FORM 10-Q/A-1

                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   (Mark one)

          [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                    For quarterly period ended June 30, 1998

                                       OR

          [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

               For the transition period from ________ to ________

                         Commission file number: 0-22340

                        PALOMAR MEDICAL TECHNOLOGIES, INC
               (Exact name of issuer as specified in its charter)

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<S>                          <C>                                                     <C>           <C>

                             Delaware                                                              04-3128178
--------------------------------------------------------------------                 ---------------------------------------
(State or other jurisdiction of incorporation or organization)                        (I.R.S. Employer Identification No.)
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               45 Hartwell Avenue, Lexington, Massachusetts 02421
               --------------------------------------------------
                    (Address of principal executive offices)

                                 (781) 676-7300

                 -----------------------------------------------
                (Issuer's telephone number, including area code)

         Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing requirements for the past 90 days. Yes  X  No
                                                                       --     --

         As of July 31, 1998,  65,558,954 shares of Common Stock, $.01 par value
per share, were outstanding.

         Transitional Small Business Disclosure Format (check one):  Yes   No X
                                                                        --    --

                                                                    Page 1 of 19
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ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K
         --------------------------------

(a)      EXHIBITS

10.1     Second Amended 1996 Employee Stock Purchase Plan.

10.2     Second Loan Agreement between Palomar Medical Technologies, Inc. and 
         Coherent, Inc., dated May 7, 1998.

   
10.3     Loan Agreement between Palomar Medical Technologies, Inc. and Coherent,
         Inc., dated May 22, 1998. 
    

27.1     Financial Data Statement, Restated, for the period ended June 30, 1997.

27.2     Financial  Data  Statement,  for the  period  ended  June 30,  1998.


(b)      REPORTS ON FORM 8-K.

         Form 8-K filed June 3, 1998.


                                       18
<PAGE>

                                   SIGNATURES

         Pursuant  to the  requirements  of the  Securities  Act  of  1934,  the
Registrant  certifies  that it has caused this Report to be signed on its behalf
by the undersigned,  thereunto duly authorized,  in the Town of Lexington in the
Commonwealth of Massachusetts on November 2, 1998.

                                              PALOMAR MEDICAL TECHNOLOGIES, INC.
                                                        (Registrant)

DATE:  November 2, 1998                       By:   /S/ LOUIS P. VALENTE
                                                 -------------------------------
                                                    Louis P. Valente
                                                    Chief Executive Officer
                                                   (Principal Executive Officer)

DATE:  November 2, 1998                             /S/ JOSEPH P. CARUSO
                                                 -------------------------------
                                                    Joseph P. Caruso
                                                    Chief Financial Officer 
                                                    and Treasurer
                                                   (Principal Financial Officer 
                                                    and Principal Accounting
                                                    Officer)