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 7, 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):
 
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o
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 7, 2011, we are issuing a press release and holding a conference call regarding our financial results for the third quarter ended September 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 November 7, 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: November 7, 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.
310-954-1105
john.mills@icrinc.com

Cutera Reports Third Quarter 2011 Results
Revenue Grew 26% to $15.2 Million
 
BRISBANE, Calif., November 7, 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 third quarter ended September 30, 2011.

Third quarter 2011 revenue was $15.2 million, or 26% higher, when compared to $12.1 million in the same period last year.  Net loss for the third quarter of 2011 was $2.9 million or $0.21 per diluted share, compared to a net loss of $3.5 million or $0.25 per diluted share in the third quarter of 2010.

Kevin Connors, president and CEO of Cutera, stated, “This is our second consecutive quarter of revenue growth in excess of 20%, compared to the same periods in 2010.  In the third quarter of 2011, our US revenue grew 43%, compared to the same period in 2010. This success was driven primarily by our recent new product introductions; GenesisPlus for onychomycosis (toenail fungus) and the Excel V premium vascular laser, and effective execution by our US sales team.  In addition, in the third quarter of 2011, our International revenue grew by 17%, compared to the same period in 2010.  This growth was also favorably impacted by the new product introductions primarily from sales in Canada and many Pacific Rim countries.”

“We are pleased with the customer acceptance and the revenue impact to-date of our GenesisPlus and Excel V products, which represented a significant amount of our third quarter of 2011 revenue.  We are continuing to expand the presence of these products globally and are excited about the long-term potential they can have on our future global revenue.  Additionally, we are in the process of launching our recently announced myQ Q-switched laser in Japan to address deep dermal pigmentation and melasma.  We have been investing significant resources in our Research and Development activities and plan to continue doing so in order to bring additional new products to market.”
 
 
 

 
 
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 the fourth quarter of 2011, compared to 2010.  We believe that our worldwide distribution network, strong balance sheet with over $90 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 November 7, 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 November 21, 2011. 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 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 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 November 7, 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 third quarter ended September 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)

   
September 30,
   
June 30,
   
September 30,
 
   
2011
   
2011
   
2010
 
Assets
                 
Current assets:
                 
Cash and cash equivalents
  $ 13,874     $ 17,483     $ 21,703  
Marketable investments
    74,502       73,557       69,154  
Accounts receivable, net
    4,085       3,279       3,024  
Inventories
    9,659       8,301       7,144  
Deferred tax asset
    17       20       204  
Other current assets and prepaid expenses
    1,841       2,042       2,855  
Total current assets
    103,978       104,682       104,084  
                         
Property and equipment, net
    643       771       624  
Long-term investments
    3,014       3,908       6,683  
Intangibles, net
    493       541       685  
Deferred tax asset, net of current portion
    345       328       97  
Other long-term assets
    493       -       -  
Total assets
  $ 108,966     $ 110,230     $ 112,173  
                         
Liabilities and Stockholders' Equity
                       
Current liabilities:
                       
Accounts payable
  $ 2,151     $ 2,180     $ 1,701  
Accrued liabilities
    7,339       6,909       5,821  
Deferred revenue
    5,447       5,474       5,757  
Total current liabilities
    14,937       14,563       13,279  
                         
Deferred rent
    1,432       1,455       1,504  
Deferred revenue, net of current portion
    775       898       1,302  
Income tax liability
    489       494       566  
Total liabilities
    17,633       17,410       16,651  
                         
Stockholders’ equity:
                       
Common stock
    14       14       14  
Additional paid-in capital
    94,594       93,515       89,296  
Retained earnings
    (2,438 )     425       8,016  
Accumulated other comprehensive loss
    (837 )     (1,134 )     (1,804 )
Total stockholders' equity
    91,333       92,820       95,522  
Total liabilities and stockholders' equity
  $ 108,966     $ 110,230     $ 112,173  
 
 
 

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

   
Three Months Ended
 
   
September 30,
   
June 30,
   
September 30,
 
   
2011
   
2011
   
2010
 
Net revenue
  $ 15,232     $ 14,895     $ 12,092  
Cost of revenue
    6,772       6,476       5,661  
Gross profit
    8,460       8,419       6,431  
                         
Operating expenses:
                       
Sales and marketing
    6,426       6,348       5,799  
Research and development
    2,352       2,346       1,871  
General and administrative
    2,310       2,588       2,352  
Total operating expenses
    11,088       11,282       10,022  
Loss from operations
    (2,628 )     (2,863 )     (3,591 )
Interest and other income, net
    91       199       132  
Loss before income taxes
    (2,537 )     (2,664 )     (3,459 )
Provision (benefit) for income taxes
    326       (208 )     -  
Net loss
  $ (2,863 )   $ (2,456 )   $ (3,459 )
                         
