Fourth Quarter Highlights
PLEASANTON, Calif., March 6, 2012 (GLOBE NEWSWIRE) -- ZELTIQ Aesthetics, Inc. (Nasdaq:ZLTQ - News) today announced financial results for the fourth quarter and full year ended December 31, 2011, and provided guidance for 2012.
President and Chief Executive Officer Gordie Nye said, "Our fourth quarter results complete an exciting year for ZELTIQ. We achieved 168% revenue growth for the full year 2011 and expanded our installed base to 967 systems worldwide, demonstrating strong demand for CoolSculpting. Our sales force and S.T.E.P. specialists are committed to enhancing each practice's branding and marketing to drive utilization. The robust growth observed in consumer interest and the resulting utilization of our installed base is reflected in our year-over-year and sequential growth of procedure fees during the fourth quarter. We will continue to focus on expanding our installed base to achieve critical mass while driving procedure fee growth as a percentage of total revenues to enhance gross margins. With the completion of our October 2011 IPO, we are now strongly positioned to execute our sales, marketing, and pipeline strategies, including the initiation of direct to consumer advertising to achieve category-pioneering and industry-leading growth."
"In February of 2012, we launched our consumer advertising campaign 'Let's Get Naked' in three initial markets: Austin, Charlotte and Phoenix. With its emphasis on CoolSculpting's positive effect on one's self confidence, 'Let's Get Naked' celebrates our technology's unique aspects with an impactful call-to-action. As we roll out the campaign on a broader basis in the fall of 2012, we expect it to generate strong brand awareness and loyalty, leading to more rapid growth in consumer interest and further utilization of our installed base. We continue to see early evidence that cold-induced, non-surgical fat layer reduction has broad appeal to the large aesthetic neophyte population and expect the power of this advertising campaign to help establish the CoolSculpting brand around the world."
"During the fourth quarter, we initiated our transition to direct sales in certain international markets, which delayed certain system sales in these markets. Additionally, in our NAF region, we observed a slower than normal end of year sales cycle due to a number of unanticipated product launches and trial offers that competed for physician capital equipment dollars. We expect these issues to work through the sales channel over time, and we have strengthened the focus and organization of our sales team to help neutralize these effects."
Fourth Quarter Financial Review
Total net revenues for the fourth quarter of 2011 were $18.8 million, consisting of $11.3 million of systems revenues and $7.5 million of procedure fees revenues. This compares to total net revenues of $12.4 million, consisting of $10.1 million of systems revenues and $2.3 million of procedure fees revenues in the fourth quarter of 2010. Third quarter 2011 revenues were $17.7 million, consisting of $13.2 million of systems revenues and $4.5 million of procedure fees revenues. Cycles shipped increased to 60,250 in the fourth quarter of 2011, compared to 23,357 in the fourth quarter of 2010 and 44,619 in the third quarter of 2011, driving procedure fees revenue growth on both a year-over-year and sequential basis.
Gross profit was $12.3 million, or 65.6% of revenues, in the fourth quarter of 2011, compared to gross profit of $6.5 million, or 52.6% of revenues in the fourth quarter of 2010. Third quarter 2011 gross profit was $10.4 million, or 58.9% of revenues. Both year-over-year and sequential increases in gross profit were driven by an increase in procedure fees revenues as a percentage of total revenues, as well as a decrease in the per unit manufacturing cost of systems.
Operating expenses for the fourth quarter of 2011 were $17.3 million, compared to $8.4 million in the fourth quarter of 2010 and $13.2 million in the third quarter of 2011. Both year-over-year and sequential increases were primarily the result of growth of our North American direct sales force, costs to develop advertising assets, collateral for practice marketing initiatives, and increased research and development costs.
Net loss for the fourth quarter of 2011 was $5.4 million, compared to $2.0 million in the fourth quarter of 2010 and $2.9 million in the third quarter of 2011. Net loss attributable to common stockholders for the fourth quarter of 2011 was $0.22 per share, compared to $3.29 per share in the fourth quarter of 2010, and $3.17 per share in the third quarter of 2011.
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ZELTIQ Aesthetics Announces Fourth Quarter and Full Year 2011 Financial Results
