Candela Corp. (CLZR) filed Quarterly Report for the period ended 2009-09-26.
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, aesthetic laser systems, and other advanced technologies. The company markets and services its products from offices in the United States, Europe, and Asia. Candela established the aesthetic laser market 11 years ago, and currently has an installed base of lasers worldwide. Candela Corp. has a market cap of $71 million; its shares were traded at around $3.1 with and P/S ratio of 0.7.
Highlight of Business Operations:
Consolidated revenue was $26.2 million for the three-month period ended September 26, 2009, as compared to $26.7 million for the same period ended September 27, 2008. The decrease in quarterly revenue of approximately $0.4 million is comprised of decreased revenue from Europe and Latin America of approximately $1.9 million offset by increased revenue from in the U.S., Japan and Asia of approximately $1.5 million. This quarter international revenue represents approximately 65% of the total revenue as compared to 67% in the comparable prior-year period.
Gross Profit. Gross profit was approximately $9.0 million or 34.5% for the three-month period ended September 26, 2009, as compared to $10.5 million or 39.3% for the same period ended September 27, 2008. The decrease in gross profit for the three-month period ended September 26, 2009, as compared to the same period in the previous fiscal year, is primarily due to decreased average selling prices and a greater proportion of revenues being derived from the sale of product-related services in the current period which carry a lower margin than sales of lasers.
Selling, General and Administrative Expense. Selling, general and administrative (SG&A) expenses, including merger-related costs of $2.3 million, were approximately $10.8 million for the three-month period ended September 26, 2009, as compared to $12.1 million for the three-month period ending September 27, 2008. As a percentage of revenue, SG&A expenses decreased to 46.2% from 55.0% of revenues in the comparative prior-year period. The $1.3 million decrease was primarily comprised of a $2.9 million reduction in legal cost and a $0.6 million reduction in marketing programs, offset by the aforementioned merger-related costs of approximately $2.3 million.
Research and Development Expense. Research and development (R&D) spending decreased to approximately $1.8 million for the three-month period ended September 26, 2009, from approximately $2.3 million for the comparative prior-year period. The decrease is attributed to the completion of our efforts to implement improvements to our products.
Our cash and cash equivalents and our investment in short and long-term marketable securities at September 26, 2009 totaled approximately $25.6 million compared with approximately $29.8 million at September 27, 2008. The principal components of the decrease are the general funding of operations and the incurred costs associated with our proposed merger with Syneron Medical, Ltd. We continue to
Cash used by operating activities amounted to approximately $1.5 million for the three-month period ended September 26, 2009 as compared to cash used by operating activities of approximately $3.6 million for the same period in the prior year. The decrease in cash used by operating activities is attributable to the monetization of assets and liabilities in the normal course of business with no single item or group of items representing a significant portion of the year-over-year difference.
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