VISX Inc. (ticker: VISX, exchange: Nasdaq) News Release - Tuesday, February 22, 2000
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VISX Unveils Aggressive Growth Strategy; Bold Pricing Move to Provide Stimulus to Laser Vision Correction Market
SANTA CLARA, Calif.--(BW HealthWire)--Feb. 22, 2000--VISX, INCORPORATED (Nasdaq:VISX) today announced that it has commenced an aggressive program to help accelerate the growth of laser vision correction in the United States market.
Despite rapid acceptance since FDA approval in late 1995, market penetration by laser vision correction remains small compared to spectacles and contact lenses. As the cornerstone of this growth initiative, VISX is reducing the license fee it charges its customers from $250 to $100. The price reduction, combined with other program elements, is designed to provide VISX's customers increased marketing resources and greater consumer pricing flexibility.
VISX is the leading manufacturer of excimer laser systems for the United States market. VISX was the first laser approved by the FDA to correct all three major refractive errors -- nearsightedness, farsightedness and astigmatism. In October of 1999, the Company celebrated the 1,000,000th procedure performed on the STAR laser in the United States. More laser vision correction procedures have been performed in the United States using the advanced technology of the VISX STAR system than all other laser systems combined.
Commenting on the initiative, Mark Logan, Chairman and Chief Executive Officer of VISX, said, "The United States market for laser vision correction has reached a critical juncture in its development. Until now, concern over procedure safety has been the primary barrier to greater market penetration. Now, with 10 years of clinical history, and nearly 5 years of excellent commercial results, this concern has been diminished. We believe that millions of consumers, particularly younger individuals with lower levels of nearsightedness, are now ready to have the procedure. However, research indicates that this group is the most focused on affordability. We are convinced that the majority of our customers will use this price reduction from VISX to invest in growing their procedure volume. Since VISX's business model is closely aligned with the success of our customers, we will also share in the benefits of this growth."
Logan further added, "A price reduction of this magnitude is unusual. However, VISX is in a unique position because of its large installed base, strong balance sheet and history of profitable operations. This is a market growth opportunity that does not appear very often, and we are determined to seize the moment."
VISX also announced today that its Board of Directors has authorized a repurchase of up to 10 million shares of the approximately 64 million shares of VISX common stock currently outstanding. The Company will conduct the purchases through open market transactions. The amount of shares purchased and the timing of purchases will be based on a number of factors, including the number of shares needed for replenishment of employee benefit plans, the market price of the stock, market conditions, and as the Company's management deems appropriate. As a result of these factors, the actual number of shares repurchased cannot be precisely determined at this time.
The foregoing contains statements regarding the anticipated impact of the license fee reduction that are forward looking within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and actual results could differ materially. Factors that could affect the Company's business include: the extent to which the lower license fee will result in sufficient volume growth to compensate for the margin reduction, acceptance of the laser vision correction procedure, competition from other laser systems and vision correction products, and developments in pending or future patent and antitrust litigation. Additional discussion of factors affecting the Company's business is contained in the Company's most recent filings with the Securities and Exchange Commission, including VISX's Annual Report and Form 10-K for the year ended December 31, 1998 and VISX's Forms 10-Q for the quarters ended March 31, 1999, June 30, 1999 and September 30, 1999.
VISX is the worldwide leader in the development of refractive laser technology. VISX systems are commercially available in the United States and markets worldwide.
CONTACT: VISX
Lola Wood, 877/463-6847
ir@visx.com
visx.com
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