Revenues Increased 40 Percent; Income Before Taxes Increased 47 Percent
BURLINGTON, Mass., April 26 /PRNewswire-FirstCall/ -- Palomar Medical
Technologies, Inc. (Nasdaq: PMTI), a leading researcher and developer of
light-based systems for cosmetic treatments, today announced financial
results for the first quarter ended March 31, 2007. Revenues for the
quarter ended March 31, 2007 were $31.5 million, which represents a 40
percent increase over the $22.5 million reported in the first quarter of
2006. Product revenues increased to $27.4 million, a 34 percent increase
over the $20.4 million in the first quarter of 2006. Gross margin from
product revenues was 69 percent for the first quarter of 2007 compared to
74 percent (which included a net positive adjustment to cost of product
revenues of $617,000) for the first quarter of 2006. The Company reported
income before taxes of $9.5 million for the first quarter of this year, a
47 percent increase over the $6.5 million for the first quarter of last
year.
The Company had a cash tax rate of 6 percent and an effective book tax
rate of 38 percent for financial statement purposes for the first quarter
of 2007 versus a cash tax rate and an effective book tax rate of 3 percent
for the prior year's first quarter. The Company reported net income of $5.9
million, or $0.30 per diluted share for the first quarter of this year,
versus net income of $6.2 million, or $0.31 per diluted share for the first
quarter of 2006. Non-GAAP net income, which includes adjustments to cost of
product royalties and selling and marketing for the first quarter of 2006
and excludes non-cash taxes for the first quarter of 2007 and 2006, was
$8.9 million, or $0.46 per diluted share, for the first quarter of 2007
compared with $5.9 million, or $0.30 per diluted share, in the prior year's
first quarter. Please refer to the financial statements included in this
news release for a reconciliation of GAAP results to non-GAAP results for
the three months ended March 31, 2007 and 2006. The Company also
strengthened its balance sheet since the first quarter of last year,
including increasing its cash and investments from $51 million to $108
million.
Chief Executive Officer Joseph P. Caruso commented, "This has been an
exciting and rewarding quarter for Palomar. Market acceptance of our new
product offerings continues to grow. We believe this is a direct result of
our reputation for providing leading-edge technology, expandable platform
systems and outstanding product reliability.
Mr. Caruso continued, "We remain committed to advancing our aesthetic
products to meet the demands of the market in ways that are cost effective
and upgradeable for our customers. At the 2007 American Academy of
Dermatology and American Society for Laser Medicine and Society meetings,
the Company unveiled the new StarLux(R) 500 Laser and Pulsed Light System
and six new application handpieces. Our newest product additions, like
those in the past, complement our business model by increasing the number
of expansion opportunities through additional versatile, innovative systems
and handpieces."
Use of Non-GAAP Financial Measures
To supplement Palomar's consolidated financial statements presented in
accordance with GAAP, this news release uses the following measures defined
as non-GAAP financial measures by the SEC: non-GAAP net income and non-GAAP
diluted earnings per share. For the three months ended March 31, 2007,
these non-GAAP measures exclude the non-cash income tax expense of $3.0
million. The presentation of this financial information is not intended to
be considered in isolation or as a substitute for the financial information
prepared and presented in accordance with GAAP. In addition, the non-GAAP
financial measures included in this news release may be different from, and
therefore not comparable to, similar measures used by other companies. For
more information on these non-GAAP financial measures, please see the
non-GAAP data included below. This data has more details of the GAAP
financial measures that are most directly comparable to non-GAAP financial
measures and the related reconciliations between these financial measures.
Palomar's management believes that these non-GAAP financial measures
provide meaningful supplemental information regarding our performance by
excluding certain items that may not be indicative of our core business
operating results. Palomar believes that both management and investors
benefit from referring to these non-GAAP financial measures in assessing
Palomar's performance and when planning, forecasting and analyzing future
periods. These non-GAAP financial measures also facilitate management's
internal comparisons to Palomar's historical performance and our
competitors' operating results. Palomar believes that these non-GAAP
measures are useful to investors in allowing for greater transparency with
respect to supplemental information used by management in its financial and
operational decision making.
Conference Call: As previously announced, Palomar will conduct a
conference call and webcast today at 11:30 AM Eastern Time. Management will
discuss financial results and strategic matters. If you would like to
participate, please call (800) 561-2813 or listen to the webcast in the
Investor Relations section of the Company's website at
http://www.palomarmedical.com . The telephone replay will be available one
hour after the call at (888) 286-8010 passcode 18902607 and will be
available for fourteen days. A webcast replay will also be available.
About Palomar Medical Technologies Inc: Palomar is a leading researcher
and developer of light-based systems for cosmetic treatments. Palomar
pioneered the optical hair removal field, when, in 1997, it introduced the
first high-powered laser hair removal system. Since then, many of the major
advances in light-based hair removal have been based on Palomar technology.
