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Palomar Medical Technolgies <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: PMTI)") else Response.Write("(Nasdaq: PMTI)") end if %>
66 Cherry Hill Dr.
Beverly, MA 01915
(508) 921-9300

ALEXANDRIA, VA., (May 21, 1997) /FOOLWIRE/ -- Palomar Medical Technologies reported first quarter 1997 earnings on May 15, 1997, in conjunction with its announcement that Louis P. Valente would assume the position of CEO vacated by Chairman of the Board of Directors, Steven Georgiev. The story on this developmental stage company is that they have laid the groundwork in order to execute going forward.

The Quarter

Total backlog for the company is $26 million, for the laser side of the business there is a backlog of 50 lasers. They can produce 25 EPI lasers per month, and intend to increse their available capacity slowly in order to maintain the quality of the lasers, that amounts to about a 2 month backlog.

The company increased its reserve to $3.1 million for its potential litigation costs. The company has in excess of 26,000 individual investor shareholder base. The total available cash on hand is $50 million ($20 mil Nexar), and a $16 million available credit facility. Totoal debt is 18 million, of which half is long term subordinated debentures. Book value at market $2.50. First quarter 1998 is not an unreasonable expectation for profitability. The company's contract with Oxford Health is primarily for the purpose of gaining visibility for its laser equipment, in addition to having keen profit potential. Managment hopes to bring the retail end of the business into the clinical side, a division that has long held sway. Hair removal constitutes 48% of the cosmetic surgery business, and the Epilaser is the premier product.

Palomar also reported that revenues for the first quarter ended March 31, 1997, increased 191 percent to $20,126,438, compared with revenues of $6,925,001 during the three months ended March 31, 1996. Palomar also reported a loss for the quarter ended March 31, 1997, of ($15,365,145), or ($0.50) per share, compared with a loss of ($7,369,462), or ($0.33) per share, for the previous year's first quarter. Valente commented, "We attribute our first quarter loss mainly to three factors: the minimal revenue effect of FDA clearance for our Epilaser(TM) hair removal system since it was announced with just three weeks left in the quarter; lower than anticipated volume from our electronics businesses; and start-up costs associated with our revenue-sharing business. In addition, the company has reserved an additional $2.5 million, or $0.11 per share, for possible costs associated with litigation matters."Two types of lasers, ruby laser, theirs is capable of performing procedures at much higher rate. More effective at removing hair for longer period of time. The cooling handpiece doesn't destroy the skin. Built from the ground up based upon research. Thermolase is a competitior, but a diferent process. ESC, not FDA approved, high intensity. Only distibuted lasers for a sharp period of time, performed 5000 procedures, the results reported are good. The procedurte rate is high, at 1000 a week. Thermolase just finished 20,000 in two years, we 5,000 in a couple months. After two treatments very effective. All parts of the body and all skin types.

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