PhotoMedex --PHMD-- Announces First Quarter 2003 Results.
MONTGOMERYVILLE, Pa.--(BUSINESS WIRE)--April 29, 2003
PhotoMedex, Inc. (Nasdaq:PHMD) today announced the results of their operations for the first quarter ended March 31, 2003.
Revenues for the first quarter ended March 31, 2003 were $3,473,477. Included in these revenues are $3,157,013 from Surgical Laser Technologies, Inc., a company acquired by PhotoMedex on December 27, 2002.
Revenues for the quarter ended March 31, 2002 were $952,373.
The net loss for the quarter ended March 31, 2003 was $1,674,328, or $0.05 per diluted share.
The net loss for the quarter ended March 31, 2002 was $2,128,474, or $0.09 per diluted share.
As of March 31, 2003, the Company had cash, cash equivalents, and short-term investments of $2,913,320, including $362,817 pledged as collateral for bank debt.
In December 2002, the Centers for Medicare and Medicaid Services (CMS) published the relative values and national Medicare reimbursement rates for the CPT codes, earlier issued by the American Medical Association. The codes for XTRAC(R) laser therapy were effective January 1, 2003 but reimbursements were not available to doctors prior to March 1, 2003.
Jeff O'Donnell, PhotoMedex CEO and President, commented, "We are pleased with the adoption rate of the XTRAC(R) procedures, given the delay in medicare reimbursement essentially to March 1, 2003. In addition, PhotoMedex is very proud to announce that it is partnering with GlobalMed Technologies, Inc, an international master distributor, to enhance the distribution of the XTRAC(R) in specific countries. We believe that GlobalMed's reputation and expertise will be a great asset in obtaining market share outside of the United States."
GlobalMed, with corporate offices in Sonoma, California and London, UK as well as branch offices in Barcelona and Singapore, is an international sales and marketing company serving the dermatology and cosmetic surgery products industry with an "outsource" solution for managing target markets and sales channels outside the United States.
Established in 1995, the Company provides a unique approach to overseas expansion through its specialized international marketing programs as well as its relationships with medical services companies and institutions, clinicians, and distributors in more than forty countries worldwide.
Mr. O'Donnell also commented, "The level of excitement and general acceptance recently portrayed by the opinion leaders at the American Academy of Dermatology (AAD) Conference held March 21-25, 2003, is a testament to both our product and our commitment to this industry."
The AAD Conference is the largest, most prestigious in its field and typically is very well attended by its membership, including a majority of the practicing dermatologists in the United States and a large number of their international counterparts.
The Conference features product demonstrations, hands-on training, workshops, and numerous presentations by leading medical and technical experts in the development and utilization of treatments for skin diseases.
The XTRAC(R) was an integral part of 13 featured presentations about the benefits and clinical efficacy of our laser system, including 6 presentations on psoriasis, 5 on vitiligo, and 2 on leukoderma.
Mr. O'Donnell added, "We are also pleased at the swift integration of Surgical Laser Technologies, Inc., acquired on December 27, 2002. PhotoMedex continues to grow SLT's surgical procedures business. We believe coupling SLT's revenues and manufacturing and sales infrastructure to our breakthrough XTRAC(R) technology continues to validate the reasons for merging with SLT."
We will hold a conference call today, Tuesday, April 29, at 4:30 p.m. Eastern Daylight Savings Time, to discuss the Company's first quarter 2003 results.
To participate in the conference call, dial 1-888-857-6929 (and confirmation code #258647) approximately 5 to 10 minutes prior to the scheduled start time. If you are unable to participate, a digital replay of the call will be available from Tuesday, April 29, from 7:30 p.m. ET until midnight on Monday, May 5, by dialing 1-888-203-1112 and using confirmation code number 258647.
The live broadcast of PhotoMedex, Inc.'s quarterly conference call will be available online by going to www.photomedex.com and clicking on the link to Investor Relations, and at www.streetevents.com. The online replay will be available shortly after the call at those sites.
PhotoMedex provides contract medical procedures to hospitals, surgi-centers and doctors' offices, offering a wide range of products and services across multiple specialty areas, including dermatology, urology, gynecology, orthopedics, and other surgical specialties. The company is a leader in the development, manufacturing and marketing of medical laser products and services.
Some portions of the conference call, particularly those describing PhotoMedex' strategies, operating expense reductions and business plans, will contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1993, as amended and Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While PhotoMedex is working to achieve those goals, actual results could differ materially from those projected in the forward-looking statements as a result of a number of factors, including difficulties in marketing its products and services, need for capital, competition from other companies and other factors, any of which could have an adverse effect on the business plans of PhotoMedex, its reputation in the industry or its results. In light of significant uncertainties inherent in forward-looking statements included herein and in the conference call, the inclusion of such information in the conference call should not be regarded as a representation by PhotoMedex or its subsidiaries that the forward looking statements will be achieved.
PHOTOMEDEX, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended March 31, 2003 2002 ----------- ----------- Revenues $ 3,473,477 $ 952,373 Cost of Revenues 2,550,258 1,052,110 ----------- ----------- Gross profit 923,219 (99,737) ----------- ----------- Operating expenses: Selling, general and administrative 2,154,592 1,800,482 Engineering and product development 411,932 222,226 ----------- ----------- 2,566,524 2,022,708 Loss from operations before interest and other expense, net (1,643,305) (2,122,445) Interest expense, net 31,023 1,068 Other expense, net - 4,961 ----------- ----------- Net loss $(1,674,328) $(2,128,474) =========== =========== Basic and diluted net loss per share $ (0.05) $ (0.09) =========== =========== Shares used in computing basic and diluted net loss per share 31,439,058 24,179,953 =========== =========== PhotoMedex, Inc. acquired Surgical Laser Technologies, Inc. ("SLT") on December 27, 2002 and, as such the operating results of SLT are not included in the above consolidated statement of operations for the three months ended March 31, 2002. In addition, the operating results for the period ended March 31, 2002 have been reclassified to conform to the current period presentation. PHOTOMEDEX, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) March 31, December 31, 2003 2002 ------------ ------------ Assets Cash and short term investments $ 2,550,503 $ 4,008,051 Cash pledged as bank debt collateral 362,817 2,000,000 Accounts receivable, net 2,162,799 2,536,334 Inventories 5,317,892 5,055,783 Other current assets 433,432 283,001 Property and equipment, net 3,600,505 3,672,438 Other assets 3,907,975 3,957,597 ----------- ----------- Total Assets $18,335,923 $21,513,204 =========== =========== Liabilities and Stockholders' Equity Accounts payable and accrued liabilities $ 3,807,196 $ 3,936,679 Other current liabilities 1,207,035 1,368,277 Bank and Lease Notes Payable 1,685,675 2,899,626 Stockholders' equity 11,636,017 13,308,622 ----------- ----------- Total Liabilities and Stockholders' Equity $18,335,923 $21,513,204 =========== ===========