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 1, 2011
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 1, 2011, we are issuing a press release and holding a conference call regarding our financial results for the second quarter ended June 30, 2011. 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 1, 2011.

 
 

 

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 1, 2011
 /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.
310-954-1100
john.mills@icrinc.com

Cutera Reports Second Quarter 2011 Results
Revenue Grew 22% to $14.9 Million

BRISBANE, Calif., August 1, 2011 ─ Cutera, Inc. (NASDAQ: CUTR), a leading provider of laser and other light-based aesthetic systems for practitioners worldwide, today reported financial results for the second quarter ended June 30, 2011.

Second quarter 2011 revenue was $14.9 million, or 22% higher, when compared to $12.2 million in the same period last year.  Net loss for the second quarter of 2011 was $2.5 million or $0.18 per diluted share, compared to a net loss of $3.8 million or $0.28 per diluted share.

Kevin Connors, President and CEO of Cutera, stated, “In our second quarter we experienced growth in all of our major geographical segments and have been very pleased with the market acceptance of our recently launched GenesisPlus product in the US.  We received FDA approval for onychomycosis (toenail fungus) in April of 2011 and Canadian approval in July 2011. With these clearances, we are beginning to penetrate the developing podiatry market for laser based products.  In addition, we were pleased with our performance in Japan during the second quarter and the pace of market recovery following the disastrous earthquake that occurred in March 2011.”
 
“We believe our revenue growth during the second quarter was also a direct result of our new US sales leadership and the talented sales team they have built.  Our new sales leadership coupled with the recent GenesisPlus and Excel V product launches are key initiatives that we believe will continue to improve our performance.”

Mr. Connors concluded, “We remain focused on key initiatives to increase future revenue levels and leverage our business model, which we expect will result in improved margins and cash flows in 2011, compared to 2010.  We believe that our worldwide distribution network, strong balance sheet with approximately $95 million in cash and investments – with no debt – a broad portfolio of products, and various research and development projects underway, offer continuing, long-term opportunities for our company.”

 
 

 

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 1, 2011. 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 15, 2011. In addition, you may call (877) 407-0789 to listen to the live broadcast.
 
About Cutera, Inc.
 
Brisbane, California-based Cutera is a leading provider of laser and other light-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, realize benefits from changes in management, develop and commercialize existing and new products and applications, and statements regarding long-term prospects and opportunities 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 continuing uncertainty related to the Japanese economy and infrastructure, which may reduce demand for the Company’s products and cause potential customers to delay their purchase decisions; that the Company may not be successful in its efforts to improve sales productivity and revenue performance; 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 1, 2011. 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, 2011 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,
2011
   
March 31,
2011
   
June 30,
2010
 
Assets
                 
Current assets:
                 
Cash and cash equivalents
  $ 17,483     $ 13,164     $ 31,697  
Marketable investments
    73,557       75,934       60,317  
Accounts receivable, net
    3,279       3,334       3,824  
Inventories, net
    8,301       7,268       6,955  
Deferred tax asset
    20       14       185  
Other current assets and prepaid expenses
    2,042       1,665       3,020  
Total current assets
    104,682       101,379       105,998  
                         
Property and equipment, net
    771       668       708  
Long-term investments
    3,908       6,492       7,115  
Intangibles, net
    541       589       733  
Deferred tax asset, net of current portion
    328       321       97  
Total assets
  $ 110,230     $ 109,449     $ 114,651  
                         
Liabilities and Stockholders' Equity
                       
Current liabilities:
                       
Accounts payable
  $ 2,180     $ 1,545     $ 1,495  
Accrued liabilities
    6,909       5,861       5,922  
Deferred revenue
    5,474       5,671       5,898  
Total current liabilities
    14,563       13,077       13,315  
                         
Deferred rent
    1,455       1,478       1,303  
Deferred revenue, net of current portion
    898       1,045       1,373  
Income tax liability
    494       479       732  
Total liabilities
    17,410       16,079       16,723  
                         
Stockholders’ equity:
                       
Common stock
    14       14       14  
Additional paid-in capital
    93,515       92,051       88,189  
Retained earnings
    425       2,881       11,475  
Accumulated other comprehensive loss
    (1,134 )     (1,576 )     (1,750 )
Total stockholders' equity
    92,820       93,370       97,928  
Total liabilities and stockholders' equity
  $ 110,230     $ 109,449     $ 114,651  

 
 

 

CUTERA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
 
   
Three Months Ended
 
   
June 30,
   
March 31,
   
June 30,
 
   
2011
   
2011
   
2010
 
Net revenue
  $ 14,895     $ 11,621     $ 12,217  
Cost of revenue
    6,476       5,224       5,335  
Gross profit
    8,419       6,397       6,882  
                         
