[Quarterly revenue of $16.7M was down 10% year-over-year, but was up 6% quarter-over-quarter. This was better than I expected in light of the soft economy and the discretionary nature of the company’s product. The last five quarterly revenue figures, in chronological order, were $18.6M (Dec07), $17.0M (Mar08), $16.7M (Jun08), $15.7M (Sep08), and $16.7M (Dec08); in other words, the Dec08 quarter was the first quarter in a whole year with higher revenue than the preceding quarter, although the 6% increase can be explained by normal seasonality rather than bona fide growth.
Importantly, BFRM has not lost market share relative to MRX and AGN, the two main competitors, and may even gave gained a little share. Radiesse holds about a 14% share of worldwide dollar sales of dermal fillers and about an 11% share of unit volume. (A “unit” is one syringe rather than one procedure, which may require multiple syringes.)
Revenue guidance for the fiscal year ending 6/1/09 is unchanged at $60-70M, which implies a range of $28-38M for the next half year. The wideness of the range is due to uncertainly relating to the economy and consumer confidence.
Owing to the cost-cutting announced three months ago, I think BFRM is well positioned to capitalize on resumed growth in the filler market when consumer confidence recovers. The company’s current cash balance is $45M, enough to fund operations for about 2.5 years absent a resumption in revenue growth. With the company’s lower cost structure, the annual revenue needed to break even is about $80M, which hardly seems a difficult achievement with a little help from an improving economy. Please see actual PR for financial tables.]
SAN MATEO, Calif., Feb. 5, 2009 (GLOBE NEWSWIRE) -- BioForm Medical, Inc. (NasdaqGM: BFRM ) today announced its financial results for the quarter ended December 31, 2008, which is the Company's second quarter of fiscal 2009. Net sales were $16.7 million for the quarter ended December 31, 2008 as compared to $18.6 million for the quarter ended December 31, 2007. The net loss was $7.9 million for the quarter ended December 31, 2008 as compared to a net loss of $1.6 million for the quarter ended December 31, 2007. Net sales for the six months ended December 31, 2008 were $32.4 million, as compared to $33.8 million for the six months ended December 31, 2007. The net loss was $15.7 million for the six months ended December 31, 2008 as compared to a net loss of $5.0 million for the six months ended December 31, 2007. During the second quarter of fiscal 2009, BioForm Medical implemented a significant cost reduction plan which resulted in certain non-recurring charges taken during this period.
Operating Results:
Domestic sales were $13.3 million for the quarter ended December 31, 2008 compared to $14.5 million for the quarter ended December 31, 2007, a decrease of $1.2 million or 8.3%. International sales were $3.4 million for the quarter ended December 31, 2008, compared to $4.1 million for the quarter ended December 31, 2007, a decrease of $0.7 million or 17.1%. Gross profit was $13.9 million for the quarter ended December 31, 2008 as compared to $15.5 million for the quarter ended December 31, 2007. As a percentage of sales, gross profit for the quarter ended December 31, 2008 was 83.2% as compared to 83.3% for the quarter ended December 31, 2007.
Operating expenses were $21.7 million for the quarter ended December 31, 2008 as compared to $17.5 million for the quarter ended December 31, 2007. The increase in operating expenses was primarily attributable to an increase in sales and marketing costs as a result of the expansion of the Company's sales force and clinical education teams in the United States and Europe during fiscal 2008, expansion of the Company's clinical education programs, higher clinical trial and development expenses and expenses incurred as part of the reduction of our workforce under the cost reduction plan implemented in November 2008.
Net loss per share applicable to common stockholders increased to $0.17 for the quarter ended December 31, 2008 as compared to a net loss per share applicable to common stockholders of $0.06 for the quarter ended December 31, 2007.
Product Pipeline Update:
* In January 2009, the Company filed a Pre-Market Approval (PMA) supplement with the Food and Drug Administration (FDA) related to a method for mixing RADIESSE with lidocaine to reduce pain and improve the comfort of RADIESSE dermal filler treatment.
