Palomar Medical second-quarter product and service revenues increase 8% to $13.0 million

Jul 30 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 second quarter ended June 30, 2010. Revenues for the quarter ended June 30, 2010 were $15.6 million, which represents a 4 percent increase over the $15.0 million reported in the second quarter of 2009. Product and service revenues increased to $13.0 million, an 8 percent increase over the $12.1 million in the second quarter of 2009. Second quarter gross margin from product and service revenues was 63 percent, an increase over the 57 percent in the second quarter of 2009. Loss before income taxes for the second quarter ended June 30, 2010 was $1.7 million, which included a $0.7 million patent litigation expense and a $1.0 million non-cash FAS 123R stock-based compensation expense. The Company reported net loss of $1.7 million, or $0.09 per share for the second quarter of 2010. The balance sheet continues to be strong with $102 million in cash and cash equivalents with no borrowings.

Chief Executive Officer Joseph P. Caruso commented, "We are again pleased with the increase in product and service revenues this quarter as compared to the prior year. Our extensive product portfolio and platform approach has been well received and positioned for this economic climate. It allows our sales team to configure our technology solutions to fit physicians' sites throughout the world regardless of the particular economic pressure they are experiencing. Our gross margin growth indicates a big improvement over the previous year. We have worked hard to implement a number of cost cutting initiatives and have introduced new technology contributing to the increase in gross margin over last year. We are also pleased that 41% of our revenue was contributed from recurring sources other than one-time capital equipment sales. During the second quarter, we opened an office in Japan that provides us with a direct sales force and service support to grow our business in that part of the world."

Mr. Caruso continued, "We continue to invest in our consumer products. We have finalized our product branding and positioning. We are also setting up our initial manufacturing line at our facility for a launch on target by year end."