MA (February 11, 2010)
Palomar Medical Technologies, Inc. (NASDAQ: PMTI), a leading
researcher and developer of light-based systems for cosmetic treatments, today announced
financial results for the fourth quarter and year ended December 31, 2009. Revenues for
the quarter ended December 31, 2009 were $16.3 million, of which $14.0 million were
product revenues, $0.9 million were royalty revenues, $0.2 million were funded development
revenues, and $1.25 million were other revenues. Fourth quarter gross margin from product
revenues was 61 percent. Loss before income taxes for the fourth quarter ended December
31, 2009 was $3.3 million, which included approximately $0.2 million in litigation
expenses and a $4.5 million non-cash FAS 123R stock-based compensation expense. $3.5
million of the fourth quarter FAS 123R stock-based compensation expense was a one-time
expense related to the granting of restricted stock awards. The Company reported net loss
of $8.5 million, or $0.47 per share for the fourth quarter of 2009, including a $5.2
million provision for income taxes which included a one-time tax charge to establish a
valuation allowance against our U.S. deferred tax assets. The Company had positive cash
flow from operations and the balance sheet continues to be strong with nearly $107 million
in cash, cash equivalents and short-term investments.
Executive Officer Joseph P. Caruso commented, At the beginning of 2009, we made
certain adjustments in our business in response to the current economic conditions. These
adjustments proved to be both timely and prudent. As a result, we are pleased with another
quarter of positive cash flow from operations. Total cash flow from operations for the
year was positive including investments made in research and development of $14.7 million
or 24% of total revenues for the year. We were also able to meet or exceed the operational
and financial goals that we set out to achieve during the year. Product revenues for the
quarter increased 25% compared to the previous quarter and 6% as compared to the prior
Caruso continued, We have made great progress in moving our technology to
the consumer market. We are planning strategic investments during 2010 to set up
high volume manufacturing, marketing and branding of our products and will work
toward establishing distribution in a number of channels. These are the first
steps in creating long-term value with our core technology in the consumer
market. We believe this will open great opportunities for us in the years to
come with a number of innovative and exciting products.
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) 435-1398 or listen to the
webcast in the About Palomar/Investors section of the Companys website at
www.palomarmedical.com. The telephone replay will be available one hour after the
call at (888) 286-8010 passcode 13737176 and will be available for seven days. A webcast
replay will also be available.
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 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.
more information on Palomar and its products, visit Palomars website at
www.palomarmedical.com. To continue receiving the most up-to-date information and
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