Thermage Reports Third Quarter Financial Results and Provides Information Regarding Reliant...(2008 2007 2008 2007...),Health

Income (loss) from

operations $(829) $(239) $(2,087) $91

Non-GAAP adjustments to

income (loss) from

operations:

Merger related costs 165 - 1,134 -

Stock-based compensation 887 1,222 2,789 3,705

Non-GAAP income from

operations $223 $983 $1,836 $3,796

GAAP net income (loss) $(1,146) $423 $(1,344) $1,790

Non-GAAP adjustments to

net income (loss):

Merger related costs, net

of taxes 131 - 1,075 -

Loss on investments, net

of taxes 863 - 863 -

Stock-based compensation,

net of taxes 887 1,222 2,789 3,705

Non-GAAP net income $735 $1,645 $3,383 $5,495

GAAP basic net income

(loss) per share $(0.05) $0.02 $(0.06) $0.08

Non-GAAP adjustments to

basic income (loss) per

share:

Merger related costs 0.01 - 0.05 -

Loss on investments 0.03 - 0.03 -

Stock-based compensation 0.04 0.05 0.12 0.16

Non-GAAP basic net income

per share $0.03 $0.07 $0.14 $0.24

Non-GAAP diluted net

income per share $0.03 $0.07 $0.14 $0.23

GAAP weighted average

shares outstanding used

in calculating basic net

income (loss) per share 24,067,548 23,364,409 23,861,079 23,151,949

Adjustments for dilutive

potential common stock 838,410 549,052 1,057,632 585,145

Weighted average
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