Palomar's losses surge 600 percent

July 29, 2010 by MassDevice staff

Palomar Medical Technologies Inc. second quarter losses increases 600 percent due to heavy spending in G&A and R&D expenditures; company says revenue growth was "steady."

Palomar Medical Technologies Inc. (NSDQ:PMTI) Q2 losses surged some 600 percent as it invested heavily in infrastructure costs.

The cosmetic laser surgery equipment-maker reported $1.7 million in net losses, or 9 cents per diluted share, on $15.6 million in sales during the three months ended June 30. A dramatic increase compared to a net loss of $243,922, at 1 cent per diluted share, on revenue of $15.0 million during the same period last year.

Revenue from the company's product and services rose to $13.0 million, an 8 percent increase over Q2 2009's $12.1 million, but that wasn't enough to buoy the the firm from increased general and administrative and research and development costs that weighed down the bottom line.

R&D expenses were up 17 percent or $512,768 for the quarter, while G&A jumped up 50 percent, $1.1 million difference over 2009.

Some of administrative costs could be directly tied to the opening of an office in Japan during the quarter.

The new location, "provides us with a direct sales force and service support to grow our business in that part of the world," said CEO Joseph Caruso.

Despite its losses, the company can still boast no debt and cash and cash equivalent holdings of $102.1 million.

Palomar stock was trading around $10 per share in early afternoon trading, down about 2 percent from its opening price.