Candela Reports Record Revenues.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. -- 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) today reported that its revenues for the third fiscal quarter ended April 2, 2005 reached an all-time all-time adj. Exceeding all others up to the present time: an all-time speed skating record. all-time Adjective Informal high of $34.7 million. This compares to $27.7 million for the same quarter last year - a 25% increase. Revenues for the nine-month period ended April 2, 2005 were $85.3 million, compared to $70.2 million for the same period last year - a 21% increase. Net loss for the third fiscal quarter was $1.4 million or $0.06 per share, compared to net income of $2.0 million or $0.09 per share for the same quarter last year. Net income for the nine-month period ended April 2, 2005 was $4.1 million or $0.18 per share, compared to net income of $3.8 million or $0.17 per share for the same period last year. During the third fiscal quarter, Candela recorded charges for an unfavorable arbitration arbitration Process of resolving a dispute or a grievance outside a court system by presenting it for decision to an impartial third party. Both sides in the dispute usually must agree in advance to the choice of arbitrator and certify that they will abide by the ruling in its litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. with The Regents of the University of California The Regents of the University of California make up the governing board of the University of California. The Board has 26 full (i.e., voting) members:
relating to relate prep → bezüglich +gen, mit Bezug auf +acc prior period royalty payments. These charges were approximately $5.6 million. In addition, during the third fiscal quarter, Candela recorded a before tax increase in the provision for bad debt of $0.8 million. The increase in the provision for bad debt primarily related to the bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most of DVI (1) (Digital Video Interactive) An earlier compression technique that provided up to 72 minutes of full-screen video on a CD-ROM. Acquired by Intel in 1988 from RCA's Sarnoff Research labs, Princeton, NJ, DVI never caught on. Inc. Excluding these litigation charges and the provision for bad debt, pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income(a) for the third fiscal quarter was $3.0 million or $0.13 per share and for the nine-month period ended April 2, 2005 was $8.5 million or $0.37 per share. Gerard Gerard is a male forename of Germanic origin, variations of which exist in many Germanic and Romance languages. The name derives from Old Germanic 'ger' ('spear') and 'hard' ('hard/strong/brave'). Its meaning is 'strong/brave with the spear'. E. Puorro, Candela's President and Chief Executive Officer, commented, "We continue to grow at a healthy rate. During the quarter, we began shipments of our next-generation intense pulsed laser system (I2PL) and the U.S. market has been very receptive receptive /re·cep·tive/ (re-cep´tiv) capable of receiving or of responding to a stimulus. to this new entry." Puorro added, "Also, a few weeks ago, we introduced a new FDA-approved application for our GentleYAG(R), which can now be used for skin tightening. The market reception for that application was positive as well." Puorro continued, "In both China and Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. , we completed our product registrations, distribution training and marketing plans and we are hopeful that sales in both countries will begin on a steady growth path. The market is also responding to our new Pathways program, which provides our customers choice, flexibility, and value. We remain confident that we will continue to be the growth leader in this space." The Company's management team will host a live conference call and webcast at 5:00 p.m. (ET) today to discuss the financial results, and may provide forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. guidance for future periods. The conference call may be accessed in 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. by dialing (866) 261-3330. The conference call will be simultaneously webcast on Candela Corporation's investor relations Investor relations The process by which the corporation communicates with its investors. website, which can be accessed at www.candelalaser.com/ir_corp.asp. Required disclosures regarding financial and other statistical information and non-GAAP financial measures discussed in the conference call, if any, will be available on Candela Corporation's investor relations website. (a) Candela uses the financial measure "pro forma net income" to supplement its consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge , which are presented in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with accounting principles generally accepted in the United States ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "). The presentation of pro forma net income is not meant to be a substitute for "net income" presented in