Candela Reduces Quarterly Net Loss to 3 Cents Per Share.WAYLAND Wayland, town (1990 pop. 11,874), Middlesex co., E Mass., W of Boston; settled c.1638, inc. 1835. Electronic and chemical research is carried on there. , Mass.--(BW HealthWire)--April 16, 1998-- Core Medical Laser Device Business Returns To Profitability; Strong Initial Market Acceptance of GentleLASE(TM) System Candela candela (kăndĕ`lə), in weights and measures: see candle. A unit of measurement of the intensity of light. Part of the SI system of measurement, one candela (cd) is the monochromatic radiation of 540THz with a radiant intensity Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CLZR) announced today that it posted a small net loss for its fiscal third quarter and that its primary cosmetic cosmetic /cos·met·ic/ (koz-met´ik) 1. pertaining to cosmesis. 2. a beautifying substance or preparation. cos·met·ic n. medical laser equipment business returned to profitability. For the three months ended March 28, 1998, Candela's net loss totaled $194,000, or 3 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared with net income of $303,000, or 5 cents per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the same period a year ago. For its most recent prior quarter ended December December: see month. 27, 1997, the company recorded a net loss of $4.4 million or 78 cents per share, including a $2.6 million charge to close its Scottsdale Scottsdale, city (1990 pop. 130,069), Maricopa co., central Ariz.; settled in 1895 by Winfield Scott, inc. 1951. It is a resort and retirement center in the Phoenix metropolitan area. , AZ, skin care center. Results for the March quarter reflect losses only from the Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. skin care center, which will remain in operation. These losses were mostly offset by operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $296,000 from Candela's laser device business, which rebounded from sluggish sales and an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $725,000 in the December quarter. Last month, Candela announced that it had reached a preliminary agreement to sell both of its skin care center locations so that it can focus its resources on the company's core laser equipment development, marketing and distribution activities. The potential buyer is Advanced Medical Alliance, a San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. , CA-based aesthetic/cosmetic services group, and Candela said that negotiations to complete the $3 million transaction are continuing on a non-exclusive basis. Candela's total revenue for the 1998 fiscal third quarter was $8,617,000, slightly less than $8,790,000 one year-ago, but up from the $8,522,000 posted for the December quarter. Through nine months of fiscal 1998, Candela revenue was $24,962,000, with a net loss of $5,486,000, or 98 cents per share. Last year's results to date were $25,835,000 in revenue, with net income of $1,548,000 or 27 cents per diluted share. Discussing Candela's performance, Gerard E. Puorro, president and chief executive officer, said: "We are back on track again and moving toward reclaiming
adj. 1. Of or relating to elementary particles with energies exceeding hundreds of thousands of electron volts. 2. Yielding a large amount of energy upon undergoing chemical reaction. 3. Vigorous; dynamic. , long-pulse alexandrite alexandrite type of chrysoberyl typifying undying devotion. [Gem Symbolism: Jobes, 67] See : Loyalty laser. Initial unit volume and market acceptance are surpassing our expectations at this stage of introduction." Candela received clearance from the U.S. Food and Drug Administration last December to market the GentleLASE device with the company's proprietary Dynamic Cooling Device(TM) for treating vascular vascular /vas·cu·lar/ (vas´ku-ler) 1. pertaining to vessels, particularly blood vessels. 