Delaware
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000-50644
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77-0492262
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(State or other jurisdiction of incorporation or organization)
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(Commission File Number)
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(I.R.S. Employer Identification Number)
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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02.
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Results of Operations and Financial Condition.
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Item 9.01.
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Financial Statements and Exhibits.
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(d)
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Exhibits.
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Exhibit No.
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Description
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Press Release of Cutera, Inc. dated as of August 5, 2013.
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CUTERA, INC.
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Date: August 5, 2013
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/s/ KEVIN P. CONNORS
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Kevin P. Connors
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President and Chief Executive Officer
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· | Revenue was $19.6 million, which remained flat compared to the second quarter in 2012. |
· | Gross margin improved to 57%, compared to 53% in the second quarter of 2012, due primarily to a favorable product mix shift and the realization of several cost reduction initiatives. |
· | Net loss was $0.6 million, or $0.04 per diluted share. Non-cash items including stock-based compensation, intangible, and depreciable items totaled $1.1 million for the quarter. |
· | Cash generated from operations was $1.9 million. |
· | Balance sheet remains strong with $89.6 million in cash and investments, an increase of over $8.2 million during the past year. |
· | We recently launched a new truSculpt applicator to treat smaller cosmetic areas. Given our flat applicator design, we believe that this product will allow physicians to treat smaller areas more effectively. |
· | Our program to introduce a high-performance laser system that will focus on a large market segment within the aesthetic light-based market is progressing as planned. We recently submitted our 510(k) application to the FDA for this device and look forward to its launch. |
· | Our dual wavelength picosecond program for the tattoo removal and pigmented lesion markets has commenced clinical trials for both indications and are now in the process of compiling the information for our 510(k) submission. |
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June 30,
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March 31,
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June 30,
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|||||||||
|
2013
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2013
|
2012
|
|||||||||
Assets
|
||||||||||||
Current assets:
|
||||||||||||
Cash and cash equivalents
|
$
|
11,885
|
$
|
17,272
|
$
|
17,788
|
||||||
Marketable investments
|
77,741
|
70,821
|
62,794
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|||||||||
Accounts receivable, net
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7,542
|
6,814
|
6,203
|
|||||||||
Inventories
|
10,518
|
11,091
|
12,722
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|||||||||
Deferred tax asset
|
39
|
39
|
52
|
|||||||||
Other current assets and prepaid expenses
|
1,429
|
1,511
|
1,443
|
|||||||||
Total current assets
|
109,154
|
107,548
|
101,002
|
|||||||||
|
||||||||||||
Property and equipment, net
|
1,338
|
1,312
|
946
|
|||||||||
Long-term investments
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-
|
-
|
840
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|||||||||
Deferred tax asset, net of current portion
|
504
|
518
|
463
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|||||||||
Intangibles, net
|
2,218
|
2,392
|
3,186
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|||||||||
Goodwill
|
1,339
|
1,339
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1,339
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|||||||||
Other long-term assets
|
348
|
362
|
539
|
|||||||||
Total assets
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$
|
114,901
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$
|
113,471
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$
|
108,315
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||||||
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||||||||||||
Liabilities and Stockholders' Equity
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||||||||||||
Current liabilities:
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||||||||||||
Accounts payable
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$
|
2,430
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$
|
2,161
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$
|
2,199
|
||||||
Accrued liabilities
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7,668
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7,087
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9,382
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|||||||||
Deferred revenue
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6,993
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6,766
|
6,285
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|||||||||
Total current liabilities
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17,091
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16,014
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17,866
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|||||||||
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||||||||||||
Deferred revenue, net of current portion
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2,844
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2,538
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1,400
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|||||||||
Income tax liability
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325
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320
|
905
|
|||||||||
Other long-term liabilities
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1,386
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1,449
|
469
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|||||||||
Total liabilities
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21,646
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20,321
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20,640
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|||||||||
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||||||||||||
Stockholders' equity:
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||||||||||||
Common stock
|
15
|
14
|
14
|
|||||||||
Additional paid-in capital
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105,954
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105,089
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98,044
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|||||||||
Accumulated deficit
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(12,674
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)
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(12,036
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)
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(10,058
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)
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||||||
Accumulated other comprehensive income (loss)
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(40
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)
|
83
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(325
|
)
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|||||||
Total stockholders' equity
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93,255
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93,150
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87,675
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|||||||||
Total liabilities and stockholders' equity
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$
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114,901
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$
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113,471
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$
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108,315
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Three Months Ended
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|||||||||||
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June 30,
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March 31,
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June 30,
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|||||||||
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2013
|
2013
|
2012
|
|||||||||
Net revenue
|
$
|
19,560
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$
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15,967
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$
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19,591
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||||||
Cost of revenue
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8,442
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7,417
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9,274
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|||||||||
Gross profit
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11,118
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8,550
|
10,317
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|||||||||
