Israel's Syneron Medical ($ELOS) ended its 2013 fourth quarter with a revenue drop and flat net income compared to last year. But the maker of cosmetic lasers and other aesthetic medical devices promises to boost its numbers in 2014 in the wake of an acquisition.
Syneron said it produced $64.3 million in revenue, down 12% over $72.76 million booked in the 2012 fourth quarter. The drop stemmed, in part, from a multisite customer order in 2012 that was not renewed. Execs said the company generated $4 million in net income, or 11 cents per share. That's essentially flat compared to the same period a year ago, though the net income gained to some degree from a settlement with Israeli tax authorities.
As in Q3, Syneron said it continues to make gains in North America. The launch of its VelaShape III noninvasive body shaping tech, among other products, has also helped--it uses radio frequency and infrared light energy along with vacuum and mechanical massage to reduce fat. Acting Syneron Chairman Shimon Eckhouse said in a statement that reorganization and streamlining will also help the company move ahead.
So will Syneron's latest acquisition. The company said it will pay $11 million in cash and up to $4 million more in subsequent milestones for New Star Lasers, also known as CoolTouch, a developer and maker of aesthetic laser devices that treat varicose veins and kidney stones and perform body shaping. CoolTouch products already have 510(k) clearance and are CE marked.
Cosmetic and medical device lasers continue to be seen as a growth area. Case in point: Lumenis, a medical laser company based in Israel, recently disclosed detailed IPO plans involving the sale of 6.3 million shares to raise approximately $100 million. Lumenis makes surgical, ophthalmic and aesthetic lasers. Last year, Cynosure ($CYNO) also snatched up Palomar Medical Technologies for $294 million in cash and stock, leading to some consolidation that created a major global cosmetic laser industry player.
- read the earnings release
- here's the CoolTouch announcement