Solta Medical, Inc. (NASDAQ: SLTM), a global leader in the medical aesthetics market, today announced results for the fourth quarter ended December 31, 2012. Revenue for the fourth quarter was $39.8 million, an increase of $6.6 million, or 20%, as compared to the fourth quarter of 2011. Revenue from Liposonix, the Company's non-invasive fat reduction system, was $7.6 million, which was generated from shipments of 90 systems and associated consumables. For the full year 2012, revenue of $144.5 million grew year-over-year by $28.6 million or 25%.
"The fourth quarter provided a strong ending to a productive year for Solta," said Stephen J. Fanning, Chairman, President and CEO of Solta. "We completed the integration of the Liposonix acquisition ahead of plan and the first year of the Liposonix commercial launch exceeded our expectations. During the year, we shipped approximately 360 Liposonix systems, generating $32 million in revenue. We also generated double digit revenue growth from our Clear + Brilliant brand. We continued to execute well, extending our broad product portfolio through a large distribution network and focusing on recurring revenue. The increase in the gross margin, and our delivery of positive non-GAAP EBITDA in the fourth quarter and in every quarter over the past three years demonstrate the leverage in our business model. We also generated cash from operations of $1.4 million in the fourth quarter and $4.4 million for the full year ended 2012, and finished the year with $38 million in cash on the balance sheet."
Fourth Quarter Financial Highlights
Total product revenue from treatment tips and consumables for the quarter was $18.8 million, a year-over-year increase of $2.9 million or 18%, and represented 47% of total revenue. Revenue from North America and international markets rose year-over-year by 17% and 23%, respectively.
GAAP net loss for the quarter was $45,000 as compared to GAAP net income of $1.0 million reported for the fourth quarter of 2011. The prior year net income included the one-time release of a valuation allowance of $6.4 million to offset deferred tax liabilities generated from acquiring Liposonix. Non-GAAP net income for the quarter was $2.3 million, or $0.03 per diluted share, as compared to a non-GAAP net loss of $23,000 for same period last year. Non-GAAP adjusted EBITDA for the quarter was $4.0 million compared to $1.3 million for the same period last year.
The Company's GAAP results for the quarter include $1.8 million of amortization and other acquisition related charges, $1.0 million of non-cash stock based compensation charges, and a $0.5 million credit adjustment for the fair value reassessment of the expected earn out payments associated with the acquisition of Liposonix. The Company provides non-GAAP financial measures that exclude these charges and adjustments. A reconciliation of GAAP to non-GAAP results is provided in the tables included in this release.
Full Year 2012 Financial Results
Total product revenue from treatment tips and consumables for the year was $70.6 million, a year-over-year increase of $7.3 million or 11%, and represented 49% of total revenue. Revenue from North America and international markets rose year-over-year by 34% and 17%, respectively.
The GAAP net loss for the year was $38.0 million, or a loss of $0.59 per share, as compared to a net loss of $1.3 million, or a loss of $0.02 per share reported for the full year 2011. Non-GAAP net income for the full year was $6.1 million, or $0.09 per diluted share as compared to non-GAAP net income of $3.6 million, or $0.06 per diluted share reported for the full year 2011. Non-GAAP EBITDA for the full year 2012 was $12.0 million as compared to $7.5 million in the prior year.