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Jerry Puorro -
Candela Corp. - President, CEO Well, in terms of cellulite, specifically as
it relates to just Candela, as you remember, we had pushed it out. We originally
said by the end of the calendar year, and we said -- we saw some slippage
there and pushed it into the earlier part of 2010. As part of the merger
activities, we're going to look at all of the product positioning and product
rationalization, and we have been for the past five weeks at various
integration teams. And there are a number of products that the Syneron folks
have related to body shaping, and so on. So we need to position our cellulite
product in that and, in due course, we'll be talking to people about the
positioning. There's an awful lot of shows coming up -- there's IMCAS in
January, and AAD in March, and ASLMS is in April, where we'll be telling
people more about how we position not only the products that are in the
market together but the products that are in each other's pipelines together.
Other than that, I don't want to talk about specificity of R&D pipelines
right now, okay? Anthony Vendetti - Maxim Group - Analyst Yes, that's fair,
that's fair. Can you talk, Jerry, just a little bit about -- since you said
you spent about five weeks in the integration process already -- can you talk
about how that's going, what you've learned in the integration process, and
is it ahead of schedule? Is it moving kind of as you expected? Any insights you
could share would be great. Jerry Puorro - Candela Corp. - President, CEO
Well, it is very, very positive. M&A transactions, historically, are
really, really hard to do and difficult, and I'm sure there are skeptics out
there, given that one firm is Israeli and the other firm is a US-based firm.
Shimon Eckhouse and I have been in this industry over two decades together.
We've known each other, and we're trying to -- and Lou Scafuri, as well, was
in the industry for years. So the leadership is trying to permeate down
through the organizations. The attitude of working together towards all the
same goals that we at the top have established or would like this to look
like in a couple of years, and we've put together a number of integration
teams for every single discipline, and they are working well together. In
fact, they are here in Massachusetts for two days this week for what we're
calling "Readiness Reports" by each of the teams to see how ready
they are for all of our timelines. I can share with you a little bit of
interesting data -- we brought in Price Waterhouse to help us facilitate this
process, and we had them do a study on about 3,000 customers in the field,
and what we found -- that of the 3,000 customers, there were only 181 who
both had -- that had a Candela and a Syneron. And that didn't surprise us, it
just confirmed what we thought we already knew, and that was -- when I looked
at our last report, we never saw Syneron. And when Lou looked at his last
report, he never saw Candela, and that's because we've been addressing the
core; they have been addressing the noncore. Well, that is very heartening --
that there isn't going to be any bastardization of product lines. In fact,
there is going to be some terrific complementary and cross-selling opportunities
as we go forward. So -- in general, I would tell you that this is everything
we thought it would be. It's on schedule. We're all very excited about the
product portfolio, the R&D pipeline, and, as you know already, the
distribution channel combination is pretty compelling. Anthony Vendetti -
Maxim Group - Analyst Yes. Just quickly on just the market situation right
now for the quarter. I know this is the most difficult quarter, seasonally --
the weakest quarter for the industry, and this is your fiscal first quarter,
which exacerbates that to some extent. But can you talk just 3 THOMSON
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affiliated companies. FINAL TRANSCRIPT Oct. 20. 2009 / 9:00PM, CLZR - Q1 2010
Candela Corp. Earnings Conference Call
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