accordance with GAAP but rather should be evaluated in conjunction with net income. For the third fiscal quarter and nine-month period ended April 2, 2005, pro forma net income excludes charges for an unfavorable arbitration ruling in Candela's litigation with The Regents of the University of California relating to prior period royalty payments, and, in addition, an increase in the provision for bad debt primarily related to the bankruptcy of DVI Inc. Candela's management believes that the litigation charges relate to an unusual event--an unfavorable arbitration ruling in its litigation with The Regents of the University of California relating to two and a half years of prior period royalty payments, interest, and legal fees--and management does not consider these charges to be part of Candela's on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" operations or meaningful in evaluating Candela's past financial performance or future prospects. However, as a result of the arbitration decision, Candela expects to make royalty payments to The Regents of the University of California in future periods at a higher royalty rate although these payments will be recognized on a quarterly basis. Candela's management also believes that the provision for bad debt relates to an unusual event--the bankruptcy of DVI Inc. Additionally, pro forma net income is a primary financial indicator that management uses to evaluate Candela's financial results and to forecast anticipated financial results for future periods. Candela's definition of pro forma net income may differ from similar measures used by other companies. About Candela: Candela Corporation, an ISO- iso- or is- pref. 1. Equal; uniform: isobar. 2. Isomeric: isopropyl. 3. 9001 certified See certification. company, develops, manufactures, and distributes innovative clinical solutions that enable physicians, surgeons, and personal care practitioners to treat selected cosmetic cosmetic /cos·met·ic/ (koz-met´ik) 1. pertaining to cosmesis. 2. a beautifying substance or preparation. cos·met·ic n. and medical conditions See carpal tunnel syndrome, computer vision syndrome, dry eyes and deep vein thrombosis. using lasers, aesthetic laser systems, and other advanced technologies. Founded near 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. in 1970, the company markets and services its products in over 64 countries from offices and distributors in the United States, Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , Japan, China and
other Asian locations. Candela established the aesthetic laser market 16
years ago, and currently has an installed base of 8,500 lasers
worldwide. Candela is an Equal Opportunity and Affirmative Action affirmative action, in the United States, programs to overcome the effects of past societal discrimination by allocating jobs and resources to members of specific groups, such as minorities and women. Employer (Male/Female/Handicapped/Veteran). Visit Candela on the Web at
www.candelalaser.com.
Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement: Except for the historical information contained herein, this news release contains 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. that constitute Candela's current intentions, hopes, beliefs, expectations or predictions of the future, which are therefore inherently subject to risks and uncertainties. Such statements may relate to, among other things, our future revenue, gross margin, expense levels and earnings, our growth prospects, market acceptance of our products, the strength of our distribution channels, our ability to add new products, our ability to expand regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approvals and the liquidity of our common stock. The risks and uncertainties that may affect forward-looking statements include, among others: the cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. or deferral deferral - Waiting for quiet on the Ethernet. of customer orders, dependence on a small number of strategic distribution relationships, difficulties in the timely development and market acceptance of new products, unanticipated increases in expenses, market developments that vary from the current public expectations concerning the growth of the laser industry, increased competitive pressures, changes in economic conditions, or difficulties in obtaining timely regulatory approvals. Further information on factors that could affect Candela's performance is included in Candela's periodic reports filed with the SEC, including but not limited to, Candela's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended July July: see month. 3, 2004, and subsequent Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. . Candela cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Candela expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any such statements to reflect any change in Candela's expectations or any change in events, conditions or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or on which any such statement is based.
