Profit slips at Palomar

Palomar Medical Technologies Inc., a developer of light-based cosmetic treatments, said today that its fiscal first-quarter profit fell 6 percent due to higher operating costs and taxes.

For the three-month period ended March 31, the company posted net income of $5.9 million, or 30 cents per share, compared with $6.2 million, or 31 cents per share, in the prior-year period.

Revenue grew to $31.5 million from $22.5 million, an increase of 40 percent.

Analysts polled by Thomson Financial forecast a profit of 27 cents per share for the quarter.

Palomar Medical recorded total operating expenses of $23.4 million, up 41 percent from $16.6 million, a year earlier. The company reported higher product and royalty costs and research and development, marketing and administrative expenses.

The company also paid a total of $3.6 million in taxes compared with $210,000 paid in the prior-year period. (AP)