2. indicative of a copious blood supply. vas·cu·lar adj. lesions. In addition, the product is already being used outside the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. for hair removal, and an application is pending before the FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. to permit GentleLASE to be marketed for hair removal to the domestic market. "What is attracting dermatologists and others to GentleLASE," Mr. Puorro continued, "is deeper penetration, faster treatment and greater efficacy. Our technology also enables us to generate high laser energy with unprecedented efficiency. That permitted us to simplify the design and price this product -- with excellent margins -- about 50% lower than any competitive system." Looking ahead, Mr. Puorro noted that the positive impact from this and other new products is expected to "more than compensate" for the continued weak conditions in some Asian markets, such as Korea, Taiwan and Thailand. "However," he concluded, "revenue forecasts for the U.S., Europe and Japan have strengthened, and we are encouraged about the outlook for the next quarter and on into our 1999 fiscal year." About Candela: Candela Corporation develops, manufactures, and distributes innovative clinical solutions that enable physicians, surgeons and personal care practitioners to treat selected cosmetic and medical conditions See carpal tunnel syndrome, computer vision syndrome, dry eyes and deep vein thrombosis. using lasers, cryosurgery cryosurgery (krī`ōsr'jərē), bloodless surgical technique using a supercooled probe to destroy diseased or superfluous tissue. and other proven technologies. Founded near Boston in 1970, Candela markets and services its products in over 40 countries from offices in the United States, Europe and Asia. Candela established the aesthetic laser market 11 years ago. With an installed base of over 1,500 lasers worldwide, more than 500,000 aesthetic laser procedures are performed annually with Candela laser systems. For more information about Candela, visit the company's web site at http://www.clzr.com. -0- This press release includes certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Any such statements are subject to risks that could cause the actual results to vary materially, including negative developments relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc unforeseen order cancellations or push-outs, Candela's strategic relationships, the impact of intense competition, and changes in the laser industry. -0-
CANDELA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except per share data) (unaudited)
Three months ended: Nine months ended:
March 28, March 29, March 28, March 29,
1998 1997 1998 1997
Revenue $ 8,617 $ 8,790 $ 24,962 $ 25,835
Cost of sales 4,774 4,112 14,100 12,747
Gross profit 3,843 4,678 10,862 13,088
Operating expenses:
Research and
development 659 609 1,979 1,737
Selling, general and
administrative 3,331 3,667 11,421 9,203
Restructuring charge 0 0 2,609 0
Total operating expenses 3,990 4,276 16,009 10,940
(Loss) Income from
operations (147) 402 (5,147) 2,148
Other income (expense):
Interest income 12 37 29 68
Interest expense (47) (35) (181) (67)
Other (12) (271) (109) (237)
Total other income
(expense) (47) (269) (261) (236)
(Loss) Income before
income taxes (194) 133 (5,408) 1,912
Provision for income taxes 0 (170) 78 364
Net (loss) income $ (194) $ 303 $ (5,486) $ 1,548
Net (loss) income per share
Basic $ 0.03 $ 0.06 $ (1.00) $ 0.29
Diluted $ (0.03) $ 0.05 $ (1.00) $ 0.27
Shares used in per share
computations
Basic 5,471 5,406 5,471 5,406
Diluted 5,579 5,791 5,642 5,791
-0-
CANDELA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 28, June 28,
1998 1997
Assets (unaudited)
Current assets:
Cash $ 1,140 $ 2,674
Accounts receivable 6,392 8,848
Notes receivable 1,094 1,284
Inventory 8,152 6,776
Other current assets 541 522
Total current assets 17,319 20,104
Property and equipment, net 3,207 3,523
Other assets 610 1,210
$ 21,136 $ 24,837
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of
long-term debt $ 2,566 $ 1,827
Deferred income 1,765 2,071
Accounts payable 5,491 5,879
Accrued payroll and
related expenses 778 833
Accrued warranty 1,362 1,338
Accrued income taxes 163 516
Other accrued liabilities 1,214 608
Reserve for restructuring 2,125 0
Total current liabilities 15,464 13,072
Long-term debt 1,063 1,519
Stockholders' equity:
Common stock 55 54
Additional paid-in capital 17,386 17,223
Retained deficit (12,372) (6,885)
Accumulated translation
adjustment (460) (146)
Total stockholders' equity 4,609 10,246
$ 21,136 $ 24,837
-0- CONTACT: Candela Corporation Paul Broyer, 508-358-7400 x435 OR Phase Two Strategies Stuart Pearlman, 212-716-3400 |
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