This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cutera's CEO Discusses Q3 2011 Results - Earnings Call Transcript

Cutera also cautions you to not place undue reliance on forward-looking statements, which speak only as of the date they were made. Cutera undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made or to reflect the occurrence of unanticipated events. For a complete list of risk factors that could cause Cutera's actual results to differ materially from the forward-looking statements, please refer to the section entitled Risk Factors in our most recent 10-Q filed on November 7, 2011, with the Securities and Exchange Commission.

With that, I'll turn the call over to the company's President and Chief Executive Officer, Mr. Kevin Connors. Go ahead, Kevin.

Kevin P. Connors

Thank you, John. Good afternoon everyone, and thanks for joining us today to discuss Cutera's results for the third quarter ended September 30, 2011. On today's call, I'll provide an overview of our company performance, and then Ron Santilli, our CFO, will provide an overview of our financial results. Finally, I'll provide some closing comments and open the call to your questions.

We are pleased with the third quarter 2011 revenue growth of 26%, with the U.S. growing at 43% and international growing at 17%, all compared to the third quarter 2010. This revenue improvement was a direct result of the following key initiatives: First, our GenesisPlus for toenail fungus targeted to podiatrists continues to perform well. In addition to toenail fungus, this product is also used for warts and other aesthetic procedures. During the quarter, we achieved record revenue contribution from this product, sourced primarily from the United States. Going forward, we plan to continue to increase our marketing efforts internationally. Second, our premier vascular system, Excel V, which provides practitioners the ability to treat all vascular conditions, both on the face and body, continue to gain traction on the marketplace. We are -- we remain in a continued launch and are building an installed base of reference sites. The third key contributor for revenue growth last quarter was the sales management changes we implemented earlier this year. Our recently assembled North American sales management team, under the leadership of Michael Poole, has been executing effectively. And their strategies are paying off, as proven by the 43% revenue growth in the United States and Canada contributing significantly as well. In addition, with Chris West returning to Japan to focus on the Pacific Rim countries, we're experiencing strong revenue growth from Japan, Australia and several of our Asian distributors this quarter. Lastly, during the third quarter, we continued to have success in combining Cutera products and upgrades with filler and cosmeceutical products from Merz and Obagi. Filler and cosmeceutical products complement our laser and light-based products and revenue from these product categories grew by 19% in the third quarter of 2011 compared to the third quarter of 2010. The strong performance was partially offset by a decline in our third quarter 2011 revenue from Europe due to restructuring of the European sales team. With the improvements being implemented there, we anticipate our European business to return to a growth trajectory in the near future. We believe that our strength in sales management teams and new product offerings, we are well positioned to -- for continued top line growth. We currently have 27 sales territories in the United States and Canada, and are anticipating territory expansion within the next 12 months.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,812.19 +19.51 0.11%
S&P 500 2,089.14 +2.55 0.12%
NASDAQ 5,102.8080 +0.33 0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs