Exhibit 99.1
PHOTOMEDEX ANNOUNCES SECOND QUARTER 2005 RESULTS
REVENUES INCREASE 86% OVER THE SAME PERIOD IN 2004
MONTGOMERYVILLE, Pa., Aug. 2 /PRNewswire-FirstCall/ -- PhotoMedex, Inc.
(Nasdaq: PHMD) today announced the results of its operations for the quarter
ended June 30, 2005.
Revenues for the second quarter ended June 30, 2005 were $8,055,173, an
increase of 86.3 percent over the same period last year. Included in these
revenues is $3,522,214 from ProCyte Corporation, a company acquired by
PhotoMedex on March 18, 2005. This compares to revenues for the second quarter
ended June 30, 2004 of $4,323,134.
The net loss for the quarter ended June 30, 2005 was $660,651, or $(0.01)
per diluted share. The net loss for the quarter ended June 30, 2004 was
$1,207,167, or $(0.03) per diluted share.
Revenues for the six months ended June 30, 2005 were $13,038,505, an
increase of 56.2 percent over the same period last year. Included in these
revenues is $4,145,515 from ProCyte Corporation. This compares to revenues for
the six months ended June 30, 2004 of $8,348,364.
The net loss for the six months ended June 30, 2005 was $1,788,763, or
$(0.04) per diluted share. The net loss for the six months ended June 30, 2004
was $2,570,249, or $(0.07) per diluted share.
As of June 30, 2005, the Company had cash and cash equivalents of
$5,720,117.
Jeffrey O'Donnell, PhotoMedex CEO and President, commented, "I am proud of
the progress our team has made on insurance reimbursement and the integration of
ProCyte into PhotoMedex. Our XTRAC procedures ramped up for the quarter and with
the recent reimbursement wins at United Healthcare and Independence Blue Cross
of Pennsylvania, we expect continued upward momentum. Without the transaction
expenses connected to the ProCyte acquisition, we were cash flow positive for
the second quarter achieving a significant milestone event for the Company. We
are also pleased at the recent recognition the Company received with its
inclusion in the Russell Microcap Index and the invitation by NASDAQ to ring the
Closing Bell on August 4."
PhotoMedex will hold a conference call to discuss the Company's second
quarter 2005 results on Tuesday, August 2, 2005 at 4:30 p.m. Eastern Daylight
Savings Time.
To participate in the conference call, dial 1.800.475.3716 (and confirmation
code #3244708) approximately 5 to 10 minutes prior to the scheduled start time.
If you are unable to participate, a digital replay of the call will be available
from Tuesday, August 2, from 7:30 p.m. EDT until midnight on Tuesday, August 15,
by dialing 1.888.203.1112 and using confirmation code #3244708.
The live broadcast of PhotoMedex, Inc.'s quarterly conference call will be
available online by going to www.photomedex.com and clicking on the link to
Investor Relations, and at www.streetevents.com. The online replay will be
available shortly after the call at those sites.
About PhotoMedex:
PhotoMedex provides contract medical procedures to hospitals, surgi-centers
and doctors' offices, offering a wide range of products and services across
multiple specialty areas, including dermatology, urology, gynecology,
orthopedics, and other surgical specialties. The Company is a leader in the
development, manufacturing and marketing of medical laser products and services.
In addition as a result of the merger with ProCyte, PhotoMedex will now develop
and market products based on its patented, clinically proven Copper Peptide
technology for skin health, hair care and wound care. The combined company sells
directly to dermatologists, plastic and cosmetic surgeons, spas and salons and
through licenses with strategic partners into the consumer market, including its
long-term worldwide license agreement with Neutrogena(R), a Johnson & Johnson
company. ProCyte brands include Neova(R), VitalCopper(R), Simple Solutions(R)
and AquaSante(R)
Some portions of the conference call, particularly those describing
PhotoMedex' strategies, operating expense reductions and business plans, will
contain forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. While PhotoMedex
is working to achieve those goals, actual results could differ materially from
those projected in the forward-looking statements as a result of a number of
factors, including difficulties in marketing its products and services, need for
capital, competition from other companies and other factors, any of which could
have an adverse effect on the business plans of PhotoMedex, its reputation in
the industry or its results. In light of significant uncertainties inherent in
forward-looking statements included herein and in the conference call, the
inclusion of such information in the conference call should not be regarded as a
representation by PhotoMedex or its subsidiaries that the forward looking
statements will be achieved.