CANDELA CORPORATION (Nasdaq: CLZR)
Condensed Consolidated Statements of Operations (unaudited)
(amounts in thousands, except per share amounts)
For the three For the nine
months ended: months ended:
--------------------- ------------------
April 2, March 27, April 2, March 27,
2005 2004 2005 2004
---------- ---------- -------- ---------
Revenue $34,682 $27,650 $85,277 $70,234
Cost of sales 17,952 13,672 42,530 34,697
Litigation related charges 4,829 - 4,829 -
---------- ---------- -------- ---------
Gross profit 11,901 13,978 37,918 35,537
Operating expenses:
Research and development 1,910 1,460 4,866 3,951
Selling, general and
administrative 11,281 9,572 27,938 22,793
Litigation related charges 773 - 773 -
---------- ---------- -------- ---------
Total operating expenses 13,964 11,032 33,577 26,744
---------- ---------- -------- ---------
Income from operations (2,063) 2,946 4,341 8,793
Other income (expense):
Interest income 162 67 399 215
Other income (expense) (93) (14) 25 398
---------- ---------- -------- ---------
Total other income 69 53 424 613
---------- ---------- -------- ---------
Income (loss) from continuing
operations before income
taxes (1,994) 2,999 4,765 9,406
Benefit (Provision) for income
taxes 638 (1,039) (1,525) (3,215)
---------- ---------- -------- ---------
Income from continuing
operations (1,356) 1,960 3,240 6,191
========== ========== ======== =========
Discontinued operations:
Loss from discontinued skin
care center operations - - - (298)
========== ========== ======== =========
Gain (loss) on disposal of
Skin Care Center,
including revision of
leasehold obligations of
$1,374 and provision for
operating losses of
$(3,348) less income tax
expense of $(515) and
income tax benefit of
$1,253. - - 859 (2,095)
========== ========== ======== =========
Net income (loss) $(1,356) $1,960 $4,099 $3,798
========== ========== ======== =========
Net income (loss) per share of
common stock:
Basic:
Income from continuing
operations $(0.06) $0.09 $0.14 $0.28
Income (loss) from
discontinued operations - - 0.04 (0.11)
---------- ---------- -------- ---------
Basic earnings per share (0.06) 0.09 0.18 0.17
========== ========== ======== =========
Diluted:
Income from continuing
operations (0.06) 0.09 0.14 0.27
Income (loss) from
discontinued operations - - 0.04 (0.10)
---------- ---------- -------- ---------
Diluted earnings per share $(0.06) $0.09 $0.18 $0.17
========== ========== ======== =========
Weighted average shares
outstanding 22,408 22,150 22,366 21,759
========== ========== ======== =========
Diluted weighted average
shares outstanding 23,096 23,016 23,062 22,601
========== ========== ======== =========
CANDELA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(dollars in thousands)
April 2, July 3,
2005 2004
-------------- -------------
Assets
Current assets:
Cash and cash equivalents $47,527 $37,396
Accounts receivable, net 34,014 34,302
Notes receivable 1,390 1,151
Inventories, net 12,815 13,571
Other current assets 2,171 2,184
-------------- -------------
Total current assets 97,917 88,604
Property and equipment, net 3,375 3,406
Other assets 6,806 8,469
-------------- -------------
Total assets $108,098 $100,479
============== =============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $9,501 $6,973
Accrued payroll and related expenses 3,899 5,428
Accrued warranty 5,063 4,946
Income taxes payable 1,837 1,844
Other accrued liabilities 4,286 3,586
Deferred revenue 5,050 3,421
-------------- -------------
Total current liabilities 29,636 26,198
Long-term liabilities 5,105 3,945
Net liabilities of discontinued
operations 1,861 3,567
Stockholders' equity
Common stock 247 246
Treasury stock (12,997) (12,997)
Additional paid-in capital 53,569 53,069
Accumulated earnings 30,124 26,023
Cumulative translation adjustment 553 428
-------------- -------------
Total stockholders' equity 71,496 66,769
-------------- -------------
Total liabilities and stockholders'
equity $108,098 $100,479
============== =============
CANDELA CORPORATION (Nasdaq: CLZR)
Condensed Reconciliation of Pro Forma Net Income (loss)(unaudited)
(amounts in thousands, except per share amounts)
For the three For the nine
months ended: months ended:
------------------- ------------------
April 2, March 27, April 2, March 27,
2005 2004 2005 2004
--------- --------- -------- ---------
Net (loss) income from
operations $(1,356) $1,960 $4,099 $3,798
========= ========= ======== =========
Adjustments:
Litigation related royalty
charges of $4,829 net of
income tax benefit of
$1,545 3,284 - 3,284 -
Other litigation related
charges of $773 net of
income tax benefit of $248 525 - 525 -
DVI related charges of $800
net of income tax benefit of
$256 544 - 544 -
--------- ========= -------- =========
Total adjustments 4,353 - 4,353 -
--------- ========= -------- =========
Pro Forma Net Income 2,997 1,960 8,452 3,798
Pro Forma Net income per share
of common stock:
Basic earnings per share $0.13 $0.09 $0.38 $0.17
========= ========= ======== =========
Diluted earnings per share $0.13 $0.09 $0.37 $0.17
========= ========= ======== =========
Weighted average shares
outstanding 22,408 22,150 22,366 21,759
========= ========= ======== =========
Diluted weighted average shares
outstanding 23,096 23,016 23,062 22,601
========= ========= ======== =========
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