Cutera Reports Third Quarter 2015 Results
Key highlights for the third quarter of 2015 were as follows:
-
Revenue increased 23% to
$23.1 million , compared to the same period last year, driven primarily by recently launched new products—enlightenTM and excel HRTM—as well as continued strong contributions from legacy products. -
Product revenue grew 80% in
North America and 35% globally. - Gross margin improved to 58%, from the 57% in the second quarter of 2015.
-
Net loss narrowed to
$957,000 , or$0.07 per diluted share, and included$1.3 million of non-cash expenses related to stock-based compensation, depreciation and amortization of intangibles. -
Cash and investments balance as of
September 30, 2015 was$47.7 million , or$3.60 per outstanding share. -
Share repurchases during the third quarter and year-to-date of 2015 were
$19.4 million and$37.1 million , respectively.
Since commencement of commercial shipments in
The third quarter gross margin of 58% exceeded Company's recent guidance. This improvement was primarily attributable to an increase in the Company's direct sales as well as a sooner than planned realization of product cost reductions. The Company's loss narrowed to
"The third quarter financial performance was driven by our strategy based on organic revenue growth coupled with a strengthened commercial organization, which is translating to improved operating metrics. We believe, with our organization and our strong portfolio of products, we are strategically positioned to continue to increase market share in a growing market. We look forward to ending 2015 with continued momentum as we plan for an exciting 2016," concluded Mr. Connors.
Conference Call
The conference call to discuss these results is scheduled to begin at
About
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, INC. | ||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
(in thousands, except per share data) | ||
(unaudited) | ||
Three Months Ended | ||
September 30, | September 30, | |
2015 | 2014 | |
Net revenue | $ 23,085 | $ 18,726 |
Cost of revenue | 9,594 | 7,935 |
Gross profit | 13,491 | 10,791 |
Gross margin % | 58% | 58% |
Operating expenses: | ||
Sales and marketing | 8,790 | 7,805 |
Research and development | 2,748 | 2,628 |
General and administrative | 2,937 | 2,897 |
Total operating expenses | 14,475 | 13,330 |
Loss from operations | (984) | (2,539) |
Interest and other income, net | 84 | -- |
Loss before income taxes | (900) | (2,539) |
Provision for income taxes | 57 | 97 |
Net loss | $ (957) | $ (2,636) |
Net loss per share: | ||
Basic and diluted | $ (0.07) | $ (0.18) |
Weighted-average number of shares used in per share calculations: | ||
Basic and diluted | 13,827 | 14,334 |
CUTERA, INC. | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(in thousands) | |||
(unaudited) | |||
September 30, | June 30, | September 30, | |
2015 | 2015 | 2014 | |
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 10,055 | $ 11,627 | $ 11,377 |
Marketable investments | 37,689 | 54,708 | 69,321 |
Cash, cash equivalents and marketable investments | 47,744 | 66,335 | 80,698 |
Accounts receivable, net | 9,013 | 8,919 | 8,736 |
Inventories | 13,479 | 13,521 | 11,106 |
Deferred tax asset | 69 | 27 | 29 |
Other current assets and prepaid expenses | 1,977 | 1,625 | 1,947 |
Total current assets | 72,282 | 90,427 | 102,516 |
Property and equipment, net | 1,386 | 1,512 | 1,301 |
Deferred tax asset, net of current portion | 291 | 283 | 316 |
Intangibles, net | 227 | 332 | 1,438 |
Goodwill | 1,339 | 1,339 | 1,339 |
Other long-term assets | 392 | 351 | 13 |
Total assets | $ 75,917 | $ 94,244 | $ 106,923 |
Liabilities and Stockholders' Equity | |||
Current liabilities: | |||
Accounts payable | $ 2,659 | $ 3,597 | $ 2,718 |
Accrued liabilities | 12,234 | 10,308 | 8,975 |
Deferred revenue | 8,470 | 8,659 | 8,745 |
Total current liabilities | 23,363 | 22,564 | 20,438 |
Deferred revenue, net of current portion | 2,495 | 3,107 | 4,596 |
Income tax liability | 187 | 180 | 151 |
Other long-term liabilities | 538 | 699 | 1,029 |
Total liabilities | 26,583 | 26,550 | 26,214 |
Stockholders' equity | 49,334 | 67,694 | 80,709 |
Total liabilities and stockholders' equity | $ 75,917 | $ 94,244 | $ 106,923 |
CUTERA, INC. | ||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
(in thousands) | ||
(unaudited) | ||
Three Months Ended | ||
September 30, | September 30, | |
2015 | 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (957) | $ (2,636) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation | 1,044 | 980 |
Depreciation and amortization | 290 | 329 |
Other | (32) | 129 |
Changes in assets and liabilities: | ||
Accounts receivable | (94) | (1,234) |
Inventories | 42 | (1,076) |
Accounts payable | (938) | 690 |
Accrued liabilities | 1,230 | 1,500 |
Deferred revenue | (801) | 202 |
Other | (398) | (146) |
Net cash used in operating activities | (614) | (1,262) |
Cash flows from investing activities: | ||
Acquisition of property, equipment and software | (25) | (107) |
Net change in marketable investments | 16,941 | 1,226 |
Net cash provided by investing activities | 16,916 | 1,119 |
Cash flows from financing activities: | ||
Repurchases of common stock | (18,872) | — |
Proceeds from exercise of stock options and employee stock purchase plan | 1,046 | 655 |
Payments on capital lease obligations | (48) | (37) |
Net cash provided by (used in) financing activities | (17,874) | 618 |
Net increase (decrease) in cash and cash equivalents | (1,572) | 475 |
Cash and cash equivalents at beginning of period | 11,627 | 10,902 |
Cash and cash equivalents at end of period | $ 10,055 | $ 11,377 |
Supplemental disclosure of non-cash items: | ||
Repurchase of common stock acquired but not settled | $ 604 | $ — |
CUTERA, INC. | |||
CONSOLIDATED FINANCIAL HIGHLIGHTS | |||
(in thousands, except percentage data) | |||
(unaudited) | |||
Three Months Ended | % Change | ||
Q3 | Q3 | Q3 '15 Vs | |
2015 | 2014 | Q3 '14 | |
Revenue By Geography: | |||
United States | $ 13,206 | $ 7,607 | +74% |
International | 9,879 | 11,119 | -11% |
$ 23,085 | $ 18,726 | +23% | |
International as a percentage of total revenue | 43% | 59% | |
Revenue By Product Category: | |||
Products | |||
-North America | $ 10,830 | $ 6,018 | +80% |
-Rest of the World | 6,562 | 6,904 | -5% |
Total Products | 17,392 | 12,922 | +35% |
Service | 4,288 | 4,317 | -1% |
Hand Piece Refills | 671 | 824 | -19% |
Skincare | 734 | 663 | +11% |
$ 23,085 | $ 18,726 | +23% | |
Three Months Ended | |||
Q3 | Q3 | ||
2015 | 2014 | ||
Pre-tax Stock-Based Compensation Expense: | |||
Cost of revenue | $ 112 | $ 145 | |
Sales and marketing | 311 | 195 | |
Research and development | 148 | 167 | |
General and administrative | 473 | 473 | |
$ 1,044 | $ 980 |
CONTACT:Cutera, Inc. Ron Santilli Chief Financial Officer 415-657-5500 Investor RelationsJohn Mills Integrated Corporate Relations, Inc. 646-277-1254 john.mills@icrinc.com