8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): April 23, 2008

CANDELA CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

Delaware

(State or Other Jurisdiction of Incorporation)

000-14742	04-2477008
(Commission File Number)	(I.R.S. Employer Identification Number)
530 Boston Post Road, Wayland, Massachusetts	01778
(Address of Principal Executive Offices)	(Zip Code)

(508) 358-7400

(Registrant’s Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.              Results of Operations and Financial Condition.

On April 23, 2008, Candela Corporation issued a press release announcing its financial results for its third fiscal quarter and nine-month period ended March 29, 2008.  A copy of the press release is furnished herewith as Exhibit 99.1 to this report.

Item 9.01.              Financial Statements and Exhibits

A copy of the press release issued by Candela Corporation on April 23, 2008 is attached to this report.

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SIGNATURES

                                Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	CANDELA CORPORATION
	By:	/s/ Robert E. Quinn
		Robert E. Quinn
		(Treasurer, Corporate Controller and Principal Financial Officer)
Date: April 23, 2008

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EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release issued by Candela Corporation on April 23, 2008.

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EX-99.1

Exhibit 99.1

Stacy Feit (Investors)

(312) 640-6779

sfeit@frbir.com

CANDELA REPORTS THIRD QUARTER 2008 RESULTS

WAYLAND, MA, April 23, 2008 — Candela Corporation (NASDAQ:CLZR) today reported results for the third fiscal quarter ended March 29, 2008.  Revenues of $38.9 million in the third quarter increased 0.5 percent from $38.7 million in the comparable prior-year period.  The Company reported a net loss of $2.1 million, or $0.09 per share, for the third fiscal quarter versus net income of $1.5 million, or $0.07 per share, in the corresponding period last year.

Revenues from lasers and other products in the third quarter decreased to $28.4 million from $29.0 million in the prior year period.  Revenues from product-related services increased to $10.5 million from $9.7 million in the prior year period.

Gross profit margin declined to 44.9 percent for the third quarter from 51.0 percent in the comparative prior-year period.  Lower margins from services were the contributing factor. Third quarter fiscal 2008 selling, general and administrative expenses, including approximately $3.9 million in legal expenses, increased to $18.3 million, or 46.9 percent of revenues, compared with $13.2 million, or 34.1 percent of revenues in the same period last year.  Research and development spending for the third quarter decreased to $3.0 million from $4.9 million in the prior year’s quarter.

Gerard E. Puorro, President and Chief Executive Officer, said, “We are all aware of the challenges that the North American aesthetic laser market faces and Candela is not immune to this phenomenon as evidenced by the weaker volume trend last quarter.  However, our laser product gross margins expanded sequentially from the second quarter, although this increase was offset by a decline in service margin as a result of reliability issues that we encountered this quarter causing total gross margin to decline from the prior year period, from 51% to 44.9%.  Our international performance, however, was again strong and we will protect our leadership in these international markets while we continue to adapt to current domestic market conditions.”

Total revenues for the nine-month period ended March 29, 2008 increased to $110.4 million from $109.6 million last year.  Gross profit margin decreased to 46.6 percent from 50.1 percent in the prior year.  For the first nine months of fiscal 2008, the company reported a net loss of $6.4 million, or $0.28 per share, versus net income of $7.0 million, or $0.30 per share, in the same period last year.

	Three Months Ended						Nine Months Ended
(In thousands)	March 29,			March 31,			March 29,			March 31,
	2008			2007			2008			2007
Revenue
Lasers and other products	$	28,427		$	29,017		$	80,483		$	84,014
Product-related services	10,464			9,673			29,962			25,556
Total	$	38,891		$	38,690		$	110,445		$	109,570
Revenue By Geography
U.S.	$	13,274		$	15,204		$	43,980		$	47,900
All other countries	25,617			23,486			66,465			61,670
Gross Margin
Lasers and other products	53.4		%	57.2		%	53.2		%	56.0		%
Product-related services	21.9		%	32.4		%	28.8		%	31.1		%
Total	44.9		%	51.0		%	46.6		%	50.1		%

Puorro concluded, “The global aesthetic laser industry remains a viable sector notwithstanding macroeconomic concerns. Candela is focused on developing compelling solutions based on our industry-leading efficacy and safety profiles.  At the same time we face our own set of challenges in delivering these new products to market. We are confronting these challenges head-on and solutions are being driven by our recent additions to the senior management team.”

Conference Call Details

The Company will host a conference call today at 5:00 p.m. EDT to discuss this announcement. The call can be accessed live by dialing (866) 837-9779 or by visiting Candela Corporation’s website at www.candelalaser.com

Investors may access a replay by dialing (888) 266-2081, passcode 1228345, which will be available from 8:30 p.m. EDT on April 23, 2008 through 11:59 p.m. EDT on April 26, 2008. The webcast replay will also be archived in the “Investor Relations” section of the company’s website.

