With Third Consecutive Quarter of Profit, Company Achieves Profitability for
Fiscal Year 2002, Fourth Quarter Revenue Nearly Doubles, Gross Profit More
than Triples
BURLINGTON, Mass., Feb. 27 /PRNewswire-FirstCall/ --
Palomar Medical Technologies Inc (Nasdaq: PMTI) today announced financial
results for the fourth quarter and year ended December 31, 2002. For the
fourth quarter ended December 31, 2002, the Company's total revenues increased
by 97 percent, its product revenues increased by 169 percent and its gross
profit improved by 226 percent as compared to the fourth quarter of 2001.
Based on the increased revenues and improved margin due to growing sales of
the Company's flagship EsteLux Pulsed Light system and complementary
handpieces, the Company realized net income for the third consecutive quarter
versus a net loss in the fourth quarter of 2001. In addition, the Company
generated a positive cash flow for the last three quarters, and over the past
year gross margins have improved significantly due to a shift in product mix
to lower cost platforms.
Revenues for the quarter ended December 31, 2002, were $7.5 million, up
from $3.8 million in the fourth quarter of 2001. Gross profit increased to
$4.3 million (57 percent of revenues), up from $1.3 million (34 percent of
revenues) in the year-earlier quarter. The Company reported net income of
$437,000, or $0.04 per share, for the fourth quarter of this year, versus a
net loss of $391,000, or $0.05 loss per share, for the fourth quarter of last
year.
Revenues for the year ended December 31, 2002, were $25.4 million, up from
$16.7 million for the year ended December 31, 2001. Gross profit increased to
$13.1 million (51 percent of revenues), up from $5.3 million (32 percent of
revenues) in the year-earlier period. The Company reported net income of
$39,000, or $0.00 per share, for the year ended December 31, 2002, versus a
net loss of $5.5 million, or $0.54 loss per share, for the year ended December
31, 2001.
Chief Executive Officer Joseph P. Caruso commented, "It's a pleasure to
report on the progress that has been made by the Company during the fourth
quarter of 2002 and the full fiscal year, particularly following last week's
announcement of our agreement with The Gillette Company (NYSE: G) to complete
development and commercialize a patented home-use, light-based hair removal
device for women. This quarter's results were accomplished prior to the
agreement with Gillette and include some milestones for Palomar: it's our
third consecutive quarter of increased product sales, net profits and positive
cash flow, leading to a profitable year, and we are especially encouraged that
our product revenues continue to increase at a rapid rate. In addition, we
have increased market share over the past few quarters and look forward to
this trend continuing in 2003."
Caruso continued, "We believe that our products will continue to penetrate
the market, based on the favorable reviews we have received from
dermatologists and other treatment providers around the world. These products
have a wide range of applications, including hair, tattoo and vascular and
pigmented lesion removal. Palomar's products offer features that are not
available elsewhere, backed up by a tradition of excellent science, design and
support that is widely trusted. We expect to keep expanding the applications
of our technology during the upcoming quarters."
Caruso added that the Gillette agreement marks the beginning of a new era
for Palomar, noting that seven years ago, the Company embarked on research to
develop and introduce Palomar's light-based hair removal technology to the
mass market, and that it is now well positioned to bring light technology into
the home.
Commenting on Palomar's continuing program to expand its shareholder base,
Caruso concluded, "We are now in the process of scheduling further meetings
with various institutions and funds to create an increased following for the
Company within the investment community."
Conference Call: As previously announced, Palomar will conduct a
conference call and webcast today at 11:30 AM EST. Management will discuss
financial results and strategic matters. If you would like to participate,
please call (888) 482-0024 or listen to the webcast in the Investor Relations'
section of the Company's website at http://www.palmed.com. The telephone replay will
be available one hour after the call at (888) 286-8010 passcode 0510572 and
continue through Thursday, March 6, 2003 and a webcast replay will also be
available.
About Palomar Medical Technologies Inc: Palomar is a leading researcher
and developer of light-based systems for hair removal and other cosmetic
treatments and is the first company to obtain clearance from the FDA for
"permanent hair reduction." New and exciting indications are being tested to
further advance the hair removal market and other cosmetic applications,
including fat reduction, acne treatment and skin rejuvenation. Palomar
pioneered the optical hair removal field, when, in 1996, it introduced the
first high-powered laser hair removal system. Since then, many of the major
advances in laser hair removal have been based on Palomar technology. There
are now millions of laser hair removal procedures performed around the world
every year in physician offices, clinics, spas and salons.
For more information on Palomar and its products, visit Palomar's website
at http://www.palmed.com. To continue receiving the most up-to-date information and
latest news on Palomar as it happens, sign up to receive automatic e-mail
alerts by going to the E-mail Alerts page in the Investor Relations' section
of the website.
With the exception of the historical information contained in this
release, the matters described herein contain forward-looking statements,
including but not limited to statements relating to new markets, development
and introduction of new products, and financial projections that involve risk
and uncertainties that may individually or mutually impact the matters herein,
and cause actual results, events and performance to differ materially from
such forward-looking statements. These risk factors include, but are not
limited to, results of future operations, technological difficulties in
developing or introducing new products, the results of future research, lack
of product demand and market acceptance for current and future products, the
effect of economic conditions, the impact of competitive products and pricing,
governmental regulations with respect to medical devices, including whether
FDA clearance will be obtained for future products, the results of litigation,
potential infringement of third-party intellectual property rights, and/or
other factors, which are detailed from time to time in the Company's SEC
reports, including the report on Form 10-K for the year ended December 31,
2001 and the Company's quarterly reports on Form 10-Q. Readers are cautioned
not to place undue reliance on these forward-looking statements, which speak
only as of the date hereof. The Company undertakes no obligation to release
publicly the result of any revisions to these forward-looking statements that
may be made to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.
Summarized financial information is as follows (Amounts in thousands,
except per share data; unaudited):
Three Months Ended Years Ended
December 31, December 31,
2002 2001 2002 2001
Revenues $7,466 $3,798 $25,418 $16,654
Cost of Revenues 3,211 2,494 12,348 11,352
Gross Profit 4,255 1,304 13,070 5,302
Research and
Development Expense 1,065 1,262 4,359 6,045
Selling, General and
Administrative Expense 2,795 972 8,853 5,996
Income (Loss) from
Operations 395 (930) (142) (6,739)
Interest and Other
Income (Expense), net 42 117 181 846
Income (Loss) before
Income Taxes 437 (813) 39 (5,893)
Benefit from Income Taxes - 422 - 422
Net Income (Loss) $437 $(391) $39 $(5,471)
Basic Net Income (Loss)
per Share $0.04 $(0.05) $0.00 $(0.54)
Diluted Net Income (Loss)
per Share $0.04 $(0.05) $0.00 $(0.54)
Basic Weighted Avg.
No. of Shs. 11,535 10,860 11,372 10,805
Diluted Weighted Avg.
No. of Shs. 12,018 10,860 11,582 10,805
December 31, 2002December 31, 2001
Cash and Cash Equivalents$4,450 $5,825
Current Assets 12,615 12,219
Total Assets 13,398 13,171
Current Liabilities 8,681 9,275
Total Liabilities 8,681 9,275
Total Stockholders' Equity4,718 3,896
Contacts:
Paul S. Weiner
Chief Financial Officer
Palomar Medical Technologies Inc
781-993-2411
ir@palmed.com
SOURCE Palomar Medical Technologies, Inc.
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CONTACT:
Paul S. Weiner, Chief Financial Officer of
Palomar Medical Technologies Inc, +1-781-993-2411, ir@palmed.com
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