Israel's Syneron Medical ($ELOS) has pushed hard to expand the North American market for its cosmetic lasers and other related aesthetic medical devices. Executives said the company's 2013 third quarter reflects significant progress toward that goal, plus steady growth in overall revenue aided in part by job cuts and other cost-cutting measures.
Syneron reeled in $62.7 million in revenue during its 2013 third quarter, a 4.2% increase over the $60.1 million it pulled in during the fiscal 2012 third quarter. Executives disclosed that Syneron lost $1.3 million, versus a $2.3 million loss over the same period a year ago. Why the loss? The company recorded a number of one-time charges relating to job cuts and reorganizing, Syneron Chief Financial Officer Hugo Goldman said in a statement. Also driving down net income was a settlement with Israeli tax authorities.
Syneron CEO Shimon Eckhouse said in a statement that the company's main progress came from North America, where a push to expand its sales team helped produce double-digit sales growth in the region.
Syneron also worked on new product approvals and partnerships and said it advanced on both fronts, both during the quarter and shortly after. Among the milestones: FDA clearance and a CE mark for the company's VelaShape III noninvasive body shaping tech, which uses radiofrequency and infrared light energy along with vacuum and mechanical massage to reduce fat. Separately, the company recapped its recent agreement to a joint venture with Unilever focused on aesthetic devices marketed to consumers. Syneron said the deal should propel sales globally and particularly in Asia.
Syneron noted it ended Q3 with $110.3 million in cash and investments on hand.
Eckhouse said the company expects to ramp up sales of VelaShape III during Q4 and is waiting for an FDA decision about its recent 510(k) submission for its new UltraShape device.
Cosmetic medical devices are a growing global business, but Syneron isn't the only company in the space generating mixed results. California-based Solta Medical ($SLTM), a maker of medical devices focused on liposuction, skin resurfacing and other aesthetic areas, said recently that it will reorganize, slash jobs and possibly sell itself in a bid to reverse slumping sales in the face of fierce competition.
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