BURLINGTON, Mass., April 28 /PRNewswire-FirstCall/ -- Palomar Medical Technologies Inc , a leading researcher and developer of light- based systems for cosmetic treatments, today announced financial results for the first quarter ended March 31, 2005. The Company's first quarter total revenues increased by 57 percent, product revenues increased by 48 percent, and gross profit from product sales improved by 57 percent as compared to the same quarter in 2004. Net income increased by 203 percent as compared to the first quarter of 2004. The Company also strengthened its balance sheet since the first quarter of last year, including increasing its cash position from $13 million to $29 million.
Revenues for the quarter ended March 31, 2005, were $17 million, up from $10.8 million in the first quarter of 2004. Gross profit from product sales increased to $9.8 million (68 percent of product revenues), up from $6.2 million (65 percent of product revenues) in the year-earlier quarter. The Company reported net income of $3.5 million, or $0.19 per diluted share, for the first quarter of this year, versus net income of $1.2 million, or $0.07 per diluted share, for the first quarter of last year.
Chief Executive Officer Joseph P. Caruso commented, "This has been an exciting and rewarding quarter for Palomar. We continue to enjoy increased market acceptance of our new product offerings, and we believe we are maintaining our leadership position as an innovator in our markets. Our reputation for leading-edge technology and product reliability has resulted in increased revenue for Palomar over the past three years in the expanding market for light-based cosmetic procedures; a trend we think will continue throughout 2005."
Mr. Caruso continued, "We continue to advance our aesthetic products to meet the demands of the market while offering accurate and safe treatments. During the first quarter, the Company presented, at the American Academy of Dermatology, the VisiLux1064(TM) Laser Handpiece and the LuxIR(TM) Infrared Handpiece for the Palomar StarLux(TM) Pulsed Light and Laser System, and the DermaType(TM) Skinphotometer. These new product additions greatly increase a physician's treatment options and complement our business model by providing numerous expansion opportunities through versatile, innovative attachments and complementing accessories."
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)798-2864 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 37443474 and will continue through Thursday, May 12, 2005. 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 indications 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 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.
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.
Palomar Financial Summary (Amounts in thousands, except per share data): Consolidated Statements of Operations (Unaudited) Three Months Ended March 31, 2005 2004 Revenues: Product revenues $14,283,416 $9,627,115 Royalty revenues 1,382,284 193,278 Funded product development revenues 1,379,604 1,013,464 Total revenues 17,045,304 10,833,857 Costs and expenses: Cost of product revenues 4,520,796 3,418,513 Cost of royalty revenues 552,914 77,311 Research and development 3,186,164 2,539,163 Selling and marketing 3,824,642 2,681,110 General and administrative 1,550,712 1,087,329 Total costs and expenses 13,635,228 9,803,426 Income from operations 3,410,076 1,030,431 Interest income, net of interest expense 172,068 27,238 Other income, net 6,000 143,067 Income before income taxes 3,588,144 1,200,736 Provision for income taxes 71,763 41,515 Net income $3,516,381 $1,159,221 Net income per share: Basic $0.21 $0.08 Diluted $0.19 $0.07 Weighted average number of shares outstanding: Basic 16,477,815 15,063,754 Diluted 18,982,746 17,352,236 Consolidated Balance Sheets (Unaudited) March 31, December 31, 2005 2004 Assets Current assets: Cash and cash equivalents $5,072,826 $7,508,856 Available-for-sale investments, at market value 24,100,000 17,650,000 Accounts receivable, net 7,358,935 7,122,745 Inventories 5,973,043 5,866,494 Other current assets 742,203 440,254 Total current assets 43,247,007 38,588,349 Property and equipment, net 903,407 899,368 Other assets 111,074 111,074 Total Assets $44,261,488 $39,598,791 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $1,174,583 $971,030 Accrued liabilities 6,989,912 8,014,207 Deferred revenue 1,436,500 1,439,639 Total current liabilities 9,600,995 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 -- 16,799,034 and 16,231,502 shares, respectively 167,991 162,315 Additional paid-in capital 174,392,623 172,428,102 Accumulated deficit (139,900,121) (143,416,502) Total stockholders' equity 34,660,493 29,173,915 Total liabilities and stockholders' equity $44,261,488 $39,598,791 Contacts: Investor Relations Palomar Medical Technologies Inc 781-993-2411 ir@palomarmedical.com
Palomar Medical Technologies IncCONTACT: Investor Relations of Palomar Medical Technologies Inc,+1-781-993-2411, ir@palomarmedical.com
Web site: http://www.palomarmedical.com/
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