Operating expenses:
                       
Sales and marketing
    6,348       5,946       6,452  
Research and development
    2,346       2,130       1,506  
General and administrative
    2,588       2,328       2,744  
Total operating expenses
    11,282       10,404       10,702  
Loss from operations
    (2,863 )     (4,007 )     (3,820 )
Interest and other income, net
    199       184       141  
Loss before income taxes
    (2,664 )     (3,823 )     (3,679 )
(Benefit) provision for income taxes
    (208 )     32       82  
Net loss
  $ (2,456 )   $ (3,855 )   $ (3,761 )
                         
Net loss per share:
                       
Basic and Diluted
  $ (0.18 )   $ (0.28 )   $ (0.28 )
                         
Weighted-average number of shares  used in per share calculations:
                       
Basic and Diluted
    13,765       13,667       13,501  
 
 
 

 

CUTERA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
 
   
Three Months Ended
 
   
June 30,
   
March 31,
   
June 30,
 
   
2011
   
2011
   
2010
 
Cash flows from operating activities:
                 
Net loss
  $ (2,456 )   $ (3,855 )   $ (3,761 )
                         
Adjustments to reconcile net loss to net cash used in operating activities:
                       
Stock-based compensation
    1,325       886       1,761  
Tax benefit from stock-based compensation
    16       -       -  
Excess tax benefit related to stock-based compensation
    (16 )     -       -  
Depreciation and amortization
    162       157       199  
Provision for excess and obsolete inventories
    (129 )     (45 )     109  
Provision for doubtful accounts receivable
    2       (9 )     (2 )
                         
Change in deferred tax asset
    (13 )     53       (7 )
Gain on sale of marketable investments, net
    -       -       (23 )
Tax benefit on unrealized gains on marketable and long term investments
    (68 )     -       -  
                         
Changes in assets and liabilities:
                       
Accounts receivable
    53       883       (334 )
Inventories
    (904 )     (775 )     (111 )
Other current assets and prepaid expenses
    (70 )     1,509       735  
Accounts payable
    635       249       (403 )
Accrued liabilities
    1,028       (353 )     (1,446 )
Deferred rent
    (3 )     (3 )     (55 )
Deferred revenue
    (344 )     (204 )     (593 )
Income tax liability
    15       2       3  
Net cash used in operating activities
    (767 )     (1,505 )     (3,928 )
                         
Cash flows from investing activities:
                       
Acquisition of property and equipment
    (217 )     (180 )     (63 )
Proceeds from sales of marketable and long-term investments
    6,200       4,241       14,711  
Proceeds from maturities of marketable investments
    16,311       12,125       5,200  
Purchase of marketable investments
    (17,347 )     (14,778 )     (7,021 )
Net cash provided by investing activities
    4,947       1,408       12,827  
                         
Cash flows from financing activities:
                       
Proceeds from exercise of stock options and employee stock purchase plan
    123       742       279  
Excess tax benefit related to stock-based compensation
    16       -       -  
Net cash provided by financing activities
    139       742       279  
                         
Net increase in cash and cash equivalents
    4,319       645       9,178  
Cash and cash equivalents at beginning of period
    13,164       12,519       22,519  
Cash and cash equivalents at end of period
  $ 17,483     $ 13,164     $ 31,697  
 
 
 

 

CUTERA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in thousands, except percentage data)
(unaudited)
 
   
Three Months Ended
 
   
June 30,
   
% of
   
March 31,
   
% of
   
June 30,
   
% of
 
   
2011
   
Revenue
   
2011
   
Revenue
   
2010
   
Revenue
 
Revenue By Geography:
                                               
United States
  $ 5,697       38 %   $ 4,207       36 %   $ 4,784       39 %
International
    9,198       62 %     7,414       64 %     7,433       61 %
    $ 14,895             $ 11,621             $ 12,217          
                                                 
Revenue By Product Category:
                                               
Products
  $ 8,142       55 %   $ 5,345       46 %   $ 5,676       46 %
Upgrades
    856       6 %     821       7 %     1,338       11 %
Service
    3,594       24 %     3,328       29 %     3,437       28 %
Titan hand piece refills
    1,249       8 %     1,057       9 %     960       8 %
Dermal fillers and cosmeceuticals
    1,054       7 %     1,070       9 %     806       7 %
    $ 14,895             $ 11,621             $ 12,217          
 
   
Three Months Ended
 
   
June 30,
   
March 31,
   
June 30,
 
   
2011
   
2011
   
2010
 
Stock-Based Compensation Expense:
                 
Cost of revenue
  $ 183     $ 143     $ 228  
Sales and marketing
    177       238       357  
Research and development
    197       143       166  
General and administrative
    768       362       1,010  
    $ 1,325     $ 886     $ 1,761