SLTM. at/close. Solta Medical Reports First Quarter Results
First Quarter Revenue Up 23% from Prior Year
Launch of Liposonix Exceeds Expectations
HAYWARD, Calif., May 1, 2012 /PRNewswire/ -- Solta Medical, Inc. (SLTM), a global leader in the medical aesthetics market, today announced results for the first quarter ended March 31, 2012. Revenue for the first quarter was $32.5 million, an increase of $6.0 million, or 23%, as compared to the first quarter of 2011. Revenue from Liposonix, the Company's non-invasive fat reduction system, was $7.6 million, which was generated from sales of 78 new systems, 11 system upgrades, and associated consumables. As previously announced, the Company launched the second generation Liposonix system in January 2012. In addition, product revenue from treatment tips and consumables grew sequentially from the fourth quarter of 2011 by 6% and accounted for 52% of total revenue.
"The acceptance and feedback from physicians and their patients on the second generation Liposonix fat reduction procedure continues to be very positive. In fact, 20 of the key physician opinion leaders with which we placed Liposonix systems for their evaluation and feedback in December have purchased the system," said Stephen J. Fanning, Chairman, President & CEO. "In the first quarter, much of our sales and marketing efforts were devoted to the launch of Liposonix, especially in North America and we achieved a stronger than expected start. Going forward we are enhancing our focus to promote sales growth across all our product lines while we build on the market momentum for Liposonix. In addition, we look forward to expanding our Liposonix commercialization efforts in markets outside of North America over the course of the year, pending additional regulatory clearances."
GAAP net loss for the quarter was $8.8 million as compared to GAAP net loss of $1.0 million reported for the first quarter of 2011. Non-GAAP net loss for the quarter was $0.8 million or $0.01 per share as compared to non-GAAP net income of $0.7 million, or $0.01 per diluted share for same period last year.
Solta Medical's GAAP results for the first quarter include a $4.7 million charge for a fair value reassessment of the expected earn out payments associated with the acquisition of Liposonix, $2.1 million of non-cash amortization and other acquisition related charges, and $1.1 milllion of non-cash stock based compensation charges. The Company provides non-GAAP financial measures that exclude these charges and expenses. A reconciliation of GAAP to non-GAAP results is provided in the tables included in this release.
Financial Outlook for 2012
The company updated its financial outlook for 2012 as follows:
Revenue for the full year 2012 is now expected to be in the range of $140 million to $143 million representing year-over-year revenue growth of 20% to 23% driven by sales of the second generation Liposonix system.
Non-GAAP gross margin is estimated to be in the range of 63% to 66% for the full year 2012. Non-GAAP gross margin excludes non-cash amortization charges, non-cash stock based compensation charges, severance costs, and acquisition related adjustments. Non-GAAP gross margin for the first quarter was approximately 68%.
Positive non-GAAP EBITDA for every quarter and for the full-year 2012. Non-GAAP EBITDA excludes non-cash amortization charges, non-cash stock based compensation charges, severance costs, and acquisition related adjustments. Positive non-GAAP EBITDA for the first quarter was $550,000.
To supplement the condensed consolidated financial information presented on a GAAP basis, management has provided non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP EBITDA, non-GAAP net income (loss) and non-GAAP earnings (loss) per share measures that exclude the impact of acquisition related adjustments, severance costs, acquisition related costs, and stock-based compensation expenses. The Company believes that these non-GAAP financial measures provide investors with insight into what is used by management to conduct a more meaningful and consistent comparison of the Company's ongoing operating results and trends, compared with historical results. This presentation is also consistent with the measures management uses to measure the performance of ongoing operating results against prior periods and against our internally developed targets. There are limitations in using these non-GAAP financial measures because they are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial measures. Investors and potential investors should consider non-GAAP financial measures only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP and the reconciliation of non-GAAP financial measures attached to this release.
Conference Call Information
The Company will also host a conference call and webcast today, Tuesday, May 1, 2012, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific) to discuss the financial results and current corporate developments. The dial-in number for the conference call is 877-941-6010 for domestic participants and 480-629-9770 for international participants.
To access the live webcast of the call, go to Solta Medical's website at www.solta.com and click on Investor Relations. An archived webcast will also be available at www.solta.com.
About Solta Medical, Inc.
Solta Medical, Inc. is a global leader in the medical aesthetics market providing innovative, safe, and effective solutions for patients that enhance and expand the practice of medical aesthetics for physicians. The company offers six aesthetic energy devices to address a range of issues, including skin resurfacing and rejuvenation with Fraxel® and Clear + Brilliant(TM), body contouring and skin tightening with Liposonix® and Thermage® and acne reduction with Isolaz® and CLARO(TM). As the innovator and leader in fractional laser technology, Fraxel delivers minimally invasive clinical solutions to resurface aging and sun damaged skin. Using similar fractional laser technology, Clear + Brilliant is a unique, cost-effective treatment to prevent and improve the early signs of photoaging. For body contouring, Liposonix is a non-surgical treatment to reduce waist circumference with advanced high-intensity focused ultrasound (HIFU) technology to permanently destroy targeted fat beneath the skin. Thermage is an innovative, non-invasive radiofrequency procedure for tightening and contouring skin. Isolaz was the first laser or light based system indicated for the treatment of inflammatory acne, comedonal acne, pustular acne, and mild-to-moderate inflammatory acne. CLARO is a personal care acne system that is the first FDA cleared over-the-counter IPL device that uses a powerful combination of both heat and light to clear skin quickly and naturally. More than two million procedures have been performed with Solta Medical's portfolio of products around the world. For more information about Solta Medical, call 1-877-782-2286 or log on to www.Solta.com.