Cutera Inc. stocks falls on revised ’07 guidance
Cutera Inc.’s (Nasdaq: CUTR) stock lost nearly a quarter of its value in after-hours trading today after the Brisbane, Calif., provider of laser and other light-based aesthetic systems lowered its 2007 guidance.
Shares were down by $7.14, or 24.4%, to $22.10 after the closing bell. The stock has traded between $16.35 (on May 31) and $38.80 (on April 4) in the past year. More than 779,000 shares had changed hands, compared with an average three-month daily volume of 458,000 shares.
Looking ahead, the firm predicted second quarter non-GAAP earnings of $0.14 on revenue of $23 million, and for the year, non-GAAP earnings of $1.07 on revenue of $110 million.
In January, the company had forecast 2007 earnings of $1.30 a share, or $1.57 on a non-GAAP basis, on revenue of $126 million. Six analysts polled by Thomson First Call were expecting earnings per share of $1.33 on revenue of $115.5 million.
For the first quarter ended March 31, Cutera reported non-GAAP diluted earnings per share of $0.18 on revenue of $23.3 million, compared with $0.13 on revenue of $23.3 million in the 2006 first quarter.
GAAP net income, including stock-based compensation expenses, totaled $0.12. Six analysts polled by Thomson First Call had estimated earnings per share of $0.19 on revenue of $23 million.
Cutera attributed the “poor performance” of its North American sales team to the unsuccessful implementation of the firm’s junior sales program, unusually high sales employee turnover, and disappointing results from certain national accounts.
On April 5, Cutera’s stock took a hit (See “Cutera shares plunge on revised Q1 guidance,” April 5, 2007) after the firm lowered its earnings and revenue guidance for the first quarter.
Founded in 1998, Cutera launched its first commercial product, the CoolGlideCV, in March 2000. Every year since, it says it has introduced at least one new product to the marketplace.
Most recently, Cutera received Food and Drug Administration clearance for Pearl, its new skin-treatment laser to treat wrinkles, on March 28.
