BURLINGTON, Mass., April 27 /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, 2006. The Company’s first quarter total revenues increased by 32 percent, product revenues increased by 43 percent, and net income increased by 78 percent as compared to the first quarter in 2005. The Company also strengthened its balance sheet since the first quarter of last year, including increasing its cash and investments from $29 million to $51 million.
Revenues for the quarter ended March 31, 2006 were $22.5 million, up from $17 million in the first quarter of 2005. Gross profit from product revenues increased to $15.1 million or 74 percent (which includes a net positive adjustment to cost of product revenues of $617,000), up from $9.8 million or 68 percent in the year-earlier quarter. The Company reported net income of $6.2 million, or $0.31 per diluted share (which includes a net positive adjustment of $386,000), for the first quarter of this year, versus net income of $3.5 million, or $0.19 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. Market acceptance of our new product offerings continues to grow. We believe this is a direct result of our reputation for providing leading-edge technology and unsurpassed product reliability. Over the past four years the market for light-based cosmetic procedures has grown, as have Palomar’s revenues; a trend we think will continue throughout 2006.”
Mr. Caruso continued, “We remain committed to advancing our aesthetic products to meet the demands of the market in ways that are cost effective and upgradeable for our customers. At the 2006 American Academy of Dermatology meeting, the Company again presented new StarLux applicator handpieces to further increase treatment options on one platform. An upgradeable platform provides customers with a cost effective way to enter the market and the flexibility to grow their practice with only incremental costs. Our newest product additions, like those in the past, complement this business model by increasing the number of expansion opportunities through additional versatile, innovative handpieces.”
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 (866) 713-8395 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 93758521 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 to develop and potentially commercialize a patented home-use, light-based hair removal device for women (please note that in October 2005, Procter & Gamble Company completed its acquisition of Gillette. Under the Development and License Agreement, Procter & Gamble, as the acquiring party, assumed all of Gillette’s rights and obligations.) Palomar also has 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 was 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 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 and additional applications, 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, 2005 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: Consolidated Statements of Income (Unaudited) Three Months Ended March 31, 2006 2005 Revenues: Product revenues $20,389,770 $14,283,416 Royalty revenues 645,001 1,382,284 Funded product development revenues 1,419,774 1,379,604 Total revenues 22,454,545 17,045,304 Costs and expenses: Cost of product revenues 5,315,483 4,520,796 Cost of royalty revenues 258,000 552,914 Research and development 3,679,345 3,186,164 Selling and marketing 5,470,665 3,824,642 General and administrative 1,853,569 1,550,712 Total costs and expenses 16,577,062 13,635,228 Income from operations 5,877,483 3,410,076 Interest income 576,025 178,068 Income before income taxes 6,453,508 3,588,144 Provision for income taxes 209,739 71,763 Net income $6,243,769 $3,516,381 Net income per share: Basic $0.36 $0.21 Diluted $0.31 $0.19 Weighted average number of shares outstanding: Basic 17,270,700 16,477,815 Diluted 19,901,069 18,982,746 Consolidated Balance Sheets (Unaudited) March 31, December 31, 2006 2005 Assets Current assets: Cash and cash equivalents $9,381,591 $10,536,144 Available-for-sale investments, at market value 41,218,429 38,757,575 Accounts receivable, net of allowance 11,926,485 8,686,227 Inventories 7,465,277 6,753,110 Other current assets 1,111,979 582,074 Total current assets 71,103,761 65,315,130 Property and equipment, net 972,233 909,676 Other assets 111,074 111,074 Total Assets $72,187,068 $66,335,880 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $1,510,731 $1,278,823 Accrued liabilities 9,161,439 11,465,100 Deferred revenue 2,026,069 1,725,849 Total current liabilities 12,698,239 14,469,772 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 -- 17,296,269 and 17,126,467 shares, respectively 172,963 171,265 Additional paid-in capital 179,035,389 177,658,135 Accumulated deficit (119,719,523) (125,963,292) Total stockholders’ equity 59,488,829 51,866,108 Total liabilities and stockholders’ equity $72,187,068 $66,335,880 Contacts: Kayla Castle Investor Relations Manager Palomar Medical Technologies Inc. 781-993-2411 ir@palomarmedical.com
Palomar Medical Technologies Inc.
CONTACT: Kayla Castle, Investor Relations Manager of Palomar MedicalTechnologies Inc., +1-781-993-2411, ir@palomarmedical.com
Web site: http://www.palomarmedical.com/
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