Syneron Medical Ltd. (ELOS), a manufacturer of medical aesthetic devices, reported Thursday a loss for the first quarter compared to a profit last year, reflecting a sharp decline in revenues, legal settlement expenses and higher G&A costs.
The Yokneam Illit, Israel-based company's net loss for the quarter was US$8.16 million or US$0.30 per share, compared to net income of US$8.31 million or US$0.30 per share in the previous year.
Results for the quarter include about US$4.4 million in one-time charges and a credit of nearly US$4 million related to a legal settlement.
On a non-GAAP basis, excluding stock-based compensation expenses, net loss for the quarter was US$6.24 million or US$0.23 per share, compared to a net income of US$10.22 million or US$0.37 per share in the earlier year.
On average, two analysts polled by Thomson Reuters expected the company to report loss of US$0.16 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter sharply declined to US$11.89 million from US$34.08 million in the year-ago quarter due to the low level of economic activity in global markets, Syneron noted. Street analysts estimated revenues of US$14.42 million for the quarter.
The company said its gross margins were 58.1%, which reflects cost savings resulted from the first stages of the restructuring program.
Total operating expenses for the quarter declined to US$15.06 million from US$20.47 million in the preceding year. Research and development expenses decreased to US$2.95 million from US$3.39 million last year. Selling and marketing expenses were US$10.07 million, down from US$13.99 million in the previous year.
Lou Scafuri, chief executive officer said, "My first priority this quarter was to complete the restructuring program to make Syneron more efficient and more responsive to market conditions. We continued to cut costs and improve efficiencies across the company with the result of a further 10% reduction in operating expenses."
ELOS closed Wednesday's regular trading at $7.8 on the Nasdaq.
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