BURLINGTON, Mass., July 28, 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 second quarter ended June 30, 2011. Revenues for the quarter ended June 30, 2011 were $16.3 million, a 4 percent increase over the $15.6 million reported in the second quarter of 2010. Product revenues increased to $10.1 million, a 9 percent increase over the $9.2 million reported in the second quarter of 2010. Second quarter gross margin from product revenues was 61 percent, as compared to 62 percent reported in the second quarter of 2010. Net loss for the second quarter ended June 30, 2011 was $4.0 million, or $0.21 per share, which included $1.2 million in patent litigation expense and $1.0 million in non-cash stock-based compensation expense. Net loss for the second quarter ended June 30, 2010 was $1.7 million, or $0.09 per share, which included $0.7 million in patent litigation expense and $1.0 million in non-cash stock-based compensation expense. The balance sheet continues to be strong with $91.1 million in cash, cash equivalents, short-term investments, and marketable securities and other investments with no borrowings.
Chief Executive Officer Joseph P. Caruso commented, "We continue to make investments that will grow our business for the short and long-term. During the second quarter, we launched the Icon Aesthetic System as our new flagship platform. This new platform is the next generation of aesthetic systems with melanin detection technology, high peak powers, state of the art cooling, built-in calibration, and an intuitive user interface to provide fast treatments with excellent outcomes and user experience. It provides our customer base with an excellent upgrade path as well as a unique offering for those that are entering the aesthetic business. Our growth initiative includes our recent launches of the Acleara system for treating acne and the Adivive fat transfer system. Physician feedback on our new products is very positive. These new systems provide our sales force with the right product offerings for the current economic environment. To further support short-term growth, during the quarter we also opened two strategically important offices, one in Germany and one in Spain. Germany is one of the strongest economies in Europe and once fully established, should provide a great market for our current and future products. Spain has been one of the largest aesthetic markets for many years. Both of these major markets were not well served by our prior distributors. We were able to attract top notch teams for both offices. We are in the process of training our direct sales force in these new offices and investing in the infrastructure that will make these offices leading contributors for our future growth."
Mr. Caruso continued, "Our consumer products strategy is moving forward on schedule. The PaloVia Skin Renewing Laser started shipping to select channels earlier this year. We continue to increase our production capabilities and expand distribution. The investments we are making today in the consumer market support a broader and longer-term growth strategy as we develop the brand and channels for our consumer offerings. This new category of light-based aesthetic products provides us with access to a base of consumers that have never been exposed to our products or technology."
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) 800-8648 or listen to the webcast in the About Palomar/Investors section of the Company's website at palomarmedical.com. A webcast replay will also be available.
About Palomar Medical Technologies Inc: Palomar designs, produces and sells the most advanced cosmetic lasers and intense pulsed light (IPL) systems to dramatically improve the appearance of women's and men's skin. For over 15 years, Palomar has pioneered the science of using lasers and light to improve appearances. As the industry's technology leader, Palomar has invested in creating cosmetic laser and IPL systems that put real value in the hands of physicians and other professionals to benefit consumers. Thousands of physicians worldwide trust and depend on Palomar technology to not only introduce new aesthetic treatments such as advanced laser hair removal, laser liposuction, skin resurfacing, acne, laser treatments for scars, wrinkle treatment, stretch marks (striae), and photofacials for pigmented and vascular lesions, but to also make them robust, faster, more powerful, and more comfortable for those being treated. In June 2009, Palomar became the first company to receive a 510(k) over-the-counter ("OTC") clearance from the FDA for a new, patented, home-use, laser device for the treatment of fine lines and wrinkles around the eyes (periorbital wrinkles). This OTC clearance allows the PaloVia™ Skin Renewing Laser® to be marketed and sold directly to consumers without a prescription.
