Solta Medical Backs 4Q View - Analyst Blog

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Aesthetic laser treatments provider Solta Medical ( SLTM ) has retained its guidance for fourth-quarter 2011. The company continues to expect sales for the quarter in the band of $32 million to $34 million. Revenue target for the fiscal remains in the range of $115 million to $117 million. The current corresponding Zacks Consensus Estimates for the fourth quarter and fiscal 2011 are $33 million and $116 million, respectively.

The company has reiterated its full year adjusted gross margin forecast of 66%-68%. Moreover, Solta remains optimistic to generate positive adjusted EBITDA for both the fourth quarter and fiscal 2011.

The company also noted that it expects to end fiscal 2011 with cash of roughly $17 million. Solta plans to unveil its fourth quarter and full year results on February 13.

California-based Solta Medical develops and markets devices for aesthetic applications and is a global leader in the medical aesthetics market. The company derives its revenues primarily from the sale of its systems, treatment tips and other consumables.

Solta's leading brands for skin tightening and skin resurfacing are Thermage (a non-invasive radiofrequency procedure for tightening and contouring the skin) and Fraxel (a novel class of skin rejuvenation therapy).

Solta, in November 2011, wrapped up its acquisition of all outstanding shares of Medicis Technologies Corporation, a unit of specialty pharmaceutical company Medicis Pharmaceutical Corporation ( MRX ), under a deal worth roughly $35 million. The company has drawn roughly $25 million from credit facilities with Silicon Valley Bank to fund the acquisition.

The acquisition offers Solta a complementary technology and enables it to foray into the lucrative and growing non-invasive fat reduction market. It provides the company with Medicis' LIPOSONIX system, which uses advanced non-invasive ultrasound energy to reduce abdominal fat.

Solta announced, in October 2011, that Medicis Technologies has won the U.S. approval for the second-generation LIPOSONIX system for non-invasive waist circumference reduction. The company expects modest contribution from the LIPOSONIX systems in the fourth quarter as it ramps up production of the second generation system.


 
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SOLTA MEDICAL ( SLTM ): Free Stock Analysis Report
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: MRX , SLTM

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