BRISBANE, Calif., Feb. 9, 2009 (GLOBE NEWSWIRE) -- Cutera, Inc. (Nasdaq:CUTR), a leading provider of laser and other light-based aesthetic systems for practitioners worldwide, today reported financial results for the fourth quarter and year ended December 31, 2008.
Fourth quarter 2008 revenue was $17.9 million, compared to $26.5 million in the same period last year. Full-year 2008 revenue was $83.4 million, compared to 2007 revenue of $101.7 million. Net loss for the fourth quarter of 2008 was $235,000, or $0.02 per diluted share. These fourth quarter results include a non-cash impairment charge, net of tax, of $1.2 million, or $0.09 per diluted share, associated with the company's investment in auction rate securities. Net loss for full-year 2008 was $2.9 million, or $0.22 per diluted share. These full-year results include a similar impairment charge, net of tax, of $3.6 million, or $0.28 per diluted share. As of December 31, 2008, the company had $106.8 million in cash, marketable securities and long term investments -- with no debt.
Kevin Connors, President and CEO of Cutera, stated, "2008 was a challenging year for our industry, as the global recession continued to affect customer purchasing decisions. Even though our revenue volume was impacted by this economic downturn, our decisive actions in managing expenses enabled us to generate a fourth quarter and full-year profit after adjusting for non-cash impairment charges, net of tax, associated with our investments in auction rate securities. In January, we reduced the size of our workforce by approximately 10% in an effort to improve profitability and cash generation. We will continue to manage our expenses during these uncertain economic times to keep them in line with revenue levels."
He continued, "International revenue for the fourth quarter of 2008 was down 5% when compared to the year-ago quarter, but when measuring full-year 2008 to 2007, our international revenue grew 11%. We believe that our investments in our international infrastructure have positioned us well for international growth in 2009 and beyond.
"U.S. revenue for the fourth quarter of 2008 was down 52%, compared to the fourth quarter of 2007, and down 35% in 2008, compared to 2007. We feel that the continuing recession is causing our prospective customers to delay their purchase decisions. We also believe that those prospects who do not have established medical practices are finding it more difficult to obtain credit financing. In response to the current market conditions, we have been increasing our focus on the core market of dermatologists and plastic surgeons and other established medical offices through marketing efforts and product introductions."
Mr. Connors concluded, "While the near-term prospects for our industry are difficult to predict due to economic uncertainty, we believe that our worldwide distribution network, solid cash position, strong 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 9, 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 February 23, 2009. In addition, you may call 1-800-762-8779 to listen to the live broadcast. Participating in the call will be Kevin Connors, President and Chief Executive Officer, and Ron Santilli, 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 expenses, generate additional cash, maintain profitability, develop and commercialize existing and new products and applications, and improve the performance of its worldwide sales and distribution network and statements regarding long-term prospects 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 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 based 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 3, 2008. 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 and year ended December 31, 2008 financial performance, as discussed in this release, is preliminary and unaudited, and subject to adjustment.
CUTERA, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) Dec 31, Dec 31, 2008 2007 -------- -------- Assets Current assets: Cash and cash equivalents $ 36,540 $ 11,054 Marketable investments 60,653 88,510 Accounts receivable, net 5,792 10,692 Inventories 9,927 7,533 Deferred tax asset 4,257 8,058 Other current assets 1,832 1,955 -------- -------- Total current assets 119,001 127,802 Property and equipment, net 1,357 1,361 Long term investments 9,627 7,429 Intangibles, net 1,025 1,227 Deferred tax asset, net of current portion 6,527 834 -------- -------- Total assets $137,537 $138,653 ======== ======== Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 1,690 $ 2,350 Accrued liabilities 8,563 13,587 Deferred revenue 6,758 4,971 -------- -------- Total current liabilities 17,011 20,908 Deferred rent 1,713 1,639 Deferred revenue, net of current portion 4,907 5,593 Income tax liability 1,452 1,160 -------- -------- Total liabilities 25,083 29,300 -------- -------- Stockholders' equity: Common stock 13 13 Additional paid-in capital 80,664 74,871 Retained earnings 31,410 34,279 Accumulated