Cynosure reveals fall in gross margin

Cynosure’s gross margin has fallen from 65.9 per cent of total revenues to 61 per cent, according to the firm’s fourth-quarter financial results.

Attributing the drop to pricing pressure and a shift in the company’s geographic product mix over the period, the business also noted its revenues decreased to $25.5 million (18 million pounds) from £36.6 million.

Commenting on the figures, Cynosure’s president and chief executive officer Michael Davin said the global economic downturn had "created an extremely challenging environment" for the industry.

He added: "After achieving 13 consecutive quarters of year-over-year, double-digit percentage revenue growth, our revenue declined sharply in the fourth quarter."

Mr Davin commented a number of customers faced "tighter lending standards", noting the company will decrease spending on programmes and implement other cost-control initiatives in the future.

In October last year, the organisation revealed its third-quarter revenues had increased to $38.2 million, from the $31.5 million reported the year before.