Syneron Medical (NASDAQ:ELOS) reported net income of $2.5 million and EPS of $0.07 in the second quarter of 2014, compared to net income of $3 million, or $0.08 per share in the second quarter of 2013. Revenue in the quarter came in at $64.6 million, up 6.1% year-over-year and 13.7% sequentially. The financial result remained impressive, driven by growth in the North American, EMEA and Asia Pacific markets.
Syneron's operating income in the quarter came in at $3.2 million, down from $3.4 million in the second quarter of the previous year, primarily due to higher sales and marketing expenses related to the significant expansion of the company's North American sales force. Increase in operating expenses from CoolTouch following its acquisition in March 2014 also resulted in reduced operating income. Amit Meridor, CEO of Syneron, said, "We continue to make excellent progress with other strategic initiatives, including the significant expansion of our sales force and the development of our dedicated body shaping team, the integration of CoolTouch and the advancement of our new product pipeline."
In my original article I mentioned that Syneron could be an ideal vehicle to cash in on the booming medical aesthetics market with 28% worldwide market share. After the second quarter financial results, I continue to remain bullish on ELOS. I mentioned in the article that the fat reduction and body contouring markets have enormous growth potential for the company and if cleared by the FDA, Syneron's UltraShape could be a significant addition to the company's body contouring product portfolio. I believe that the FDA approval of UltraShape in the second quarter has remained a critical milestone in building Syneron's leadership position in the high growth body contouring market. I'd recommend buying ELOS at the current price as a long-term investment.
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