UPDATED OVERVIEW OF PLSIA
Delay In Shipping Lasers -- PROBLEM?
Friday, 8/1 Dentists who have ordered Laser Drills have not been shipped the equipment as promised and sales people fail to return calls indicating status of shipment. Dentists attending training classes report failures of Dental Drills during training sessions -- these failures are confirmed by PLSIA top management who specifically admit fiber and software problems with the equipment.
Dental Drill Sales Slow.
Dental Drill training classes for Aug. are very slow, not jammed as has been reported on this stock board, indicating potential sales are slowing considerably -- not increasing.
EyeSys Drain On PLSIA Cash & Management.
EyeSys, which has mounted huge losses and never been profitable, could significantly drain cash reserves of PLSIA for a great deal of time. Considering PLSIA's history of personal failure and failure in past business ventures <Mattan, IBC etc.>, very real possibility exists PLSIA will not be able to ever turn a profit in EyeSys. EyeSys will certainly take a great deal of management's time to "fix" potentially deteriorating focus on introduction of Dental Drill.
Possible Large Sales of PLSIA Stock On Open Market & Increased Outstanding.
PLSIA indicates issuing PLSIA shares to EyeSys shareholders for the EyeSys purchase, and PLSIA shares to satisfy outstanding loans & debts of EyeSys. This new issuance of stock increases outstanding shares and brings the real possibility of these shares hitting market as soon as they come available for sale.
Insider Sales.
News wire reports 5 sales from 4 persons -- three insiders <2 VP's one director and one relative of director> totaling 80,000 shares sold, 2 insiders and one 144 holder liquidating their entire position. Check wire service for verification -- don't waste time arguing with me on this point.
BIG Earnings Losses Expected For Q1 & Q2.
10K reports revenue recognition upon shipping of lasers. This would indicate no sales for Q1, and only the sales that could be shipped in mid late Aug. - Sept. for Q2. Add costs of EyeSys merger, added legal, accounting from same, marketing costs of Dental Drill -- I expect continued significant losses. Add potential of PLSIA curing sales falling significantly due to ILT patent, and PLSIA earnings and revenue outlook should be dismal. Initial effect of EyeSys should increase revenue, but also add significant losses. Consider dilutive effect of larger outstanding shares from warrants and Eyesys deal making significant earnings much harder to achieve in the future.
Patent Problems.
Potential patent problems with ILT and ADLI unless resolved with licensing agreement, which would likely slim PLSIA margins.
History of Non Performing Management.
PLSIA has history of failure in business, with 20 products approved since 1991, none have been commercially successful enough to bring PLSIA to a point of profitability. Failures in most every business venture I could find -- including IBC $330,000 and Mattan $881,00 write-offs last year. As a result it would be very difficult to give PLSIA management a vote of confidence for them to make EyeSys or the Dental Drill profitable.
Cheers Steve
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