Reliant Technologies, Inc. has filed to come public via an IPO with an undetermined ticker and undetermined exchange. For filing purposes, it lists that it will sell up to $95 million in common stock. Piper Jaffray and Banc of America are tapped as lead underwriters with Jefferies and RBC Capital listed as co-managers. This looks like it is that ‘pending IPO in the wings’ that has been hurting other laser operators like Palomar Medical Technologies (NASDAQ:PMTI), Syneron Medical Ltd. (ELOS), and Candela Corp. (CLZR).
The company’s main product is the Fraxel Family, a unique laser and medical device company that designs, develops and markets non-surgical therapies for the treatment of various skin conditions.Fraxel laser systems have created a new class of skin rejuvenation therapy and provide patients with consistent and effective treatments that can be delivered quickly without significant pain or downtime. Its Fraxel laser systems are used by physicians to treat a broad range of skin conditions that include wrinkles and fine lines, acne and surgical scars, pigmentation, sun damage, uneven tone and texture and melasma. Patients undergo treatments in order to reverse the signs of aging, achieve healthier, younger looking skin and improve their overall appearance.
Following the launch of its first Fraxel laser system in 2004, Reliant’s revenues have grown from $4.5 million in 2004 to $57.5 million in 2006, and to $35.3 million for the first six months of 2007. Reliant intends to expand the customer base to include general practitioners, gynecologists, ophthalmologists and others. As of June 30, 2007, it has sold approximately 1,200 Fraxel laser systems worldwide. In addition the Fraxel ‘re:store system’ is targeted to provide treatments for acne and surgical scars, deeper lines and wrinkles and actinic keratoses; and it plans to launch the Fraxel ‘re:pair system’ for more sever conditions in 2008.
Jon C. Ogg
August 16, 2007
Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.
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Syneron Medical Ltd. (ELOS) is generally a thin volume stock, although it may see more active trading as the opening bell gets closer. Shares are indicated lower on an earnings warning. It sees $0.11 to $0.13 EPS and sees $29 to $30 million in revenues, while First Call estimates were $0.27 EPS and almost $35.8+ million in revenues. The company did not offer any reasoning in its release although you might easily surmise that cosmetic laser and light treatments for skin treatments must be more economically sensitive than razors. The company did want to convey its "value" by noting it has a cash position of $220 million with no debt, and that its shareholder equity is $255 to $256 million. Shares are indicated down about 12% at $9.96 early this morning, and that would be a new 52-week low under the $10.00 to $19.33 range over the last 52-weeks.
