Are Americans becoming less vain than the rest of the world? A quick look at Syneron Medical's
Syneron's international sales rose 17% year over year, while U.S. sales sank more than 9%. International sales have now caught up to U.S. sales, thanks in large part to the fact that in other countries, the market for its devices extends beyond doctors to other "aesthetic professionals." I'm sure currency changes also helped boost the international sales, but management didn't break it out for investors. Shame, shame.
To spur growth in the U.S. market -- and maybe take some market share away from fellow laser makers Palomar Medical
The laser maker is diversifying its revenue stream across different continents, but it's also trying to get products at different price points to capture the entire market. It's hoping that its partnership with Procter & Gamble
Syneron's bottom line isn't perfect. Higher costs resulted in a 15% decrease in operating income. The only thing that saved the company from a year-over-year decrease in the bottom line was a one-time $2 million tax credit. That being said, in this market environment, treading water is probably good enough. When the U.S. economy turns around, Syneron should be poised to take advantage of Americans' desire to look good.
Syneron Medical is recommended in Motley Fool Hidden Gems Pay Dirt and Rule Breakers. Find out why by taking a free 30-day trial to any of our newsletter services. You'll get access to our current picks as well as all the back issues.