Tuesday, Cynosure Inc. (CYNO), a light-based aesthetic treatment system maker, slipped to a loss in the second quarter, hurt by decline in revenues and a lower gross margin. The company also announced a stock buyback program to repurchase up to $10 million shares.
The Westford, Massachusetts-based company reported a second-quarter net loss of $2.3 million or $0.18 per share, compared to net income of $4.7 million or $0.36 per share in the same quarter last year.
On a non-GAAP basis, the company reported a net loss of $1.14 million or $0.09 per share, compared to net income of $5.88 million or $0.46 per share in the previous year quarter.
On average, five analysts polled by Thomson Reuters expected the company to report a loss of $0.16 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter were $20.8 million down from $39.2 million in the comparable quarter last year. Analysts expected the company to report revenue of $17.09 million for the quarter.
The decline in quarterly revenues were related to the ongoing global economic recession and the continued restrictive credit environment in the aesthetic laser industry.
Gross margin for the quarter was 58.0% of total revenues, compared to 67.1% in the previous year quarter. The decline in gross margin in the quarter reflected a higher percentage of laser revenue from international distribution, where the company's products tend to have lower sales prices.
Total operating expenses declined to $16.17 million from $19.52 million in the prior year quarter. Loss from operations for the quarter was $4.09 million, compared to income from operations of $6.79 million in the same quarter a year ago.
For the six-month period, Cynosure reported a net loss of $6.35 million or $0.50 per share, compared to net income of $9.53 million or $0.75 per share in the year ago period. Revenue for the period declined to $35.63 million from $75.96 million in the previous year period.
The company also announced a stock repurchase program to buyback up to $10 million of its common stock from time to time on the open market or in privately negotiated transactions. The company will fund the repurchase program using its working capital.
CYNO is currently trading at $8.41, up $0.69 or 8.94%, on a volume of 0.17 million shares on the Nasdaq.
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