Cutera stock slides after earnings; company appoints interim CFO, reaches board deal with big investors

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Shares of Cutera fell hard after hours on Tuesday after the maker of skincare and body-sculpting devices reported weaker quarterly results than expected.

Shares of Cutera Inc. fell hard after hours on Tuesday after the maker of skincare and body-sculpting devices — currently engulfed in drama over a leadership changeover — reported weaker quarterly results than expected and announced a new interim chief financial officer as well as plans to appoint new board directors.

The company lost $1.26 a share during its first quarter, compared with 84 cents in the same quarter last year, on sales of around $55 million, down from $58 million a year earlier. The results were below FactSet forecasts for a 39-cent per-share loss and sales of $59.8 million. The company also said it appointed Stuart Drummond as interim CFO, replacing Rohan Seth, who stepped down from the company.Separately, Cutera said it had entered an agreement with two shareholders — Pura Vida Investments and RTW Investments, who together own more than 15% of the company — under which Cutera would appoint four directors following the company’s June 9 special shareholder meeting.

The dismissals of those two executives, as MarketWatch reported earlier, came amid allegations from Cutera’s management that the two waged “an apparent campaign to seize control of the company,” following its decision to seek an external candidate for the top spot. That campaign, Cutera alleged, involved the disclosure of “highly confidential internal deliberations of the board in direct violation of their employment agreements.

 

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