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Syneron Medical's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Recurring revenue, which includes service and consumables, was up 13% representing approximately 32% of the total PAD sales.

In the PAD segment, revenue increased 12% and operating income was $7 million, or a 11.4% of PAD sales.

In EBU, revenue rose 13% driven by strong growth in Syneron Beauty and elure, which was partially offset by the voluntary field action in the LiteTouch Dental Laser business in Europe.

Excluding the Dental business, which recorded minimal revenue in the quarter, EBU revenue was up 40% year-over-year. We remain on track to complete the dental voluntary replacement by the end of the year. Overall the EBU continue to generate an operating loss for the quarter as we continue to invest in this high growth segment of the business.

On a consolidated basis, we achieved non-GAAP operating income of $3.1 million and non-GAAP EPS of $0.05 per share. This is our seventh consecutive quarter of non-GAAP profitability.

During the second quarter, we continue to execute on our growth strategy including new product launches integrating the Ultrashape business, as well as initiating our Ultrashape FDA clinical trial.

In June, we launch the elos Plus Work Station into the European and Asian market at the 9th Annual Spring Symposium of the EADV meeting in Verona, Italy. The elos Plus system utilizes the Syneron proprietary elos technology, which combines optical energy and bipolar radiofrequency energy. The elos Plus has the ability to deliver a full range of aesthetic treatments and is equipped with the most advanced features for optimum, speed, safety and efficacy. We have received positive feedback on the comprehensive and versatile treatment capabilities of the system. It also features our flagships sublative, sublime and multi-treatment applicators which offer users and patients, alike superior results and treatment experiences.

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