Candela Shatters Revenue and Profit Records in Final Quarter of
1999
WAYLAND, Mass.--(BUSINESS WIRE)--Aug. 24, 1999--Candela Corporation
(Nasdaq:CLZR), a leading developer of advanced aesthetic laser systems, reported today that
revenues for the fourth quarter of the Company's 1999 fiscal year rose to a record $18.7 million, and
that earnings also achieved a record level of $3.3 million or $0.50 per diluted share.
For the quarter ending July 3, 1999, the Company posted revenues of $18,707,000, or an increase
of 55% over the same quarter a year earlier. For the twelve-month period ending July 3, 1999,
revenues reached $58,588,000, a 58% increase over the earlier twelve-month period.
Profits for the quarter reached $3,281,000 or $0.50 per diluted share compared to $0.19 for the
same quarter last year -- an increase of 163%. For the full year, the Company had profits of
$7,491,000 or $1.22 per diluted share versus a loss of $4,452,000 or $0.81 per diluted share a year
earlier.
Commenting on the quarter and full fiscal year, Gerard E. Puorro, Candela's President and Chief
Executive Officer, said, "The fourth fiscal quarter showed continued solid growth and market
expansion for our products. For the full fiscal year, we were able to grow our top line and
dramatically generate a very respectable $1.22 per diluted share." Mr. Puorro further commented, "A
few weeks ago, at the summer American Academy of Dermatology meeting, we launched meaningful
enhancements to both our GentleLASE(TM) and ScleroPLUS(TM) product lines. In the last few
days, we launched GentlePeel(TM), a skin exfoliation system for which we can leverage sales
through our distribution channels. These are the latest examples of Candela's mantra of 'drive
technologies and expand markets'." Puorro added, "We have also begun to ship demo units into
Brazil as well as to our new direct sales office in Osaka, Japan. These new locations will enable us to
expand in two locations that we feel offer significant growth potential."
Mr. Puorro concluded by saying, "As we begin fiscal year 2000, we are confident that we can
continue our momentum and expand our business to further enhance shareholder value."
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 using lasers, cryosurgery 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 2,000 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 clzr.com.
This press release includes certain forward-looking statements. Any such statements are subject to
risks that could cause the company's actual results to vary materially from present estimates, including
negative developments relating to unforeseen order cancellations or push-outs, Candela's strategic
relationships, the impact of intense competition, and changes in the laser industry.
CANDELA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(dollars in thousands)
Pro forma(1)
July 3, July 3, June 27,
1999 1999 1998
Assets
Current assets:
Cash and cash equivalents $ 29,993 $ 10,055 $ 1,615
Accounts receivable, net 12,337 12,337 8,419
Notes receivable 2,186 2,186 1,486
Inventories 6,927 6,927 7,241
Other current assets 755 928 200
Total current assets 52,198 32,433 18,961
Property and equipment, net 2,626 2,626 3,120
Other assets 1,392 1,392 523
Total assets $ 56,216 $ 36,451 $ 22,604
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable 4,846 $ 4,846 $ 4,292
Accrued payroll and
related expenses 3,735 3,735 1,319
Accrued warranty costs 2,502 2,502 2,012
Income taxes payable 3,185 3,185 335
Restructuring reserve 1,519 1,519 1,995
Other accrued liabilities 1,133 1,133 957
Current portion of
long-term debt 415 415 3,649
Deferred income 1,913 1,913 1,763
Total current liabilities 19,248 19,248 16,322
Long-term debt 3,181 3,181 887
Stockholders' equity
Common stock 72 56 55
Additional paid-in
capital 38,311 18,562 17,407
Accumulated deficit (3,847) (3,847) (11,337)
Cumulative translation
adjustment (749) (749) (730)
Total stockholders' equity 33,787 14,022 5,395
Total liabilities and
stockholders' equity $ 56,216 $ 36,451 $ 22,604
(1) Reflects proceeds of secondary offering completed on July 22,
1999.
CANDELA CORPORATION (Nasdaq:CLZR)
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share amounts)
For the three months ended: For the year ended:
July 3, June 27, July 3, June 27,
1999 1998 1999 1998
Revenue $ 18,707 $ 12,063 $ 58,588 $ 37,025
Cost of sales 7,470 6,608 26,463 20,707
Gross profit 11,237 5,455 32,125 16,318
Operating expenses:
Research and
development 1,618 420 3,998 2,399
Selling, general
and administrative 5,759 3,850 17,891 15,271
Restructuring costs -- -- -- 2,609
Total operating expenses 7,377 4,270 21,889 20,279
Income (loss) from
operations 3,860 1,185 10,236 (3,961)
Other income (expense):
Interest income 55 13 115 42
Interest expense (114) (53) (492) (235)
Other (expense) (95) (14) (3) (123)
Total other income
(expense) (154) (54) (380) (316)
Income (loss) before
income taxes 3,706 1,131 9,856 (4,277)
Provision for income taxes 425 97 2,365 175
Net income (loss) $ 3,281 $ 1,034 $ 7,491 $ (4,452)
Basic earnings (loss)
per share $ 0.59 $ 0.19 $ 1.36 $ (0.81)
Diluted earnings (loss)
per share $ 0.50 $ 0.19 $ 1.22 $ (0.81)
Weighted average shares
outstanding 5,538 5,479 5,500 5,479
Adjusted weighted average
shares outstanding 6,602 5,488 6,119 5,479
CONTACT: Candela Corporation
F. Paul Broyer, 508/358-7400, ext. 435 |
