Thermage reiterates FY07 revenue guidance
Thermage, Inc. (Nasdaq: THRM) Thursday reiterated revenue guidance of between $65 million and $68 million, which would be a 20% to 25% growth rate, for the fiscal year 2007 ending Dec. 31.
“We’re very comfortable with those numbers,” CFO Laureen DeBuono told investors at the Bank of America 2007 Health Care Conference in Las Vegas
On May 1, the Hayward, Calif.-based company reported revenues of $15.2 million for the first quarter ended March 31, up from $12.4 million a year earlier. The company reported first-quarter net income of $0.1 million, or breakeven earnings per share, up from a loss of $2.8 million, or $0.68 a share, in the first three months of 2006.
“Thermage is the leader in the fastest growing global aesthetic market segment,” DeBuono said during the presentation. “We are the industry’s first and only disposable business model.”
The company, founded in 1995, manufactures and markets devices that tighten, contour and rejuvenate skin. In her presentation, DeBuono emphasized the company’s intellectual property - it holds 99 patents, 29 of which are in the United States – and FDA approval.
About 30% of the company’s devices are installed “non-core” offices, or physicians who are not dermatologists or plastic surgeons, she said. “There’s a huge growth opportunity” in the non-core market, she said.
DeBuono said three additional applications are going to be released for the company’s single-use wrinkle treatment ThermaTips products, which represent about 70% of the Thermage’s revenue. The company also plans to release a tip for use on cellulite soon, she said.
A lot of celebrities, including “Ocean’s Thirteen” actress Ellen Barkin, are Thermage users, DeBuono said.
Also during the presentation, DeBuono said:
• Thermage has a 99.8% safety rate, which is the highest in the aesthetic industry
• The company’s Asian business, which represents 25% of revenue, is “extremely strong”
• It takes 21 procedures for physicians to recover the investment in a Thermage device, which is a faster return on investment than laser-based devices
• Over the last three years, the company has not seen two possible complications that were anticipated: a slight topical burn, or fat hydrolysis caused by radio frequency heat
