BURLINGTON, Mass., April 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 first quarter ended March 31, 2011. Revenues for the quarter ended March 31, 2011 were $18.2 million, which included the receipt of a $1.1 million back-owed royalty payment and was an increase over the $16.0 million reported in the first quarter of 2010. Product revenues increased to $10.5 million, a 15 percent increase over the $9.2 million reported in the first quarter of 2010. During the first quarter of 2011 and for the 2010 calendar year, 4% of the Company's product and service revenue was in Japan. The Company believes that the impact of the earthquake and tsunami in Japan on the first quarter was not significant as it occurred toward the end of the quarter. The Company does not expect a material impact on the Company in future quarters due to the small percentage of the Company's total sales in Japan. First quarter gross margin from product revenues was 59 percent, as compared to 64 percent reported in the first quarter of 2010. Net loss for the first quarter ended March 31, 2011 was $1.9 million, or $0.10 per share, which included income of $0.7 million related to the back-owed royalty payment, $0.7 million in patent litigation expense, and a $1.1 million non-cash stock-based compensation expense. Net loss for the first quarter ended March 31, 2010 was $2.5 million, or $0.14 per share, 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 expense, and a $1.0 million non-cash stock-based compensation expense. The balance sheet continues to be strong with $96.4 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 are pleased with another quarter of continued growth in our professional business. Our revenue growth is being driven by our diversified product offerings and the flexibility of our platform systems. We continue to expand our business around the globe with two recently announced office openings in Europe. Our office in Germany is up and running with a team of seasoned sales professionals that have been selling aesthetic lasers and pulsed light systems for over a decade. We also announced the opening of our new office in Spain. Our new office is led by another seasoned team of sales professionals that have been selling lasers and pulsed light systems to the aesthetic market for more than 15 years. The German and Spanish subsidiaries give us direct access to the largest aesthetic markets in Europe as well as provide a support infrastructure for all of Europe. It will take some time for these offices to be fully functioning, but the timing of this expansion should work out well with a recovering economy."
Mr. Caruso continued, "We are also very excited about our progress in our consumer products strategy. The willingness of consumers to try laser aesthetic procedures in the home represents a large opportunity. It is still very early, but we have taken the first steps in building the PaloVia brand. Our first product, the Palovia™ Skin Renewing Laser®, is the first laser FDA cleared for treating wrinkles around the eyes. We are selling very well in the limited channels where we have launched the product. We are in the first phase of our launch which includes QVC, internet selling, physician resellers, and very limited high-end retail stores. We have also increased our production plans to catch up with growing demand for the product. Direct access to the consumer channels gives us a knowledge base to establish and adjust our strategy for the future. Establishing a trusted and well-established brand is a key first part of our consumer strategy."
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 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, 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, 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 | ||
| March 31, | ||
| 2011 | 2010 | |
| Revenues: | ||
| Product revenues | $10,546,648 | $9,167,266 |
| Service revenues | 3,835,187 | 3,944,870 |
| Royalty revenues | 3,218,339 | 1,638,218 |
| Other revenues | 555,556 | 1,250,000 |
| Total revenues | 18,155,730 | 16,000,354 |
| Costs and expenses: | ||
| Cost of product revenues | 4,303,566 | 3,317,193 |
| Cost of service revenues | 1,853,182 | 1,654,543 |
| Cost of royalty revenues | 1,287,335 | 655,287 |
| Research and development | 3,647,916 | 4,185,800 |
| Selling and marketing | 5,556,292 | 4,844,596 |
| General and administrative | 3,485,401 | 3,951,683 |
| Total costs and expenses | 20,133,692 | 18,609,102 |
| Loss from operations | (1,977,962) | (2,608,748) |
| Interest income | 113,381 | 110,252 |
| Other income | 9,842 | 13,592 |
| Loss before income taxes | (1,854,739) | (2,484,904) |
| Provision for income taxes | 39,253 | 19,134 |
| Net loss | $(1,893,992) | $(2,504,038) |
| Net loss per share: | ||
| Basic | $(0.10) | $(0.14) |
| Diluted | $(0.10) | $(0.14) |
| Weighted average shares outstanding: | ||
| Basic | 18,652,038 | 18,521,141 |
| Diluted | 18,652,038 | 18,521,141 |
| Consolidated Balance Sheets (Unaudited) | ||
| March 31, | December 31, | |
| 2011 | 2010 | |
| Assets | ||
| Current assets: | ||
| Cash, cash equivalents and short-term investments | $82,653,054 | $89,116,325 |
| Accounts receivable, net | 6,066,559 | 5,349,835 |
| Inventories | 15,283,570 | 13,021,272 |
| Other current assets | 1,170,279 | 855,014 |
| Total current assets | 105,173,462 | 108,342,446 |
| Marketable securities, at estimated fair value and other investments | 13,749,424 | 13,850,197 |
| Property and equipment, net | 37,283,615 | 37,165,306 |
| Other assets | 248,319 | 219,554 |
| Total assets | $156,454,820 | $159,577,503 |
| Liabilities and Stockholders' Equity | ||
| Current Liabilities: | ||
| Accounts payable | $3,157,794 | $2,293,096 |
| Accrued liabilities | 6,516,765 | 10,742,581 |
| Deferred revenue | 5,176,478 | 4,394,081 |
| Total current liabilities | 14,851,037 | 17,429,758 |
| Accrued income taxes | 2,873,049 | 2,854,077 |
| Total liabilities | $17,724,086 | $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 – 19,005,727 and 18,925,549 shares, respectively | 190,058 | 189,256 |
| Additional paid-in capital | 212,693,938 | 211,376,381 |
| Accumulated other comprehensive loss | (478,107) | (490,806) |
| Accumulated deficit | (73,675,155) | (71,781,163) |
| Total stockholders' equity | $138,730,734 | $139,293,668 |
| Total liabilities and stockholders' equity | $156,454,820 | $159,577,503 |