Cutera (CUTR) Q1 2011 Earnings Call May 02, 2011 5:00 pm ET Executives Ronald Santilli - Chief Financial Officer and Executive Vice President Kevin Connors - Chief Executive Officer, President and Director John Mills - ICR Analysts Phillip Nalbone - Wedbush Securities Inc. Thomas Gunderson - Piper Jaffray Companies Dalton Chandler - Needham & Company, LLC Anthony Vendetti - Maxim Group LLC Morris Ajzenman - Griffin Securities, Inc. Presentation Operator
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» Cutera, Inc. Q1 2010 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 today, on May 2, 2011, with the Securities and Exchange Commission. And with that, I’ll turn the call over to the company’s President and Chief Executive Officer, Mr. Kevin Connors. Go ahead, Kevin. Kevin Connors Thank you, John. Good afternoon, everyone, and thanks for joining us today to discuss Cutera's results for the first quarter ended March 31, 2011. On today's call, I'll provide an overview of the results, and then Ron Santilli, our CFO, will provide additional details on our operating and financial results. Finally, I will provide some closing comments and open the call to your questions. Our first quarter revenue was $11.6 million, and our net loss was $3.9 million or $0.28 per share. Our revenue in the United States declined by $340,000 or 7% compared to the first quarter of 2010, due primarily to the time needed to ramp up our new North American sales management team and Titan refill -- reduce Titan refill volume due to the voluntary recall in the second quarter of 2011. Our international revenue during the same period declined by $1.8 million or 19% due primarily to the recent earthquake disaster in Japan and lower revenue from our European distributor countries. This was partially offset by strength in our Asia Pacific distributors. In the first quarter, we launched our Excel V, vascular laser system at the American Academy of Dermatology meeting. We did not have revenue associated with this product in the first quarter, but during the second quarter, we initiated commercial shipments in April. We look forward to a continued ramp-up of sales and marketing activities that include shipments of demonstration equipment to our sales organization and continued development of reference sites. We are encouraged by the results from the evaluation systems that have been in the hands of well-respected luminary physicians and look forward to rolling it out on a larger scale; first, in the United States, then internationally.
In the first quarter 2011, we estimated that the unfortunate events in Japan had a negative impact on our revenue by approximately $1 million. The Japanese market has been a strong growth opportunity for us over the past few years and represents approximately 25% of our revenue in 2010. The first quarter shortfall was the result of both of our inability to complete deliveries to certain customers, as well as our inability to solicit new orders in the second half of March. It is our belief, however, that the annuity revenue streams of filler, cosmeceuticals, Titan refill and service business in Japan has been impacted to a lesser degree during this challenging time. We will continue to closely monitor the market conditions.We believe the following initiatives will put us in a stronger performance trajectory beginning in the second quarter of 2011. One, the commercial -- commencement of the commercial shipments of our Excel V laser system. Two, the recent FDA clearance of our GenesisPlus product for toenail fungus. We have been unable to initiate sales and marketing activities in our domestic market for this indication until receiving this clearance in March and April. As a result, we are now able to target approximately 15,000 podiatrists in the United States, and we believe the dermatology specialty will be interested in this product as many of them will -- do treat this condition on their practice. Our strategic alliance with PSS will allow us to ramp up and reach this in an expedient manner. Read the rest of this transcript for free on seekingalpha.com