Syneron Medical Reports 2Q Loss, Revenue Drop

The Associated Press

Skin treatment device maker Syneron Medical Ltd. said Thursday it posted a second-quarter loss, reversing a profit from the same quarter last year, as revenues plummeted 63 percent.

But the stock rose in afternoon trading, as the performance topped what analysts expected.

The Yokneam, Israel-based company said it lost $5.5 million, or 20 cents a share, in the quarter that ended June 30. That compares with a profit of $11 million, or 40 cents per share, in the same quarter last year.

The adjusted loss, which excludes stock-based compensation expenses, was 17 cents per share. Revenue fell to $14.1 million from $38.2 million.

Analysts polled by Thomson Reuters expected a loss of 19 cents per share and a profit of $13.4 million. Analysts typically exclude one-time items in their estimates.

In February, Syneron named Lou Scafuri CEO to replace Doron Gerstel as part of a restructuring program. The new CEO said in a statement from the company he was pleased with steady improvements Syneron has shown since the start of the year.

The company said its gross margins rose to 64.8 percent in the quarter, an improvement over the past two quarters.

Scafuri attributed margin improvements "directly to the success of the restructuring program in streamlining costs across the company."

Company shares rose 50 cents, or 5.6 percent, to $9.37 in afternoon trading.