Palomar Doubles Sales Force; Introduces the NeoLux(TM) Pulsed Light System
BURLINGTON, Mass., Oct. 23 /PRNewswire-FirstCall/ -- Palomar Medical
Technologies Inc (Nasdaq: PMTI) today announced that for the third quarter
ended September 30, 2003, the Company's total revenues increased by 25
percent, its product revenues increased by 28 percent and its gross profit
from product sales improved by 48 percent, compared to the third quarter of
2002, due to the continued growth of the Company's flagship family of Lux
Pulsed Light Systems. The Company realized a significant increase in operating
income of $510,000, or 428 percent, and an improvement to net income of
$785,000, or 658 percent, which includes a benefit from income taxes of
$275,000, compared to the third quarter of 2002. Over the past year, product
gross margins have improved significantly due to higher margin product mix and
increased sales volume. The Company has also strengthened its balance sheet
since the end of last year, including doubling its cash position and almost
tripling stockholders' equity; the current ratio now stands at 2.7x, up
substantially from 1.5x at the end of 2002.
(Logo: http://www.newscom.com/cgi-bin/prnh/20000308/PMTILOGO )
Chief Executive Officer Joseph P. Caruso commented, "Once again we are
pleased to report another strong quarter with a substantial increase in
revenues and profitability, even during what historically has been a
seasonally slow quarter for this industry due to the summer vacation months.
We have increased market share over the past few quarters and anticipate this
trend to continue as we concentrate on increasing distribution both
domestically and internationally. We have put a concerted effort into growing
our revenues and as such have doubled our sales force in the United States
effective earlier this month."
Caruso continued, "During the past few quarters, we have set the
foundation for a significant expansion of our business. We now have a
diversified product line with a strong reputation for reliability that meets
the needs of our growing customer base. Our manufacturing capacity is
sufficient to accommodate our next stage of growth, and we have firmed up our
financial resources and have put in place a creative and dedicated team of
professionals to take Palomar to what we think will be a higher level of
revenues and profitability. Cosmetic light-based treatments are rapidly
becoming preferred over traditional treatments and we expect this trend to
continue. Given all these factors, we believe Palomar is well-positioned for
continued growth."
Revenues for the quarter ended September 30, 2003, were $9.2 million, up
from $7.4 million in the third quarter of 2002. Gross profit from product
sales increased to $4.8 million (58 percent of product revenues), up from $3.2
million (50 percent of product revenues) in the year-earlier quarter. The
Company reported net income of $904,000, or $0.05 per diluted share, for the
third quarter of this year, versus net income of $119,000, or $0.01 per
diluted share, for the third quarter of last year.
Revenues for the nine-months ended September 30, 2003, were $24.7 million,
up from $18.0 million for the nine-months ended September 30, 2002. Gross
profit from product sales increased to $12.8 million (58 percent of revenues),
up from $7.2 million (47 percent of revenues) in the year-earlier period. The
Company reported net income of $2.3 million, or $0.15 per diluted share, for
the nine-months ended September 30, 2003, versus a net loss of $398,000, or
$0.04 loss per diluted share, for the nine-months ended September 30, 2002.
During the third quarter, the Company further broadened its product line
with the introduction of the NeoLux(TM) Pulsed Light System. The NeoLux is the
latest introduction to the Palomar family of pulsed light systems. Having
established the EsteLux(TM) and MediLux(TM) Systems for a primarily medical
clientele, Palomar set out to make these pulsed-light innovations even easier
to use and more affordable for the beauty industry worldwide by focusing on
two applications. The NeoLux offers permanent hair reduction on all skin types
and photofacial treatments on pigmented lesions, for improved skin tone and
texture.
The NeoLux uses pulses of concentrated light to disable hair follicles,
resulting in long-lasting hair removal, and to break down the pigment in
pigmented lesions (such as age spots and freckles), for improved skin tone and
texture. The NeoLux can remove hair from all skin types, from the fairest to
the darkest, including tanned skin. This allows treatment providers to offer
permanent hair reduction to a wide range of ethnic groups and skin types.
In addition, the NeoLux handpieces all feature a large spot-size for quick
treatments; the hair from a back or pair of legs can be removed in under 30
minutes, and smaller areas can be treated in even less time. The NeoLux
combines the permanency of electrolysis with the fast coverage of waxing, and
delivers effective photofacials. The NeoLux's affordability and effectiveness
make it an ideal addition to any practice focused on expanding cosmetic
treatments for their customers.
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 (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 22204525 and will continue through Thursday, November 6, 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 The Gillette Company (NYSE: G) 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
Palomar Financial Summary (Amounts in thousands, except per share data):
Consolidated Condensed Statements of Operations (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
Revenues:
Product revenues $8,302,460 $6,495,295 $22,147,186 $15,259,796
Royalty revenues 179,659 858,799 648,445 2,691,831
Funded product
development revenues 700,000 - 1,900,000 -
Total revenues 9,182,119 7,354,094 24,695,631 17,951,627
Costs and expenses:
Cost of product
revenues 3,510,724 3,250,074 9,389,120 8,060,541
Cost of royalty
revenues 71,864 343,520 259,378 1,076,732
Research and
development 1,510,907 1,154,774 4,199,166 3,294,641
Selling and
marketing 2,394,868 1,646,798 6,068,166 3,816,096
General and
administrative 1,080,989 832,643 3,237,881 2,240,624
Total costs and
expenses 8,569,352 7,227,809 23,153,711 18,488,634
Income (loss) from
operations 612,767 126,285 1,541,920 (537,007)
Interest income 18,753 22,143 53,744 57,323
Interest expense (2,029) (29,172) (26,819) (86,656)
Other income - - 58,333 168,305
Income (loss) before
income taxes 629,491 119,256 1,627,178 (398,035)
Benefit from income
taxes 275,000 - 704,521 -
Net income (loss) $904,491 $119,256 $2,331,699 $(398,035)
Net income (loss) per share:
Basic $0.07 $0.01 $0.18 $(0.04)
Diluted $0.05 $0.01 $0.15 $(0.04)
Weighted average number of shares outstanding:
Basic 13,859,356 11,504,563 13,092,732 11,317,499
Diluted 16,524,300 11,944,058 15,504,757 11,317,499
Consolidated Condensed Balance Sheets
September 30, December 31,
2003 2002
(Unaudited) (Audited)
Assets
Current assets:
Cash and cash equivalents $9,218,424 $4,450,076
Accounts receivable, net 6,397,691 4,047,277
Inventories 3,449,919 3,847,493
Other current assets 143,851 269,940
Total current assets 19,209,885 12,614,786
Property and equipment, net 509,328 485,286
Other assets 291,074 298,268
$20,010,287 $13,398,340
Liabilities and Stockholders' Equity
Current liabilities:
Note payable to related party $- $1,000,000
Accounts payable 395,168 1,320,202
Accrued liabilities 4,423,424 4,619,303
Deferred income taxes 1,100,000 1,400,000
Deferred revenue 1,275,426 341,084
Total current liabilities 7,194,018 8,680,589
Stockholders' equity:
Common stock 141,999 115,387
Additional paid-in capital 167,761,472 162,021,265
Accumulated deficit (155,087,202) (157,418,901)
Total stockholders' equity 12,816,269 4,717,751
$20,010,287 $13,398,340
SOURCE Palomar Medical Technologies Inc
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