Cynosure revenue up 75% in Q4 after acquisition
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Cynosure Inc. is expanding its offices at the Westford Corporate Office Park to accommodate a larger workforce after it acquired Palomar Medical Technologies of Burlington last year.
Cynosure Inc., an cosmetic laser maker that’s expanding its headquarters in Westford, reported large revenue gains in its most recent quarter and for the year, following its acquisition of a Burlington competitor in 2013.
According to an earnings statement, Cynosure enjoyed revenue gains of 75 percent in the fourth quarter of 2013, which ended Dec. 31, generating $74.5 million in sales compared to $42.7 million a year earlier. And revenue for the full year was up 47 percent to $226 million.
Net income for the quarter was $7.3 million, up from $4 million a year ago, but the company posted a loss of $1.6 million for the year as expenses in 2013 were nearly double those in 2012. Last year, Cynosure paid $287 million to purchase Burlington-based Palomar Medical Technologies, in June 2013.
CEO says Palomar integration nearly complete
Cynosure President and CEO Michael Davin attributed the “robust” fourth quarter to growing demand for all products and across all geographic territories the company serves, which includes North America, Europe and Asia. But he said Cynosure’s purchase of Palomar was the driving force behind those successes. Davin said the two firms are almost completely integrated.
“Since June we have combined key functional areas … We are currently transitioning the Palomar product line to our contract manufacturing model. We expect this process, along with the expansion of our Westford headquarters to accommodate the Burlington workforce, to be completed by the end of the second quarter of this year,” Davin said, adding that “the cost and revenue synergies (the company) achieved in the fourth quarter begin to reflect the value we expect to realize from the Palomar acquisition over the long term.”
About 150 Palomar employees have moved or are moving to Cynosure’s corporate headquarters in the Westford Corporate Office Park, and the company is expanding its footprint there to accommodate the growth. This follows initial plans for Cynosure to move out of Westford and relocate to Burlington in a building formerly owned by Palomar. In the end, an attractive 13-year lease deal kept Cynosure in Westford.
Cynosure to receive $10M in settlement
Cynosure also announced it will receive $10 million and future royalty payments in a patent infringement settlement agreement with aesthetic laser company Tria Beauty Inc. Tria and Palomar had been engaged in patent infringement litigation, and the settlement ended the dispute. Cynosure said $4 million of the settlement was accounted for in the fourth quarter of 2013.
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