New record revenue and earnings! It gonna to go break through $ 12 soon!
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January 27, 1997
Candela's Fiscal 2nd Quarter Net Income Rose 60% on 19% growth in
revenue
WAYLAND, Mass.--(BUSINESS WIRE)--Jan. 27, 1997--Candela Corporation
(NASDAQ:CLZR) today reported a 60% increase in net income on a 19% gain in revenue during the second quarter of its 1997 fiscal year.
With the continuation of strong sales of Candela's core medical/cosmetic laser systems, revenue for the quarter ended December 28, 1996, rose to $9,406,000, compared with $7,885,000 in the same quarter a year ago. Net income for the second quarter was $736,000, or 13 cents per share, compared with $461,000, or 8 cents, during last year's fiscal second quarter.
For the first six months of the current fiscal year, Candela revenue increased to $17,045,000, up 23% from last year's $13,869,000. Net income through fiscal 1997's first six months totaled $1,245,000, or 22 cents per share, compared with $356,000, or 6 cents, in the 1996 fiscal half-year. Figures for both fiscal years reflect the June 1996 acquisition of Spa Management, Inc., a wholly owned Candela subsidiary now known as Candela Skin Care Centers, Inc.
Discussing the continuing turnaround of the company, Gerard E. Puorro, president and CEO, said: "Second-quarter sales of Candela's cosmetic and medical equipment remained solid, and sales and profits were also aided by improved demand for our MDL 3000 LaserTripter(TM) device, which fragments urinary and biliary stones effectively and safely without trauma to soft tissue."
Mr. Puorro noted several key technological and marketing developments during the second quarter. Two months ago, the Japanese government approved marketing and reimbursement for use of the company's ALEXLAZR(TM) and PLTL Pigmented Lesion/TATULAZR(TM) for treating brown skin lesions native to Asians. In December, Candela gained exclusive marketing rights in the U.S. and elsewhere for the SKINLIGHT* system, an advanced, next-generation dermatology laser, which was subsequently cleared by the U.S. Food and Drug Administration earlier this month.
"Naturally," Mr. Puorro said, "we were delighted when SKINLIGHT received the FDA's blessing in mid-January. Developments such as these, augmented by increased funding of our own product research, help to reinforce our ongoing commitment to finding the best new products and doing our own innovative R&D." He noted that Candela's research and development expenditures increased approximately 50% during the first half, and he indicated that similar levels of funding were at what he termed "the heart of Candela's commitment to providing the best technology to serve our growing markets."
"We are also working hard," Mr. Puorro stated, "to capitalize on personal care and demographic trends, which should foster successful growth of our new Candela Skin Care Centers. Two major openings are imminent, and we should have one additional center in operation by the end of our fiscal year."
"The careful linkage of our personal care business to our well-established, leadership position in the laser and cryosurgical equipment business, we believe, provides Candela with substantial upside opportunities in 1997 and in the years ahead," 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 problems 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 the Far East.
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.
CANDELA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands Except Per Share Data)
For the three For the six
months ended: months ended:
Dec. 28, Dec. 30, Dec. 28, Dec. 30,
1996 1995 1996 1995
(unaudited) (unaudited)
Revenue $ 9,406 $ 7,885 $ 17,045 $ 13,869
Cost of sales 4,750 4,262 8,635 7,852
Gross profit 4,656 3,623 8,410 6,017
Operating expenses:
Research and development 555 373 1,127 747
Selling, general
and administrative 3,031 2,526 5,537 4,549
Total operating expenses 3,586 2,899 6,664 5,296
Income (loss) from
operations 1,070 724 1,746 721
Other income (expense):
Interest income 16 21 31 49
Interest expense (15) (9) (31) (20)
Other (20) (25) 33 (144)
Total other income(expense)(19) (13) 33 (115)
Income (loss) before
income taxes 1,051 711 1,779 606
Provision for income taxes 315 250 534 250
Net income (loss) $736 $ 461 $ 1,245 $ 356
Net income (loss)
per share $ 0.13 $ 0.08 $ 0.22 $ 0.06
Weighted average number
of common and common
equivalent shares
outstanding 5,658 5,503 5,669 5,503
CANDELA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 28, June 29,
1996 1996
Assets (unaudited)
Current assets:
Cash and equivalents $ 3,148 $ 3,041
Accounts receivable 8,131 6,444
Notes receivable 835 1,956
Inventory 5,177 5,627
Other current assets 712 352
Total current assets 18,003 17,420
Property and equipment, net 1,866 1,183
Other assets 1,196 731
$ 21,065 $ 19,334
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of
long-term debt $ 553 $ 708
Deferred income 1,780 1,943
Accounts payable 4,002 3,162
Accrued payroll and
related expenses 721 748
Accrued warranty costs 1,071 897
Income taxes payable 797 350
Other accrued liabilities 597 1,004
Total current liabilities 9,521 8,812
Long-term debt 401 557
Stockholders' equity:
Common stock 53 53
Additional paid-in capital 17,154 17,069
Treasury stock ----- -----
Retained deficit (5,878) (7,123)
Accumulated translation
adjustment (186) (34)
Total stockholders' equity 11,143 9,965
$ 21,065 $ 19,334
CONTACT: Candela Corporation
Paul Broyer, 508/358-7400 x435
or
Stuart Pearlman & Co.
Stuart Pearlman, 212/370-4940 |
