Healthcare Market Reports :- Solta Medical, Inc., a global leader in the medical aesthetics market, today announced results for the second quarter ended June 30, 2010. The results for the quarter were highlighted by year-over-over revenue growth of 10%, generation of $7.7 million in cash flow from operations, and complete integration of the Aesthera acquisition into Solta operations.
Revenue for the second quarter was $30.1 million, an increase of approximately $2.7 million, or 10%, as compared to the second quarter 2009 revenue of $27.4 million. Results for the quarter were driven by year-over-year double-digit revenue growth in North America, Asia Pacific, and Latin America.
Solta Medical’s GAAP reported results for the second quarter of 2010 include non-cash amortization and other charges of $1.4 million related to the acquisitions of Reliant Technologies and Aesthera Corporation, non-cash stock based compensation charges of $0.6 million, and cash expenses of $0.2 million related to the acquisition of Aesthera Corporation. The Company provides additional non-GAAP financial measures that exclude these charges and expenses.
The GAAP gross profit for the quarter was $18.7 million, or 62% of net revenue. Non-GAAP gross profit for the quarter was $19.9 million, or 66% of net revenue. GAAP net income for the quarter was $1.5 million, or $0.02 per share on a diluted basis, as compared to GAAP net income of $0.1 million, or breakeven earnings per share on a diluted basis, reported for the second quarter of 2009. Non-GAAP net income for the quarter was $3.8 million, or $0.06 per share on a diluted basis, as compared to non-GAAP net income of $2.3 million, or $0.05 per share on a diluted basis, reported for the second quarter of 2009. Non-GAAP EBITDA for the second quarter was $5.0 million compared to $3.1 million in the prior year period. Cash flow from operations for the quarter was a record $7.7 million compared to cash used in operating activities of $2.8 million in the second quarter of 2009. The results for the quarter also include the previously reported patent litigation settlement with Alma Lasers under which Solta received a one-time payment of $2.25 million.
"We continue to be successful in expanding our customer base, as well as building relationships with our existing customers," said Stephen J. Fanning, Chairman, President & CEO. "Year-over-year we generated double digit revenue increases in new system sales for both Thermage® and Fraxel® brands. In addition, we are gaining traction in the marketplace with the Isolaz® brand through our recent acquisition of Aesthera. We also completed the integration of Aesthera into Solta’s operations in the second quarter. Finally, our record cash flow generated from operations of $7.7 million reflects the operating benefits of having three premier brands in the aesthetic device industry, a strong IP position, and efficient management of inventories and accounts receivable."