Third Quarter Product Revenues Increase 44 Percent; Net Income Increases 120
Percent
BURLINGTON, Mass., Oct. 27 /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 third quarter ended September 30, 2005. The Company's third quarter total
revenues increased by 38 percent, product revenues increased by 44 percent,
and gross profit from product sales improved by 51 percent as compared to the
third quarter of 2004. Net income increased by 120 percent as compared to the
same quarter in 2004. The Company also strengthened its balance sheet since
the beginning of the year, including increasing its cash and investments from
$25 million to $40 million.
Revenues for the quarter ended September 30, 2005 were $19.3 million, up
from $13.9 million in the third quarter of 2004. Product revenues increased to
$16.7 million from $11.6 million in the third quarter of 2005 as compared to
the third quarter of 2004. Gross profit from product sales increased to $11.5
million (69 percent of product revenues), up from $7.6 million (66 percent of
product revenues) in the year-earlier quarter. The Company reported net income
of $4.6 million, or $0.24 per diluted share, for the third quarter of this
year, versus net income of $2.1 million, or $0.12 per diluted share, for the
third quarter of last year.
Revenues for the nine months ended September 30, 2005, were $54.5 million,
up from $38.0 million for the nine months ended September 30, 2004. Product
revenues increased to $46.8 million from $31.9 million in the first nine
months of 2005 as compared to the first nine months of 2004. Gross profit from
product sales increased to $31.8 million (68 percent of product revenues), up
from $20.7 million (65 percent of product revenues) in the year-earlier
period. The Company reported net income of $12.1 million, or $0.64 per diluted
share for the nine months ended September 30, 2005, versus net income of $5.3
million, or $0.30 per diluted share for the nine months ended September 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 continued to strengthen
our balance sheet by substantially increasing our cash and investments over
the last nine 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) 510-0178 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 37140744 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 applications 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.
Contacts: Investor Relations
Palomar Medical Technologies Inc
781-993-2411
ir@palomarmedical.com
Palomar Financial Summary:
Consolidated Statements of Income (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2005 2004 2005 2004
Revenues:
Product revenues $16,726,018 $11,599,737 $46,789,990 $31,913,625
Royalty revenues 1,211,547 1,254,820 3,724,266 2,903,325
Funded product
development
revenues 1,341,108 1,092,448 4,032,539 3,194,084
Total revenues 19,278,673 13,947,005 54,546,795 38,011,034
Costs and expenses:
Cost of product
revenues 5,220,270 3,991,748 14,977,455 11,232,768
Cost of royalty
revenues 484,619 501,928 1,489,706 1,161,330
Research and
development 3,162,199 2,532,625 9,218,413 7,561,970
Selling and
marketing 4,335,302 3,034,595 12,512,292 8,840,313
General and
administrative 1,712,847 1,443,626 4,733,197 3,707,809
Total costs and
expenses 14,915,237 11,504,522 42,931,063 32,504,190
Income from
operations 4,363,436 2,442,483 11,615,732 5,506,844
Interest income 312,116 78,554 727,633 143,065
Other income
(expense), net 3,000 (377,000) 13,500 (215,933)
Income before
income taxes 4,678,552 2,144,037 12,356,865 5,433,976
Provision for
income taxes 90,677 60,381 244,243 161,010
Net income $4,587,875 $2,083,656 $12,112,622 $5,272,966
Net income per share:
Basic $0.27 $0.13 $0.72 $0.34
Diluted $0.24 $0.12 $0.64 $0.30
Weighted average
number of shares
outstanding:
Basic 16,942,280 15,878,521 16,815,519 15,547,683
Diluted 19,115,171 17,793,795 19,044,006 17,517,346
Consolidated Balance Sheets (Unaudited)
September 30, December 31,
2005 2004
Assets
Current assets:
Cash and cash equivalents $9,641,086 $7,508,856
Available-for-sale investments,
at market value 30,022,812 17,650,000
Accounts receivable, net 9,644,696 7,122,745
Inventories 6,899,960 5,866,494
Other current assets 758,408 440,254
Total current assets 56,966,962 38,588,349
Property and equipment, net 866,876 899,368
Other assets 111,074 111,074
Total Assets $57,944,912 $39,598,791
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $1,716,407 $ 971,030
Accrued liabilities 10,302,608 8,014,207
Deferred revenue 1,561,857 1,439,639
Total current liabilities 13,580,872 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- 16,978,840
and 16,231,502 shares, respectively 169,788 162,315
Additional paid-in capital 175,498,132 172,428,102
Accumulated deficit (131,303,880) (143,416,502)
Total stockholders' equity 44,364,040 29,173,915
Total liabilities and stockholders' equity $57,944,912 $39,598,791
SOURCE Palomar Medical Technologies Inc
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