Company Press Release
Candela's Skin Care Center Start-up Expenses Result in Q4 Loss
Full Fiscal Year Profitable On Higher Laser Equipment Revenues
WAYLAND, Mass.--(BUSINESS WIRE)-- August 6, 1997 --Candela Corporation (NASDAQ:CLZR) announced today that revenues for the fourth fiscal
quarter and full fiscal year ended June 28, 1997 rose to $9,671,000 from $9,056,000 and to $35,505,000 from $30,413,000 one year ago, respectively. The company stated that the increased revenue came from continued higher sales in its primary cosmetic and medical laser equipment business.
For the quarter, the company reported a net loss for the period of $1,310,000, or 23 cents per share, compared to a profit of $651,000, or 12 cents per share, for the same quarter a year ago.
For the full fiscal year, Candela reported net income of $238,000, or 04 cents per share, compared to net income of $1,245,000, or 22 cents per share.
Commenting on the company's performance, Gerard E. Puorro, President and Chief Executive Officer, said, ``The solid performance of our cosmetic and medical laser device business continues to generate the basic operating profitability which permits us to invest in our high-potential LaserSpaT skin care treatment centers.
``As reflected in this quarter's results, we have taken the necessary steps to aggressively address the start-up and operating cost issues for our laser treatment locations, and we are bolstering our marketing programs. These steps are first beginning to take hold during the current quarter. We expect to operate profitably at the Boston, MA, and Cairo, Egypt, locations by the end of this calendar year, with similar results achieved in Scottsdale, AZ by the middle of next year,'' Mr.Puorro said.
``Meanwhile,'' he continued, ``our core cosmetic and medical device business remain strong, with dollar sales for our laser systems increasing 17%. At the close of fiscal 1997, we began shipping the new SKINLIGHT erbium laser and our Dynamic Cooling Device (DCD). The DCD is a unique skin cooling device which selectively cools the top layers of the skin during laser treatments. This reduces the amount of pain a patient feels, to enable more -- and more comfortable -- laser
therapy in each session. Products such as these enable Candela to distinguish our capabilities in the highly competitive arena of vascular laser equipment,'' Mr.Puorro stated. He also noted that the DCD ``will help set us apart from our competitors when we introduce our hair removal laser next spring.''
``We anticipate continued success in our device businesses. In addition to strong demand for the new SKINLIGHT laser, which the FDA cleared for general skin ablation earlier this year, we are encouraged by the general trend toward improving health,well-being and appearance that our company is well positioned to serve,''Mr. Puorro concluded.
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. In addition, the company is applying its capabilities and experience with skin care and related problems to develop a network of company-owned skin care centers and spas. Founded near Boston in 1970 as Candela Laser Corporation, Candela markets and services its products in over 40 countries from offices in the United States, Europe and Asia.
This press release includes certain forward-looking statements. Any such statements are subject to risks that could cause the actual results to vary materially, 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.
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Revenue growth remains aneamic in my opinion, regardless of the current cost problems with CSCCs.
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