First Quarter Revenues Increase 57 Percent; Net Income Triples
BURLINGTON, Mass., April 28 /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, 2005. The Company's first quarter total
revenues increased by 57 percent, product revenues increased by 48 percent,
and gross profit from product sales improved by 57 percent as compared to the
same quarter in 2004. Net income increased by 203 percent as compared to the
first quarter of 2004. The Company also strengthened its balance sheet since
the first quarter of last year, including increasing its cash position from
$13 million to $29 million.
Revenues for the quarter ended March 31, 2005, were $17 million, up from
$10.8 million in the first quarter of 2004. Gross profit from product sales
increased to $9.8 million (68 percent of product revenues), up from $6.2
million (65 percent of product revenues) in the year-earlier quarter. The
Company reported net income of $3.5 million, or $0.19 per diluted share, for
the first quarter of this year, versus net income of $1.2 million, or $0.07
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. We continue to enjoy increased
market acceptance of our new product offerings, and we believe we are
maintaining our leadership position as an innovator in our markets. Our
reputation for leading-edge technology and product reliability has resulted in
increased revenue for Palomar over the past three years in the expanding
market for light-based cosmetic procedures; a trend we think will continue
throughout 2005."
Mr. Caruso continued, "We continue to advance our aesthetic products to
meet the demands of the market while offering accurate and safe treatments.
During the first quarter, the Company presented, at the American Academy of
Dermatology, the VisiLux1064(TM) Laser Handpiece and the LuxIR(TM) Infrared
Handpiece for the Palomar StarLux(TM) Pulsed Light and Laser System, and the
DermaType(TM) Skinphotometer. These new product additions greatly increase a
physician's treatment options and complement our business model by providing
numerous expansion opportunities through versatile, innovative attachments and
complementing accessories."
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)798-2864 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 37443474 and will continue
through Thursday, May 12, 2005. 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 indications 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 (NYSE: G) to
develop and potentially commercialize a patented home-use, light-based hair
removal device for women, and 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 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, 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, 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,
2004 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 (Amounts in thousands, except per share data):
Consolidated Statements of Operations (Unaudited)
Three Months Ended
March 31,
2005 2004
Revenues:
Product revenues $14,283,416 $9,627,115
Royalty revenues 1,382,284 193,278
Funded product development revenues 1,379,604 1,013,464
Total revenues 17,045,304 10,833,857
Costs and expenses:
Cost of product revenues 4,520,796 3,418,513
Cost of royalty revenues 552,914 77,311
Research and development 3,186,164 2,539,163
Selling and marketing 3,824,642 2,681,110
General and administrative 1,550,712 1,087,329
Total costs and expenses 13,635,228 9,803,426
Income from operations 3,410,076 1,030,431
Interest income, net of interest expense 172,068 27,238
Other income, net 6,000 143,067
Income before income taxes 3,588,144 1,200,736
Provision for income taxes 71,763 41,515
Net income $3,516,381 $1,159,221
Net income per share:
Basic $0.21 $0.08
Diluted $0.19 $0.07
Weighted average number of shares outstanding:
Basic 16,477,815 15,063,754
Diluted 18,982,746 17,352,236
Consolidated Balance Sheets (Unaudited)
March 31, December 31,
2005 2004
Assets
Current assets:
Cash and cash equivalents $5,072,826 $7,508,856
Available-for-sale investments,
at market value 24,100,000 17,650,000
Accounts receivable, net 7,358,935 7,122,745
Inventories 5,973,043 5,866,494
Other current assets 742,203 440,254
Total current assets 43,247,007 38,588,349
Property and equipment, net 903,407 899,368
Other assets 111,074 111,074
Total Assets $44,261,488 $39,598,791
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $1,174,583 $971,030
Accrued liabilities 6,989,912 8,014,207
Deferred revenue 1,436,500 1,439,639
Total current liabilities 9,600,995 10,424,876
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 -- 16,799,034
and 16,231,502 shares, respectively 167,991 162,315
Additional paid-in capital 174,392,623 172,428,102
Accumulated deficit (139,900,121) (143,416,502)
Total stockholders' equity 34,660,493 29,173,915
Total liabilities and stockholders' equity $44,261,488 $39,598,791
Contacts:
Investor Relations
Palomar Medical Technologies Inc
781-993-2411
ir@palomarmedical.com
SOURCE Palomar Medical Technologies Inc
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