Mar 9 2012
PhotoMedex, Inc. (NASDAQ: PHMD) today reported financial results for the three and 12 months ended December 31, 2011.
On December 13, 2011 Radiancy, Inc. became a majority owned subsidiary of PhotoMedex in a reverse merger. In accordance with generally accepted accounting principles (GAAP), Radiancy is deemed to be the financial acquirer for financial statement purposes and therefore the related consolidated statements of operations for the three and 12 month periods ended December 31, 2011 and for the year ended December 31, 2010, include activity from the pre-merged PhotoMedex only from the date of merger, December 13, 2011 through December 31, 2011.
Reported Financial Results
Revenues for the fourth quarter of 2011 were $28.8 million, which included $1.5 million in revenues from pre-merged PhotoMedex from the merger date through December 31, 2011. This represents an increase of 26% from revenues for the fourth quarter of 2010 of $22.9 million, which included no revenues from pre-merged PhotoMedex. Fourth quarter seasonal fluctuations - both positive and negative - for certain international markets are normal and expected for the Company's consumer business, as compared with the balance of the year.
The net loss for the fourth quarter of 2011 was $3.0 million, or $0.22 per share, which included $5.2 million in stock-based compensation expense, $1.0 million in other merger-related expenses and $1.7 in litigation expenses. This compares with net income for the fourth quarter of 2010 of $2.9 million, or $0.25 per diluted share, which included $0.07 million in stock-based compensation expense and $0.3 million in litigation expenses.
Revenues for 2011 were $132.1 million, which included $1.5 million in revenues from pre-merged PhotoMedex from the merger date through December 31, 2011. This represents an increase of 89% from revenues for 2010 of $70.1 million, which included no revenues from pre-merged PhotoMedex.
The net loss for 2011 was $0.7 million, or $0.06 per share, which included $34.0 million in stock-based compensation expense and related gross-up, $2.1 million in other merger-related expenses and $3.0 in litigation expenses. This compares with net income for 2010 of $11.6 million, or $0.99 per diluted share, which included $0.4 million in stock-based compensation expense and $0.3 in litigation expenses.
As of December 31, 2011, the Company had cash and cash equivalents of $16.5 million.
On a pro forma basis, had the merger been completed on January 1, 2011, revenues for 2011 were $162.3 million.
Management expects revenues for the first quarter of 2012 to exceed $45 million, and expects cash and cash equivalents to exceed $23 million as of March 31, 2012.
Dr. Dolev Rafaeli, PhotoMedex CEO, commented, "We are pleased to report our first financial results as a merged company and to deliver yet another year of substantial revenue growth. We have been able to expand our gross margin to 80% from 77% in the previous year, and improve our profitability performance, as measured by adjusted net income to revenue, to 28% from 27%."
Dr. Rafaeli added, "Our consumer brands continue to build sizeable sales momentum. I am proud of my global team's operational and business achievements, especially considering that they were also fully engaged for most of the year in completing the merger between Radiancy and PhotoMedex. We're looking forward to seeing the impact of Radiancy's marketing methodologies and expertise on the XTRAC® and Neova® brands. In addition, we expect to continue to realize organic and geographic growth of our no!no!™, Omnilux™, Lumiere™ and LHE™ brands."
Source: PhotoMedex, Inc.