On a non-GAAP basis, excluding stock-based compensation expenses, net loss in the first quarter was $6.2 million, compared with a net loss of $13.7 million in the fourth quarter of 2008 and a net profit of $10.2 million in the first quarter of 2008. The non-GAAP result for the first quarter is equivalent to a loss of $0.23 per basic and diluted share, compared with a fourth quarter loss in 2008 of $0.50 per basic and diluted share and earnings per share of $0.37 in the first quarter of 2008.
Syneron’s balance sheet and cash position remain strong. Syneron’s cash position (including long-term deposits) totaled $215.2 million as of March 31, 2009 and Syneron continues to have no debt. Trade receivables decreased to $22.1 million from $32.6 million at the end of 2008. Shareholders’ equity at the end of the Q1 2009 was $235.8 million.
Commenting on the results and his first quarter as chief executive officer of Syneron, Lou Scafuri 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.
“My second and no less important priority was to get all parts of the Syneron team to work together to design and begin to implement tactical changes in our systems and marketing strategy to make our business model more responsive to our customers and to current and future economic volatility. As we announced last month, we are designing all new systems to be able to be marketed at a lower initial entry price, but with significant recurring revenue. This enhanced value proposition will increase our competitiveness across the market segments including the core practitioners.”
Scafuri concluded, saying, “At the Aesthetics Show next month in Las Vegas, we will be launching the new product line of platforms with disposables. This new product base, combined with a strong financial position, leaner corporate structure, more diversified revenue base, and selective international investments has significantly strengthened Syneron’s competitive position in North American and global markets. Now that we might be beginning to see the first signs of improvements in core physician interest and market conditions, it is my priority to execute the initiatives that the Syneron teams have developed to ensure that Syneron again assumes the position of industry leader capitalizing on its innovation and profitability as markets strengthen.”
