April 15, 2009 / 1:53 PM / 9 years ago

UPDATE 2-Cynosure shares fall on Q1 loss forecast

* Sees Q1 GAAP loss/shr $0.30 to $0.34

* Sees Q1 rev $14 mln to $15 mln

* Shares down more than 14 pct (Adds analyst’s comments, details, updates share movement)

By Anand Basu

BANGALORE, April 15 (Reuters) - Aesthetic-laser device maker Cynosure Inc CYNO.O forecast a quarterly loss, due to weak capital equipment spending by its customers, sending the company’s shares down more than 14 percent.

“I don’t think this is something unique to Cynosure, we are going to see some ugly numbers across the board for sure, in that segment in aesthetic industry,” Jefferies and Co analyst Peter Bye said.

Aesthetic-laser device makers, including Cutera Inc (CUTR.O) and Palomar Medical Technologies Inc PMTI.O, have seen a fall in product revenue amidst a slowing U.S. economy where consumers are hesitating to spend on discretionary services.

Cynosure also said it cut 25 jobs recently, in addition to reducing its worldwide headcount by 17 percent last year. It hired 11 employees in February for its direct sales office in Korea, bringing its current total worldwide headcount to 271 employees.

The company, which is reducing its spending on various programs in 2009, now expects cost-cutting measures to result in annual savings of about $14 million to $18 million, up from its prior estimate of $8 million to $10 million.

Cynosure said it expects to report a net loss of $3.8 million to $4.3 million, including items, for the first quarter, compared with a net income of $4.9 million a year ago.

Bye, who was not surprised by the company’s outlook, said, “I don’t see a turnaround for Cynosure too quickly.”

Shares of the company had touched a session-low of $5.57 before paring some losses to trade down more than 7 percent at $6.02 mid-day on Nasdaq.

For the alerts double-click [ID:nWNAB3591] . (Reporting by Anand Basu in Bangalore; Editing by Aradhana Aravindan)

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