PhotoMedex 4Q income doubles after Radiancy deal

PhotoMedex 4th-quarter net income climbs after company acquired Radiancy

Associated Press

MONTGOMERYVILLE, Pa. (AP) -- PhotoMedex Inc., which makes skin-care products and technologies such as lasers for treating skin diseases, said Wednesday it moved to a profit in the fourth quarter after it acquired Radiancy Inc.

PhotoMedex's products include the Xtrac excimer laser, which is used in the treatment of psoriasis and vitiligo, and Omnilux light emitting diodes for acne, sun damage, and other conditions. In December 2011 the company acquired Radiancy Inc., which sells at-home hair removal, acne treatment, and psoriasis care products under the no!no! brand name.

PhotoMedex earned $5.9 million, or 27 cents per share, in the quarter ended in December. A year earlier, it took a loss of $3 million, or 22 cents per share. Its revenue rose 91 percent, to $54.8 million from $28.7 million.

Analysts expected the company to report net income of 22 cents per share and $52.8 million in revenue, according to FactSet.

The Radiancy deal was a reverse merger, and the fourth-quarter 2011 results reflect Radiancy's business before the acquisition closed. The company said direct to consumer sales grew 67 percent to $30 million in the fourth quarter, while retail and home shopping channel revenue more than doubled to $12.4 million. Xtrac treatment revenue rose to $2.6 million from $298,000.

For 2012, the company earned $22.5 million, or $1.08 per share, reversing its 2011 loss of $694,000, or 6 cents per share. Revenue rose 67 percent to $220.7 million from $132.1 million.

Shares of PhotoMedex rose 45 cents, or 3 percent, to $15.49 in morning trading.

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