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
February
8, 2010
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):
|
¨
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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))
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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
February 8, 2010, we are issuing a press release and holding a conference call
regarding our financial results for the fourth quarter and year ended
December 31, 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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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:
February 8, 2010.
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/s/
KEVIN P. CONNORS
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|||
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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 Fourth Quarter 2009 Results
BRISBANE,
Calif., February 8, 2010 -- Cutera, Inc. (NASDAQ: CUTR), a leading
provider of laser and other energy-based aesthetic systems for practitioners
worldwide, today reported financial results for the fourth quarter ended
December 31, 2009.
Financial Highlights for the
fourth quarter of 2009 include:
|
·
|
Revenue
increased sequentially by 27% to $15.4 million, compared to $12.2 million
in the third quarter of 2009
|
|
·
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Gross
margin improved to 62%, compared to 60% in the third quarter of
2009
|
|
·
|
Net
income was breakeven, or $0.00 per share, which included a $351,000
($292,000 net of tax, or $0.02 per diluted share), charge associated with
the postponement of it's TruSculpt product
launch
|
|
·
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Cash
generated from operations was $3.2 million in the fourth quarter of
2009
|
Kevin
Connors, President and CEO of Cutera, stated, “We continue to see encouraging
signs in our business, which is reflected in our past two quarters of sequential
revenue growth. Revenue grew sequentially over the third quarter of
2009 in several geographical markets, with significant contribution from
Australia. We are pleased with the improved fourth quarter 2009 gross
margins, profitability, and cash generation resulting from higher revenue and
the restructuring efforts implemented in the first half of 2009. We
are continuing to target the core market segments of dermatologists and plastic
surgeons ─ as well as other established medical offices ─ because we believe
they offer us the best growth opportunities in the current market
environment.”
“We are
optimistic about the recently announced strategic alliances with Sound Surgical
Technologies LLC – to distribute their VASER® Lipo System in Europe and Canada ─
and Obagi Medical Products, Inc. (Nasdaq: OMPI) ─ to distribute their
prescription-based, topical skin health systems through the physician-dispense
channel in Japan. These alliances leverage our distribution network
and enhance our product offering in selected international
markets.”
Mr.
Connors concluded, “We remain focused on key initiatives to increase revenue
levels in 2010 and leverage our business model, which we expect will result in
improved profitability. While the near-term prospects for our
industry are difficult to predict, we believe that our
worldwide distribution network, strong balance sheet with $106.9 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 February 8, 2010. 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 February 22, 2010. In addition, you may call
(877) 407-0784 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 energy-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, increase profitability, 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
current economic uncertainty, 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 fourth quarter ended
December 31, 2009 financial performance, as discussed in this release, is
preliminary and unaudited, and subject to adjustment.
2
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CUTERA,
INC.
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||||||||||||
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CONDENSED
CONSOLIDATED BALANCE SHEETS
|
||||||||||||
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(in
thousands)
|
||||||||||||
|
(unaudited)
|
||||||||||||
|
December
31,
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September
30,
|
December
31,
|
||||||||||
|
2009
|
2009
|
2008
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||||||||||
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Assets
|
||||||||||||
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Current
assets:
|
||||||||||||
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Cash
and cash equivalents
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$ | 22,829 | $ | 34,302 | $ | 36,540 | ||||||
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Marketable
investments
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76,780 | 62,572 | 60,653 | |||||||||
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Accounts
receivable, net
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3,327 | 2,635 | 5,792 | |||||||||
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Inventories
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6,408 | 7,884 | 9,927 | |||||||||
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Deferred
tax asset
|
175 | 244 | 4,257 | |||||||||
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Other
current assets and prepaid expenses
|
2,785 | 2,644 | 1,771 | |||||||||
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Total
current assets
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112,304 | 110,281 | 118,940 | |||||||||
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Property
and equipment, net
|
847 | 939 | 1,357 | |||||||||
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Long-term
investments
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7,275 | 7,339 | 9,627 | |||||||||
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Intangibles,
net
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829 | 877 | 1,025 | |||||||||
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Deferred
tax asset, net of current portion
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97 | - | 6,527 | |||||||||
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Total
