Palomar Medical Reports Financial Results for Third Qu...( BURLINGTON Mass. Oct. 30 /- Palom...),Health

BURLINGTON, Mass., Oct. 30 /PRNewswire-FirstCall/ -- Palomar Medical Technologies, Inc. (Nasdaq: PMTI), a leading researcher and developer of light-based systems for cosmetic treatments, today announced financial results for the third quarter ended September 30, 2008. Revenues for the quarter ended September 30, 2008 were $24.2 million, of which $19.2 million were product revenues, $2.8 million were royalty revenues, $1.0 million were funded development revenues, and $1.25 million were other revenues. Third quarter gross margin from product revenues was 65 percent. Income before taxes for the third quarter ended September 30, 2008 was $0.9 million, which included approximately $3.5 million in litigation expenses and a $1.2 million non-cash FAS 123R stock-based compensation expense.

The Company reported net income of $0.6 million, or $0.03 per diluted share for the third quarter of 2008 versus net income of $5.3 million, or $0.28 per diluted share for the third quarter of 2007. Non-GAAP net income for the quarter ended September 30, 2008, which includes adjustments for the non-cash FAS 123R compensation expense and non-cash taxes, resulted in $2.0 million, or $0.11 per diluted share. Non-GAAP net income for the quarter ended September 30, 2007, which includes adjustments for back-owed royalties and other revenues, cost of royalty revenues, legal expense reimbursement, non-cash FAS 123R compensation expense, interest on back-owed royalties and fees, and non-cash taxes, resulted in $5.2 million, or $0.27 per diluted share. Please refer to the financial statements included in this news release for a reconciliation of GAAP to non-GAAP results for the three and nine months ended September 30, 2008 and 2007.

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