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Candela Corporation’s (CLZR) CEO Sees Return to Profitability

Candela Corporation (NASDAQ: CLZR), a manufacturer and distributor of medical lasers and cryosurgical systems, recently reported its financial results for the fourth fiscal quarter and fiscal year ended June 28, 2008. Shares of Candela Corporation posted modest gains earlier this week despite the announcement of a 3.1 percent decrease in revenue to $37.8 million in the fiscal fourth quarter of 2008, compared with $39.0 million in the fiscal fourth quarter of 2007.

Candela Corporation reported a net loss of $2.7 million, or $0.12 per share, for the fourth fiscal quarter versus a net loss of just $727,000, or $0.03 per share, in the corresponding period last year. For the fiscal year, total revenues were stable at $148.2 million, essentially consistent with last year; however, gross profit margin dropped to 45.1 percent from 50.5 percent in the prior year. The company reported a fiscal year-end net loss of $9.1 million, or $0.40 per share, for 2008, compared with net income of $6.3 million, or $0.27 per share, last year.

Gerard E. Puorro, the president and chief executive officer of Candela Corporation, commented on the company’s financials during a recent conference call. He acknowledged that the company had a disappointing fourth quarter and fiscal 2008. Although he expects the company to post a loss in the first quarter of fiscal 2009 and more than likely break even during the second quarter, Mr. Puorro expects a meaningful return to profitability in the third and fourth quarters of fiscal year 2009.

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