form8-k.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
 
August 6, 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 August 6, 2012, we are issuing a press release and holding a conference call regarding our financial results for the first quarter ended June 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 August 6, 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: August 6, 2012
 
 /s/ KEVIN P. CONNORS
   
Kevin P. Connors
   
President and Chief Executive Officer
 
 

Unassociated Document

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 Second Quarter 2012 Results
Revenue Grew 32% Year-Over-Year

BRISBANE, Calif., August 6, 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 second quarter ended June 30, 2012.

Key financial highlights for the second quarter of 2012 compared to same period last year are as follows:

 
·
Revenue grew 32%, to $19.6 million.
 
·
Net loss was $1.5 million, or $0.10 per diluted share, compared to a loss of $0.18 per diluted share.
 
·
The $1.5 million loss includes $1.2 million of non-cash stock-based compensation and amortization and depreciation.

Kevin Connors, president and CEO of Cutera, stated, “This is our fifth 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.  In the second quarter of 2012, our US revenue increased 38%, when compared to the second quarter of 2011. International revenue expanded by 28% during the second quarter of 2012, compared to the same period in 2011.  This revenue improvement was driven primarily by:

 
1)
Continued increased penetration of our premier ExcelV vascular system;
 
2)
Increased revenue from our flagship Xeo platform;
 
3)
Expansion and improved effectiveness of our North American sales organization;
 
4)
Incremental revenue from the Iridex aesthetic acquisition that contributed to higher service, cross selling opportunities and product revenue.”
“Revenue shipments of our truSculpt product designed for the fast growing non-invasive body contouring market commences in the third quarter of 2012. Our extensive research and unique energy delivery technology enables this product to achieve efficacious clinical outcomes, while minimizing patient discomfort. We are excited to be entering this aesthetic category and believe this will contribute to our revenue growth in the future.”
 
 
 

 

Mr. Connors concluded, “We believe the market outlook for aesthetic laser and other energy based equipment continues to improve and we are well positioned to capitalize on our expanding market. We remain focused on many initiatives in order to continue delivering revenue growth, improving gross margins, improving leverage in our business model, and cash generation in the second half of this year.”

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 August 6, 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 August 20, 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 the Company may not be successful in its 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 August 6, 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 second quarter ended June 30, 2012 financial performance, as discussed in this release, is preliminary and unaudited, and subject to adjustment.

 
 

 

CUTERA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

   
June 30,
   
March 31,
   
June 30,
 
   
2012
   
2012
   
2011
 
Assets
                 
Current assets:
                 
Cash and cash equivalents
  $ 17,788     $ 12,787     $ 17,483  
Marketable investments
    62,794       66,137       73,557  
Accounts receivable, net
    6,203       4,496       3,279  
Inventories
    12,722       13,434       8,301  
Deferred tax asset
    52       50       20  
Other current assets and prepaid expenses
    1,443       1,363       2,042  
Total current assets
    101,002       98,267       104,682  
                         
Property and equipment, net
    946       1,019       771  
Long-term investments
    840       2,928       3,908  
Deferred tax asset, net of current portion
    463       450       328  
Intangibles, net
    3,186       3,504       541  
Goodwill
    1,339       1,339       -  
Other long-term assets
    539       458       -  
Total assets
  $ 108,315     $ 107,965     $ 110,230  
                         
Liabilities and Stockholders' Equity
                       
Current liabilities:
                       
Accounts payable
  $ 2,199     $ 2,674     $ 2,180  
Accrued liabilities
    9,382       8,936       6,909  
Deferred revenue
    6,285       5,770       5,474  
                         
Total current liabilities
    17,866       17,380       14,563  
                         
Deferred rent
    1,400       1,450       1,455  
Deferred revenue, net of current portion
    905       917       898  
Income tax liability
    469       469       494  
Total liabilities
    20,640       20,216       17,410  
                         
Stockholders’ equity:
                       
Common stock
    14       14       14  
Additional paid-in capital
    98,044       97,043       93,515  
Retained earnings (Accumulated deficit)
    (10,058 )     (8,592 )     425  
Accumulated other comprehensive loss
    (325 )     (716 )     (1,134 )
Total stockholders' equity
    87,675       87,749       92,820  
Total liabilities and stockholders' equity
  $ 108,315     $ 107,965     $ 110,230  
 
 
 

 

CUTERA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

   
Three Months Ended
 
   
June 30,
   
March 31,
   
June 30,
 
   
2012
   
2012
   
2011
 
Net revenue
  $ 19,591     $ 15,727     $ 14,895  
Cost of revenue
    9,274       7,845       6,476  
Gross profit
    10,317       7,882       8,419  
                         
Operating expenses:
                       