In December 2006, Palomar became the first company to receive a 510(k)
over-the- counter (OTC) clearance from the United States Food and Drug
Administration (FDA) for a new, patented, home use, light-based hair
removal device. OTC clearance allows the product to be marketed and sold
directly to consumers without a prescription. There are now millions of
light-based cosmetic procedures performed around the world every year in
physician offices, clinics, spas and salons. Palomar is testing many new
and exciting applications to further advance the hair removal market and
other cosmetic applications. Palomar is focused on developing proprietary
light-based technology for introduction to the mass markets. Palomar has an
agreement with The Gillette Company to develop and potentially
commercialize a patented home- use, light-based hair removal device for
women. Palomar also has an agreement with Johnson & Johnson Consumer
Companies to develop and potentially commercialize home-use, light-based
devices for reducing or reshaping body fat including cellulite, reducing
the appearance of skin aging, and reducing or preventing acne.
For more information on Palomar and its products, visit Palomar's
website at http://www.palomarmedical.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 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, future
royalty amounts due from third parties, development and introduction of new
products, and financial and operating projections (including future tax
benefit from the Company's NOLs and future effective tax rates). These
forward-looking statements are neither promises nor guarantees, but 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,
challenges in managing joint ventures and research with third parties and
government contracts, the impact of competitive products and pricing,
governmental regulations with respect to medical devices, including whether
FDA clearance will be obtained for future products and additional
applications, the results of litigation, difficulties in collecting
royalties, potential infringement of third-party intellectual property
rights, factors affecting the Company's future income and resulting ability
to utilize its NOLs, 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, 2006 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.
Contacts: Kayla Castle
Investor Relations Manager
Palomar Medical Technologies, Inc.
781-993-2411
ir@palomarmedical.com
Palomar Financial Summary:
Consolidated Statements of Income (Unaudited)
Three Months Ended
March 31,
2007 2006
Revenues:
Product revenues $27,398,545 $20,389,770
Royalty revenues 2,684,554 645,001
Funded product development revenues 1,435,080 1,419,774
Total revenues 31,518,179 22,454,545
Costs and expenses:
Cost of product revenues 8,618,388 5,315,483
Cost of royalty revenues 1,073,822 258,000
Research and development 4,303,342 3,545,206
Selling and marketing 6,275,988 5,437,635
General and administrative 3,144,090 2,020,738
Total costs and expenses 23,415,630 16,577,062
Income from operations 8,102,549 5,877,483
Interest income 1,366,299 576,025
Income before income taxes 9,468,848 6,453,508
Provision for income taxes
- cash 568,131 186,894
Provision for income taxes
- non-cash 3,030,031 22,845
Net income $5,870,686 $6,243,769
Net income per share:
Basic $0.32 $0.36
Diluted $0.30 $0.31
Weighted average number of
shares outstanding:
Basic 18,129,429 17,270,700
Diluted 19,421,397 19,901,069
Non-GAAP data:
Income before income taxes $9,468,848 $6,453,508
Cost of product revenues:
Royalty adjustment - (762,000)
Cost of product revenues:
Inventory write-down - 145,000
Selling and marketing:
Demo inventory write-off - 230,000
Non-GAAP Income before income taxes 9,468,848 6,066,508
Provision for income taxes 3,598,162 209,739
Provision for income taxes
- non-cash (3,030,031) (22,845)
Tax effect related to one-time events - (11,208)
Non-GAAP Provision for income taxes 568,131 175,686
Non-GAAP Net income $8,900,717 $5,890,822
Non-GAAP Diluted net income per share $ 0.46 $0.30
Diluted weighted average number of
shares outstanding 19,421,397 19,910,069
Consolidated Balance Sheets (Unaudited)
March 31, December 31,
2007 2006
Assets
Current assets:
Cash and cash equivalents $26,087,466 $36,817,257
Available-for-sale investments,
at market value 81,898,218 67,351,822
Accounts receivable, net 17,923,203 15,443,053
Inventories 13,130,192 11,011,710
Deferred tax asset 4,627,849 7,595,000
Other current assets 1,103,933 1,702,263
Total current assets 144,770,861 139,921,105
Property and equipment, net 1,246,352 1,129,985
Other assets 111,074 111,074
Total assets $146,128,287 $141,162,164
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $3,922,221 $2,263,029
Accrued liabilities 10,999,349 15,798,076
Deferred revenue 6,135,716 5,969,397
Total current liabilities 21,057,286 24,030,502
Stockholders' equity:
Preferred stock, $.01 par value-
Authorized - 1,500,000 shares
Issued - none - -
Common stock, $.01 par value-
Authorized - 45,000,000 shares
Issued - 18,264,273 and 18,063,103
shares, respectively 182,647 180,631
Additional paid-in capital 192,004,338 189,937,701
Accumulated deficit (67,115,984) (72,986,670)
Total stockholders' equity 125,071,001 117,131,662
Total liabilities and stockholders'
equity $146,128,287 $141,162,164
SOURCE Palomar Medical Technologies
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Related links:
http://www.palmed.com
http://www.palomarmedical.com
http://www.prnewswire.com/comp/107555.html/
CONTACT:
Kayla Castle, Investor Relations Manager of
Palomar Medical Technologies, Inc., +1-781-993-2411,
ir@palomarmedical.com
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