Second Quarter Product Revenues Increase 48 Percent; Net Income Doubles
BURLINGTON, Mass., July 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 second quarter ended June 30, 2005. The Company's second quarter total
revenues increased by 38 percent, product revenues increased by 48 percent,
and gross profit from product sales improved by 54 percent as compared to the
second quarter of 2004. Net income increased by 97 percent as compared to the
same quarter in 2004. The Company also strengthened its balance sheet since
the second quarter of last year, including increasing its cash and investments
from $17 million to $34 million.
Revenues for the quarter ended June 30, 2005 were $18.2 million, up from
$13.2 million in the second quarter of 2004. Product revenues increased to
$15.8 million from $10.7 million in the second quarter of 2005 as compared to
the second quarter of 2004. Gross profit from product sales increased to $10.5
million (67 percent of product revenues), up from $6.9 million (64 percent of
product revenues) in the year-earlier quarter. The Company reported net income
of $4.0 million, or $0.21 per diluted share, for the second quarter of this
year, versus net income of $2.0 million, or $0.12 per diluted share, for the
second quarter of last year.
Revenues for the six months ended June 30, 2005, were $35.3 million, up
from $24.1 million for the six months ended June 30, 2004. Product revenues
increased to $30.1 million from $20.3 million in the first half of 2005 as
compared to the first half of 2004. Gross profit from product sales increased
to $20.3 million (68 percent of revenues), up from $13.1 million (64 percent
of revenues) in the year-earlier period. The Company reported net income of
$7.5 million, or $0.40 per diluted share for the six months ended June 30,
2005, versus net income of $3.2 million, or $0.18 per diluted share for the
six months ended June 30, 2004.
Chief Executive Officer Joseph P. Caruso commented, "We are pleased to
report another strong quarter with a substantial increase in profitability,
and we are especially encouraged by our continued revenue growth led by our
flagship Lux product lines. Our projects with Gillette, Johnson and Johnson
and the government are progressing as planned and we continue to strengthen
our balance sheet by more than doubling our cash and investments over the last
twelve months. We anticipate this trend to continue as we concentrate on
increasing distribution both domestically and internationally. We are also
pleased with the balance we have been able to maintain between short term
financial performance and long term strategic goals. It is important that we
maintain our strategy of investing the necessary resources in research and
development and intellectual property protection to maintain our technology
leadership position as we advance our technology toward the consumer market
with our partners."
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 79754650 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 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, 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 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 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:
Consolidated Statements of Income (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
Revenues:
Product revenues $15,780,556 $10,686,773 $30,063,972 $20,313,888
Royalty revenues 1,130,435 1,455,227 2,512,719 1,648,505
Funded product
development
revenues 1,311,827 1,088,172 2,691,431 2,101,636
Total revenues 18,222,818 13,230,172 35,268,122 24,064,029
Costs and expenses:
Cost of product
revenues 5,236,389 3,822,507 9,757,185 7,241,020
Cost of royalty
revenues 452,173 582,091 1,005,087 659,402
Research and
development 2,870,050 2,490,182 6,056,214 5,029,345
Selling and
marketing 4,352,348 3,124,608 8,176,990 5,805,718
General and
administrative 1,469,638 1,176,854 3,020,350 2,264,183
Total costs and
expenses 14,380,598 11,196,242 28,015,826 20,999,668
Income from
operations 3,842,220 2,033,930 7,252,296 3,064,361
Interest income, net 243,449 37,273 415,517 64,511
Other income, net 4,500 18,000 10,500 161,067
Income before
income taxes 4,090,169 2,089,203 7,678,313 3,289,939
Provision for
income taxes 81,803 59,114 153,566 100,629
Net income $4,008,366 $2,030,089 $7,524,747 $3,189,310
Net income per share:
Basic $0.24 $0.13 $0.45 $ 0.21
Diluted $0.21 $0.12 $0.40 $ 0.18
Weighted average number of shares outstanding:
Basic 16,856,271 15,697,135 16,776,925 15,380,446
Diluted 18,832,447 17,607,376 19,037,599 17,465,459
Consolidated Balance Sheets (Unaudited)
June 30, December 31,
2005 2004
Assets
Current assets:
Cash and cash equivalents $9,660,388 $7,508,856
Available-for-sale investments,
at market value 24,349,838 17,650,000
Accounts receivable, net 8,498,596 7,122,745
Inventories 6,395,785 5,866,494
Other current assets 763,431 440,254
Total current assets 49,668,038 38,588,349
Property and equipment, net 851,956 899,368
Other assets 111,074 111,074
Total Assets $50,631,068 $39,598,791
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $1,636,902 $ 971,030
Accrued liabilities 8,653,506 8,014,207
Deferred revenue 1,493,479 1,439,639
Total current liabilities 11,783,887 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 and outstanding -- 16,884,001
and 16,231,502 shares, respectively 168,840 162,315
Additional paid-in capital 174,570,096 172,428,102
Accumulated deficit (135,891,755) (143,416,502)
Total stockholders' equity 38,847,181 29,173,915
Total liabilities and stockholders'
equity $50,631,068 $39,598,791
Contacts:
Investor Relations
Palomar Medical Technologies Inc
781-993-2411
ir@palomarmedical.com
SOURCE Palomar Medical Technologies, Inc.
 back to top
Related links:
http://www.palomarmedical.com
Company News On-Call:
http://www.prnewswire.com/comp/107555.html
CONTACT:
Investor Relations: Palomar Medical
Technologies Inc, +1-781-993-2411, ir@palomarmedical.com
|
