Delaware
|
000-50644
|
77-0492262
|
(State or other jurisdiction of incorporation or organization)
|
(Commission File Number)
|
(I.R.S. Employer Identification Number)
|
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
(d)
|
Exhibits.
|
Exhibit No. | Description |
99.1 | Press Release of Cutera, Inc. dated as of February 11, 2014. |
|
CUTERA, INC.
|
|
|
|
|
Date: February 11, 2014
|
/s/ KEVIN P. CONNORS
|
|
|
Kevin P. Connors
|
|
|
President and Chief Executive Officer
|
·
|
Revenue was $22.2 million and gross margin improved to 59% − reflecting the realization of cost reductions and improved margin contribution from our recently launched products.
|
·
|
Net loss was $278,000, or $0.02 per diluted share, which included the previously announced non-recurring consulting services charge of $800,000 and non-cash stock-based compensation, amortization and depreciation charges of $1.1 million.
|
·
|
Cash generated by operations was $2.9 million. As of December 31, 2013, we had $83.1 million in cash and investments following the $10 million of cash used for stock repurchases in 2013.
|
·
|
We received FDA 510(k) clearance for our new hair removal product and we completed a FDA 510(k) submission with clinical data for our picosecond product for the treatment of benign pigmented lesions and tattoo removal.
|
|
December 31,
|
September 30,
|
December 31,
|
|||||||||
|
2013
|
2013
|
2012
|
|||||||||
Assets
|
||||||||||||
Current assets:
|
||||||||||||
Cash and cash equivalents
|
$
|
16,242
|
$
|
15,160
|
$
|
23,546
|
||||||
Marketable investments
|
66,831
|
67,121
|
62,026
|
|||||||||
Accounts receivable, net
|
9,679
|
7,494
|
8,841
|
|||||||||
Inventories
|
9,006
|
10,421
|
11,114
|
|||||||||
Deferred tax asset
|
31
|
38
|
40
|
|||||||||
Other current assets and prepaid expenses
|
1,507
|
1,583
|
1,439
|
|||||||||
Total current assets
|
103,296
|
101,817
|
107,006
|
|||||||||
|
||||||||||||
Property and equipment, net
|
1,362
|
1,461
|
933
|
|||||||||
Deferred tax asset, net of current portion
|
329
|
503
|
553
|
|||||||||
Intangibles, net
|
2,019
|
2,044
|
2,566
|
|||||||||
Goodwill
|
1,339
|
1,339
|
1,339
|
|||||||||
Other long-term assets
|
324
|
348
|
397
|
|||||||||
Total assets
|
$
|
108,669
|
$
|
107,512
|
$
|
112,794
|
||||||
|
||||||||||||
Liabilities and Stockholders' Equity
|
||||||||||||
Current liabilities:
|
||||||||||||
Accounts payable
|
$
|
1,820
|
$
|
2,100
|
$
|
2,107
|
||||||
Accrued liabilities
|
9,328
|
7,784
|
9,493
|
|||||||||
Deferred revenue
|
7,494
|
7,195
|
6,618
|
|||||||||
Total current liabilities
|
18,642
|
17,079
|
18,218
|
|||||||||
|
||||||||||||
Deferred revenue, net of current portion
|
4,340
|
3,395
|
2,102
|
|||||||||
Income tax liability
|
108
|
69
|
412
|
|||||||||
Other long-term liabilities
|
1,314
|
1,353
|
1,288
|
|||||||||
Total liabilities
|
24,404
|
21,896
|
22,020
|
