Palomar Medical Technologies Inc, a developer of light-based systems for hair removal and other cosmetic treatments, announced financial results for the fourth quarter and year ended Dec. 31, 2003.
For the fourth-quarter, the company reported that total revenues increased by 35 percent, its product revenues increased by 26 percent, and its gross profit from product sales improved by 34 percent, compared to the fourth quarter of 2002. For the year ended Dec. 31, 2003, the company's total revenues increased by 37 percent, its product revenues increased by 39 percent, and its gross profit from product sales improved by 61 percent, compared to 2002.
The company said it realized a significant increase in net income to U.S. $1.0 million, a 137-percent improvement over the fourth quarter of 2002. For the year, new income increased to $3.3 million from $39,000.
Over the past year, product gross margins have improved significantly due to a higher margin product mix and the effects of increased sales volume, the company said. It also said it has strengthened its balance sheet since the end of last year, including more than doubling its cash position and more than tripling stockholders' equity. The current ratio is now 2.9x, up substantially from 1.5x at the end of 2002, and there is no long-term debt.
"I am pleased to report on Palomar's progress during the fourth quarter of 2003 and the full fiscal year, which included some major milestones," CEO Joseph P. Caruso commented. "A year ago, the company announced an agreement with The Gillette Company to complete development and commercialize a patented home-use, light-based hair removal device for women. In our base business, gross margins on product sales reached 60 percent, which compares quite favorably with our competitors' margins. And thanks to the market's enthusiastic reception of our expanding Lux line of products, we doubled the size of our domestic sales force at the end of the year," he added.
Revenues for the quarter ended Dec. 31, 2003, were $10.1 million, up from $7.5 million in the fourth quarter of 2002. Gross profit from product sales increased to $5.5 million (60 percent of product revenues), up from $4.1 million (57 percent of product revenues) in the year-earlier quarter. The company reported net income of $1.0 million, or $0.06 per diluted share, for the fourth quarter of this year, versus net income of $437,000, or $0.04 per diluted share, for the fourth quarter of 2002.
Revenues for the full-year ended Dec. 31, 2003, were $34.8 million, up from $25.4 million for the year ended December 31, 2002. Gross profit from product sales increased to $18.3 million (58 percent of revenues), up from $11.3 million (50 percent of revenues) in the year-earlier period. The company reported net income of $3.4 million, or $0.21 per diluted share, for the year ended Dec. 31, 2003, versus net income of $39,000, or $0.00 per diluted share, for the year ended Dec. 31, 2002.
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