|
| |||||||||||||||
Syneron Reports Third Quarter 2008 Revenues of $28.5 Million YOKNEAM, ISRAEL--(MARKET WIRE)--Nov 11, 2008 -- Syneron Medical Ltd. (NasdaqGS:ELOS - News), an
innovator in the development, marketing and sales of elos(TM)
combined-energy medical aesthetic devices, today announced
its financial
results for the third quarter of 2008.
Revenues for the third quarter of 2008 were $28.5 million, compared to revenues of $33.1 million in the third quarter of 2007. The geographical distribution of sales was 53% to North America and 47% to international markets. On a GAAP basis, net income for the third quarter of 2008 was $2.2 million, compared to $8.0 million in the third quarter of 2007. The GAAP net income for the third quarter of 2008 includes $0.9 million of stock-based compensation expenses. Syneron reported fully diluted EPS of $0.08 for the third quarter of 2008 compared to EPS of $0.28 per diluted share for the same period last year. On a non-GAAP basis, excluding the stock-based compensation, net income in the third quarter of 2008 was $3.1 million, or $0.11 per diluted share. Syneron's balance sheet and cash position remain strong. Syneron's cash position (including long-term deposits) for the third quarter totaled $219 million and shareholders' equity was $254 million. "Comparing third quarter revenues for 2008 with the same quarter in 2007, we see the effect of the current economic slowdown in US and European markets," stated Syneron CEO, Doron Gerstel. "Doctors are postponing decisions to make new capital equipment purchases and credit terms have tightened significantly." "We are pleased that despite the current economic environment, Syneron continues to be profitable, maintaining strong gross profit margins and good financial strength with positive operating cash flow, a strong balance sheet and no debt," said Mr. Gerstel. "Our financial strength gives us the leverage to introduce innovative business models and to invest in R&D to bring new products rapidly to the market." "Yet, recognizing the potentially protracted nature of the current economic slowdown," Mr. Gerstel continued, "we are taking significant steps, including rationalizing our North American and European operations, which will better optimize our cost structure and ensure that Syneron remains the most competitive firm in our sector." Conference call Syneron management will host its third quarter earnings conference call today at 8:30am ET. Syneron will be broadcasting live via the Investor Relations section of its website, www.syneron.com. To access the call, enter the Syneron website, then click on the Investors Relations Overview and select "Q3 2008 Results Conference Call." Participants are encouraged to log on at least 15 minutes prior to the conference call in order to download the applicable audio software. The call can be heard live or with an on-line replay which will follow. Those interested in participating in the call and the question and answer session should dial 877-874-1565 in the US, and 719-325-4839 from overseas. The conference passcode is: 5598467. Use of Non-GAAP Measures This press release provides financial measures for net profit and net profit per diluted share, that exclude an expense charge related to stock-based compensation and are therefore not calculated in accordance with generally accepted accounting principals (GAAP). Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance because it reflects our operational results and enhances management's and investors' ability to evaluate the Company's net profit and net profit per diluted share. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management uses both GAAP and non-GAAP measures when evaluating the business internally and, therefore, felt it important to make these non-GAAP adjustments available to investors. A reconciliation of each GAAP to non-GAAP financial measure discussed in this press release is contained in the accompanying financial tables. About Syneron Syneron Medical Ltd. (NasdaqGS:ELOS - News) manufactures and distributes medical aesthetic devices that are powered by the proprietary, patented elos combined-energy technology of Bi-Polar Radio Frequency and Light. The Company's innovative elos technology provides the foundation for highly effective, safe and cost-effective systems that enable physicians to provide advanced solutions for a broad range of medical-aesthetic applications including hair removal, wrinkle reduction, rejuvenating the skin's appearance through the treatment of superficial benign vascular and pigmented lesions, and the treatment of acne, leg veins and cellulite. Founded in 2000, the corporate, R&D, and manufacturing headquarters for Syneron Medical Ltd. is located in Israel. Syneron has offices and distributors throughout the world, including North American Headquarters and Logistics Support in Irvine, CA, and Asia-Pacific Headquarters in Hong Kong, which provide sales, service and support. Additional information can be found at www.syneron.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 relating to future events or our future performance, including statements with respect to our expectations regarding, but not limited to our profitability and maintaining a leadership position in core markets. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied in those forward-looking statements, including, but not limited to the risk associated with our ability to commercialize new products and identify new markets for our technology; ability to manage our growth, competition and pricing pressure, risks associated with our international operations, risks associated with regulatory qualifications or approvals, and risks related to our intellectual property. These risks and other factors are summarized under the heading "Risk Factors" in our Annual Report on Form 20-F/A for the year ended December 31, 2007, filed with the Securities and Exchange Commission on August 31, 2008. These factors are updated from time to time through the filing of reports and registration statements with the Securities and Exchange Commission. We do not assume any obligation to update the forward-looking information contained in this press release. Syneron, the Syneron logo, elos, LipoLite and Matrix RF are trademarks of Syneron Medical Ltd. and may be registered in certain jurisdictions. elos (Electro-Optical Synergy) is a proprietary technology of Syneron Medical Ltd. All other names are the property of their respective owners.
