RADNOR, PA, August 9, 2000, 2000 – PhotoMedex, Inc. (Nasdaq: PHMD) today announced the financial results for its second quarter ended June 30, 2000. Revenue for the quarter and six months ended June 30, 2000 was $570,000, representing sales of TMR excimer lasers to Edwards Life Sciences (NYSE: EW), the company’s joint venture partner, in connection with their ongoing clinical trials for the TMR cardiovascular treatment. In the comparable periods last year all revenues were from discontinued operations and amounted to $334,000 for the 3 months, and $587,000 for the six months ended June 30, 1999.
The loss from continuing operations for the second quarter of fiscal 2000 was $2.6 million, or $0.17 per diluted share. Included in this loss is approximately $0.3 million, or $.02 per diluted share, related to a non-recurring non-cash charge associated with the vesting of certain options granted to key advisory board members and other outside consultants.
The loss from continuing operations for the second quarter of 1999 was $1.5 million, or $0.15 per diluted share. Net loss for the second quarter was $2.9 million, or $0.19 per diluted share, compared to a net loss of $1.9 million, or $0.19 per diluted share, in the comparable period last year.
The net loss for the six months ended June 30, 2000 was $6.0 million, or $.42 per diluted share, compared with a six month loss for June 30, 1999 of $4.4 million or $.45 per diluted share. The net loss for the six months ended June 30, 2000 reflects the increased costs associated with preparations for the commercial launch of the XTRAC excimer laser for the treatment of psoriasis.
Jeff O’Donnell, President and CEO of PhotoMedex, stated, “The results for the second quarter were in line with our expectations. During the second quarter, we have continued to build on the key initiatives accomplished in the first quarter. Of particular importance, during the quarter we continued to strengthen our board and senior management with several key appointments, we commenced our beta site testing with five leading practicing dermatologists to further refine our field testing of treatment protocols and equipment reliability, and on May 10 an important milestone was reached when our common stock commenced trading on Nasdaq under the symbol PHMD. The new symbol reflects the change of our corporate name to PhotoMedex, Inc., which was officially approved at the annual shareholders meeting held on July 18, 2000. All of these prior initiatives have enabled us to position the company for the commercial launch of the XTRAC™ laser system for the treatment of psoriasis, which we officially announced on August 3, 2000, and which we plan to discuss in greater detail in our conference call scheduled for Wednesday, August 9, 2000 at 1:00 PM EDT.”
To participate in the call, dial 1-800-289-0493 ten minutes before the conference call begins and ask for the PhotoMedex conference call using a pass code of 788414. A replay will be available by 4:00 p.m. Eastern Time on August 9, 2000 and will be available until midnight Wednesday, August 16, 2000. To access the replay, dial 1-888-203-1112, using a pass code of 788414.
PhotoMedex’ excimer laser system is the first FDA-approved laser treatment for psoriasis, the second most common skin disorder in the U.S. The National Psoriasis Foundation estimates that psoriasis afflicts more than 7 million Americans and that between 150,000 and 260,000 new cases are diagnosed each year.
PhotoMedex is engaged in the development of proprietary excimer laser and fiber optic systems and techniques directed toward the treatment of cardiovascular and vascular disease and dermatological applications focusing on psoriasis.
Some paragraphs of this press release, particularly those describing PhotoMedex’ strategies, operating expense reductions and business plans, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1993, 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 the subsidiary companies of PhotoMedex, its reputation in the industry or its expected financial return from operations. Factors such as these could have an adverse effect on PhotoMedex’ results of operations. In light of significant uncertainties inherent in forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by PhotoMedex and its subsidiaries that it will be achieved.