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
2, 2009
Date of
Report (date of earliest event reported)
Cutera,
Inc.
(Exact
name of Registrant as specified in its charter)
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Delaware
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000-50644
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77-0492262
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||
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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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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):
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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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On
November 2, 2009, we are issuing a press release and holding a conference call
regarding our financial results for the third quarter ended September 30, 2009.
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.
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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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99.1
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Press
Release of Cutera, Inc. dated as of November 2,
2009.
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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.
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CUTERA,
INC.
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|||
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Date:
November 2, 2009
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By:
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/s/ KEVIN P. CONNORS | |
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Kevin
P. Connors
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|||
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President
and Chief Executive Officer
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|||
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 Third Quarter 2009 Results
BRISBANE,
Calif., November 2, 2009 -- 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, 2009.
Financial Highlights for the
third quarter of 2009 include:
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·
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Revenue
increased by 4% to $12.2 million, compared to $11.7 million in the second
quarter of 2009.
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·
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Gross
margin improved to 60%, compared to 56% in the second quarter of
2009.
|
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·
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Cash
from operations was approximately
breakeven.
|
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·
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Net
loss was $13.5 million, or $1.01 per diluted share, which included a $12.3
million, or $0.92 per diluted share, non-cash tax charge, to establish a
valuation allowance against our U.S. deferred tax
assets.
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Kevin
Connors, President and CEO of Cutera, stated, “We experienced an improvement in
our third quarter 2009 revenue. It is important to note that, in our industry,
traditionally the third quarter is seasonally softer than the second quarter.
Our customers continue to experience demand for our products from end users,
however, many of our current and prospective customers remain reluctant to make
major capital equipment purchases or are unable to obtain financing during these
challenging economic times. In the current market environment, we
believe that the core market of dermatologists, plastic surgeons and other
established medical offices provides us with the best opportunities in our
industry. Therefore, we are actively refocusing our sales, marketing and new
product development efforts on this market segment.
We have
significantly improved our gross margin and operating expenses, when compared to
the second quarter of 2009. We believe these improvements are
resulting from our first half restructuring efforts, which incorporated many
cost reduction measures. We remain focused on increasing revenue levels and to
leverage our business model, which we expect will result in increased
profits. As a result of the recent restructuring activities, we
believe our current operating model will result in breakeven profit performance
when revenue is in the $14.0 - $15.0 million range.”
Mr.
Connors concluded, “While the near-term prospects for our industry are difficult
to predict due to the continuing economic uncertainty, we believe that our
worldwide distribution network, strong balance sheet with $104.2 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 2, 2009. 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 and continue through
8:59 p.m. PT (11:59 p.m. ET) on November 16, 2009. In addition, you may call
(877) 941-1427 to listen to the live broadcast. Participating in the call will
be Kevin Connors, President and Chief Executive Officer, and Ron Santilli,
Executive Vice President and Chief Financial Officer.
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 grow its business, increase revenue, manage costs and expenses,
generate additional cash, regain profitability, develop and commercialize
existing and new products and applications, improve the performance of its
worldwide sales and distribution network, 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 global economic crisis,
which may reduce consumer demand for its products, cause potential customers to
delay their purchase decisions and make it more difficult for some potential
customers to obtain credit financing; its ability to increase revenue, manage
costs and expenses and improve sales productivity and performance
worldwide; its ability to successfully develop and acquire 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 its 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 2, 2009. 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, 2009 financial
performance, as discussed in this release, is preliminary and unaudited, and
subject to adjustment.
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CUTERA,
INC.