Syneron Medical Ltd.
CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars in thousands, except per share data
Three Months ended Nine Months ended
September 30, September 30,
2008 2007 2008 2007
(unaudited)(unaudited)(unaudited)(unaudited)
---------- ---------- --------- ----------
Revenues 28,493 33,063 100,805 102,930
Cost of Revenues 7,026 6,760 23,252 18,813
---------- ---------- --------- ----------
Gross Profit 21,467 26,303 77,553 84,117
Operating expenses:
Research and development 3,646 3,325 10,633 9,134
Selling and marketing 13,259 14,038 41,548 44,191
General and administrative 2,684 2,865 9,924 8,588
---------- ---------- --------- ----------
Total operating expenses 19,589 20,228 62,105 61,913
---------- ---------- --------- ----------
Operating Income 1,878 6,075 15,448 22,204
Financial income, net 529 2,429 3,226 6,414
---------- ---------- --------- ----------
Income before taxes on income 2,407 8,504 18,674 28,618
Taxes on income 219 550 (2,825) 1,800
---------- ---------- --------- ----------
Net Income 2,188 7,954 21,499 26,818
Basic net earning per share 0.08 0.29 0.78 0.97
Diluted net earnings per share 0.08 0.28 0.78 0.96
========= ========= ========= ==========
Weighted average number of
shares used in per share
calculation (in thousands):
Basic 27,436 27,760 27,394 27,687
Diluted 27,503 27,955 27,518 27,908
========= ========= ========= ==========
Syneron Medical Ltd.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
September 30, December 31,
2008 2007
(unaudited) (audited)
------------- -------------
CURRENT ASSETS
Cash and cash equivalents (*) 20,992 42,624
Available-for-sale marketable securities (*) 99,057 124,941
Trade receivables 44,769 40,741
Other accounts receivables and prepaid expenses 2,638 4,485
Inventories 11,678 9,465
------------- -------------
Total Current Assets 179,134 222,256
LONG-TERM ASSETS
Severance pay fund 122 225
Long-term deposits and others (*) 180 1,130
Long-term available-for-sale marketable
securities (*) 98,491 35,122
Investments in affiliated companies 3,875 2,572
Property and equipment, net 3,920 3,111
Goodwill 2,306 2,266
Intangible assets, net 2,158 2,594
------------- -------------
Total Long-Term Assets 111,052 47,020
------------- -------------
Total Assets 290,186 269,276
============= =============
CURRENT LIABILITIES
Trade Payables 6,755 7,734
Other accounts payable and accrued expenses 22,884 24,738
------------- -------------
Total Current Liabilities 29,639 32,472
LONG-TERM LIABILITIES
Deferred Revenues 5,280 4,991
Warranty Accruals 712 730
Accrued severance pay 184 248
------------- -------------
Total Long-Term Liabilities 6,176 5,969
SHAREHOLDERS' EQUITY 254,371 230,835
------------- -------------
Total Liabilities and Shareholders' Equity 290,186 269,276
============= =============
(*) Total Cash and Liquid Investments 218,720 203,817
Syneron Medical Ltd.
