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Print Edition StoriesTuesday, February 9, 2010
Cosmetic laser firm Cynosure plans cost cuts amid sales drop
By Craig M. Douglas
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Cynosure Inc., a developer of lasers used for cosmetic procedures and dermatology-related applications, said a rebound from its year-long sales slump is still a ways off, and it plans to cut its annual operating expenses by up to 12 percent to weather the storm.
The Westford-based company also announced it has settled a patent-infringement suit concerning one of its laser technologies.
Cynosure said revenue for the three months ended Dec. 31 was $19.3 million, down 25 percent from the $25.5 million booked in the year-earlier period. For the full year, revenue dropped 48 percent on a year-over-year basis to $72.8 million.
Operating expenses for the fourth quarter were $14.2 million, down 31 percent from 2008’s corresponding period. Operating expenses for the full year were $60.3 million, an amount Cynosure (Nasdaq: CYNO) hopes to cut by $5 million to $7 million this year.
Net income for the fourth quarter was $14.5 million, compared with a loss of $2.5 million in the year-earlier period.
In the meantime, Cynosure and El. En. S.p.a., its largest shareholder, have settled a suit against CoolTouch Inc. over an alleged violation of a Cynosure patent. Under the settlement’s terms, CoolTouch will direct to Cynosure 9 percent of its sales of the CoolLipo laser lipolysis product and 10 percent of future net sales “for any licensed product sold strictly for lipolysis,” among other terms. Lipolysis is a process that essentially liquefies fat before it is surgically removed from the body.
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