|||||||||
|
||||||||||||
Stockholders’ equity:
|
||||||||||||
Common stock
|
14
|
14
|
14
|
|||||||||
Additional paid-in capital
|
98,820
|
99,899
|
100,552
|
|||||||||
Accumulated deficit
|
(14,620
|
)
|
(14,342
|
)
|
(9,873
|
)
|
||||||
Accumulated other comprehensive income
|
51
|
45
|
81
|
|||||||||
Total stockholders' equity
|
84,265
|
85,616
|
90,774
|
|||||||||
Total liabilities and stockholders' equity
|
$
|
108,669
|
$
|
107,512
|
$
|
112,794
|
|
Three Months Ended
|
|||||||||||
|
December 31,
|
September 30,
|
December 31,
|
|||||||||
|
2013
|
2013
|
2012
|
|||||||||
Net revenue
|
$
|
22,239
|
$
|
16,828
|
$
|
22,533
|
||||||
Cost of revenue
|
9,202
|
7,651
|
9,790
|
|||||||||
Gross profit
|
13,037
|
9,177
|
12,743
|
|||||||||
|
||||||||||||
Operating expenses:
|
||||||||||||
Sales and marketing
|
7,804
|
6,554
|
7,101
|
|||||||||
Research and development
|
2,438
|
2,440
|
2,122
|
|||||||||
General and administrative
|
3,135
|
2,160
|
2,452
|
|||||||||
Total operating expenses
|
13,377
|
11,154
|
11,675
|
|||||||||
Income (loss) from operations
|
(340
|
)
|
(1,977
|
)
|
1,068
|
|||||||
Interest and other income, net
|
105
|
140
|
105
|
|||||||||
Income (loss) before income taxes
|
(235
|
)
|
(1,837
|
)
|
1,173
|
|||||||
Provision (benefit) for income taxes
|
43
|
(169
|
)
|
96
|
||||||||
Net income (loss)
|
$
|
(278
|
)
|
$
|
(1,668
|
)
|
$
|
1,077
|
||||
|
||||||||||||
Net income (loss) per share:
|
||||||||||||
Basic
|
$
|
(0.02
|
)
|
$
|
(0.11
|
)
|
$
|
0.08
|
||||
|
||||||||||||
Diluted
|
$
|
(0.02
|
)
|
$
|
(0.11
|
)
|
$
|
0.08
|
||||
|
||||||||||||
Weighted-average number of shares used in per share calculations:
|
||||||||||||
Basic
|
14,016
|
14,541
|
14,173
|
|||||||||
|
||||||||||||
Diluted
|
14,016
|
14,541
|
14,272
|
|
Three Months Ended
|
|||||||||||
|
December 31,
|
September 30,
|
December 31,
|
|||||||||
|
2013
|
2013
|
2012
|
|||||||||
Cash flows from operating activities:
|
||||||||||||
Net income (loss)
|
$
|
(278
|
)
|
$
|
(1,668
|
)
|
$
|
1,077
|
||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
||||||||||||
Stock-based compensation
|
740
|
748
|
826
|
|||||||||
Tax benefit from stock-based compensation
|
—
|
—
|
6
|
|||||||||
Excess tax benefit related to stock-based compensation
|
—
|
—
|
(6
|
)
|
||||||||
Depreciation and amortization
|
331
|
327
|
420
|
|||||||||
Other
|
200
|
(7
|
)
|
26
|
||||||||
Changes in assets and liabilities:
|
||||||||||||
Accounts receivable
|
(2,204
|
)
|
48
|
(992
|
)
|
|||||||
Inventories
|
1,415
|
97
|
1,363
|
|||||||||
Other current assets and prepaid expenses
|
133
|
(30
|
)
|
142
|
||||||||
Other long-term assets
|
24
|
-
|
120
|
|||||||||
Accounts payable
|
(280
|
)
|
(330
|
)
|
(190
|
)
|
||||||
Accrued liabilities
|
1,506
|
75
|
(14
|
)
|
||||||||
Other long-term liabilities
|
(1
|
)
|
8
|
(38
|
)
|
|||||||
Deferred revenue
|
1,244
|
753
|
