Company Records Fourth Consecutive Quarter of Profit;
Revenues Improve by 61 Percent; Product Gross Profits
Improve by 194 Percent
BURLINGTON, Mass., May 1 /PRNewswire-FirstCall/ --
Palomar Medical Technologies Inc (Nasdaq: PMTI) today announced that for the
first quarter ended March 31, 2003, the Company's total revenues increased by
61 percent, its product revenues increased by 80 percent and its gross profit
from product sales improved by 194 percent as compared to the first quarter of
2002. Due to growing sales of the Company's flagship EsteLux Pulsed Light
system, revenues have increased, gross margins have improved and the Company
has realized net income for the fourth consecutive quarter, with a net income
improvement of more than $1 million as compared to the first quarter of 2002.
In addition, over the past year product gross margins have improved
significantly due to a shift in product mix to lower cost platforms. The
Company has also improved its cash position over the past year.
(Photo: http://www.newscom.com/cgi-bin/prnh/20000308/PMTILOGO )
Revenues for the quarter ended March 31, 2003, were $6.8 million,
including $500,000 of funded product development revenue from the Company's
recently announced agreement with The Gillette Company (NYSE: G), up from $4.2
million in the first quarter of 2002. Gross profit from product sales
increased to $3.5 million (57 percent of product revenues), up from $1.2
million (35 percent of product revenues) in the year-earlier quarter. The
Company reported net income of $358,000, or $0.03 per share, for the first
quarter of this year, versus a net loss of $737,000, or $0.08 loss per share,
for the first quarter of last year.
During the first quarter of 2003, the Company announced the following
events:
-- Signing of an agreement with Gillette to complete development and
potentially commercialize a patented home-use, light-based hair removal
device for women.
-- A Director of the Company exchanged the principal balance of a $1
million note payable for 293,255 shares of the Company's common stock,
at a price of $3.41 per share with no registration rights. The price
was calculated at 110 percent of the Company's common stock's trailing
ten-day average closing price of $3.10.
-- Completion of a private placement with Craig Drill Capital, a private
investment firm based in New York City, for the purchase of one million
shares of the Company's common stock, at a price of $3.41 per share
with no registration rights for an aggregate subscription price of
$3.41 million. The price was calculated at 110 percent of the
Company's common stock's trailing ten-day average closing price of
$3.10.
-- Launch of a new platform, the Palomar MediLux Pulsed Light System, at
the American Academy of Dermatology's (AAD) Annual Meeting in March.
This system provides physicians with higher power and a higher
repetition rate than the EsteLux system. The MediLux system, like the
EsteLux system, has six versatile handpieces, including the LuxV, LuxB,
LuxY, LuxG, LuxR and LuxRs, and can be used for the removal of hair and
treatment of pigmented and vascular lesions. The MediLux system offers
a new snap-on connector making it easy to switch between handpieces and
provide treatments tailored to each individual.
Chief Executive Officer Joseph P. Caruso commented, "This has been an
exciting and rewarding quarter for Palomar. Moreover, we believe that this is
only the beginning of a new period in the evolution of Palomar Medical
Technologies. We continue to enjoy high market acceptance of our new product
offerings, and we believe we are maintaining our leadership position as an
innovator in our markets. And thanks to our recent agreement with Gillette and
our strong intellectual property portfolio, we are making great strides
towards the realization of our long-term mass-market business strategy."
Conference Call: As previously announced, Palomar will conduct a
conference call and webcast today at 11:30 AM EDT. Management will discuss
financial results and strategic matters. If you would like to participate,
please call (888) 339-2688 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 6888696 and
will continue through Monday, May 12, 2003. 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. Recently, Palomar and Gillette
entered into an agreement to complete development and commercialize a patented
home-use, light-based hair removal device for women. New and exciting
indications are being tested to further advance the hair removal market and
other cosmetic applications. 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 light-based hair removal have been
based on Palomar technology. There are now millions of light-based 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, challenges in managing joint ventures and
research with third parties, 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, 2002 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:
Paul S. Weiner
Chief Financial Officer
Palomar Medical Technologies Inc
781-993-2411
ir@palmed.com
Summarized financial information is as follows
(Amounts in thousands, except per share data; unaudited):
Three Months Ended
March 31,
2003 2002
Revenues:
Product revenues $6,106 $3,386
Royalty revenues 236 856
Funded product development revenues 500 --
Total revenues 6,842 4,242
Costs and expenses:
Cost of product revenues 2,651 2,211
Cost of royalty revenues 94 343
Research and development 1,261 1,065
Selling and marketing 1,546 789
General and administrative 981 619
Total costs and expenses 6,533 5,027
Income (loss) from operations 309 (785)
Interest and other income, net 49 48
Net income (loss) $358 $(737)
Basic net income (loss) per share $0.03 $(0.08)
Diluted net income (loss) per share $0.03 $(0.08)
Basic weighted avg. no. of shs. 11,890 10,944
Diluted weighted avg. no. of shs. 13,311 10,944
March 31, December 31,
2003 2002
Cash and cash equivalents $6,940 $4,450
Current assets 15,535 12,615
Total assets 16,270 13,398
Current liabilities 6,443 8,681
Total liabilities 6,443 8,681
Total stockholders' equity 9,827 4,718
SOURCE Palomar Medical Technologies Inc
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Related links:
http://www.palmed.com
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Company News On-Call:
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CONTACT:
Paul S. Weiner, Chief Financial Officer for
Palomar Medical Technologies Inc, +1-781-993-2411, ir@palmed.com
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