BURLINGTON, Mass., April 29, 2010 (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 first quarter ended March 31, 2010. Revenues for the quarter ended March 31, 2010 were $16.0 million, which represents a 9 percent increase over the $14.6 million reported in the first quarter of 2009. Product and service revenues increased to $13.1 million, a 14 percent increase over the $11.5 million in the first quarter of 2009. First quarter gross margin from product and service revenues was 62 percent, an increase over the 55 percent in the first quarter of 2009. Loss before income taxes for the first quarter ended March 31, 2010 was $2.5 million, which included a $1.2 million charge related to the write-off of our remaining lease term at our old facility, $0.6 million in patent litigation expenses and a $1.0 million non-cash FAS 123R stock-based compensation expense. The Company reported net loss of $2.5 million, or $0.14 per share for the first quarter of 2010. The balance sheet continues to be strong with $101 million in cash, cash equivalents and short-term investments with no borrowings.
Chief Executive Officer Joseph P. Caruso commented, "We are very pleased with the increase in total revenues and product and service revenue this quarter as compared to the prior year. Our extensive product portfolio and platform approach has been well received and perfectly positioned for this economic climate. It allows our sales team to configure our technology solutions to fit physicians' sites all over the world regardless of the particular economic pressure they are experiencing. We are also pleased that 43 percent of our revenue was contributed from reoccurring sources other than one-time capital equipment sales. Our gross margin growth was also a big improvement over the previous year. We have worked hard to implement a number of cost cutting initiatives and introduced new technology contributing to the increase in gross margin over last year. Our international initiatives are also paying off as revenue from outside North America continues to strengthen. We will continue to invest in growing our international presence."
Mr. Caruso continued, "We have made great progress since the beginning of the year on consumer product branding and positioning. We are working toward bringing our consumer products to market with a target launch by the end of 2010. Our ability to manufacture in our new facility substantially decreases our time to market."
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) 688-0796 or listen to the webcast in the About Palomar/Investors section of the Company's website at www.palomarmedical.com. The telephone replay will be available one hour after the call at (888) 286-8010 passcode 71342567 and will be available for seven 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. In December 2006, Palomar became the first company to receive a 510(k) over-the-counter (OTC) clearance from the United States Food and Drug Administration (FDA) for a new, patented, home-use, light-based hair removal device. In June 2009, Palomar became the first company to receive a 510(k) OTC clearance from the FDA for a new, patented, home-use, laser device for the treatment of periorbital wrinkles. OTC clearance allows these products to be marketed and sold directly to consumers without a prescription. 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 focused on developing proprietary light-based technology for introduction to the mass markets.
For more information on Palomar and its products, visit Palomar's website at 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, future royalty amounts due from third parties, development and introduction of new products, and financial and operating projections. These forward-looking statements are neither promises nor guarantees, but 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, factors affecting the Company's future income and resulting ability to utilize its NOLs, 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, 2009 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 Operations (Unaudited) | ||
|
Three Months Ended March 31, |
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| 2010 | 2009 | |
| Revenues: | ||
| Product revenues | $9,167,266 | $8,074,550 |
| Service revenues | 3,944,870 | 3,399,004 |
| Royalty revenues | 1,638,218 | 1,493,424 |
| Funded product development revenues | -- | 431,133 |
| Other revenues | 1,250,000 | 1,250,000 |
| Total revenues | 16,000,354 | 14,648,111 |
| Costs and expenses: | ||
| Cost of product revenues | 3,317,193 | 3,351,249 |
| Cost of service revenues | 1,654,543 | 1,873,422 |
| Cost of royalty revenues | 655,287 | 597,369 |
| Research and development | 4,185,800 | 3,743,467 |
| Selling and marketing | 4,844,596 | 4,668,881 |
| General and administrative | 3,951,683 | 2,873,246 |
| Total costs and expenses | 18,609,102 | 17,107,634 |
| Loss from operations | (2,608,748) | (2,459,523) |
| Interest income | 110,252 | 193,201 |
| Other income (expense) | 13,592 | (26,934) |
| Loss before income taxes | (2,484,904) | (2,293,256) |
| Provision for (benefit from) income taxes | 19,134 | (878,806) |
| Net loss | ($2,504,038) | ($1,414,450) |
| Net loss per share: | ||
| Basic | ($0.14) | ($0.08) |
| Diluted | ($0.14) | ($0.08) |
| Weighted average shares outstanding: | ||
| Basic | 18,521,141 | 18,059,624 |
| Diluted | 18,521,141 | 18,059,624 |
|
Consolidated Balance Sheets (Unaudited) |
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|
March 31, 2010 |
December 31, 2009 |
|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $76,147,389 | $81,948,482 |
| Short-term investments | 25,000,000 | 25,000,000 |
| Total cash, cash equivalents and short-term investments | 101,147,389 | 106,948,482 |
| Accounts receivable, net | 5,355,148 | 4,436,219 |
| Inventories | 10,854,448 | 11,126,352 |
| Other current assets | 1,859,402 | 2,179,233 |
| Total current assets | 119,216,387 | 124,690,286 |
| Marketable securities, at estimated fair value | 3,583,747 | 4,024,313 |
| Property and equipment, net | 36,861,680 | 34,629,410 |
| Other assets | 205,587 | 126,087 |
| Total assets | $159,867,401 | $163,470,096 |
| Liabilities and Stockholders' Equity | ||
| Liabilities: | ||
| Accounts payable | $2,601,007 | $2,696,217 |
| Accrued liabilities | 7,306,669 | 8,959,679 |
| Deferred revenue | 5,066,318 | 5,221,924 |
| Total current liabilities | 14,973,994 | 16,877,820 |
| Accrued income taxes | 2,963,326 | 2,965,077 |
| Total liabilities | $17,937,320 | $19,842,897 |
| 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 – 18,521,245 and 18,521,045 shares, respectively | 185,213 | 185,211 |
| Additional paid-in capital | 207,696,378 | 206,740,492 |
| Accumulated other comprehensive loss | (441,265) | (292,297) |
| Accumulated deficit | (65,510,245) | (63,006,207) |
| Total stockholders' equity | $141,930,081 | $143,627,199 |
| Total liabilities and stockholders' equity | $159,867,401 | $163,470,096 |