1,010
|
|||||||||
Income tax liability
|
39
|
(256
|
)
|
(59
|
)
|
|||||||
Net cash provided by (used in) operating activities
|
2,869
|
(235
|
)
|
3,691
|
||||||||
|
||||||||||||
Cash flows from investing activities:
|
||||||||||||
Acquisition of property, equipment and software
|
(115
|
)
|
(276
|
)
|
(158
|
)
|
||||||
Disposal of property and equipment
|
63
|
—
|
—
|
|||||||||
Acquisition of intangible
|
(155
|
)
|
—
|
—
|
||||||||
Proceeds from sales of marketable investments
|
3,470
|
7,133
|
5,203
|
|||||||||
Proceeds from maturities of marketable investments
|
9,715
|
10,115
|
8,564
|
|||||||||
Purchase of marketable investments
|
(12,946
|
)
|
(6,658
|
)
|
(18,949
|
)
|
||||||
Net cash provided by (used in) investing activities
|
32
|
10,314
|
(5,340
|
)
|
||||||||
|
||||||||||||
Cash flows from financing activities:
|
||||||||||||
Repurchases of common stock
|
(2,407
|
)
|
(7,623
|
)
|
—
|
|||||||
Proceeds from exercise of stock options and employee stock purchase plan
|
588
|
819
|
855
|
|||||||||
Excess tax benefit related to stock-based compensation
|
—
|
—
|
6
|
|||||||||
Net cash provided by (used in) financing activities
|
(1,819
|
)
|
(6,804
|
)
|
861
|
|||||||
|
||||||||||||
Net increase (decrease) in cash and cash equivalents
|
1,082
|
3,275
|
(788
|
)
|
||||||||
Cash and cash equivalents at beginning of period
|
15,160
|
11,885
|
24,334
|
|||||||||
Cash and cash equivalents at end of period
|
$
|
16,242
|
$
|
15,160
|
$
|
23,546
|
|
Three Months Ended
|
% Change
|
||||||||||||||||||
|
Q4
|
Q3
|
Q4
|
Q4 '13 Vs.
|
Q4 '13 Vs
|
|||||||||||||||
|
2013
|
2013
|
2012
|
Q3 '13
|
Q4 '12
|
|||||||||||||||
Revenue By Geography:
|
||||||||||||||||||||
United States
|
$
|
10,338
|
$
|
7,001
|
$
|
10,008
|
+48
|
%
|
+3
|
%
|
||||||||||
International
|
11,901
|
9,827
|
12,525
|
+21
|
%
|
-5
|
%
|
|||||||||||||
|
$
|
22,239
|
$
|
16,828
|
$
|
22,533
|
+32
|
%
|
-1
|
%
|
||||||||||
International as a percentage of total revenue
|
54
|
%
|
58
|
%
|
56
|
%
|
||||||||||||||
Revenue By Product Category:
|
||||||||||||||||||||
Products and upgrades
|
$
|
15,703
|
$
|
10,440
|
$
|
15,326
|
+50
|
%
|
+2
|
%
|
||||||||||
Service
|
4,390
|
4,348
|
4,614
|
+1
|
%
|
-5
|
%
|
|||||||||||||
Titan and truSculpt hand piece refills
|
1,044
|
927
|
1,235
|
+13
|
%
|
-15
|
%
|
|||||||||||||
Dermal fillers and cosmeceuticals
|
1,102
|
1,113
|
1,358
|
-1
|
%
|
-19
|
%
|
|||||||||||||
|
$
|
22,239
|
$
|
16,828
|
$
|
22,533
|
+32
|
%
|
-1
|
%
|
|
Three Months Ended
|
|||||||||||
|
Q4
|
Q3
|
Q4
|
|||||||||
|
2013
|
2013
|
2012
|
|||||||||
Pre-tax Stock-Based Compensation Expense:
|
||||||||||||
Cost of revenue
|
$
|
154
|
$
|
159
|
$
|
178
|
||||||
Sales and marketing
|
165
|
182
|
181
|
|||||||||
Research and development
|
104
|
103
|
95
|
|||||||||
General and administrative
|
317
|
304
|
372
|
|||||||||
|
$
|
740
|
$
|
748
|
$
|
826
|