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Palomar Medical Reports Financial Results for First Quarter 2012

Palomar Medical Reports Financial Results for First Quarter 2012

BURLINGTON, Mass., April 26, 2012 (GLOBE NEWSWIRE) -- Palomar Medical
Technologies, Inc. (Nasdaq:PMTI), a global leader in laser and other
light-based systems for aesthetic treatments, today announced financial
results for the first quarter ended March 31, 2012.

First Quarter 2012 Year-Over-Year Financial Highlights Include:

  *Total revenues of $19.0 million, up 5%. Excluding the first quarter 2011
    receipt of a $1.1 million back-owed royalty payment, total revenues were
    up 11%.
  *Professional product revenues of $11.9 million, up 13%
  *Professional product revenues gross margin of 59% in both periods
  *Consumer product revenues of $1.0 million. A majority of the 2011 consumer
    revenues were deferred until the fourth quarter.
  *Consumer product revenues gross margin of 15%
  *Loss before taxes of $2.2 million compared to 2011 loss before taxes of
    $1.9 million. First quarter 2011 included a $0.7 million positive effect
    from the receipt of a $1.1 million back-owed royalty payment.
  *Net loss of $2.3 million or $0.12 per share compared to 2011 net loss of
    $1.9 million or $0.10 per share
  *Cash and investments portfolio of $100.1 million

Chief Executive Officer Joseph P. Caruso commented, "We are pleased with the
continued growth of our professional business as we expand and make key
investments in all areas. This quarter was the tenth consecutive quarter of
product revenue growth year over year. We havestartedupgradingourexisting
customerswith our newest flagship platform, the Palomar Icon™ Aesthetic
System. Wehave beguninNorth America andotherstrategicparts of the
world.We also placed manyIconsystems with new customers. We are still in
the regulatoryregistration process for many countries and will continue to
sell the popular StarLux 500^® systemin those countriesuntil all
registrations are complete.The Iconplatform is the next generation of
aesthetic systemwith 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 andsuperioruser experience."

Mr. Caruso added, "InApril, we expanded ourprofessionalproduct linewith a
low pricenon-ablative fractional laser named the Emerge™ Fractional Laser.We
have leveraged many of our consumer products technologies and manufacturing
processes to substantially reduce cost and enable us to offer thisentry
levelprofessional systemat a very attractive price. Theattractive priceis
intendedto expand our customer base andallow us tocross sell our full line
ofprofessionallaser and light-based aesthetic systems. Physician
feedbackhas beenvery positive.The Emergeprovidesour sales force
withaproduct offeringfor the current economic environmentand full
portfolio of professional products to meet all levels of demand."

Mr. Caruso continued, "Our consumer productstrategy continues to move along
according to plan. We are using thePaloVia^® Skin Renewing Laser^®to gain
valuable knowledge of the market and collect feedback from the retail channel
and our consumers. This new category of light-based aesthetic
productsisprovidingus with access to a base of consumers that has never
been exposed to our professional products or technology."

Professional and consumer segment results for the three months ended March 31,
2012 and 2011 are as follows:

            For the three months ended March 31,
(in          2012                             2011
thousands)
            Professional Consumer Total      Professional Consumer Total
                                                              
Revenues     $18,021    $979   $19,000  $18,156    $--   $18,156
Cost of
revenues and 7,280       835     8,115     7,403       41      7,444
royalties
Gross profit 10,741      144     10,885    10,753      (41)    10,712
(loss)
Operating    12,258      948     13,206    12,063      627     12,690
expenses
Loss from    $(1,517)   $(804) $(2,321) $(1,310)   $(668) $(1,978)
operations

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) 318-8616 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, 2011 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,
                                     2012          2011
Revenues:                                          
Professional product revenues         $11,897,174   $10,546,648
Consumer product revenues             978,768       --
Service revenues                      3,770,243     3,835,187
Royalty revenues                      1,798,062     3,218,339
Other revenues                        555,556       555,556
Total revenues                        18,999,803    18,155,730
                                                  
Costs and expenses:                                
Cost of professional product revenues 4,901,098     4,262,030
Cost of consumer product revenues     834,383       41,536
Cost of service revenues              1,659,963     1,853,182
Cost of royalty revenues              719,225       1,287,335
Research and development              3,372,261     3,647,916
Selling and marketing                 6,681,525     5,556,292
General and administrative            3,151,967     3,485,401
Total costs and expenses             21,320,422    20,133,692
                                                  
Loss from operations                  (2,320,619)   (1,977,962)
                                                  
Interest income                       89,003        113,381
Other income                          11,802        9,842
                                                  
Loss before income taxes              (2,219,814)   (1,854,739)
                                                  
Provision for income taxes            71,978        39,253
                                                  
Net loss                              $ (2,291,792) $ (1,893,992)
                                                  
Net loss per share:                                
Basic                                 $ (0.12)      $ (0.10)
Diluted                               $ (0.12)      $ (0.10)
                                                  
Weighted average shares outstanding:               
Basic                                 18,858,464    18,652,038
Diluted                               18,858,464    18,652,038

                                                            
Consolidated Balance Sheets (Unaudited)                                     
                                                            
                                                March 31,    December 31,
                                                 2012         2011
Assets                                                       
Current assets:                                              
Cash, cash equivalents and short-term            $83,993,497  $87,817,176
investments
Accounts receivable, net                         9,525,602    9,853,682
Inventories                                      22,822,387   21,175,754
Other current assets                             1,729,448    999,919
Total current assets                             118,070,934  119,846,531
                                                            
Marketable securities and other investments      16,139,604   21,268,777
                                                            
Property and equipment, net                      36,386,996   36,713,578
                                                            
Other assets                                     241,671      232,594
                                                            
Total assets                                     $170,839,205 $178,061,480
                                                            
Liabilities and Stockholders' Equity                         
                                                            
Current Liabilities:                                         
Accounts payable                                 $3,086,455   $3,476,030
Accrued liabilities                              7,517,163    12,437,921
Deferred revenue                                 4,126,323    4,423,980
Total current liabilities                        14,729,941   20,337,931
                                                            
Accrued income taxes                             3,128,100    3,082,356
                                                            
Total liabilities                                $17,858,041  $23,420,287
                                                            
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 -- 19,589,744 and 19,573,244 shares,      195,898      195,733
respectively
Additional paid-in capital                       219,737,936  219,062,043
Accumulated other comprehensive loss             (308,144)    (263,849)
Accumulated deficit                              (66,644,526) (64,352,734)
Treasury stock, at cost – 56,500 and 0 shares,   --          --
respectively
Total stockholders' equity                      $152,981,164 $154,641,193
                                                            
Total liabilities and stockholders' equity       $170,839,205 $178,061,480

CONTACT: Kerry McAnistan
         Investor Relations Assistant
         Palomar Medical Technologies, Inc.
         781-993-2411
         ir@palomarmedical.com
 
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