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||||||||||||
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CONDENSED
CONSOLIDATED BALANCE SHEETS
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||||||||||||
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(in
thousands)
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||||||||||||
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(unaudited)
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||||||||||||
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September
30,
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June
30,
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December
31,
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||||||||||
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2009
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2009
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2008
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Assets
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||||||||||||
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Current
assets:
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||||||||||||
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Cash
and cash equivalents
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$ | 34,302 | $ | 35,445 | $ | 36,540 | ||||||
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Marketable
investments
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62,572 | 61,857 | 60,653 | |||||||||
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Accounts
receivable, net
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2,635 | 2,828 | 5,792 | |||||||||
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Inventories
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7,884 | 8,702 | 9,927 | |||||||||
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Deferred
tax asset
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244 | 4,652 | 4,257 | |||||||||
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Other
current assets and prepaid expenses
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2,644 | 4,548 | 1,771 | |||||||||
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Total
current assets
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110,281 | 118,032 | 118,940 | |||||||||
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Property
and equipment, net
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939 | 1,101 | 1,357 | |||||||||
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Long-term
investments
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7,339 | 7,640 | 9,627 | |||||||||
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Intangibles,
net
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877 | 926 | 1,025 | |||||||||
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Deferred
tax asset, net of current portion
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- | 6,165 | 6,527 | |||||||||
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Total
assets
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$ | 119,436 | $ | 133,864 | $ | 137,476 | ||||||
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Liabilities
and Stockholders' Equity
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||||||||||||
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Current
liabilities:
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||||||||||||
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Accounts
payable
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$ | 1,212 | $ | 1,127 | $ | 1,690 | ||||||
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Accrued
liabilities
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7,281 | 7,737 | 8,848 | |||||||||
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Deferred
revenue
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6,295 | 6,506 | 6,758 | |||||||||
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Total
current liabilities
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14,788 | 15,370 | 17,296 | |||||||||
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Deferred
rent
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1,548 | 1,603 | 1,713 | |||||||||
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Deferred
revenue, net of current portion
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2,331 | 3,134 | 4,907 | |||||||||
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Income
tax liability
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882 | 1,367 | 1,452 | |||||||||
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Total
liabilities
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19,549 | 21,474 | 25,368 | |||||||||
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Stockholders’
equity:
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||||||||||||
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Common
stock
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13 | 13 | 13 | |||||||||
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Additional
paid-in capital
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84,148 | 82,985 | 80,318 | |||||||||
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Retained
earnings
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17,247 | 30,741 | 31,410 | |||||||||
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Accumulated
other comprehensive income (loss)
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(1,521 | ) | (1,349 | ) | 367 | |||||||
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Total
stockholders’ equity
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99,887 | 112,390 | 112,108 | |||||||||
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Total
liabilities and stockholders’ equity
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$ | 119,436 | $ | 133,864 | $ | 137,476 | ||||||
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CUTERA,
INC.
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||||||||||||
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CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
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||||||||||||
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(in
thousands, except per share data)
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(unaudited)
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||||||||||||
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Three
Months Ended
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||||||||||||
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September
30,
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June
30,
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September
30,
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||||||||||
| 2009 | 2009 | 2008 | ||||||||||
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Net
revenue
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$ | 12,171 | $ | 11,665 | $ | 19,110 | ||||||
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Cost
of revenue
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4,910 | 5,130 | 7,823 | |||||||||
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Gross
profit
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7,261 | 6,535 | 11,287 | |||||||||
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Operating
expenses:
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||||||||||||
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Sales
and marketing
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5,112 | 6,071 | 8,076 | |||||||||
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Research
and development
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1,684 | 1,495 | 1,828 | |||||||||
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General
and administrative
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2,121 | 3,616 | 2,583 | |||||||||
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Total
operating expenses
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8,917 | 11,182 | 12,487 | |||||||||
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Loss
from operations
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(1,656 | ) | (4,647 | ) | (1,200 | ) | ||||||
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Interest
and other income, net
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288 | 511 | 733 | |||||||||
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Other-than-temporary
impairments on long-term investments
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- | - | (2,372 | ) | ||||||||
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Loss
before income taxes
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(1,368 | ) | (4,136 | ) | (2,839 | ) | ||||||
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Provision
(benefit) for income taxes
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12,126 | (1,772 | ) | (86 | ) | |||||||
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Net
loss
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$ | (13,494 | ) | $ | (2,364 | ) | $ | (2,753 | ) | |||
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Net
loss per share:
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||||||||||||
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Basic
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$ | (1.01 | ) | $ | (0.18 | ) | $ | (0.22 | ) | |||
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Diluted
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$ | (1.01 | ) | $ | (0.18 | ) | $ | (0.22 | ) | |||
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Weighted-average
number of shares used in per share calculations:
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||||||||||||
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Basic
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13,382 | 13,317 | 12,780 | |||||||||
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Diluted
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13,382 | 13,317 | 12,780 | |||||||||
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CUTERA,
INC.