Net loss per share:
                       
Basic and Diluted
  $ (0.21 )   $ (0.18 )   $ (0.25 )
                         
Weighted-average number of shares used in per share calculations:
                       
Basic and Diluted
    13,862       13,765       13,589  
 
 
 

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

   
Three Months Ended
 
   
September 30,
   
June 30,
   
September 30,
 
   
2011
   
2011
   
2010
 
Cash flows from operating activities:
                 
Net loss
  $ (2,863 )   $ (2,456 )   $ (3,459 )
Adjustments to reconcile net loss to net cash used in operating activities:
                       
Stock-based compensation
    894       1,325       1,081  
Tax benefit from stock-based compensation
    5       16       -  
Excess tax benefit related to stock-based compensation
    (5 )     (16 )     -  
Depreciation and amortization
    164       162       167  
Provision for excess and obsolete inventroies
    -       (129 )     131  
Provision for doubtful accounts receivable
    24       2       (7 )
Change in deferred tax asset net of valuation allowance
    (14 )     (13 )     (19 )
Gain on sale of marketable investments, net
    (2 )     -       (8 )
Tax on unrealized gains on marketable and long term investments
    262       (68 )     -  
Changes in assets and liabilities:
                       
Accounts receivable
    (830 )     53       807  
Inventories
    (1,358 )     (904 )     (320 )
Other current assets and prepaid expenses
    512       (70 )     688  
Other long-term assets
    (493 )     -       -  
Accounts payable
    (29 )     635       206  
Accrued liabilities
    411       1,028       148  
Deferred rent
    (4 )     (3 )     (48 )
Deferred revenue
    (150 )     (344 )     (212 )
Income tax liability
    (5 )     15       (166 )
Net cash used in operating activities
    (3,481 )     (767 )     (1,011 )
                         
Cash flows from investing activities:
                       
Acquisition of property and equipment
    (24 )     (217 )     (35 )
Disposal of property and equipment
    36       -       -  
Proceeds from sales of marketable and long-term investments
    7,156       6,200       9,099  
Proceeds from maturities of marketable investments
    6,649       16,311       14,810  
Purchase of marketable investments
    (14,130 )     (17,347 )     (32,884 )
Net cash provided by investing activities
    (313 )     4,947       (9,010 )
                         
Cash flows from financing activities:
                       
Proceeds from exercise of stock options and employee stock purchase plan
    180       123       27  
Excess tax benefit related to stock-based compensation
    5       16       -  
Net cash provided by financing activities
    185       139       27  
                         
Net increase (decrease) in cash and cash equivalents
    (3,609 )     4,319       (9,994 )
Cash and cash equivalents at beginning of period
    17,483       13,164       31,697  
Cash and cash equivalents at end of period
  $ 13,874     $ 17,483     $ 21,703  
 
 
 

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

   
Three Months Ended
   
September 30,
 
% of
 
June 30,
 
% of
 
September 30,
 
% of
   
2011
 
Revenue
 
2011
 
Revenue
 
2010
 
Revenue
Revenue By Geography:
                             
United States
 
$
          6,037
 
40%
 
$
          5,697
 
38%
 
$
          4,214
 
35%
International
   
          9,195
 
60%
   
          9,198
 
62%
   
          7,878
 
65%
   
$
        15,232
     
$
        14,895
     
$
        12,092
   
                               
Revenue By Product Category:
                             
Products
 
$
          8,975
 
59%
 
$
          8,142
 
55%
 
$
          5,767
 
48%
Upgrades
   
             687
 
4%
   
             856
 
6%
   
          1,414
 
12%
Service
   
          3,227
 
21%
   
          3,594
 
24%
   
          3,166
 
26%
Titan hand piece refills
   
          1,031
 
7%
   
          1,249
 
8%
   
             647
 
5%
Dermal fillers and cosmeceuticals
   
          1,312
 
9%
   
          1,054
 
7%
   
          1,098
 
9%
   
$
        15,232
     
$
        14,895
     
$
        12,092
   
                               
                               
   
Three Months Ended
   
   
September 30,
     
June 30,
     
September 30,
   
   
2011
     
2011
     
2010
   
Pre-tax Stock-Based Compensation Expense:
                             
Cost of revenue
 
$
             179
     
$
183
     
$
191
   
Sales and marketing
   
             210
       
             177
       
             214
   
Research and development
   
             184
       
             197
       
             316
   
General and administrative
   
             321
       
             768
       
             360
   
   
$
             894
     
$
1,325
     
$
1,081