* The New Drug Application (NDA) filing for Polidocanol is now anticipated to be submitted during the first half of calendar 2009, later than previously anticipated due to delays related to manufacturing validations.
Operating Expense Reduction Plan Announced in November 2008:
In November 2008, BioForm Medical announced the implementation of a cost reduction plan. The Company is implementing these reductions targeting a future operating expense annual run-rate of approximately $64-68 million for fiscal 2010. During the first two quarters of fiscal 2009, the Company operated at the pre-cost-reduction expense rate, and it expects to transition to the lower operating expense annual run-rate for fiscal 2010. The Company has incurred transition expenses including employee severance and other one-time costs, which are included in the total operating expenses reported for the second quarter of fiscal 2009 and in the guidance provided below for fiscal 2009.
BioForm Medical's priority is to maintain a full-strength RADIESSE dermal filler field sales and clinical training organization. BioForm Medical has more than 100 people in the field in the United States, including sales representatives and clinical trainers, and approximately 25 sales territories in Europe. The Company is also maintaining several key product development programs such as RADIESSE dermal filler with lidocaine, certain next-generation RADIESSE dermal filler initiatives, Polidocanol for sclerotherapy, and development of Relaxed Expressions treatment protocols.
Fiscal 2009 Guidance:
BioForm Medical is maintaining its revenue guidance and narrowing its expense guidance ranges for fiscal 2009, which ends June 30, 2009.
* Revenues for fiscal 2009 are expected to be approximately $60-70 million.
* Operating expenses for fiscal 2009 are expected to be approximately $76-78 million. The Company intends to reduce expenses over the next two quarters to a run-rate of approximately $64-68 million annually for fiscal 2010.
* Gross profit is expected to average approximately 80% to 83% of sales on an annual basis, with some possible fluctuation outside of these ranges on a quarterly basis.
* Net loss is expected to be approximately $20-25 million for fiscal 2009.
``We are heartened by the stability of our dermal filler business over the recent months despite worsening U.S. and international economic conditions. We are still cautious about the coming quarters as recessionary macroeconomic conditions continue and consumer confidence remains low,'' said Steve Basta, Chief Executive Officer of BioForm Medical. ``Our strategy to get through this macroeconomic downturn involves cost containment measures and four areas of focus on potential revenue growth which may enable the Company to achieve future profitability even if the downturn is protracted. The revenue growth initiatives are: 1) efforts to grow RADIESSE dermal filler market share, 2) development of new indications for RADIESSE dermal filler, 3) preparation for the Polidocanol launch, and 4) development of treatment protocols and plans for a future launch of Relaxed Expressions .''
Conference Call:
BioForm Medical CEO, Steve Basta, will hold a conference call today at 2 p.m. Pacific Time (5 p.m. Eastern Time). The conference call may be accessed by dialing 888-802-2275 for callers in the United States and 913-312-1441 for international callers. Please notify the operator that you would like to join ``BioForm Medical's Second Quarter of Fiscal Year 2009 Earnings Conference Call'' and provide the participant code ``2497258'', if prompted. The conference call will be webcast live on the Investor Relations section of BioForm Medical's website at http://investor.bioform.com/events.cfm. The online archive of the conference call and the presentation will be available approximately 90 minutes after the live call and will continue to be available for four weeks.
About BioForm Medical, Inc.:
BioForm Medical, Inc. is a medical aesthetics company headquartered in San Mateo, California, developing products that enhance aesthetic procedures performed in dermatology and plastic surgery practices. BioForm Medical's lead product is RADIESSE dermal filler, a long-lasting filler for use in facial aesthetics. BioForm Medical is developing several future aesthetics products, including a radiofrequency treatment to reduce nerve function in the forehead, a sclerotherapy treatment for spider veins, and a surgical adhesive for brow lifts. For more information about BioForm Medical, please visit http://www.bioform.com.‹
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