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||||||||||||
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CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
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(in
thousands)
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||||||||||||
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(unaudited)
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||||||||||||
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Three
Months Ended
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||||||||||||
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September
30,
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June
30,
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September
30,
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||||||||||
| 2009 |
2009
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2008
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Cash
flows from operating activities:
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||||||||||||
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Net
loss
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$ | (13,494 | ) | $ | (2,364 | ) | $ | (2,753 | ) | |||
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Adjustments
to reconcile net loss to net cash used in operating
activities:
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||||||||||||
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Stock-based
compensation
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895 | 1,456 | 1,326 | |||||||||
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Tax
benefit (deficit) from stock-based compensation
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111 | (86 | ) | 100 | ||||||||
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Depreciation
and amortization
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211 | 225 | 220 | |||||||||
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Provision
for excess and obsolete inventories
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(256 | ) | 130 | (78 | ) | |||||||
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Other-than-temporary
impairments on long-term investments
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- | - | 2,372 | |||||||||
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Change
in allowance for doubtful accounts
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(3 | ) | 498 | 60 | ||||||||
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Change
in deferred tax asset and deferred tax liability
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10,506 | 139 | 168 | |||||||||
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Changes
in assets and liabilities:
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||||||||||||
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Accounts
receivable
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196 | 1,936 | 2,611 | |||||||||
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Inventories
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1,074 | 1,014 | (66 | ) | ||||||||
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Other
current assets and prepaid expenses
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2,539 | (1,054 | ) | 173 | ||||||||
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Accounts
payable
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85 | (408 | ) | 206 | ||||||||
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Accrued
liabilities
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(575 | ) | (429 | ) | (1,634 | ) | ||||||
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Deferred
rent
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64 | (55 | ) | 19 | ||||||||
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Deferred
revenue
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(1,014 | ) | (957 | ) | 336 | |||||||
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Income
tax liability
|
(485 | ) | (54 | ) | (191 | ) | ||||||
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Net
cash provided by (used in) operating activities
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(146 | ) | (9 | ) | 2,869 | |||||||
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Cash
flows from investing activities:
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||||||||||||
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Acquisition
of property and equipment
|
- | (36 | ) | (317 | ) | |||||||
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Proceeds
from sales of marketable and long-term investments
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4,442 | 9,774 | 8,774 | |||||||||
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Proceeds
from maturities of marketable investments
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8,315 | 1,100 | 8,480 | |||||||||
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Purchase
of marketable and long-term investments
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(13,911 | ) | (11,342 | ) | (13,590 | ) | ||||||
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Net
cash provided by (used in) investing activities
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(1,154 | ) | (504 | ) | 3,347 | |||||||
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Cash
flows from financing activities:
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||||||||||||
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Proceeds
from exercise of stock options and employee stock purchase
plan
|
157 | 165 | 3 | |||||||||
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Net
cash provided by financing activities
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157 | 165 | 3 | |||||||||
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Net
increase (decrease) in cash and cash equivalents
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(1,143 | ) | (348 | ) | 6,219 | |||||||
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Cash
and cash equivalents at beginning of period
|
35,445 | 35,793 | 20,464 | |||||||||
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Cash
and cash equivalents at end of period
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$ | 34,302 | $ | 35,445 | $ | 26,683 | ||||||
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CUTERA,
INC.
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|||||||||||||||||||
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CONSOLIDATED
REVENUE HIGHLIGHTS
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|||||||||||||||||||
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(in
thousands, except percentage data)
|
|||||||||||||||||||
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(unaudited)
|
|||||||||||||||||||
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Three
Months Ended
|
|||||||||||||||||||
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September
30,
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June
30,
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September
30,
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|||||||||||||||||
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2009
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2009
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2008
|
|||||||||||||||||
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Revenue
By Geography:
|
|||||||||||||||||||
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United
States
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$ | 4,825 | 40% | $ | 4,551 | 39% | $ | 9,498 | 50% | ||||||||||
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International
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7,346 | 60% | 7,114 | 61% | 9,612 | 50% | |||||||||||||
| $ | 12,171 | $ | 11,665 | $ | 19,110 | ||||||||||||||
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Revenue
By Product Category:
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|||||||||||||||||||
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Products
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$ | 6,322 | 52% | $ | 5,664 | 49% | $ | 12,920 | 68% | ||||||||||
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Product
upgrades
|
1,352 | 11% | 1,201 | 10% | 1,948 | 10% | |||||||||||||
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Service
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3,210 | 26% | 3,397 | 29% | 2,920 | 15% | |||||||||||||
|
Titan
refills
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1,287 | 11% | 1,403 | 12% | 1,322 | 7% | |||||||||||||
| $ | 12,171 | $ | 11,665 | $ | 19,110 | ||||||||||||||