Cynosure, Inc. (CYNO) Q2 2010 Earnings Call July 27, 2010 09:00 am ET Executives Michael Davin - President and CEO Tim Baker - EVP and CFO Analysts Anthony Vendetti - Maxim Group Matthew Dodds – CitiGroup Andy Schopick - Nutmeg Securities Anthony Petron – Jefferies Dalton Chander – Madum and Company Bill Dezellem – Titan Capital PresentationMichael Darvin
We’ve been operating since the global economic downturn began in 2008. In summary, we continue to navigate to a challenging economic climate with our core competencies and financial strength intact. While we would expect to see some natural pullback in our business in Q3 as a result of traditional seasonality, so we are encouraged about where we finish the first six month of 2010. From a financial and operational standpoint, we begin the second half of the year well positioned to grow as the economy improves. With that, I will turn the call over to Tim for his financial review. Tim Baker Thank you, Mike. Good morning everyone, and thanks for joining us. As Mike outlined, Q2 was a solid quarter for Cynosure. Revenue for the second quarter increased 3% year over year, and 14% sequentially to $21.5 million. On a GAAP basis, the second quarter loss narrowed to $1.5 million, or $0.12 a share from $2.3 million, or $0.18 per share for the second quarter of 2009. The improved bottom line reflected an 18% reduction in operating expenses from Q2 of last year. It is important to point out that a Second Quarter 2010 net loss, included income tax provision, or expense of $0.1 million, representing an effective tax rate of 5%. This compares with an income tax benefit of $1.3 million, or a reduction to our loss of $0.10 per share, recorded in the Second Quarter of 2009. And representing an effective tax rate of 35%.