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Three Months ended Nine Months ended
September 30, September 30,
2008 2007 2008 2007
(unaudited)(unaudited) (unaudited) (unaudited)
---------- ---------- ---------- ----------
CASH FLOWS FROM OPERATING
ACTIVITIES
Net income 2,188 7,954 21,499 26,818
Adjustments to reconcile
net income to net cash
provided by
operating activities:
Depreciation and
amortization 453 252 1,250 701
Increase (decrease) in
accrued severance pay, net (2) (19) 39 (1)
Increase in trade
receivables (1,337) (4,402) (4,028) (7,570)
Decrease (increase) in
other accounts receivables
and prepaid expenses (163) (1,180) 1,847 (283)
Increase in inventories (405) (116) (2,659) (2,437)
Decrease in trade payables (1,436) (734) (979) (2,487)
Increase (decrease) in
other account payables and
accrued expenses 395 2,290 (1,436) 2,442
Impairments of
available-for-sale
marketable securities 350 - 467 -
Loss on available-for-sale
marketable securities 279 251 191 200
Equity based compensation 895 2,464 5,400 7,366
Increase (decrease) in
deferred revenues and
warranty accruals (1,052) 442 (494) 1,567
---------- ---------- ---------- ----------
Net cash provided by
operating activities 165 7,202 21,097 26,316
---------- ---------- ---------- ----------
CASH FLOWS FROM INVESTING
ACTIVITIES
Maturity of long-term
deposits - - 1,000 5,000
Purchase of
available-for-sale
marketable securities (33,125) (50,221) (180,439) (119,852)
Proceeds from sale and
redemption of
available-for-sale
marketable securities 15,556 46,373 140,856 93,373
Payments for investments in
of Affiliated Companies (723) (500) (1,303) (1,022)
Purchase of Intangible
Assets (40) - (40) -
Acquisition of minority
shares in a subsidiary - (3,510) - (3,510)
Investment in long-term
deposits and others (37) (5) (50) (20)
Purchase of property and
equipment (318) (741) (830) (1,484)
---------- ---------- ---------- ----------
Net cash used in investing
activities (18,687) (8,604) (40,806) (27,515)
---------- ---------- ---------- ----------
CASH FLOWS FROM FINANCING
ACTIVITIES
Repurchase of ordinary
shares from shareholders
at cost - - (1,927) -
Exercise of stock options
and RSU's 1 75 4 3,431
---------- ---------- ---------- ----------
Net cash provided by (used
in) financing activities 1 75 (1,923) 3,431
---------- ---------- ---------- ----------
Increase (decrease) in cash
and cash equivalents (18,521) (1,327) (21,632) 2,232
Cash and cash equivalents
at the beginning of the
period 39,513 19,595 42,624 16,036
---------- ---------- ---------- ----------
Cash and cash equivalents
at the end of the period 20,992 18,268 20,992 18,268
---------- ---------- ---------- ----------
Syneron Medical Ltd.
Reconciliation Between GAAP To Non-GAAP Consolidated Statement Of Income
U.S. dollars in thousands, except per share data
Three Months ended Nine Months ended
September 30, September 30,
2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (unaudited)
----------- ----------- ----------- -----------
Operating Income (GAAP) 1,878 6,075 15,448 22,204
Non-GAAP adjustment:
Stock based compensation 895 2,464 5,400 7,366
----------- ----------- ----------- -----------
Non-GAAP operating income 2,773 8,539 20,848 29,570
Net Income (GAAP) 2,188 7,954 21,499 26,818
Non-GAAP adjustment:
Stock based compensation 895 2,464 5,400 7,366
----------- ----------- ----------- -----------
Non-GAAP Net Income 3,083 10,418 26,899 34,184
Non-GAAP net earnings per
share:
Basic net earning per share 0.11 0.38 0.98 1.23
Diluted net earnings per
share 0.11 0.37 0.97 1.22
Weighted average number of
shares used in per share
calculation (in thousands):
Basic 27,436 27,760 27,394 27,687
Diluted 27,695 27,955 27,751 27,908
=========== =========== =========== ===========Contact: For more information, please contact:
Fabian Tenenbaum
CFO
+972 73 244 2329
Email Contact
Judith Kleinman
VP Investor Relations
+972 54 646 1688
Email Contact
Source: Syneron Medical Ltd.
|  | ||||||||||||||
