BURLINGTON, Mass., July 30 /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 second quarter ended June 30,
2009. Revenues for the quarter ended June 30, 2009 were $15.0
million, of which $12.1 million were product revenues, $1.3 million
were royalty revenues, $0.4 million were funded development
revenues, and $1.25 million were other revenues. Second quarter
gross margin from product revenues was 57 percent. Loss before
taxes for the second quarter ended June 30, 2009 was $0.3 million,
which included approximately $0.2 million in litigation expenses
and a $0.8 million non-cash FAS 123R stock-based compensation
expense. The Company reported net loss of $0.2 million, or $0.01
per diluted share for the second quarter of 2009. The Company had
positive cash flow from operations of $3.6 million and the balance
sheet continues to be strong with $112 million in net cash and
available-for-sale investments. Chief Executive Officer Joseph P.
Caruso commented, "We are encouraged this quarter by some early
signs of improved financial performance. Our revenue, gross margin
and bottom line all improved as compared to the previous quarter
and the negative trends seen throughout 2008. The overall downturn
in the economy remains the biggest factor influencing growth in the
short term." Mr. Caruso continued, "We had several major
accomplishments this quarter. The FDA cleared our home-use wrinkle
removal laser, the first of its kind, as part of our collaboration
with Johnson & Johnson. We believe consumer applications for
our core technology provide great opportunities. With regard to our
hair removal patents, we won two opposition hearings before the
European Patent Office which upheld the patents as both novel and
inventive and the U.S. Patent Office confirmed the validity of 56
claims in the re-examination of U.S. Patent No. 5,735,844.
Accordingly, we have filed a motion to re-start our patent
infringement lawsuit against Candela and believe we are in a
stronger position now than prior to the re-examination. These
events strengthen our strategic position and are important for the
long-term growth of our business." 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) 783-2146 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
72567268 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.
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. OTC clearance allows the product
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. Palomar has granted The Procter & Gamble Company a
non-exclusive License Agreement to certain patents, technology and
FDA documents related to the home-use, light-based hair removal
field for women. In addition, Palomar has an exclusive development
and license 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 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, 2008 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. Contact: Kayla Castle Investor Relations
Manager Palomar Medical Technologies, Inc. 781-993-2411 Palomar
Financial Summary: Consolidated Statements of Operations
(Unaudited) Three Months Ended Six Months Ended June 30, June 30,
2009 2008 2009 2008 ---- ---- ---- ---- Revenues: Product revenues
$12,120,856 $19,206,511 $23,594,410 $36,895,304 Royalty revenues
1,274,593 2,269,561 2,768,017 5,516,584 Funded product development
revenues 398,467 398,467 829,600 995,037 Other revenues 1,250,000
1,250,000 2,500,000 2,747,625 --------- --------- ---------
--------- Total revenues 15,043,916 23,124,539 29,692,027
46,154,550 ---------- ---------- ---------- ---------- Costs and
expenses: Cost of product revenues 5,266,733 6,330,668 10,491,404
12,925,000 Cost of royalty revenues 509,838 907,824 1,107,207
2,206,634 Research and development 3,076,501 4,549,960 6,819,968
9,933,607 Selling and marketing 4,732,921 5,647,400 9,401,802
12,425,717 General and administrative 2,241,311 5,095,069 5,114,557
11,331,661 --------- --------- --------- ---------- Total costs and
expenses 15,827,304 22,530,921 32,934,938 48,822,619 ----------
---------- ---------- ---------- (Loss) income from operations
(783,388) 593,618 (3,242,911) (2,668,069) Interest income 140,447
833,494 333,648 2,249,034 Other income 376,754 227 349,820 18,244
---------- ---------- ---------- ---------- (Loss) income before
Income taxes (266,187) 1,427,339 (2,559,443) (400,791) (Benefit
from) provision for income taxes (22,265) 667,222 (901,071)
(156,268) Net (loss) income $(243,922) $760,117 $(1,658,372)
$(244,523) ========= ======== =========== ========= Net (loss)
income per share: Basic $(0.01) $0.04 $(0.09) $(0.01) ====== =====
====== ====== Diluted $(0.01) $0.04 $(0.09) $(0.01) ====== =====
====== ====== Weighted average number of shares outstanding: Basic
18,049,402 18,151,396 18,054,485 18,137,680 ========== ==========
========== ========== Diluted 18,049,402 18,432,016 18,054,485
18,137,680 ========== ========== ========== ========== Consolidated
Balance Sheets (Unaudited) June 30, December 31, 2009 2008 ----
---- Assets Current assets: Cash and cash equivalents $123,215,400
$122,601,139 Available-for-sale securities 650,000 - Accounts
receivable, net 5,220,697 6,395,364 Inventories 12,948,722
16,045,725 Deferred tax assets 4,893,353 4,149,583 Other current
assets 2,479,120 2,613,003 --------- --------- Total current assets
149,407,292 151,804,814 ----------- ----------- Marketable
securities, at fair value 4,137,730 4,486,834 Property and
equipment, net 23,306,903 14,225,397 Deferred tax assets 1,709,521
1,197,876 Other assets 5,634 7,515 Total assets $178,567,080
$171,722,436 ============ ============ Liabilities and
Stockholders' Equity Liabilities: Note payable $12,000,000
$6,000,000 Accounts payable 4,849,329 3,247,051 Accrued liabilities
7,377,328 6,688,137 Deferred revenue 4,627,368 6,166,246 ---------
--------- Total current liabilities 28,854,025 22,101,434
---------- ---------- Deferred taxes 2,888,727 2,815,577 ---------
--------- Total liabilities $31,742,752 $24,917,011 -----------
----------- 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 - 18,479,345
shares 184,794 184,794 Additional paid-in capital 206,487,064
205,306,957 Accumulated other comprehensive loss (226,981)
(542,443) Accumulated deficit (54,205,545) (52,547,173) Treasury
stock, at cost - 414,555 and 413,255 shares, respectively
(5,415,004) (5,596,710) ---------- ---------- Total stockholders'
equity $146,824,328 $146,805,425 ------------ ------------ Total
liabilities and stockholders' equity $178,567,080 $171,722,436
DATASOURCE: Palomar Medical Technologies, Inc. CONTACT: Kayla
Castle, Investor Relations Manager of Palomar Medical Technologies,
Inc., +1-781-993-2411, Web Site: http://www.palomarmedical.com/
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