U.S. Markets closed

Zeltiq surges as CoolSculpting revenue grows

NEW YORK (AP) -- Shares of Zeltiq Aesthetics Inc. surged Tuesday after the company posted stronger second-quarter sales of its CoolScuplting body fat sculpting system.

Zeltiq's CoolSculpting system is designed to reduce bulges of fat that don't go away with diet or exercise by using extreme cold to kill fat cells. In the second quarter, revenue from CoolSculpting procedures increased 85 percent compared with last year. The company's total revenue increased 28 percent.

Shares of Zeltiq jumped 93 cents, or 21.4 percent, to $5.38 in morning trading.

Zeltiq said it lost $8.1 million, or 24 cents per share. The company completed its initial public offering in October, and in the second quarter of 2011, it lost $2.1 million, or $1.60 per share. Total revenue rose to $22.3 million from $17.4 million.

Analysts were forecasting a loss of 18 cents per share and $20.8 million in revenue, according to FactSet.

The company said 1,257 CoolSculpting systems had been installed at the end of the quarter, up 15 percent from a year ago.

The Pleasanton, Calif., company also said Chief Financial Officer Joshua Brumm is resigning to pursue a new career opportunity. Brumm's resignation takes effect Aug. 8. Zeltiq said Brumm has been CFO since January. He joined the company in 2009 and was in charge of corporate development and strategy before being promoted to CFO.

Brumm is the second top executive to leave Zeltiq in the last few months. In April, CEO Gordie Nye resigned for personal reasons. Nye had been with the company for two and a half years and also stepped down from the board of directors. Former Chairman Mark Foley is serving as Zeltiq's interim president and CEO.