Cynosure to Report First-Quarter 2009 Financial Results on Tuesday, May 5

WESTFORD, Mass., April 15 /PRNewswire-FirstCall/ -- Cynosure, Inc. (Nasdaq: CYNO), a leading developer and manufacturer of a broad array of light-based aesthetic treatment systems, today announced preliminary, unaudited financial results for the quarter ended March 31, 2009.

Reflecting continued softness in the aesthetic laser industry, Cynosure expects first-quarter 2009 revenues to be in the range of $14 million to $15 million, compared with revenues of $36.8 million in the first quarter of 2008. The company expects to report a GAAP net loss for the first quarter of 2009 of $3.8 million to $4.3 million, or $0.30 to $0.34 per share, compared with GAAP net income of $4.9 million, or $0.38 per diluted share, for the three months ended March 31, 2008.

"The global economic recession continued to negatively affect our business throughout the first quarter, which historically has been our weakest quarter of the year," said Cynosure President and Chief Executive Officer Michael Davin. "While we experienced pockets of order strength in the first quarter, particularly in March, overall aesthetic laser capital equipment spending was down significantly. We attribute this decline to the continued restrictive credit environment and general caution among aesthetic practitioners and consumers, who remain uncertain about the duration of this economic downturn."

"We are continuing to adjust our operating expenses in response to the current market conditions and reduced revenue levels," Davin said. "In recent weeks we have cut an additional 25 positions from our worldwide workforce. This reduction has been partially offset by the opening in February of our direct sales office in Korea and the associated hiring of 11 employees, bringing our current total worldwide headcount to 271 employees. In addition, we have continued to reduce our planned spending for various programs in 2009. Overall, we expect our cost-reduction initiatives this year to produce an annualized operating expense savings to Cynosure of approximately $14 million to $18 million, which exceeds the projected $8 million to $10 million in savings we forecasted earlier in the year."

"While the global recession has created some significant near- term hurdles for our industry, we remain committed to the steps we believe are central to our long-term success," Davin said. "Over the past several years, our emphasis on technology innovation, product development and strong distribution has enabled us to grow into one of the industry's largest companies.