Syneron CEO: 2015 was a year of investment

Amit Meridor  photo: Eyal Yitzhar
Amit Meridor photo: Eyal Yitzhar

Amit Meridor says that despite heavy investment in marketing, the company still made a reasonable profit.

"We had a quarter with peak revenue, and sales of our two main growth engines grew nicely," Amit Meridor, CEO of aesthetic medicine company Syneron Medical Ltd. (Nasdaq: ELOS) saystoday. The company reported its fourth quarter results, with revenue in line withits guidanceand outperforming market estimates, and profit equaling estimates.

Sales of the growth engines cited by Meridor, the ultrashape slimming product in the US and its PicoWay tattoo removal product, generated $16.2 million and $18.7 million in revenue, respectively. "What is special about these products is their significantly higher-than-average gross profit margins. We finished the year with a 55.2% gross profit margin, and the rate for these two products is over 70%. In the long term, we want to achieve a 60% gross profit rate," he says.

The switch to a model of renewable supplies in which every doctor using Syneron's machine pays for both the machine and the equipment for each use is also expected to contribute to the company's profit. "This model gives us a good basis for the future. In the past, we sold machines at a good price, but we earned nothing beyond this sale price. The change in our business is not free of charge; we're investing in a sales team that assists the doctor," Meridor says.

The main investment in the marketing and sales setup took place in 2015, and was reflected in its results, with a lower non-GAAP profit, in comparison with 2014. The top line was up 6.5% to $78.9 million in the fourth quarter, and up 8.6% to $278 million for the year.

Fourth quarter net profit

Synernon made a $2 million GAAP-based net profit in the fourth quarter, compared with a $4.1 million net loss in the corresponding quarter in 2014. The company's loss for all of 2015 grew 21.9% to $6.3 million.

"We had a $15 million positive cash flow in the fourth quarter," saysMeridor "We declared that 2015 would be a year of investment, building our sales network in the US, and investing in marketing in order to support the change in our business. We nonetheless maintained a reasonable level of profit, in comparison with 2014."

Published by Globes [online], Israel business news - www.globes-online.com - on February 22, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Amit Meridor  photo: Eyal Yitzhar
Amit Meridor photo: Eyal Yitzhar
Emiliano Calemzuk  credit: PR CEO and "investor group" buying out Reshet 13

CEO Emiliano Calemzuk and the other investors will hold 74% of the television channel, while Len Blavatnik’s Access Industries and WBD will remain with 26%.

Inflation  credit: Tali Bogdanovsky Unexpectedly low February CPI reading cuts inflation

While inflation in Israel in the 12 months to the end of February 2025 is lower than forecast, housing prices continue to rise.

Yitzhak Tshuva credit: Gidon Levy and Tali Bogdanovsky Competition Authority allows Delek takeover of Isracard

The Competition Authority is considered the easier of the two regulatory hurdles that the deal must overcome, the other being the Supervisor of Banks.

David Amsalem  credit  Noam Moskowitz, Knesset Spokesperson's Office Rafael to pay state NIS 444m dividend

The minister in charge of the Government Companies Authority, David Amsalem, has approved the payment by the defense company.

Barak MX air defense system  credit: IAI IAI profit jumps 55%

Israel Aerospace Industries posted a net profit of $493 million for 2024, and ended the year with an all-time high orders backlog of $25 billion.

A TSG system in tactical use  credit: PR TSG signs cooperation agreement with US defense co

The agreement includes the integration of TSG's advanced technologies into sensor-based defense systems, which will be integrated into the operational systems of US defense units.

Bria CEO Yair Adato credit: Kseniia Poliak Israeli visual generative AI co Bria raises $40m

Bria’s Visual Generative AI platform empowers businesses to create predictable, controllable, and on-brand content that aligns with their visual language.

Amnon Shashua and Aviram Ziv credit: Eyal Izhar OrCam stymied by investor dispute with Shashua

Demands by institutional investors are blocking the visual and hearing impairment device developer's recovery plan.

Work on the Green Line credit: Bar Lavi Egged wins tender to operate TA light rail Purple, Green Lines

NTA awarded the tender to Egged, which already operates the Red Line, despite government ministry opposition to one operator for the entire network.

Gabi Seroussi illustration: Gil Gibli Board chooses Seroussi as IAI chair as Erdan freezes candidacy

Israel Aerospace Industries board chose Gabi Seroussi as chair even though he did not to go through the preliminary process of the Government Companies Authority appointments review committee.

Bavli Park penthouse credit: Eyal Tagar Tel Aviv Park Bavli penthouse sells for NIS 43m

A 44th floor penthouse in one of the two towers in businessman Yitzhak Tshuva's Park Bavli project has been bought by an Israeli businessperson.

El Al aircraft  credit: Yoav Yaari El Al pilots receive nearly NIS 250,000 bonus each

Thanks to the agreements signed with the unions in 2018, El Al's employees as well as senior management share in last year's success.

Pentera CEO Amitai Ratzon credit: Eyal Izhar Israeli security validation co Pentera raises $60m

Pentera's platform enables security teams to analyze complete attack paths, identify root causes, and prioritize remediation for effective risk reduction.

Tel Aviv credit: Shutterstock Supply of unsold new homes hits record

Israel's real estate market is sliding into recession with 78,000 unsold new apartments in January, the Central Bureau of Statistics reports.

D&B chairman Doron Cohen and Meitar partner Dan Geva Meitar reclaims title of Israel's biggest law firm

Meitar has first place with 537 lawyers, followed by Herzog Fox Neeman with 512 lawyers, according to the latest Dun's 100 rankings.

First International Bank of Israel CEO Eli Cohen  credit: Eyal Toueg First Int'l posts top return on equity

First International Bank of Israel's return on equity in 2024 was 19%, the highest among Israel's banks.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018