geographical regions and are pleased with the initial customer response to our mid-quarter truSculpt product launch as we enter the body contouring market.  In addition, we continue to experience growing demand for Excel V, our premier vascular system”

“In the third quarter of 2012, our domestic revenue increased by 29% and our international revenue expanded by 26%, when compared to the third quarter of 2011.  In addition, our gross margin improved in the third quarter of 2012, compared to the second quarter of 2012. These improvements reflect the leverage in our model and resulted in positive net income after excluding non-cash items.”

Mr. Connors concluded, “We believe the market outlook for aesthetic laser and other energy-based equipment continues to expand and we are well positioned to capitalize on the improving market. We remain focused on many initiatives in order to continue delivering revenue growth, improved gross and operating margins, and cash generation in the fourth quarter and beyond.”
 
 
 

 
 
Conference Call
The conference call to discuss these results is scheduled to begin at 2:00 p.m. PT (5:00 p.m. ET) on November 5, 2012. Participating in the call will be Kevin Connors, President and Chief Executive Officer, and Ron Santilli, Executive Vice President and Chief Financial Officer. The call will be broadcast live over the Internet hosted at the Investor Relations section of Cutera's website at www.cutera.com, and will be archived online within one hour of its completion through 8:59 p.m. PT (11:59 p.m. ET) on November 21, 2012. In addition, you may call 877-407-3982 to listen to the live broadcast.

About Cutera, Inc.
Brisbane, California-based Cutera is a leading provider of laser and other energy-based aesthetic systems for practitioners worldwide. Since 1998, Cutera has been developing innovative, easy-to-use products that enable physicians and other qualified practitioners to offer safe and effective aesthetic treatments to their patients. For more information, call 1-888-4CUTERA or visit www.cutera.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 Cutera's ability to leverage its business model, increase revenue, generate additional cash, increase profitability, develop and commercialize existing and new products and applications, experience market adoption for its products, realize benefits from additional investment, and statements regarding long-term prospects and opportunities as well as the timing and expected benefits of integration activities 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 Cutera's actual results to differ materially from the statements contained herein. Potential risks and uncertainties that could affect Cutera's business and cause its financial results to differ materially from those contained in the forward-looking statements include those related to the Company’s efforts to improve sales productivity, revenue growth and profitability improvement through the leverage of its operating expenses; the Company’s ability to successfully develop and launch new products and applications and market them to both its installed base and new customers; the length of the sales cycle process; unforeseen events and circumstances relating to the Company’s operations; government regulatory actions; and those other factors described in the section entitled, “Risk Factors”  in its most recent Form 10-Q as filed with the Securities and Exchange Commission on November 5, 2012. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Cutera 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. Cutera's financial performance for the third quarter ended September 30, 2012, as discussed in this release, is preliminary and unaudited, and subject to adjustment.
 
 
 

 
 
CUTERA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
 
   
September 30,
   
June 30,
   
September 30,
 
   
2012
   
2012
   
2011
 
Assets
                 
Current assets:
                 
Cash and cash equivalents
  $ 24,334     $ 17,788     $ 13,874  
Marketable investments
    55,795       62,794       74,502  
Accounts receivable, net
    7,845       6,203       4,085  
Inventories
    12,477       12,722       9,659  
Deferred tax asset
    49       52       17  
Other current assets and prepaid expenses
    1,443       1,443       1,841  
Total current assets
    101,943       101,002       103,978  
                         
Property and equipment, net
    885       946       643  
Long-term investments
    1,050       840       3,014  
Deferred tax asset, net of current portion
    470       463       345  
Intangibles, net
    2,876       3,186       493  
Goodwill
    1,339       1,339       -  
Other long-term assets
    517       539       493  
Total assets
  $ 109,080     $ 108,315     $ 108,966  
                         
Liabilities and Stockholders' Equity
                       
Current liabilities:
                       
Accounts payable
  $ 2,297     $ 2,199     $ 2,151  
Accrued liabilities
    9,486       9,382       7,339  
Deferred revenue
    6,299       6,285       5,447  
                         
Total current liabilities
    18,082       17,866       14,937  
                         
Deferred rent
    1,347       1,400       1,432  
Deferred revenue, net of current portion
    1,411       905       775  
Income tax liability
    471       469       489  
Total liabilities
    21,311       20,640       17,633  
                         
Stockholders’ equity:
                       
Common stock
    14       14       14  
Additional paid-in capital
    98,865       98,044       94,594  
Retained earnings (Accumulated deficit)
    (10,950 )     (10,058 )     (2,438 )
Accumulated other comprehensive loss
    (160 )     (325 )     (837 )
Total stockholders' equity
    87,769       87,675       91,333  
Total liabilities and stockholders' equity
  $ 109,080     $ 108,315     $ 108,966  

 
 

 
 
