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

especially guidance on future financial performance, which speaks only as of the date they are made. Thermage undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events.

Thermage, Inc.

CONDENSED STATEMENTS OF OPERATIONS

(in thousands of dollars, except share and per share data)

(unaudited)

Three Months Ended Nine Months Ended

September 30, September 30,

2007 2006 2007 2006

Net revenue $13,865 $12,507 $46,519 $39,569

Cost of revenue 3,111 3,493 12,081 11,172

Gross margin 10,754 9,014 34,438 28,397

Operating expenses

Sales and marketing 6,016 5,785 19,205 17,935

Research and development 2,282 2,189 6,980 7,129

General and administrative 2,695 2,688 8,162 7,345

Total operating expenses 10,993 10,662 34,347 32,409

Income (loss) from

operations (239) (1,648) 91 (4,012)

Interest and other income 662 135 1,846 375

Interest, warrants and

other expense - (33) - (1,661)

Income (loss) before

income taxes 423 (1,546) 1,937 (5,298)

Provision for income taxes - - (147) -

Net income (loss) $423 $(1,546) $1,790 $(5,298)

Net income (loss) per

share - basic
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SOURCE Thermage, Inc.
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