PhotoMedex Reports 2011 Fourth Quarter And Full Year Financial Results

PhotoMedex, Inc. (NASDAQ: PHMD) today reported financial results for the three and 12 months ended December 31, 2011.

On December 13, 2011 Radiancy, Inc. became a majority owned subsidiary of PhotoMedex in a reverse merger. In accordance with generally accepted accounting principles (GAAP), Radiancy is deemed to be the financial acquirer for financial statement purposes and therefore the related consolidated statements of operations for the three and 12 month periods ended December 31, 2011 and for the year ended December 31, 2010, include activity from the pre-merged PhotoMedex only from the date of merger, December 13, 2011 through December 31, 2011.

Reported Financial Results

Revenues for the fourth quarter of 2011 were $28.8 million, which included $1.5 million in revenues from pre-merged PhotoMedex from the merger date through December 31, 2011. This represents an increase of 26% from revenues for the fourth quarter of 2010 of $22.9 million, which included no revenues from pre-merged PhotoMedex. Fourth quarter seasonal fluctuations – both positive and negative – for certain international markets are normal and expected for the Company’s consumer business, as compared with the balance of the year.

The net loss for the fourth quarter of 2011 was $3.0 million, or $0.22 per share, which included $5.2 million in stock-based compensation expense, $1.0 million in other merger-related expenses and $1.7 in litigation expenses. This compares with net income for the fourth quarter of 2010 of $2.9 million, or $0.25 per diluted share, which included $0.07 million in stock-based compensation expense and $0.3 million in litigation expenses.

Revenues for 2011 were $132.1 million, which included $1.5 million in revenues from pre-merged PhotoMedex from the merger date through December 31, 2011. This represents an increase of 89% from revenues for 2010 of $70.1 million, which included no revenues from pre-merged PhotoMedex.

The net loss for 2011 was $0.7 million, or $0.06 per share, which included $34.0 million in stock-based compensation expense and related gross-up, $2.1 million in other merger-related expenses and $3.0 in litigation expenses. This compares with net income for 2010 of $11.6 million, or $0.99 per diluted share, which included $0.4 million in stock-based compensation expense and $0.3 in litigation expenses.

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