Cutera Inc. (NASDAQ:CUTR), a medical device company specializing in electomedical and electrotherapeutic apparatus, has received a notice from Nasdaq stating that it no longer meets the minimum market value requirement for continued listing on the Nasdaq Global Select Market. The notice, issued on Monday, indicates that Cutera's publicly held shares have not maintained the required $15 million market value for the past 33 consecutive business days.
The non-compliance has no immediate impact on the trading of Cutera's common stock. However, the company has been given a deadline of May 19, 2025, to regain compliance. To meet Nasdaq's conditions, Cutera must achieve a market value of publicly held shares of at least $15 million for a minimum of 10 consecutive business days.
If the company fails to meet the requirement by the deadline, it may face delisting. Cutera could request a hearing to remain on the Nasdaq Global Select Market, which would typically delay any delisting decision until after the hearing's outcome. Alternatively, Cutera might consider transferring to the Nasdaq Capital Market, provided it fulfills all necessary listing criteria for that exchange.
In other recent news, Cutera, Inc. reported a decrease in its third-quarter revenue to $32.5 million, down from $46.5 million in the same quarter of the previous year. The decline was attributed to reduced sales in North American capital equipment and consumables, and the termination of a skincare distribution agreement. Despite these challenges, Cutera remains optimistic, focusing on operational improvements and international growth.
The company's AviClear product has seen international success, with over 100 systems sold across approximately 25 countries. Cutera aims to reduce its cash burn by over $50 million from 2024 to 2025 and expects a year-end cash balance of about $40 million.
The company maintains its full-year revenue guidance of $140 million to $145 million. These are recent developments that highlight the company's resilience and commitment to growth despite ongoing challenges, with significant opportunities for growth identified in international markets, particularly in Korea, Japan, and China.
InvestingPro Insights
Recent InvestingPro data paints a challenging picture for Cutera Inc. (NASDAQ:CUTR), aligning with the company's Nasdaq listing concerns. The company's market capitalization has plummeted to just $6.38 million, far below the $15 million threshold required by Nasdaq. This steep decline is reflected in the stock's performance, with a staggering 91.04% year-to-date price decline and an 84.36% drop over the past year.
InvestingPro Tips highlight several critical issues facing Cutera. The company is "quickly burning through cash" and "operates with a significant debt burden," which could complicate efforts to regain compliance with Nasdaq's requirements. Additionally, analysts anticipate a sales decline in the current year, and the company is not expected to be profitable this year.
On a slightly positive note, Cutera's liquid assets exceed short-term obligations, potentially providing some financial flexibility as it navigates these challenges. However, the overall financial health of the company remains precarious.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for Cutera, providing deeper insights into the company's financial situation and market position.
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