Achieves Profitability, Positive Cash Flow and 53 Percent Gross Profit on
Increased Revenue
BURLINGTON, Mass., July 25 /PRNewswire-FirstCall/ --
Palomar Medical Technologies Inc (Nasdaq: PMTI) said today that for the second
quarter ended June 30, 2002, its total revenues increased by 32 percent, its
product revenues increased by 58 percent and its gross profit improved by 97
percent as compared to the second quarter of 2001, excluding back-owed
royalties of $1.2 million received in the second quarter of 2001. Based on the
increased revenues and improved margin, the Company realized a net profit two
quarters earlier than management had stated on the April 2002 conference call.
Even more importantly, the Company created a positive cash flow with an
increase in its cash position over the first quarter ended March 31, 2002.
Over the past year, gross margins have improved significantly due to a shift
in product mix to lower cost platforms. Chairman of the Board Dan Valente
attributed the strong financial performance to the successful execution of the
strategic business plan resulting in the Company's increased market share
directly attributable to the recently introduced products.
(Photo: http://www.newscom.com/cgi-bin/prnh/20000308/PMTILOGO )
Revenues for the quarter ended June 30, 2002, were $6.4 million, up from
$6.1 million in the second quarter of 2001. Gross profit increased to $3.4
million (53 percent of revenues), up from $2.4 million (40 percent of
revenues) in the year-earlier quarter. The Company reported net income of
$219,000 or $0.02 per share for the second quarter of this year, versus a net
loss of $573,000 or $0.06 loss per share for the second quarter of last year.
Revenues for the six months ended June 30, 2002, were $10.6 million, up
from $9.7 million for the six months ended June 30, 2001. Gross profit
increased to $5.1 million (48 percent of revenues), up from $3.3 million (35
percent of revenues) in the year-earlier period. The Company reported a net
loss of $517,000 or $0.05 per share for the six months ended June 30, 2002,
versus a net loss of $2.5 million or $0.25 loss per share for the six months
ended June 30, 2001.
Chief Executive Officer Joseph P. Caruso commented, "Achieving
profitability is indeed a significant event for Palomar as we accomplished our
stated goal of turning the Company around by the end of 2002. We achieved this
milestone sooner than expected due to the dedication of our employees and the
guidance of our directors, all while investing the necessary resources in
Research & Development to maintain our technology leadership position."
Caruso continued, "We believe that our EsteLux(TM) Pulsed Light system will
continue to penetrate the market based on the favorable reviews of
dermatologists and other treatment providers around the world. The EsteLux
system has a wide range of applications, including hair removal and vascular
and pigmented lesion removal. As expected, we began shipments of the new
handpieces for the EsteLux system in this quarter. We offer features that are
not available elsewhere, and a tradition of excellent science, design and
strong support that is widely trusted. We will continue to build our
distribution worldwide."
Conference Call: As previously announced, Palomar will conduct a
conference call and webcast today at 11:30 AM EST. Management will discuss
second quarter financial results and strategic matters. If you would like to
participate, please call (888) 280-4008 or listen to the webcast in 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.
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, 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 Six Months Ended
June 30, June 30,
2002 2001 2002 2001
Revenues $6,356 $6,051 $10,598 $9,653
Cost of Revenues 2,991 3,606 5,544 6,321
Gross Profit 3,365 2,445 5,054 3,332
Research and Development
Expense 1,075 1,441 2,140 3,058
Selling, General and
Administrative Expense 2,169 1,842 3,577 3,440
Income (Loss) from
Operations 121 (838) (663) (3,166)
Interest and Other
Income, net 98 265 146 666
Net Income (Loss) $219 $(573) $(517) $(2,500)
Basic Net Income (Loss)
per Share $0.02 $(0.06) $(0.05) $(0.25)
Diluted Net Income
(Loss) per Share $0.02 $(0.06) $(0.05) $(0.25)
Basic Weighted Avg.
No. of Shs. 11,498 10,826 11,222 10,758
Diluted Weighted Avg.
No. of Shs. 11,508 10,826 11,222 10,758
June 30, 2002 Dec. 31, 2001
Cash and Cash Equivalents $4,140 $5,825
Current Assets 11,418 12,219
Total Assets 12,317 13,171
Current Liabilities 8,063 9,275
Total Liabilities 8,063 9,275
Total Stockholders' Equity 4,254 3,896
Contacts:
Paul S. Weiner
Palomar Medical Technologies Inc
781-993-2411
ir@palmed.com
SOURCE Palomar Medical Technologies, Inc.
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http://www.palmed.com
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Company News On-Call:
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CONTACT:
Paul S. Weiner of Palomar Medical
Technologies Inc, +1-781-993- 2411, ir@palmed.com
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