About CANDELA:  Candela Corporation manufactures, and distributes innovative clinical solutions that enable physicians, surgeons, and personal care practitioners to treat selected cosmetic and medical conditions using lasers, aesthetic laser systems, and other advanced technologies. Founded near Boston in 1970, the company markets and services its products in over 70 countries from offices and distributors in the United States, Europe, Japan, China and other Asian locations. Candela established the aesthetic laser market 19 years ago, and currently has an installed base of an estimated 12,000 lasers worldwide. Visit Candela on the Web at at http://www.candelalaser.com.

Safe Harbor Statement:Except for the historical information contained herein, this news release contains forward-looking statements that constitute Candela’s current intentions, hopes, beliefs, expectations or predictions of the future, which are therefore inherently subject to risks and uncertainties. Such statements may relate to, among other things, our future revenue, gross margin, expense levels and earnings, our growth prospects, market acceptance of our products, the strength of our distribution channels, our ability to add new products, our ability to expand regulatory approvals and the liquidity of our common stock. The risks and uncertainties that may affect forward-looking statements include, among others: the cancellation or deferral of customer orders, the risk of a material adverse judgment in pending litigation matters.   dependence on a small number of strategic distribution relationships, difficulties in the timely development and market acceptance of new products, unanticipated increases in expenses, market developments that vary from the current public expectations concerning the growth of the laser industry, increased competitive pressures, changes in economic conditions, or difficulties in obtaining timely regulatory approvals. Further information on factors that could affect Candela’s performance is included in Candela’s periodic reports filed with the SEC. Candela cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Candela expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any such statements to reflect any change in Candela’s expectations or any change in events, conditions or circumstances on which any such statement is based.

CANDELA CORPORATION

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

	March 29,			June 30,
	2008			2007
Assets
Current assets:
Cash and cash equivalents	$	17,150		$	27,200
Marketable securities	17,312			11,773
Accounts receivable, net	42,896			38,455
Notes receivable	270			1,025
Inventories, net	30,933			21,368
Other current assets	9,305			7,136
Total current assets	117,866			106,957
Property and equipment, net	4,277			3,479
Long-term investments	3,756			12,260
Other assets	29,768			27,534
Total assets	$	155,667		$	150,230
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	17,679		$	6,922
Accrued payroll and related expenses	4,554			5,344
Accrued warranty	4,658			5,486
Other accrued liabilities	9,604			11,174
Current liabilities of discontinued operations	1,219			1,257
Deferred income	12,463			10,000
Total current liabilities	50,177			40,183
Other long-term liabilities	5,379			8,537
Stockholders’ equity
Common stock	261			261
Less: Treasury stock	(24,855		)	(22,458		)
Additional paid-in capital	72,572			69,466
Accumulated earnings	48,117			54,536
Accumulated other comprehensive income (loss)	4,016			(295		)
Total stockholders’ equity	100,111			101,510
Total liabilities and stockholders’ equity	$	155,667		$	150,230

CANDELA CORPORATION (Nasdaq: CLZR)

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except per share data)

	For the three-months ended					For the nine-months ended
	March 29,			March 31,		March 29,			March 31,
	2008			2007		2008			2007
Revenue	$	38,891		$	38,690	$	110,445		$	109,570
Cost of sales	21,432			18,950		58,994			54,627
Gross profit	17,459			19,740		51,451			54,943
Operating expenses:
Research and development	3,030			4,873		9,678			13,059
Selling, general and administrative	18,254			13,208		51,356			36,856
Total operating expenses	21,284			18,081		61,034			49,915
(Loss) income from operations	(3,825		)	1,659		(9,583		)	5,028
Other income:
Interest income	363			716		1,330			2,231
Other income (loss)	71			85		(1,688		)	3,727
Total other (loss) income	434			801		(358		)	5,958
(Loss) income before income taxes	(3,391		)	2,460		(9,941		)	10,986
(Benefit from) provision for income taxes	(1,335		)	920		(3,522		)	4,003
Net (loss) income	$	(2,056	)	$	1,540	$	(6,419	)	$	6,983
Net (loss) income per share of common stock:
Basic	$	(0.09	)	$	0.07	$	(0.28	)	$	0.30
Diluted	$	(0.09	)	$	0.07	$	(0.28	)	$	0.30
Weighted average shares outstanding:
Basic	22,672			22,937		22,743			23,128
Diluted	22,672			23,320		22,743			23,592