January 15, 2009 / 2:16 PM / 11 years ago

UPDATE 2-Cynosure sees Q4 loss; shares down

(adds analyst comments)

BANGALORE, Jan 15 (Reuters) - Cynosure Inc CYNO.O, a maker of aesthetic laser devices, forecast a quarterly loss after several customers delayed purchases, sending shares down over 15 percent.

The company also forecast quarterly revenue that was about 33 percent below analysts’ average estimates. [ID:nWNAB0199]

“The fourth-quarter preliminary results were disappointing and highlight the challenges facing the sector,” Leerink Swann analyst Gary Nachman said.

The revenue shortfall shows equipment sales are slowing faster than expected, Nachman said in a note to clients.

In a statement, the company said it had reduced its workforce by 17 percent to about 285 employees at the end of 2008 and was taking further steps to control costs.

Cynosure said it expects the workforce reduction and other cost-cutting measures to result in savings of about $8 million to $10 million for 2009.

The company expects to incur a charge of about $2.5 million during the fourth quarter, as several practitioners were unable to meet their payment obligations.

Shares of the company were trading down $1.30 at $7.31 in midday trade on Nasdaq. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Saumyadeb Chakrabarty)

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