8-K

                       SECURITIES AND EXCHANGE COMMISSION

                              WASHINGTON, DC 20549

                                 ---------------

                                    FORM 8-K

                                 CURRENT REPORT

                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                       SECURITIES AND EXCHANGE ACT OF 1934


Date of Report (Date of earliest event reported): March 6, 2003


                               Candela Corporation
- -------------------------------------------------------------------------------
             (Exact name of Registrant as specified in its charter)



           DELAWARE                    000-14742                 04-2477008
- -------------------------------    ----------------         -------------------
(State of other jurisdiction of    (Commission File            (IRS Employer
        Incorporation)                  Number)             Identification No.)


        530 Boston Post Road
        Wayland, Massachusetts                                     01778
        ----------------------                                   ----------
        (Address of principal                                   (zip code)
          Executive Offices)


Registrant's telephone number, including area code: (508) 358-7400


                  TOTAL NUMBER OF SEQUENTIALLY NUMBERED PAGES 4
                         EXHIBIT INDEX APPEARS ON PAGE 3




Item 5. OTHER EVENTS AND REQUIRED FD DISCLOSURE.

         On March 6, 2003, Candela Corporation ("Candela") announced that it had
obtained a favorable decision in its arbitration proceeding against Physician
Sales and Service, Inc., a division of PSS World Medical, Inc. A copy of the
Press Release announcing the decision in the arbitration proceeding is attached
hereto as Exhibit 99.1.

Item 7.  FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.

         (c)      EXHIBITS.

     EXHIBIT NO.  EXHIBIT

         99.1     Press Release, dated March 6, 2003, announcing the
                  decision in Candela's arbitration proceeding against
                  Physician Sales and Service, Inc., a division of PSS
                  World Medical, Inc.


                                 -1-



                              SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


March 6, 2003                                       CANDELA CORPORATION



                                                    By: /s/ F. Paul Broyer
                                                        -----------------------
                                                        F. Paul Broyer
                                                        Chief Financial Officer


                                 -2-



                                  EXHIBIT INDEX


     EXHIBIT NO.            EXHIBIT DESCRIPTION                           PAGE

         99.1     Press Release, dated March 6, 2003, announcing the       4
                  decision in Candela's arbitration proceeding
                  against Physician Sales and Service, Inc., a
                  division of PSS World Medical, Inc.


                                 -3-

EX-99.1

EXHIBIT 99.1

                            Paul Broyer, Candela Corporation 508-358-7637 x435

                   CANDELA WINS MAJOR ARBITRATION AGAINST PSS


WAYLAND, MA, March 6, 2003 -- Candela Corporation (NASDAQ: CLZR) announced today
that an arbitration panel had decided in its favor in a dispute with Physician
Sales & Service, Inc. (PSS). The panel awarded Candela $2.2 million for unpaid
amounts previously invoiced, which Candela earlier reported as revenue. This
amount was net of $150,000 separately awarded to PSS. The decision also included
interest on the outstanding balance that would be approximately $350,000 to
$400,000. The arbitrators also awarded Candela its attorneys' fees and expenses,
as well as the costs of arbitration. As a result of this decision, Candela
currently expects that it will be able to reverse the $300,000 reserve it
previously recorded in connection with this dispute.

Gerard E. Puorro, Candela's President and CEO said: "Obviously, we are delighted
with the finding by the panel of arbitrators. We have been confident from the
beginning that we were totally within our rights to terminate PSS for not paying
their bills." Puorro continued: "We are further gratified that the panel awarded
us payment of our legal fees and expenses."

ABOUT CANDELA: Candela Corporation develops, manufactures, and distributes
innovative clinical solutions that enable physicians, surgeons, and personal
care practitioners to treat selected cosmetic and medical conditions using
lasers, aesthetic laser systems, and other advanced technologies. Founded near
Boston in 1970, the company markets and services its products in over 60
countries from offices in the United States, Europe, Japan and other Asian
locations. Candela established the aesthetic laser market 14 years ago, and
currently has an installed base of over 6,000 lasers worldwide. Candela is an
Equal Opportunity and Affirmative Action Employer, M/F/H/V. Visit Candela on the
Web at http://www.candelalaser.com.

SAFE HARBOR STATEMENT: Except for the historical information contained herein,
this news release contains forward-looking statements that constitute Candela's
current intentions, hopes, beliefs, expectations or predictions of the future,
which are therefore inherently subject to risks and uncertainties. Candela's
actual results could differ materially from those anticipated in Candela's
forward-looking statements based on various factors, including without
limitation: the cancellation or deferral of customer orders, dependence on a
small number of strategic distribution relationships, difficulties in the timely
development and market acceptance of new products, market developments that vary
from the current public expectations concerning the growth of the laser
industry, increased competitive pressures, or changes in economic conditions.
Further information on factors that could affect Candela's performance is
included in Candela's periodic reports filed with the SEC, including but not
limited to, Candela's Annual Report on Form 10-K for the year ended June 29,
2002, and subsequent Quarterly Reports on Form 10-Q. Candela cautions readers
not to place undue reliance upon any such forward-looking statements, which
speak only as of the date made. Candela expressly disclaims any obligations or
undertaking to release publicly any updates or revisions to any such statements
to reflect any change in Candela's expectations or any change in events,
conditions or circumstances on which any such statement is based.


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