other comprehensive income (loss) 367 190 -------- -------- Total stockholders' equity 112,454 109,353 -------- -------- Total liabilities and stockholders' equity $137,537 $138,653 ======== ======== CUTERA, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, ------------------ ------------------ 2008 2007 2008 2007 -------- -------- -------- -------- Net revenue $ 17,897 $ 26,453 $ 83,379 $101,726 Cost of revenue 7,045 9,704 32,358 35,002 -------- -------- -------- -------- Gross profit 10,852 16,749 51,021 66,724 -------- -------- -------- -------- Operating expenses: Sales and marketing 6,568 9,438 35,354 38,277 Research and development 1,933 1,735 7,550 7,169 General and administrative 2,723 2,725 11,270 11,721 -------- -------- -------- -------- Total operating expenses 11,224 13,898 54,174 57,167 -------- -------- -------- -------- Income (loss) from operations (372) 2,851 (3,153) 9,557 Interest and other income, net 555 1,001 3,046 4,207 Other-than-temporary impairments on long term investments (1,182) -- (3,554) -- -------- -------- -------- -------- Income (loss) before income taxes (999) 3,852 (3,661) 13,764 Provision (benefit) for income taxes (764) 229 (792) 3,260 -------- -------- -------- -------- Net income (loss) $ (235) $ 3,623 $ (2,869) $ 10,504 ======== ======== ======== ======== Net income (loss) per share: Basic $ (0.02) $ 0.28 $ (0.22) $ 0.80 ======== ======== ======== ======== Diluted $ (0.02) $ 0.27 $ (0.22) $ 0.74 ======== ======== ======== ======== Weighted-average number of shares used in per share calculations: Basic 12,797 12,714 12,770 13,153 ======== ======== ======== ======== Diluted 12,797 13,561 12,770 14,228 ======== ======== ======== ======== CUTERA, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, ------------------ ------------------ 2008 2007 2008 2007 -------- -------- -------- -------- Cash flows from operating activities: Net income (loss) $ (235) $ 3,623 $ (2,869) $ 10,504 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Stock-based compensation 1,237 1,322 5,220 5,627 Tax benefit relating to employee stock options 66 1,787 115 4,195 Excess tax benefit related to stock-based compensation expense (390) (1,789) (390) (3,652) Depreciation and amortization 233 232 904 913 Other-than-temporary impairments on long term investments 1,182 -- 3,554 -- Change in deferred tax asset/liability (2,032) (2,929) (1,892) (2,662) Other 378 53 467 248 Changes in assets and liabilities: Accounts receivable 791 819 4,848 (1,066) Inventories (1,644) (1,060) (2,803) (2,592) Other current assets 1,067 1,108 1,287 747 Accounts payable (430) 611 (660) 138 Accrued liabilities (1,467) (526) (5,024) 367 Deferred rent 18 53 74 215 Deferred revenue (505) 1,274 1,101 3,792 Income tax liability (145) 456 62 116 -------- -------- -------- -------- Net cash provided by (used in) operating activities (1,876) 5,034 3,994 16,890 -------- -------- -------- -------- Cash flows from investing activities: Acquisition of property and equipment (165) (119) (703) (1,000) Proceeds from sales of marketable investments 5,135 20,460 55,104 69,103 Proceeds from maturities of marketable investments 11,915 4,950 30,065 31,508 Purchase of marketable and long term investments (5,737) (33,057) (63,822) (100,017) Other -- (6) -- (20) -------- -------- -------- -------- Net cash provided by (used in) investing activities 11,148 (7,772) 20,644 (426) -------- -------- -------- -------- Cash flows from financing activities: Proceeds from exercise of stock options and employee stock purchase plan 195 627 458 4,138 Repurchase of common stock -- -- -- (25,000) Excess tax benefit related to stock-based compensation expense 390 1,789 390 3,652 -------- -------- -------- -------- Net cash provided by (used in) financing activities 585 2,416 848 (17,210) -------- -------- -------- -------- Net increase (decrease) in cash and cash equivalents 9,857 (322) 25,486 (746) Cash and cash equivalents at beginning of period 26,683 11,376 11,054 11,800 -------- -------- -------- -------- Cash and cash equivalents at end of period $ 36,540 $ 11,054 $ 36,540 $ 11,054 ======== ======== ======== ======== CUTERA, INC. CONSOLIDATED REVENUE HIGHLIGHTS (in thousands, except percentage data) (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, ------------------------- ------------------------- 2008 2007 Change 2008 2007 Change -------- -------- ----- -------- -------- ----- Revenue By Geography: United States $ 7,417 $ 15,368 -52% $ 41,683 $ 64,084 -35% International 10,480 11,085 -5% 41,696 37,642 +11% -------- -------- -------- -------- $ 17,897 $ 26,453 -32% $ 83,379 $101,726 -18% ======== ======== ======== ======== Revenue By Product Category: Products $ 11,388 $ 18,858 -40% $ 57,998 $ 74,502 -22% Product upgrades 2,028 3,503 -42% 8,361 13,342 -37% Service 3,047 2,820 +8% 11,358 9,128 +24% Titan refills 1,434 1,272 +13% 5,662 4,754 +19% -------- -------- -------- -------- $ 17,897 $ 26,453 -32% $ 83,379 $101,726 -18% ======== ======== ======== ========