assets
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$ | 121,352 | $ | 119,436 | $ | 137,476 | ||||||
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Liabilities
and Stockholders' Equity
|
||||||||||||
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Current
liabilities:
|
||||||||||||
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Accounts
payable
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$ | 1,081 | $ | 1,212 | $ | 1,690 | ||||||
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Accrued
liabilities
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9,048 | 7,281 | 8,848 | |||||||||
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Deferred
revenue
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6,160 | 6,295 | 6,758 | |||||||||
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Total
current liabilities
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16,289 | 14,788 | 17,296 | |||||||||
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Deferred
rent
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1,493 | 1,548 | 1,713 | |||||||||
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Deferred
revenue, net of current portion
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1,968 | 2,331 | 4,907 | |||||||||
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Income
tax liability
|
749 | 882 | 1,452 | |||||||||
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Total
liabilities
|
20,499 | 19,549 | 25,368 | |||||||||
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Stockholders’
equity:
|
||||||||||||
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Common
stock
|
13 | 13 | 13 | |||||||||
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Additional
paid-in capital
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85,248 | 84,148 | 80,318 | |||||||||
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Retained
earnings
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17,254 | 17,247 | 31,410 | |||||||||
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Accumulated
other comprehensive income (loss)
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(1,662 | ) | (1,521 | ) | 367 | |||||||
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Total
stockholders’ equity
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100,853 | 99,887 | 112,108 | |||||||||
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Total
liabilities and stockholders’ equity
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$ | 121,352 | $ | 119,436 | $ | 137,476 | ||||||
3
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CUTERA,
INC.
|
||||||||||||
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CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||
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(in
thousands, except per share data)
|
||||||||||||
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(unaudited)
|
||||||||||||
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Three
Months Ended
|
||||||||||||
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December
31,
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September
30,
|
December
31,
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||||||||||
|
2009
|
2009
|
2008
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||||||||||
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Net
revenue
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$ | 15,416 | $ | 12,171 | $ | 17,897 | ||||||
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Cost
of revenue
|
5,783 | 4,910 | 7,045 | |||||||||
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Gross
profit
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9,633 | 7,261 | 10,852 | |||||||||
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Operating
expenses:
|
||||||||||||
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Sales
and marketing
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6,100 | 5,112 | 6,568 | |||||||||
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Research
and development
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1,888 | 1,684 | 1,933 | |||||||||
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General
and administrative
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2,063 | 2,121 | 2,723 | |||||||||
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Total
operating expenses
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10,051 | 8,917 | 11,224 | |||||||||
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Loss
from operations
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(418 | ) | (1,656 | ) | (372 | ) | ||||||
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Interest
and other income, net
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174 | 288 | 555 | |||||||||
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Other-than-temporary
impairments on long-term investments
|
- | - | (1,182 | ) | ||||||||
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Loss
before income taxes
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(244 | ) | (1,368 | ) | (999 | ) | ||||||
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Provision
(benefit) for income taxes
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(251 | ) | 12,126 | (764 | ) | |||||||
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Net
income (loss)
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$ | 7 | $ | (13,494 | ) | $ | (235 | ) | ||||
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Net
income (loss) per share:
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||||||||||||
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Basic
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$ | 0.00 | $ | (1.01 | ) | $ | (0.02 | ) | ||||
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Diluted
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$ | 0.00 | $ | (1.01 | ) | $ | (0.02 | ) | ||||
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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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13,427 | 13,382 | 12,797 | |||||||||
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Diluted
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13,610 | 13,382 | 12,797 | |||||||||
4
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CUTERA,
INC.
