Product Revenues Increase 43 Percent; Net Income Increases 78 Percent
BURLINGTON, Mass., April 27 /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, 2006. The Company's first
quarter total revenues increased by 32 percent, product revenues increased
by 43 percent, and net income increased by 78 percent as compared to the
first quarter in 2005. The Company also strengthened its balance sheet
since the first quarter of last year, including increasing its cash and
investments from $29 million to $51 million.
Revenues for the quarter ended March 31, 2006 were $22.5 million, up
from $17 million in the first quarter of 2005. Gross profit from product
revenues increased to $15.1 million or 74 percent (which includes a net
positive adjustment to cost of product revenues of $617,000), up from $9.8
million or 68 percent in the year-earlier quarter. The Company reported net
income of $6.2 million, or $0.31 per diluted share (which includes a net
positive adjustment of $386,000), for the first quarter of this year,
versus net income of $3.5 million, or $0.19 per diluted share, for the
first quarter of last year.
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 and unsurpassed
product reliability. Over the past four years the market for light-based
cosmetic procedures has grown, as have Palomar's revenues; a trend we think
will continue throughout 2006."
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 2006 American Academy of
Dermatology meeting, the Company again presented new StarLux applicator
handpieces to further increase treatment options on one platform. An
upgradeable platform provides customers with a cost effective way to enter
the market and the flexibility to grow their practice with only incremental
costs. Our newest product additions, like those in the past, complement
this business model by increasing the number of expansion opportunities
through additional versatile, innovative handpieces."
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 (866) 713-8395 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 93758521 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. 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 uniquely 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 (please note that in October 2005, Procter & Gamble Company completed
its acquisition of Gillette. Under the Development and License Agreement,
Procter & Gamble, as the acquiring party, assumed all of Gillette's rights
and obligations.) 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, and
was awarded a contract by the Department of the Army to develop a
light-based self-treatment device for Pseudofolliculitis Barbae ("PFB").
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,
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,
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, 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, 2005 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.
Palomar Financial Summary:
Consolidated Statements of Income (Unaudited)
Three Months Ended
March 31,
2006 2005
Revenues:
Product revenues $20,389,770 $14,283,416
Royalty revenues 645,001 1,382,284
Funded product development revenues 1,419,774 1,379,604
Total revenues 22,454,545 17,045,304
Costs and expenses:
Cost of product revenues 5,315,483 4,520,796
Cost of royalty revenues 258,000 552,914
Research and development 3,679,345 3,186,164
Selling and marketing 5,470,665 3,824,642
General and administrative 1,853,569 1,550,712
Total costs and expenses 16,577,062 13,635,228
Income from operations 5,877,483 3,410,076
Interest income 576,025 178,068
Income before income taxes 6,453,508 3,588,144
Provision for income taxes 209,739 71,763
Net income $6,243,769 $3,516,381
Net income per share:
Basic $0.36 $0.21
Diluted $0.31 $0.19
Weighted average number of shares outstanding:
Basic 17,270,700 16,477,815
Diluted 19,901,069 18,982,746
Consolidated Balance Sheets (Unaudited)
March 31, December 31,
2006 2005
Assets
Current assets:
Cash and cash equivalents $9,381,591 $10,536,144
Available-for-sale investments,
at market value 41,218,429 38,757,575
Accounts receivable, net of allowance 11,926,485 8,686,227
Inventories 7,465,277 6,753,110
Other current assets 1,111,979 582,074
Total current assets 71,103,761 65,315,130
Property and equipment, net 972,233 909,676
Other assets 111,074 111,074
Total Assets $72,187,068 $66,335,880
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $1,510,731 $1,278,823
Accrued liabilities 9,161,439 11,465,100
Deferred revenue 2,026,069 1,725,849
Total current liabilities 12,698,239 14,469,772
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 -- 17,296,269 and 17,126,467
shares, respectively 172,963 171,265
Additional paid-in capital 179,035,389 177,658,135
Accumulated deficit (119,719,523) (125,963,292)
Total stockholders' equity 59,488,829 51,866,108
Total liabilities and stockholders' equity $72,187,068 $66,335,880
Contacts: Kayla Castle
Investor Relations Manager
Palomar Medical Technologies Inc.
781-993-2411
ir@palomarmedical.com
SOURCE Palomar Medical Technologies Inc.
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http://www.palomarmedical.com
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CONTACT:
Kayla Castle, Investor Relations Manager of
Palomar Medical Technologies Inc., +1-781-993-2411,
ir@palomarmedical.com
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