Achieves Profitability for Second Consecutive Quarter and
130 Percent Increased Revenue
BURLINGTON, Mass., Oct. 24 /PRNewswire-FirstCall/ --
Palomar Medical Technologies Inc (Nasdaq: PMTI) said today that for the third
quarter ended September 30, 2002, its total revenues increased by 130 percent,
its product revenues increased by 161 percent and its gross profit improved by
464 percent as compared to the third quarter of 2001. Based on the increased
revenues and improved margin due to the increasing sales of the Company's
flagship EsteLux(TM) Pulsed Light system, the Company realized net income for
the second consecutive quarter as compared to a net loss of $2.6 million in
the third quarter of 2001. The Company generated a positive cash flow for the
last two quarters. Over the past year, gross margins have improved
significantly due to a shift in product mix to lower cost platforms.
(Photo: http://www.newscom.com/cgi-bin/prnh/20000308/PMTILOGO )
Revenues for the quarter ended September 30, 2002, were $7.4 million, up
from $3.2 million in the third quarter of 2001. Gross profit increased to $3.8
million (51 percent of revenues), up from $0.7 million (21 percent of
revenues) in the year-earlier quarter. The Company reported net income of
$119,000 or $0.01 per share for the third quarter of this year, versus a net
loss of $2.6 million or $0.25 loss per share for the third quarter of last
year.
Revenues for the nine months ended September 30, 2002, were $18 million,
up from $12.9 million for the nine months ended September 30, 2001. Gross
profit increased to $8.8 million (49 percent of revenues), up from $4 million
(31 percent of revenues) in the year-earlier period. The Company reported a
net loss of $398,000 or $0.04 loss per share for the nine months ended
September 30, 2002, versus a net loss of $5.1 million or $0.50 loss per share
for the nine months ended September 30, 2001.
Chief Executive Officer Joseph P. Caruso commented, "We are pleased to
have our second consecutive quarterly profit, and are especially encouraged
that our revenues continue to increase at a rate that surpasses all of our
expectations. We are looking for this trend to continue as we increase
distribution both domestically and internationally, all while investing the
necessary resources in Research & Development to maintain our technology
leadership position. The Company's business plan is clearly showing a positive
impact on financial results and we are now in the process of scheduling
meetings with various institutions and funds to create an increased following
within the investment community."
Caruso continued, "We believe that our EsteLux 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. We offer features that are not available elsewhere, and a
tradition of excellent science, design and strong support that is widely
trusted. We expect to further expand the application of our technology during
the upcoming quarters."
Conference Call: As previously announced, Palomar will conduct a
conference call and webcast today at 11:30 AM EST. Management will discuss
third 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 Nine Months Ended
September 30, September 30,
2002 2001 2002 2001
Revenues $7,354 $3,202 $17,952 $12,856
Cost of Revenues 3,593 2,535 9,138 8,857
Gross Profit 3,761 667 8,814 3,999
Research and Development
Expense 1,155 1,725 3,295 4,783
Selling, General and
Administrative Expense 2,480 1,585 6,056 5,025
Income (Loss) from
Operations 126 (2,643) (537) (5,809)
Interest and Other
Income (Expense), net (7) 64 139 729
Net Income (Loss) $119 $(2,579) $(398) $(5,080)
Basic Net Income (Loss)
per Share $0.01 $(0.25) $(0.04) $(0.50)
Diluted Net Income (Loss)
per Share $0.01 $(0.25) $(0.04) $(0.50)
Basic Weighted Avg.
No. of Shs. 11,505 10,844 11,317 10,787
Diluted Weighted Avg.
No. of Shs. 11,944 10,844 11,317 10,787
September 30, 2002 December 31, 2001
Cash and Cash Equivalents $4,344 $5,825
Current Assets 11,730 12,219
Total Assets 12,566 13,171
Current Liabilities 8,231 9,275
Total Liabilities 8,231 9,275
Total Stockholders' Equity 4,335 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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Related links:
http://www.palmed.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/20000308/PMTILOGO
PRN Photo Desk, 888-776-6555 or 212-782-2840
CONTACT:
Paul S. Weiner of Palomar Medical
Technologies Inc, +1-781-993- 2411, ir@palmed.com
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