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Thermage Announces Third Quarter Financial Results
Date:11/6/2007

Revenue Up 11%; Tip Revenue Up 16%

Gross Profit Margin of 78%; Non-GAAP EPS of $0.06

Cellulite Product Launch Targeted for Late Q1 2008

Company Updates Guidance for Full Year 2007

HAYWARD, Calif., Nov. 6 /PRNewswire-FirstCall/ -- Thermage, Inc. (Nasdaq: THRM), a leader in non-invasive tissue tightening in the aesthetic industry, today reported its financial results for the third quarter ended September 30, 2007. Revenue for the third quarter of 2007 was $13.9 million, an 11% increase from $12.5 million for the quarter ended September 30, 2006. The Company reported net income of $0.4 million on a GAAP basis for the recent third quarter, or $0.02 per diluted share, versus a net loss of $1.5 million, or $(0.36) per diluted share, for the third quarter of 2006. Non-GAAP(1) net income for the third quarter of 2007 was $1.6 million, or $0.06 per diluted share, compared to a non-GAAP(1) net loss of $0.9 million, or $(0.06) per diluted share, for the prior year period.

Revenue for the nine months ended September 30, 2007 was $46.5 million, up 18% from $39.6 million for the prior year period. GAAP net income for the first nine months of the year was $1.8 million, or $0.07 per diluted share, versus a net loss of $5.3 million, or $(1.26) per share last year. Non-GAAP(1) net income for the first nine months of 2007 was $5.5 million, or $0.22 per diluted share, compared to a non-GAAP(1) net loss of $1.6 million, or $(0.10) per diluted share, for the prior year period.

"Our third quarter net income was driven by a very strong gross profit margin of 78%, reflecting the strength of our treatment tip sales during the period," said Stephen J. Fanning, P
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SOURCE Thermage, Inc.
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