CUTERA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
 
   
Three Months Ended
 
   
September 30,
   
June 30,
   
September 30,
 
   
2012
   
2012
   
2011
 
Net revenue
  $ 19,426     $ 19,591     $ 15,232  
Cost of revenue
    8,828       9,274       6,772  
Gross profit
    10,598       10,317       8,460  
                         
Operating expenses:
                       
Sales and marketing
    7,014       7,112       6,426  
Research and development
    2,217       1,872       2,352  
General and administrative
    2,475       2,854       2,310  
Total operating expenses
    11,706       11,838       11,088  
Loss from operations
    (1,108 )     (1,521 )     (2,628 )
Interest and other income, net
    152       144       91  
Loss before income taxes
    (956 )     (1,377 )     (2,537 )
Provision (benefit)  for income taxes
    (64 )     89       326  
Net loss
  $ (892 )   $ (1,466 )   $ (2,863 )
                         
Net loss per share:
                       
Basic and Diluted
  $ (0.06 )   $ (0.10 )   $ (0.21 )
                         
Weighted-average number of shares used in per share calculations:
                       
Basic and Diluted
    14,127       14,095       13,862  
 
 
 

 
 
CUTERA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
 
   
Three Months Ended
 
   
September 30,
   
June 30,
   
September 30,
 
   
2012
   
2012
   
2011
 
Cash flows from operating activities:
                 
Net loss
  $ (892 )   $ (1,466 )   $ (2,863 )
Adjustments to reconcile net loss to net cash used in operating activities:
                       
Stock-based compensation
    809       787       894  
Tax benefit from stock-based compensation
    -       -       5  
Excess tax benefit related to stock-based compensation
    -       -       (5 )
Depreciation and amortization
    418       425       164  
Other
    (113 )     (14 )     270  
Changes in assets and liabilities:
                       
Accounts receivable
    (1,641 )     (1,697 )     (830 )
Inventories
    245       712       (1,358 )
Other current assets and prepaid expenses
    214       59       512  
Other long-term assets
    22       (81 )     (493 )
Accounts payable
    98       (475 )     (29 )
Accrued liabilities
    78       420       411  
Deferred rent
    (27 )     (24 )     (4 )
Deferred revenue
    520       503       (150 )
Income tax liability
    2       -       (5 )
Net cash used in operating activities
    (267 )     (851 )     (3,481 )
                         
Cash flows from investing activities:
                       
Acquisition of property and equipment
    (47 )     (34 )     (24 )
Disposal of property and equipment
    -       -       36  
Proceeds from sales of marketable and long-term investments
    8,566       7,066       7,156  
Proceeds from maturities of marketable investments
    14,610       8,700       6,649  
Purchase of marketable investments
    (16,328 )     (10,094 )     (14,130 )
Net cash provided by (used in) investing activities
    6,801       5,638       (313 )
                         
Cash flows from financing activities:
                       
Proceeds from exercise of stock options and employee stock purchase plan
    12       214       180  
Excess tax benefit related to stock-based compensation
    -       -       5  
Net cash provided by financing activities
    12       214       185  
                         
Net increase (decrease) in cash and cash equivalents
    6,546       5,001       (3,609 )
Cash and cash equivalents at beginning of period
    17,788       12,787       17,483  
Cash and cash equivalents at end of period
  $ 24,334     $ 17,788     $ 13,874  

 
 

 
 
CUTERA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in thousands, except percentage data)
(unaudited)
 
   
Three Months Ended
   
September 30,
 
% of
 
June 30,
 
% of
 
September 30,
 
% of
   
2012
 
Revenue
 
2012
 
Revenue
 
2011
 
Revenue
Revenue By Geography:
                             
United States
 
$
7,796
 
40%
 
$
7,834
 
40%
 
$
6,037
 
40%
International
   
11,630
 
60%
   
11,757
 
60%
   
9,195
 
60%
   
$
19,426
     
$
19,591
     
$
15,232
   
                               
Revenue By Product Category:
                             
Products
 
$
12,047
 
62%
 
$
11,690
 
60%
 
$
8,975
 
59%
Upgrades
   
487
 
3%
   
797
 
4%
   
687
 
4%
Service
   
4,298
 
22%
   
4,435
 
23%
   
3,227
 
21%
Titan hand piece refills
   
1,226
 
6%
   
1,216
 
6%
   
1,031
 
7%
Dermal fillers and cosmeceuticals
   
1,368
 
7%
   
1,453
 
7%
   
1,312
 
9%
   
$
19,426
     
$
19,591
     
$
15,232
   
 

 
   
Three Months Ended
 
   
September 30,
   
June 30,
   
September 30,
 
   
2012
   
2012
   
2011
 
Pre-tax Stock-Based Compensation Expense:
                       
Cost of revenue
 
$
169
   
$
168
   
$
179
 
Sales and marketing
   
177
     
159
     
210
 
Research and development
   
126
     
147
     
184
 
General and administrative
   
337
     
313
     
321
 
   
$
809
   
$
787
   
$
894