CLZR Candela (MM)

Candela Corporation (NASDAQ:CLZR) today reported that revenues for the quarter ended June 27, 2009 were $31.4 million. Income from continuing operations, including non-cash expenses of $1.5 million, was $380,000 or $0.02 per share on a fully-diluted basis. Income from discontinued operations, net of income taxes, was $6,758,000 or $0.29 per share on a fully-diluted basis. Net income for the quarter was $7,138,000 or $0.31 per share on a fully-diluted basis.

For the full year, the Company reported revenues of $116.6 million. Loss from continuing operations was $10.6 million or $0.47 per share. Loss from discontinued operations was $11.7 million or $0.51 per share. Net loss for the full year was $22.3 million or $0.98 per share.

Gerard E. Puorro, President and Chief Executive Officer, commented: “This is the third consecutive quarter of modest growth at the top line. Our expense structure is stable and we continue to look forward to enhanced factory margins. For the quarter, we were also cash positive.” Puorro continued: “Our strong distribution channels and expansive product portfolio position us well for the eventual favorable turn in the world economy. In the interim, we will continue to research and develop new products and applications that meet the needs of our customers.”

Conference Call Details

The Company will host a conference call today at 5:00 p.m. (EDT) to discuss this announcement. The call can be accessed live by dialing (866) 244-4518 or by visiting Candela Corporation’s website at www.candelalaser.com.

Investors may access a replay by dialing (888) 266-2081, passcode 1387359, which will be available from 7:30 p.m. (EDT) on August 18, 2009 through 11:30 p.m. (EDT) on August 21, 2009. The webcast replay will also be archived in the "Investor Relations" section of the company's website.

About CANDELA: Candela Corporation manufactures, and distributes innovative clinical solutions that enable physicians, surgeons, and personal care practitioners to treat selected cosmetic and medical conditions using lasers, aesthetic laser systems, and other advanced technologies. Founded near Boston in 1970, the company markets and services its products in 86 countries from offices and distributors in the United States, Europe, Japan, China and other Asian locations. Candela established the aesthetic laser market 20 years ago, and currently has an installed base of over 14,000 systems worldwide. Visit Candela on the Web at http://www.candelalaser.com.

Safe Harbor Statement: Except for the historical information contained herein, this news release contains forward-looking statements that constitute Candela Corporation’s current intentions, hopes, beliefs, expectations or predictions of the future, which are therefore inherently subject to risks and uncertainties. These statements include declarations regarding our management’s beliefs and current expectations. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of such terms or other comparable terminology. These forward-looking statements are subject to inherent risks and uncertainties in predicting future results and conditions that could cause the actual results to differ materially from those projected in these forward-looking statements. The risks and uncertainties that may affect forward-looking statements include, among others: our ability to successfully implement cost reductions and reduce the size of our workforce, the pendency of re-examinations of the ‘844 Patent and the ‘568 Patent before the PTO, our alleged infringement of the ‘844 Patent and the ‘568 Patent, the validity of the ‘844 Patent and the ‘568 Patent, our expected legal expenses, our ability to remain independent, the expected recovery of our industry, our future revenue, gross margin, expense levels and earnings, our growth prospects, market acceptance of our products, the strength of our distribution channels, our ability to add new products, our ability to expand regulatory approvals and the liquidity of our common stock, the cancellation or deferral of customer orders, the risk of a material adverse judgment or increased litigation-related expenses in pending litigation matters, dependence on a small number of strategic distribution relationships, difficulties in the timely development and market acceptance of new products, unanticipated increases in expenses, market developments that vary from the current public expectations concerning the growth of the laser industry, increased competitive pressures, changes in economic conditions, or difficulties in obtaining timely regulatory approvals. Further information on factors that could affect Candela's performance is included in Candela's periodic reports filed with the SEC. Candela cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Candela expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any such statements to reflect any change in Candela's expectations or any change in events, conditions or circumstances on which any such statement is based.

CANDELA CORPORATION Unaudited Condensed Consolidated Balance Sheets (in thousands)       June 27, June 28, 2009 2008 Assets   Current assets: Cash and cash equivalents $ 25,707 $ 21,059 Marketable securities 3,100 12,131 Accounts receivable, net 34,109 43,320 Notes receivable 382 728 Inventories, net 27,572 33,141 Other current assets   6,542     9,043     Total current assets 97,412 119,422   Property and equipment, net 3,469 4,027   Long-term investments - 3,512 Other assets   22,289     31,134     Total assets $ 123,170   $ 158,095       Liabilities and Stockholders' Equity   Current liabilities: Accounts payable $ 11,887 $ 15,917 Accrued payroll and related expenses 4,947 4,680 Accrued warranty 4,953 5,373 Other accrued liabilities 6,476 10,176 Current liabilities of discontinued operations 865 1,200 Deferred income   11,863     13,614     Total current liabilities 40,991 50,960   Other long-term liabilities 4,735 7,346   Stockholders' equity: Common stock 262 261 Less: Treasury stock (24,855 ) (24,855 ) Additional paid-in capital 76,111 73,174 Accumulated earnings 23,306 45,588 Accumulated other comprehensive income   2,620     5,621     Total stockholders' equity   77,444     99,789     Total liabilities and stockholders' equity $ 123,170   $ 158,095   CANDELA CORPORATION Unaudited Condensed Consolidated Statements of Income (Loss) (in thousands, except per share data)           For the three-months ended For the twelve-months ended June 27, June 28, June 27, June 28, 2009 2008 2009 2008   Revenue $ 31,393 $ 37,408 $ 116,580 $ 146,617 Cost of sales   19,395     22,247     72,019     81,104     Gross profit 11,998 15,161 44,561 65,513   Operating expenses: Selling, general and administrative 10,344 $ 17,884 51,514 68,075 Research and development   2,146     2,467     10,555     10,104     Total operating expenses   12,490     20,351     62,069     78,179     Loss from operations (492 ) (5,190 ) (17,508 ) (12,666 )   Other income (expense): Interest income 86 298 511 1,628 Other income (expense)   276     14     (361 )   (1,841 )   Total other income (expense)   362     312     150     (213 )   Loss from continuing operations before income taxes (130 ) (4,878 ) (17,358 ) (12,879 )   Benefit from income taxes   (510 )   (2,619 )   (6,769 )   (5,947 )   Income (loss) from continuing operations 380 (2,259 ) (10,589 ) (6,932 )   Income (loss) from discontinued operations, net of income taxes   6,758     (393 )   (11,693 )   (2,139 )   Net income (loss) $ 7,138   $ (2,652 ) $ (22,282 ) $ (9,071 )   Net income (loss) per share of common stock:   Basic Income (loss) from continuing operations $ 0.02 $ (0.10 ) $ (0.47 ) $ (0.31 ) Income (loss) from discontinued operations   0.30     (0.02 )   (0.51 )   (0.09 ) Net income (loss) $ 0.32   $ (0.12 ) $ (0.98 ) $ (0.40 )   Diluted Income (loss) from continuing operations $ 0.02 $ (0.10 ) $ (0.47 ) $ (0.31 ) Income (loss) from discontinued operations   0.29     (0.02 )   (0.51 )   (0.09 ) Net income (loss) $ 0.31   $ (0.12 ) $ (0.98 ) $ (0.40 )   Weighted average shares outstanding: Basic   22,726     22,673     22,714     22,725     Diluted   22,989     22,673     22,714     22,725