For more information on Palomar and its products, visit Palomar's website at palomarmedical.com for professional products or palovia.com for consumer products. 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 About Palomar/Investors 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, difficulties or delays in developing or introducing new products and keeping them on the market, the results of future research, lack of product demand and market acceptance for current and future products, adverse events, product changes, 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, 2010 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 | Six Months Ended | |||||
| June 30, | June 30, | |||||
| 2011 | 2010 | 2011 | 2010 | |||
| Revenues: | ||||||
| Product revenues | $ 10,053,867 | $ 9,214,967 | $ 20,600,515 | $ 18,382,233 | ||
| Service revenues | 3,907,312 | 3,818,265 | 7,742,499 | 7,763,135 | ||
| Royalty revenues | 1,748,510 | 1,306,927 | 4,966,849 | 2,945,145 | ||
| Other revenues | 555,556 | 1,250,000 | 1,111,112 | 2,500,000 | ||
| Total revenues | 16,265,245 | 15,590,159 | 34,420,975 | 31,590,513 | ||
| Costs and expenses: | ||||||
| Cost of product revenues | 3,970,251 | 3,484,575 | 8,273,817 | 6,801,768 | ||
| Cost of service revenues | 1,741,279 | 1,298,580 | 3,594,461 | 2,953,123 | ||
| Cost of royalty revenues | 699,404 | 522,771 | 1,986,739 | 1,178,058 | ||
| Research and development | 3,880,308 | 3,589,269 | 7,528,224 | 7,775,069 | ||
| Selling and marketing | 6,252,414 | 4,900,214 | 11,808,706 | 9,744,810 | ||
| General and administrative | 3,782,204 | 3,360,348 | 7,267,605 | 7,312,031 | ||
| Total costs and expenses | 20,325,860 | 17,155,757 | 40,459,552 | 35,764,859 | ||
| Loss from operations | (4,060,615) | (1,565,598) | (6,038,577) | (4,174,346) | ||
| Interest income | 88,691 | 90,866 | 202,072 | 207,917 | ||
| Other income (loss) | 29,476 | (191,454) | 39,318 | (184,662) | ||
| Loss before income taxes | (3,942,448) | (1,666,186) | (5,797,187) | (4,151,091) | ||
| Provision for income taxes | 56,473 | 28,868 | 95,726 | 48,002 | ||
| Net loss | $(3,998,921) | $(1,695,054) | $(5,892,913) | $(4,199,093) | ||
| Net loss per share: | ||||||
| Basic | $ (0.21) | $ (0.09) | $ (0.32) | $ (0.23) | ||
| Diluted | $ (0.21) | $ (0.09) | $ (0.32) | $ (0.23) | ||
| Weighted average shares outstanding: | ||||||
| Basic | 18,699,608 | 18,536,076 | 18,688,202 | 18,528,650 | ||
| Diluted | 18,699,608 | 18,536,076 | 18,688,202 | 18,528,650 | ||
Consolidated Balance Sheets (Unaudited)
| June 30, | December 31, | |||
| 2011 | 2010 | |||
| Assets | ||||
| Current assets: | ||||
| Cash, cash equivalents and short-term investments | $ 77,522,884 | $ 89,116,325 | ||
| Accounts receivable, net | 7,324,122 | 5,349,835 | ||
| Inventories | 18,836,613 | 13,021,272 | ||
| Other current assets | 1,798,913 | 855,014 | ||
| Total current assets | 105,482,532 | 108,342,446 | ||
| Marketable securities and other investments | 13,565,864 | 13,850,197 | ||
| Property and equipment, net | 37,166,669 | 37,165,306 | ||
| Other assets | 248,758 | 219,554 | ||
| Total assets | $ 156,463,823 | $ 159,577,503 | ||
| Liabilities and Stockholders' Equity | ||||
| Current Liabilities: | ||||
| Accounts payable | $ 3,351,579 | $ 2,293,096 | ||
| Accrued liabilities | 8,712,979 | 10,742,581 | ||
| Deferred revenue | 5,801,197 | 4,394,081 | ||
| Total current liabilities | 17,865,755 | 17,429,758 | ||
| Accrued income taxes | 2,894,786 | 2,854,077 | ||
| Total liabilities | $ 20,760,541 | $ 20,283,835 | ||
| 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 and Outstanding -- 19,030,503 and 18,925,549 shares, respectively | 190,305 | 189,256 | ||
| Additional paid-in capital | 213,695,941 | 211,376,381 | ||
| Accumulated other comprehensive loss | (508,888) | (490,806) | ||
| Accumulated deficit | (77,674,076) | (71,781,163) | ||
| Total stockholders' equity | $ 135,703,282 | $ 139,293,668 | ||
| Total liabilities and stockholders' equity | $ 156,463,823 | $ 159,577,503 | ||