Fiscal 2009 Outlook:
Looking ahead for fiscal 2009, the company expects revenues to be between $62-64 million, a net loss in the range of $21-$24 million or $0.25 to $0.27 per share, and operating expenses in the range of $74-76 million.
“Our revenue for the third quarter was consistent with our guidance and in line with expectations, and we have executed our cost reductions in accordance with the plan announced in November 2008,” said Steve Basta, chief executive officer of BioForm Medical. “The reception by physicians to our two new product offerings, the 1.5cc RADIESSE Volume Advantage and the 0.8cc RADIESSE Moderate Fill, has been positive. We are enthusiastic about the impact this strategy may have on filler usage in physician offices. The repositioning of RADIESSE into two product forms at two separate price points, one for Moderate Fill and one for Volume Advantage, is a key part of our overall market share gain strategy.”
Net sales for the nine months ended March 31, 2009 were $47.3 million as against $50.8 million for the nine months ended March 31, 2008. The net loss was $19.2 million for the nine months ended March 31, 2009 as against a net loss of $9.5 million for the nine months ended March 31, 2008. The net loss for the nine months ended March 31, 2009 includes non-recurring charges related to our cost reduction plan announced in November 2008.
Operating Results:
Domestic sales were $12.2 million for the quarter ended March 31, 2009 as against $14.0 million for the quarter ended March 31, 2008, a decline of $1.8 million or 12.9%. International sales were $2.8 million for the quarter ended March 31, 2009 as against $2.9 million for the quarter ended March 31, 2008, a decline of $0.1 million or 3.4%. Gross profit was $12.1 million for the quarter ended March 31, 2009 as against $13.7 million for the quarter ended March 31, 2008. As a percentage of sales, gross profit for the quarter ended March 31, 2009 was 80.5% as against 80.9% for the quarter ended March 31, 2008.
Operating expenses were $15.5 million for the quarter ended March 31, 2009 as against $19.2 million for the quarter ended March 31, 2008. The decrease in operating expenses is directly a result of the company’s cost savings initiatives implemented in November 2008.
Operating Expense Reduction Plan Announced in November 2008:
In November 2008, BioForm Medical announced the implementation of a cost reduction plan. The company has implemented these reductions as evidenced by the decline in operating expenses from about $20-22 million in each of the first two quarters of fiscal 2009 to an operating expense level of $15.5 million in the third quarter of fiscal 2009. The company is targeting an operating expense annual run-rate of about $64-68 million for fiscal 2010.
As earlier announced, BioForm Medical’s priority is to maintain a full-strength RADIESSE dermal filler field sales and clinical training organization. BioForm Medical has more than 100 employees in the field in the US, including sales representatives and clinical trainers, and more than 20 employees in the field in Europe. The company is also maintaining several key product development programs such as RADIESSE dermal filler with lidocaine, certain next-generation RADIESSE dermal filler initiatives, Polidocanol for sclerotherapy, and development of RELAXED EXPRESSIONS(tm) treatment protocols.