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||||||||||||
Operating expenses:
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||||||||||||
Sales and marketing
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7,170
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6,456
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7,112
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|||||||||
Research and development
|
2,217
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2,121
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1,872
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|||||||||
General and administrative
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2,354
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2,289
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2,854
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|||||||||
Total operating expenses
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11,741
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10,866
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11,838
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|||||||||
Loss from operations
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(623
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)
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(2,316
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)
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(1,521
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)
|
||||||
Interest and other income, net
|
75
|
135
|
144
|
|||||||||
Loss before income taxes
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(548
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)
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(2,181
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)
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(1,377
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)
|
||||||
Provision (benefit) for income taxes
|
90
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(18
|
)
|
89
|
||||||||
Net loss
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$
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(638
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)
|
$
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(2,163
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)
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$
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(1,466
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)
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|||
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||||||||||||
Net loss per share:
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||||||||||||
Basic
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$
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(0.04
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)
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$
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(0.15
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)
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$
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(0.10
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)
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|||
Diluted
|
$
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(0.04
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)
|
$
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(0.15
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)
|
$
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(0.10
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)
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|||
Weighted-average number of shares used in per share calculations:
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||||||||||||
Basic
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14,723
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14,408
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14,095
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|||||||||
Diluted
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14,723
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14,408
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14,095
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|
Three Months Ended
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|||||||||||
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June 30,
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March 31,
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June 30,
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|||||||||
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2013
|
2013
|
2012
|
|||||||||
Cash flows from operating activities:
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||||||||||||
Net loss
|
$
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(638
|
)
|
$
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(2,163
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)
|
$
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(1,466
|
)
|
|||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
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||||||||||||
Stock-based compensation
|
802
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820
|
787
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|||||||||
Depreciation and amortization
|
326
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320
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425
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|||||||||
Other
|
16
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34
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(14
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)
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||||||||
Changes in assets and liabilities:
|
||||||||||||
Accounts receivable
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(728
|
)
|
2,027
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(1,697
|
)
|
|||||||
Inventories
|
573
|
23
|
712
|
|||||||||
Other current assets and prepaid expenses
|
182
|
60
|
59
|
|||||||||
Other long-term assets
|
14
|
35
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(81
|
)
|
||||||||
Accounts payable
|
269
|
54
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(475
|
)
|
||||||||
Accrued liabilities
|
552
|
(2,504
|
)
|
420
|
||||||||
Other long-term liabilities
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(34
|
)
|
259
|
(24
|
)
|
|||||||
Deferred revenue
|
533
|
584
|
503
|
|||||||||
Income tax liability
|
5
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(92
|
)
|
-
|
||||||||
Net cash provided by (used in) operating activities
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1,872
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(543
|
)
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(851
|
)
|
|||||||
|
||||||||||||
Cash flows from investing activities:
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||||||||||||
Acquisition of property and equipment
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(178
|
)
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(525
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)
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(34
|
)
|
||||||
Proceeds from sales of marketable and long-term investments
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4,475
|
500
|
7,066
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|||||||||
Proceeds from maturities of marketable investments
|
5,150
|
11,050
|
8,700
|
|||||||||
Purchase of marketable investments
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(16,770
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)
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(20,473
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)
|
(10,094
|
)
|
||||||
Net cash provided by (used in) investing activities
|
(7,323
|
)
|
(9,448
|
)
|
5,638
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|||||||
|
||||||||||||
Cash flows from financing activities:
|
||||||||||||
Proceeds from exercise of stock options and employee stock purchase plan
|
64
|
3,717
|
214
|
|||||||||
Net cash provided by financing activities
|
64
|
3,717
|
214
|
|||||||||
|
||||||||||||
Net increase (decrease) in cash and cash equivalents
|
(5,387
|
)
|
(6,274
|
)
|
5,001
|
|||||||
Cash and cash equivalents at beginning of period
|
17,272
|
23,546
|
12,787
|
|||||||||
Cash and cash equivalents at end of period
|
$
|
11,885
|
$
|
17,272
|
$
|
17,788
|
|
Three Months Ended
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% Change
|
||||||||||||||||||
|
Q2
|
Q1
|
Q2
|
Q2 '13 Vs.
|
Q2 '13 Vs
|
|||||||||||||||
|
2013
|
2013
|
2012
|
Q1 '13
|
Q2 '12
|
|||||||||||||||
Revenue By Geography:
|
||||||||||||||||||||
United States
|
$
|
7,660
|
$
|
6,488
|
$
|
7,834
|
+18
|
%
|
-2
|
%
|
||||||||||
International
|
11,900
|
9,479
|
11,757
|
+26
|
%
|
+1
|
%
|
|||||||||||||
|
$
|
19,560
|
$
|
15,967
|
$
|
19,591
|
+23
|
%
|
-
|
%
|
||||||||||
International as a percentage of total revenue
|
61
|
%
|
59
|
%
|
60
|
%
|
||||||||||||||
Revenue By Product Category:
|
||||||||||||||||||||
Products and upgrades
|
$
|
13,034
|
$
|
9,197
|
$
|
12,487
|
+42
|
%
|
+4
|
%
|
||||||||||
Service
|
4,507
|
4,444
|
4,435
|
+1
|
%
|
+2
|
%
|
|||||||||||||
Titan and truSculpt hand piece refills
|
1,106
|
1,190
|
1,216
|
-7
|
%
|
-9
|
%
|
|||||||||||||
Dermal fillers and cosmeceuticals
|
913
|
1,136
|
1,453
|
-20
|
%
|
-37
|
%
|
|||||||||||||
|
$
|
19,560
|
$
|
15,967
|
$
|
19,591
|
+23
|
%
|
-
|
%
|
|
Three Months Ended
|
|||||||||||
|
Q2
|
Q1
|
Q2
|
|||||||||
|
2013
|
2013
|
2012
|
|||||||||
Pre-tax Stock-Based Compensation Expense:
|
||||||||||||
Cost of revenue
|
$
|
166
|
$
|
159
|
$
|
168
|
||||||
Sales and marketing
|
198
|
199
|
159
|
|||||||||
Research and development
|
89
|
101
|
147
|
|||||||||
General and administrative
|
349
|
361
|
313
|
|||||||||
|
$
|
802
|
$
|
820
|
$
|
787
|