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Thermage Announces First Quarter 2008 Financial Results
Date:5/8/2008

Systems and Tip Revenue Up Domestically and Internationally

U.S. Sales Increase 8% Year-Over-Year

U.S. ThermaCool NXT System Sales Grow 29% Year-Over-Year

HAYWARD, Calif., May 8 /PRNewswire-FirstCall/ -- Thermage, Inc. (Nasdaq: THRM), a leader in non-invasive tissue tightening in the aesthetic industry, reported today its financial results for the first quarter ended March 31, 2008.

Revenue for the first quarter of 2008 was $16.2 million, up 7% from $15.2 million for the first quarter of 2007. Domestic revenue increased 8% and international revenue was up 6% compared with the prior year's first quarter. Gross profit for the first quarter of 2008 was $11.9 million, representing 73.2% of revenue, compared with $11.0 million, or 72.6% of revenue, for the same quarter of 2007.

The Company reported a net loss of $2.2 million, or $(0.09) per share, versus net income of $0.1 million, or breakeven earnings per share, for the same quarter of the prior year. Non-GAAP (1) net loss for the first quarter of 2008 was $1.3 million, or $(0.05) per share, compared to net income of $1.3 million, or $0.05 per diluted share, for the prior year period. Included in the first quarter 2008 net loss were approximately $1.0 million of expenses for business development activities that were terminated during the quarter.

"We grew revenue both in the U.S. and internationally, despite a softening aesthetics market," said Stephen J. Fanning, Chairman, President and Chief Executive Officer. "Revenue from both treatment tips and systems increased during the quarter. Our systems sales during the quarter included a high percentage of upgrades for existing customers, the second highest quarter for upgrade unit
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SOURCE Thermage, Inc.
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