Contact: Allen & Caron PhotoMedex, Inc.
Rene Caron Dennis McGrath, CFO
949-474-4300 215-619-3287
rene@allencaron.com info@photomedex.com
PHOTOMEDEX, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended June 30, Six Months Ended June 30,
---------------------------- ----------------------------
2005 2004** 2005* 2004**
------------ ------------ ------------ ------------
Revenues $ 8,055,173 $ 4,323,134 $ 13,038,505 $ 8,348,364
Cost of Revenues 4,205,316 2,631,369 6,837,684 5,125,435
Gross profit 3,849,857 1,691,765 6,200,821 3,222,929
Operating
expenses:
Selling, general
and
administrative 4,322,706 2,406,453 7,543,682 4,876,877
Research and
development
and engineering 219,550 481,243 406,521 897,193
4,542,256 2,887,696 7,950,203 5,774,070
Loss from
operations
before
interest
expense,
net and
other income (692,399) (1,195,931) (1,749,382) (2,551,141)
Interest expense,
net (56,919) (11,236) (128,048) (19,108)
Other income 88,667 -- 88,667 --
Net loss $ (660,651) $ (1,207,167) $ (1,788,763) $ (2,570,249)
Basic and diluted
net loss per share $ (0.01) $ (0.03) $ (0.04) $ (0.07)
Shares used in
computing basic
and diluted
net loss
per share 50,859,562 38,546,338 46,322,904 38,159,819
* PhotoMedex, Inc. acquired ProCyte Corporation ("ProCyte") on March 18, 2005
and, as such the operating results of ProCyte for the six months ended June
30, 2005 include activity from ProCyte from March 19, 2005 through June 30,
2005.
** As a result of purchase accounting rules, the operating results of ProCyte
for the three and six months ended June 30, 2004 are not included in the
above consolidated statement of operations for period ended June 30, 2004.
PHOTOMEDEX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2005 2004*
------------ ------------
(unaudited)
Assets
Cash and cash equivalents $ 5,720,117 $ 3,997,017
Accounts receivable, net 4,745,994 4,117,399
Inventories 8,108,142 4,585,631
Other current assets 1,023,068 401,989
Property and equipment, net 6,179,352 4,996,688
Other assets 23,173,731 4,863,202
Total Assets $ 48,950,404 $ 22,961,926
Liabilities and Stockholders' Equity
Accounts payable and accrued
liabilities $ 4,297,031 $ 4,959,678
Other current liabilities 1,084,232 1,079,701
Bank and lease notes payable 3,664,510 2,342,264
Other liabilities 24,670 --
Stockholders' equity 39,879,961 14,580,283
Total Liabilities and
Stockholders' Equity $ 48,950,404 $ 22,961,926
* Derived from audited financial statements.
The following table compares XTRAC domestic treatment activity and revenues for
the last six quarters.
XTRAC Domestic Revenue and Treatments
Billed Unbilled
Quarterly -------------------- ---------------
Treatments (TX#) $ (000's) TX# $ TX#
---------------- --------- -------- ----- -------
2Q05 15,503 $ 901.0 13,811 $ -- 1,692
1Q05 12,418 $ 750.0 11,304 $ -- 1,114
4Q04 14,499 $ 846.0 12,640 $ -- 1,859
3Q04 13,841 $ 840.0 12,672 $ -- 1,169
2Q04 12,688 $ 821.0 11,878 $ -- 810
1Q04 10,737 $ 675.0 9,647 $ -- 1,090
Deferred Recognized
------------------------ ---------------------
$ (000's) TX# $ (000's) TX#
----------- ---------- ---------- --------
2Q05 $ (12.0) (187) $ 889.0 15,316
1Q05 $ (116.0) (1,753) $ 634.0 10,633
4Q04 $ 194.0 2,760 $ 1,040.0 17,270
3Q04 $ 105.0 1,597 $ 945.0 15,438
2Q04 $ (102.0) 1,472 $ 719.0 14,219
1Q04 $ (125.0) (1,775) $ 550.0 8,999
CONTACT: Rene Caron of Allen & Caron, +1-949-474-4300,
rene@allencaron.com, for PhotoMedex, Inc.; or Dennis McGrath, CFO of
PhotoMedex, Inc., +1-215-619-3287, info@photomedex.com/
Web site: http://www.photomedex.com /