Sales and marketing
    7,112       7,437       6,348  
Research and development
    1,872       2,216       2,346  
General and administrative
    2,854       3,495       2,588  
Total operating expenses
    11,838       13,148       11,282  
Loss from operations
    (1,521 )     (5,266 )     (2,863 )
Interest and other income, net
    144       96       199  
Loss before income taxes
    (1,377 )     (5,170 )     (2,664 )
Provision (benefit)  for income taxes
    89       97       (208 )
Net loss
  $ (1,466 )   $ (5,267 )   $ (2,456 )
                         
Net loss per share:
                       
Basic and Diluted
  $ (0.10 )   $ (0.38 )   $ (0.18 )
                         
Weighted-average number of shares used in per share calculations:
                       
Basic and Diluted
    14,095       13,960       13,765  

 
 

 

CUTERA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

   
Three Months Ended
 
   
June 30,
   
March 31,
   
June 30,
 
   
2012
   
2012
   
2011
 
Cash flows from operating activities:
                 
Net loss
  $ (1,466 )   $ (5,267 )   $ (2,456 )
Adjustments to reconcile net loss to net cash used in operating activities:
                       
Stock-based compensation
    787       738       1,325  
Tax benefit from stock-based compensation
    -       -       16  
Excess tax benefit related to stock-based compensation
    -       -       (16
Depreciation and amortization
    425       343       162  
Other
    (14 )     14       (79 )
Changes in assets and liabilities:
                       
Accounts receivable
    (1,697 )     640       53  
Inventories
    712       (1,153 )     (1,033 )
Other current assets and prepaid expenses
    59       444       (70 )
Other long-term assets
    (81 )     28       -  
Accounts payable
    (475 )     101       635  
Accrued liabilities
    420       (661 )     1,028  
Deferred rent
    (24 )     27       (3 )
Deferred revenue
    503       (118 )     (344 )
Income tax liability
    -       (9 )     15  
Net cash used in operating activities
    (851 )     (4,873 )     (767 )
                         
Cash flows from investing activities:
                       
Acquisition of property and equipment
    (34 )     (277 )     (217 )
Business acquisition
    -       (5,091 )     -  
Proceeds from sales of marketable and long-term investments
    7,066       10,729       6,200  
Proceeds from maturities of marketable investments
    8,700       11,135       16,311  
Purchase of marketable investments
    (10,094 )     (13,442 )     (17,347 )
Net cash provided by investing activities
    5,638       3,054       4,947  
                         
Cash flows from financing activities:
                       
Proceeds from exercise of stock options and employee stock purchase plan
    214       586       123  
Excess tax benefit related to stock-based compensation
    -       -       16  
Net cash provided by financing activities
    214       586       139  
                         
Net increase (decrease) in cash and cash equivalents
    5,001       (1,233 )     4,319  
Cash and cash equivalents at beginning of period
    12,787       14,020       13,164  
Cash and cash equivalents at end of period
  $ 17,788     $ 12,787     $ 17,483  

 
 

 

CUTERA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in thousands, except percentage data)
(unaudited)

   
Three Months Ended
   
June 30,
 
% of
 
March 31,
 
% of
 
June 30,
 
% of
   
2012
 
Revenue
 
2012
 
Revenue
 
2011
 
Revenue
Revenue By Geography:
                             
United States
 
$
          7,834
 
40%
 
$
          6,311
 
40%
 
$
          5,697
 
38%
International
   
        11,757
 
60%
   
          9,416
 
60%
   
          9,198
 
62%
   
$
        19,591
     
$
        15,727
     
$
        14,895
   
                               
Revenue By Product Category:
                             
Products
 
$
        11,690
 
60%
 
$
          8,433
 
54%
 
$
          8,142
 
55%
Upgrades
   
             797
 
4%
   
             825
 
5%
   
             856
 
6%
Service
   
          4,435
 
23%
   
          3,873
 
25%
   
          3,594
 
24%
Titan hand piece refills
   
          1,216
 
6%
   
          1,130
 
7%
   
          1,249
 
8%
Dermal fillers and cosmeceuticals
   
          1,453
 
7%
   
          1,466
 
9%
   
          1,054
 
7%
   
$
        19,591
     
$
        15,727
     
$
        14,895
   
 

 
   
Three Months Ended
 
   
June 30,
   
March 31,
   
June 30,
 
   
2012
   
2012
   
2011
 
Pre-tax Stock-Based Compensation Expense:
                 
Cost of revenue
  $ 168     $ 143     $ 183  
Sales and marketing
    159       140       177  
Research and development
    147       146       197  
General and administrative
    313       309       768  
    $ 787     $ 738     $ 1,325