Palomar Medical Technologies Reports Financial Results For Third Quarter 2011

BURLINGTON, Mass., Oct. 27, 2011 (GLOBE NEWSWIRE) -- 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, 2011. Revenues for the quarter ended September 30, 2011 were $46.1 million, which included $29.8 million in royalty revenues as a result of the patent litigation settlement with Candela and Syneron. Excluding the patent litigation settlement, revenues were $16.3 million, a 3 percent increase over the $15.8 million reported in the third quarter of 2010. Product revenues increased to $10.4 million, a 12 percent increase over the $9.3 million reported in the third quarter of 2010. Third quarter gross margin from product revenues was 59 percent and was consistent with the percent reported in the third quarter of 2010. Income before taxes for the third quarter ended September 30, 2011 was $19.1 million, which included $18.7 million of net royalty revenues, $6.6 million in partial legal reimbursement related to the patent litigation settlement with Candela and Syneron, $1.3 million in patent litigation expense, $0.8 million in non-cash stock-based compensation expense, and $0.7 million of net interest income related to the patent litigation settlement with Candela and Syneron. Loss before taxes for the third quarter ended September 30, 2010 was $2.0 million, which included $1.5 million in patent litigation expense and $0.9 million in non-cash stock-based compensation expense. Net income for the third quarter ended September 30, 2011 was $15.2 million, or $0.81 per diluted share, as compared to a net loss for the third quarter ended September 30, 2010 of $2.0 million, or $0.11 per share. The balance sheet continues to be strong with $110.6 million in cash, cash equivalents, short-term investments, and marketable securities and other investments with no borrowings.