Syneron Medical Ltd. (Nasdaq: ELOS), controlled by chairman Shimon Eckhouse, is struggling to recovery. The laser-based aesthetic surgical solutions developer today published its financial report for the fourth quarter and full year of 2009. The company's treatments for acne, depilation, and wrinkle removal are unable to pull it out of the mire it sank into with the outbreak of the credit crunch and slump in demand for its products in the US, the company's primary market for almost a decade.
Syneron posted $14.4 million revenue for the fourth quarter, 1.6% more than the $14.2 million revenue for the corresponding quarter of 2008. The company missed the analysts' consensus of $15.8 million revenue.
GAAP-based net loss narrowed to $4.3 million ($0.16 per share) for the fourth quarter from $15.9 million for the corresponding quarter. Non-GAAP net loss narrowed to $3.5 million ($0.13 per share) from $13.7 million for the corresponding quarter. The company missed the analysts' consensus of a loss per share of $0.11.
For the year as a whole, Syneron's revenue was halved to $54.7 million from $115 million in 2008. The company posted a GAAP-based net loss of $23.6 million ($0.86 per share) in 2009 compared with a GAAP-based net profit of $5.6 million in 2008. It posted a non-GAAP net loss of $19.3 million ($0.70 per share) in 2009 compared with a GAAP-based net profit of $13.2 million in 2008.
Syneron completed its acquisition of rival Candela Corporation in January 2010, and the financial report does not include Candela's results. Syneron acquired Candela in a share-swap deal worth $61 million at the closing.
Syneron had $206.4 million in cash and cash equivalents at the end of 2009.
Syneron CEO Lou Scafuri said, "Fourth quarter 2009 results from both Syneron and Candela demonstrate our ability to achieve revenue growth in what has been a challenging global economic environment."
Scafuri has not been able to pass his optimism onto investors. Syneron's share has fallen 13% since the beginning of the year, and is 26% below its peak price reached in November 2009. The share rose 0.7% to $9.13 at the opening on Nasdaq today, giving a market cap of $250 million.
Published by Globes [online], Israel business news - www.globes-online.com - on February 11, 2010
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