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Revenue for the third quarter was $17.8 million, an increase of approximately $4.7 million, or 36%, as compared to the third quarter 2008 reflecting increased revenue as a result of the acquisition of Reliant Technologies, Inc. on December 23, 2008, and partially offset by production and regulatory approval delays on new products during the third quarter.
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"As we have previously disclosed, we received 510K clearance for the Fraxel re:store DUAL system in mid-October and resolved our production delays on the Thermage CPT system at the end of the third quarter. We are fulfilling back orders from customers and shipping both products," said Stephen J. Fanning, Chairman of the Board, President and CEO of Solta Medical. "Our illumiNATION tour continues to bring these latest breakthroughs in Thermage and Fraxel systems directly to physicians as it makes it way from city-to-city across the U.S. and Europe. The tour has generated a very enthusiastic response to our new products by physicians, prospective patients, and the media. As a result, we are gaining momentum in the market place," added Mr. Fanning.
Solta Medical's reported results for the third quarter of 2009 include non-cash purchase price related charges, primarily amortization of acquired intangible assets, of $1.2 million and non-cash stock based compensation charges of $0.8 million. The GAAP net loss for the quarter including these charges was $6.2 million, or $0.13 per share as compared to a net loss of $1.1 million, or $0.05 per share reported for the third quarter of 2008. The non-GAAP net loss for the quarter excluding these charges was $4.2 million, or $0.09 per share as compared to non-GAAP net income of $0.7 million, or $0.03 per share reported for the third quarter of 2008.
Financial Goals for 2009
The Company updated its financial goals for 2009 as follows:
Non-GAAP Presentation
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 purchase price related charges, severance costs, merger related costs, extraordinary loss on investments, and stock-based compensation expenses, all net of income taxes. 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 management's internal use of the measures, which it 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
Solta Medical will host a conference call and webcast today, Tuesday, November 3, 2009, 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 877-941-1465 for domestic participants and 480-629-9678 for international participants.
A taped replay of the conference call will also be available beginning approximately one hour after the call's conclusion and will remain accessible for seven days. This replay can be accessed by dialing 800-406-7325 for domestic callers and 303-590-3030 for international callers. Both callers will need to use the Passcode 4171632#. 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 anti-aging solutions for patients which enhance and expand the practice of medical aesthetics for physicians.
The company offers products to address aging skin under the industry's two premier brands: Thermage(R) and Fraxel(R). Thermage is an innovative, non-invasive radiofrequency procedure for tightening and contouring skin. As the leader in fractional laser technology, Fraxel delivers minimally invasive clinical solutions to resurface aging and sun damaged skin. Since 2002, over one million Thermage and Fraxel procedures have been performed worldwide. Thermage and Fraxel are the perfect complement for any aesthetic practice. Our products are available in over 100 countries. For more information about Solta Medical, call 877-782-2286 or log on to www.Solta.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, including statements regarding our financial goals for 2009. Forward-looking statements are based on management's current, preliminary expectations and are subject to risks and uncertainties, which may cause Solta Medical's actual results to differ materially from the statements contained herein. Factors that might cause such a difference include the possibility that the market for the sale of these new products and initiatives does not develop as expected, the remaining risks and uncertainties with the integration process, and the risks relating to Solta Medical's ability to achieve its stated financial goals as a result of, among other things, economic conditions and consumer and physician confidence causing changes in consumer and physician spending habits that affect demand for our products and treatments. Further information on potential risk factors that could affect Solta Medical's business and its financial results are detailed in its Form 10-K for the year ended December 31, 2008, its Form10-Q for the quarter ended June 30, 2009, and other reports as filed from time to time with the Securities and Exchange Commission. Undue reliance should not be placed on forward-looking statements, especially guidance on future financial performance, which speaks only as of the date they are made. Solta Medical undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events.
-- Revenue for the year in the range of $95 million to $98 million -- Realize up to $25 million in cost synergies as a result of the acquisition of Reliant Technologies, Inc. This represents an increase of $6 million from the originally stated goal in January 2009 of $19 million in cost synergies. -- Generate positive EBITDA for the full year 2009 -- Achieve a non-GAAP gross margin in the range of 64% to 66% for the full year 2009 excluding non-cash amortization charges and non-cash purchase price related charges.
SOURCE Solta Medical, Inc.