|
||||||||||||
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CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
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||||||||||||
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(in
thousands)
|
||||||||||||
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(unaudited)
|
||||||||||||
|
Three
Months Ended
|
||||||||||||
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December
31,
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September
30,
|
December
31,
|
||||||||||
|
2009
|
2009
|
2008
|
||||||||||
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Cash
flows from operating activities:
|
||||||||||||
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Net
income (loss)
|
$ | 7 | $ | (13,494 | ) | $ | (235 | ) | ||||
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Adjustments
to reconcile net income (loss) to net cash provided by (used in) operating
activities:
|
||||||||||||
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Stock-based
compensation
|
840 | 895 | 1,237 | |||||||||
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Tax
benefit from stock-based compensation
|
111 | 111 | 66 | |||||||||
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Excess
tax deficit related to stock-based compensation
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(23 | ) | - | (390 | ) | |||||||
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Depreciation
and amortization
|
196 | 211 | 233 | |||||||||
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Provision
for excess and obsolete inventories
|
363 | (256 | ) | 470 | ||||||||
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Other-than-temporary
impairments on long-term investments
|
- | - | 1,182 | |||||||||
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Change
in allowance for doubtful accounts
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(25 | ) | (3 | ) | (97 | ) | ||||||
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Change
in deferred tax asset and deferred tax liability
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(28 | ) | 10,506 | (2,032 | ) | |||||||
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Other
|
- | - | 5 | |||||||||
|
Changes
in assets and liabilities:
|
||||||||||||
|
Accounts
receivable
|
(667 | ) | 196 | 791 | ||||||||
|
Inventories
|
1,113 | 1,074 | (1,644 | ) | ||||||||
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Other
current assets and prepaid expenses
|
339 | 2,539 | 1,067 | |||||||||
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Accounts
payable
|
(131 | ) | 85 | (430 | ) | |||||||
|
Accrued
liabilities
|
1,767 | (575 | ) | (1,467 | ) | |||||||
|
Deferred
rent
|
(55 | ) | 64 | 18 | ||||||||
|
Deferred
revenue
|
(498 | ) | (1,014 | ) | (505 | ) | ||||||
|
Income
tax liability
|
(133 | ) | (485 | ) | (145 | ) | ||||||
|
Net
cash provided by (used in) operating activities
|
3,176 | (146 | ) | (1,876 | ) | |||||||
|
Cash
flows from investing activities:
|
||||||||||||
|
Acquisition
of property and equipment
|
(56 | ) | - | (165 | ) | |||||||
|
Proceeds
from sales of marketable and long-term investments
|
7,120 | 4,442 | 5,135 | |||||||||
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Proceeds
from maturities of marketable investments
|
975 | 8,315 | 11,915 | |||||||||
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Purchase
of marketable and long-term investments
|
(22,860 | ) | (13,911 | ) | (5,737 | ) | ||||||
|
Net
cash (used in) provided by investing activities
|
(14,821 | ) | (1,154 | ) | 11,148 | |||||||
|
Cash
flows from financing activities:
|
||||||||||||
|
Proceeds
from exercise of stock options and employee stock purchase
plan
|
149 | 157 | 195 | |||||||||
|
Excess
tax benefit related to stock-based compensation
|
23 | - | 390 | |||||||||
|
Net
cash provided by financing activities
|
172 | 157 | 585 | |||||||||
|
Net
(decrease) increase in cash and cash equivalents
|
(11,473 | ) | (1,143 | ) | 9,857 | |||||||
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Cash
and cash equivalents at beginning of period
|
34,302 | 35,445 | 26,683 | |||||||||
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Cash
and cash equivalents at end of period
|
$ | 22,829 | $ | 34,302 | $ | 36,540 | ||||||
5
|
CUTERA,
INC.
|
|||||||||||||||
|
CONSOLIDATED
REVENUE HIGHLIGHTS
|
|||||||||||||||
|
(in
thousands, except percentage data)
|
|||||||||||||||
|
(unaudited)
|
|||||||||||||||
|
Three
Months Ended
|
|||||||||||||||
|
December
31,
|
%
of
|
September
30,
|
%
of
|
December
31,
|
%
of
|
||||||||||
|
2009
|
Revenue
|
|
2009
|
Revenue
|
|
2008
|
Revenue
|
||||||||
|
Revenue
By Geography:
|
|||||||||||||||
|
United
States
|
$
|
5,298
|
34%
|
$
|
4,825
|
40%
|
$
|
7,417
|
41%
|
||||||
|
International
|
10,118
|
66%
|
7,346
|
60%
|
10,480
|
59%
|
|||||||||
|
$
|
15,416
|
$
|
12,171
|
$
|
17,897
|
||||||||||
|
Revenue
By Product Category:
|
|||||||||||||||
|
Products
|
$
|
8,529
|
55%
|
$
|
6,322
|
52%
|
$
|
11,388
|
64%
|
||||||
|
Product
upgrades
|
2,036
|
13%
|
1,352
|
11%
|
2,028
|
11%
|
|||||||||
|
Service
|
3,327
|
22%
|
3,210
|
26%
|
3,047
|
17%
|
|||||||||
|
Titan
refills
|
1,524
|
10%
|
1,287
|
11%
|
1,434
|
8%
|
|||||||||
|
$
|
15,416
|
$
|
12,171
|
$
|
17,897
|
||||||||||
6