Palomar Medical Technologies reports 9% increase in revenues for first-quarter 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 first quarter ended March 31, 2010. Revenues for the quarter ended March 31, 2010 were $16.0 million, which represents a 9 percent increase over the $14.6 million reported in the first quarter of 2009. Product and service revenues increased to $13.1 million, a 14 percent increase over the $11.5 million in the first quarter of 2009. First quarter gross margin from product and service revenues was 62 percent, an increase over the 55 percent in the first quarter of 2009. Loss before income taxes for the first quarter ended March 31, 2010 was $2.5 million, 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 expenses and a $1.0 million non-cash FAS 123R stock-based compensation expense. The Company reported net loss of $2.5 million, or $0.14 per share for the first quarter of 2010. The balance sheet continues to be strong with $101 million in cash, cash equivalents and short-term investments with no borrowings.

Chief Executive Officer Joseph P. Caruso commented, "We are very pleased with the increase in total revenues and product and service revenue this quarter as compared to the prior year. Our extensive product portfolio and platform approach has been well received and perfectly positioned for this economic climate. It allows our sales team to configure our technology solutions to fit physicians' sites all over the world regardless of the particular economic pressure they are experiencing. We are also pleased that 43 percent of our revenue was contributed from reoccurring sources other than one-time capital equipment sales. Our gross margin growth was also a big improvement over the previous year. We have worked hard to implement a number of cost cutting initiatives and introduced new technology contributing to the increase in gross margin over last year. Our international initiatives are also paying off as revenue from outside North America continues to strengthen. We will continue to invest in growing our international presence."

Mr. Caruso continued, "We have made great progress since the beginning of the year on consumer product branding and positioning. We are working toward bringing our consumer products to market with a target launch by the end of 2010. Our ability to manufacture in our new facility substantially decreases our time to market."