Solta Medical gains on swing to Q3 black, layoffs, possible acquisition
Solta Medical shares are up after the medical device company swings to 3rd-quarter black ink and says it's considering 'strategic options,' including a possible sale, and inaugurates a plan to cut costs by lowering its head count.
Hayward, Calif.-based Solta posted profits of $644,000, or 1¢ per share, on sales of $33.5 million for the 3 months ended Sept. 30, compared with losses of $2.9 million on a 4.2% sales decline compared with Q3 2012.
Adjusted to exclude 1-time items, per-share losses were -4¢, compared with analysts' expectations of -3¢. Still, investors had pushed SLTM shares up 4.4% to $1.91 apiece today as of about 12:30 p.m., perhaps reacting to news that Solta hired Piper Jaffrey & Co. to examine "strategic alternatives" even as it puts a plan in place, including layoffs, that aims to cut annual expenses by $12 million.