Revenues Increase by 52 Percent; Operating Income Increases by 300 Percent
BURLINGTON, Mass., Oct. 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 third quarter ended September 30, 2004. The Company's third quarter
total revenues increased by 52 percent, product revenues increased by 40
percent, and gross profit from product sales improved by 59 percent as
compared to the same quarter in 2003. The Company realized a significant
increase in income from operations of $1.8 million, or 300 percent, and a net
income improvement of $1.2 million, or 130 percent, as compared to the third
quarter of 2003.
Revenues for the quarter ended September 30, 2004, were $13.9 million, up
from $9.2 million in the third quarter of 2003. Gross profit from product
sales increased to $7.6 million (66 percent of product revenues), up from $4.8
million (58 percent of product revenues) in the year-earlier quarter. The
Company reported income from operations of $2.4 million for the third quarter
of this year, as compared to income from operations of $613,000 for the third
quarter of last year. The Company reported net income of $2.1 million, or
$0.12 per diluted share, which includes a non-recurring expense of $380,000
from settlement of a previously owned subsidiary's facility lease, for the
third quarter of this year, versus net income of $904,000, or $0.05 per
diluted share, which includes a benefit from income taxes of $275,000, for the
third quarter of last year.
Revenues for the nine months ended September 30, 2004, were $38.0 million,
up from $24.7 million for the same period in 2003. Gross profit from product
sales increased to $20.7 million (65 percent of revenues), up from $12.8
million (58 percent of revenues) in the year-earlier period. The Company
reported net income of $5.3 million, or $0.30 per diluted share for the nine
months ended September 30, 2004, versus net income of $2.3 million, or $0.15
per diluted share for the same period in 2003.
Chief Executive Officer Joseph P. Caruso commented, "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. The newly
introduced Palomar StarLux(TM) light and laser based system as well as all of
our family of Lux products have been well received by our customers, which
continues to strengthen our reputation as the technology leader."
Mr. Caruso continued, "We have increased market share over the past few
quarters and believe our balanced strategy between short term core business
growth in the professional market and partnerships with large consumer product
companies for the long term will lead to increased shareholder value."
During the third quarter of 2004, the Company announced the following
event:
-- The Company and Johnson & Johnson Consumer Companies, Inc, a Johnson &
Johnson company, signed an agreement to develop, clinically test and
potentially commercialize home-use, light-based devices for (i) reducing or
reshaping body fat including cellulite; (ii) reducing appearance of skin
aging; and (iii) reducing or preventing acne.
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.palomarmedical.com. The telephone replay will be available one hour
after the call at (888) 286-8010 passcode 78311063 and will continue through
Thursday, November 11, 2004. 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. New and exciting indications are being tested to further
advance the hair removal market and other cosmetic applications. Palomar is
uniquely focused on developing proprietary light-based technology that can be
introduced 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, and 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. 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.
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,
2003 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 (Amounts in thousands, except per share data):
Consolidated Statements of Operations (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
Revenues:
Product revenues $11,599,737 $8,302,460 $31,913,625 $22,147,186
Royalty revenues 1,254,820 179,659 2,903,325 648,445
Funded product
development
revenues 1,092,448 700,000 3,194,084 1,900,000
Total revenues 13,947,005 9,182,119 38,011,034 24,695,631
Costs and expenses:
Cost of product
revenues 3,991,748 3,510,724 11,232,768 9,389,120
Cost of royalty
revenues 501,928 71,864 1,161,330 259,378
Research and
development 2,532,625 1,595,371 7,561,970 4,488,953
Selling and
marketing 3,034,595 2,394,868 8,840,313 6,068,166
General and
administrative 1,443,626 996,525 3,707,809 2,948,094
Total costs and
expenses 11,504,522 8,569,352 32,504,190 23,153,711
Income from
operations 2,442,483 612,767 5,506,844 1,541,920
Interest income
(net of interest
expense) 78,554 16,724 143,065 26,925
Other income (expense),
net (377,000) - (215,933) 58,333
Income before income
taxes 2,144,037 629,491 5,433,976 1,627,178
Provision (benefit)
from income taxes 60,381 (275,000) 161,010 (704,521)
Net income $2,083,656 $ 904,491 $5,272,966 $2,331,699
Net income per share:
Basic $0.13 $0.07 $0.34 $0.18
Diluted $0.12 $0.05 $0.30 $0.15
Weighted average
number of shares
outstanding:
Basic 15,878,521 13,859,356 15,547,683 13,092,732
Diluted 17,793,795 16,524,300 17,517,346 15,504,757
Consolidated Balance Sheets (Unaudited)
September 30, December 31,
2004 2003
Assets
Current assets:
Cash and cash equivalents $19,509,643 $10,558,946
Accounts receivable, net 7,516,800 6,637,246
Inventories 5,141,970 3,385,316
Other current assets 559,290 384,785
Total current assets 32,727,703 20,966,293
Property and equipment, net 894,922 582,898
Other assets 111,074 111,074
Total Assets $33,733,699 $21,660,265
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $1,490,477 $655,923
Accrued liabilities 7,161,935 4,979,896
Deferred income taxes 1,100,000 1,100,000
Deferred revenue 1,191,324 560,897
Total current liabilities 10,943,736 7,296,716
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 - 16,035,991 and 14,554,407
shares, respectively 160,385 145,544
Additional paid-in capital 171,406,427 168,267,820
Accumulated deficit (148,776,849) (154,049,815)
Total stockholders' equity 22,789,963 14,363,549
Total liabilities and
stockholders' equity $33,733,699 $21,660,265
Contacts:
Investor Relations
Palomar Medical Technologies Inc
781-993-2411
ir@palomarmedical.com
SOURCE Palomar Medical Technologies
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