Gross Margins Improve by 90 Percent; Net Loss Cut by 62 Percent
BURLINGTON, Mass., April 25 /PRNewswire/ --
Palomar Medical Technologies Inc (Nasdaq: PMTI) said today that for the first
quarter ended March 31, 2002, its revenue increased by 18 percent, its gross
margins improved by 90 percent, and its net loss was cut by 62 percent
compared to the first quarter of 2001. Chairman & CEO Dan Valente attributed
the strong improvements to the growing sales and market acceptance of the
Company's EsteLux(TM) system, used for the removal of unwanted hair and
pigmented and vascular lesions.
(Photo: http://www.newscom.com/cgi-bin/prnh/20000308/PMTILOGO )
Revenue for the quarter ended March 31, 2002, was $4.2 million, up from
$3.6 million in the first quarter of 2001. Gross profit increased to $1.7
million (40 percent of revenues), up from $900,000 (25 percent of revenues) in
the year-earlier period. The Company reported a net loss of $737,000 or $0.08
loss per share for the first quarter of this year, versus a net loss of $1.9
million or $0.19 loss per share for the first quarter of last year.
Valente commented, "There has never been any doubt that Palomar has the
best science in cosmetic lasers. During the past two years, we invested
heavily in research and development to produce one of the hottest products on
the market today. This strategy is paying off now, as physicians are adopting
our products in ever-increasing numbers." Valente said that the Company has
cut its expense structure significantly in order to expand its sales force to
take advantage of the broad acceptance of the EsteLux system and the Company's
other cosmetic lasers.
Valente said, "We believe that our lasers can penetrate the market based
on the favorable reviews of dermatologists across the country. That includes
the EsteLux system with its wide range of applications, our SLP1000(R) diode
laser, and the new Q-YAG 5(TM) laser for removing tattoos and pigmented
lesions. We offer features that are not available elsewhere, and a tradition
of excellent science, excellent design and strong support that is widely
trusted."
Palomar expects to see further improvements in its gross margins if sales
improve and costs can be spread over a larger revenue base. The Company
introduced new features and hand pieces for the EsteLux system at the February
meeting of the American Academy of Dermatology. Shipments of these new hand
pieces are expected to commence in the second quarter ending June 30, 2002.
The Company also derives revenue from licenses of certain patents to other
leading laser companies around the world.
Conference Call: As previously announced, Palomar will conduct a
conference call and webcast today at 11:30 AM EST. Management will discuss
first quarter financial results and strategic matters. If you would like to
participate, please call (888) 280-4008 or listen to the webcast on the
Investor Relations' section of the Company's website at http://www.palmed.com. A
webcast replay will also be available for 10 days.
About Palomar Medical Technologies Inc: Palomar is the leading researcher
and developer of laser/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." Palomar systems have been installed in practices
worldwide, and hundreds of thousands of treatments have been performed. 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.
To get more information regarding Palomar and its products, please visit
Palomar's web site at http://www.palmed.com. Also, to continue to receive 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 web site.
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 March 31,
2002 2001
Revenues $4,242 $3,602
Cost of Revenues 2,554 2,715
Gross Profit 1,688 887
Research and Development 1,065 1,616
Sales, General and Administrative 1,408 1,599
Loss from Operations (785) (2,328)
Interest and Other Income, net 48 401
Net Loss $(737) $(1,927)
Basic and Diluted Net Loss per Share $(0.08) $(0.19)
Basic and Diluted Weighted Avg. No. of Shs. 10,944 10,688
March 31, 2002 December 31, 2001
Cash and Cash Equivalents $3,926 $5,825
Current Assets 10,503 12,219
Total Assets 11,458 13,171
Current Liabilities 7,366 9,275
Total Liabilities 7,366 9,275
Total Stockholders' Equity 4,092 3,896
Contacts:
Paul S. Weiner Rob Weir (Investors)
Palomar Medical Technologies Inc Allen & Caron Inc
781-993-2411 212-691-8087
ir@palmed.com robw@allencaron.com
SOURCE Palomar Medical Technologies Inc
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Related links:
http://www.palmed.com
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PRN Photo Desk, 888-776-6555 or 212-782-2840
Company News On-Call:
http://www.prnewswire.com/comp/107555.html
CONTACT:
Paul S. Weiner of Palomar Medical
Technologies Inc, +1-781-993- 2411, ir@palmed.com; or Rob Weir of
Allen & Caron Inc, +1-212-691-8087, robw@allencaron.com
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