TLC Laser Declines Because of Slowing Growth, Rising
Expenses
By Sean B. Pasternak
TLC Laser Declines Because of Slowing Growth, Rising Expenses
Mississauga, Ontario, March 2 (Bloomberg) -- TLC Laser Eye
Centers Inc. fell as much as 42 percent, extending a year-long
drop, after the operator of laser eye-surgery clinics said it
performed fewer surgeries in its latest quarter than analysts
expected, while increasing marketing expenses.
Shares of TLC fell C$6.50 (US$4.49) to C$16 in midday Toronto
trading. Earlier they touched C$13, a 52-week low. In Nasdaq
trading, shares fell 4 3/8 to 11 1/16 and is down from a 52-week
high of 53 1/2.
TLC, which runs 55 eye-surgery clinics in North America, said
growth in its number of procedures will be less than the 40
percent rate of recent quarters, even though the number of
procedures will rise, analysts said.
``The outlook is not exciting,' said Joseph Walewicz, an
analyst with Dlouhy Investments in Montreal. ``People were looking
for a stronger quarter.'
Dlouhy cut his rating on the company today to ``hold' from
``accumulate.'
In addition, TLC said it increased spending on a new Internet
venture and a program to attract corporate customers. The
corporate program represents 20 percent of its procedures, Chief
Executive Elias Vamvakas said in a conference call yesterday.
During the call, Vamvakas said TLC will consider buying
equipment for its clinics from companies other than its main
supplier, Visx Inc. It's discussing possible orders with
LaserSight Inc., Summit Technology Inc.'s Autonomous Technology
Corp. unit and Bausch & Lomb Inc.
Mississauga, Ontario-based TLC said it's locked in to paying
a backlog of US$250 procedures from Visx, even though the company
has begun offering a reduced US$100 fee. The reduced fee doesn't
include servicing and adjustments for future surgeries.
TLC is expected to report specific procedure numbers next
week.
---------------------------------------------
Finally got in today, one year from now i think we should trade a lot higher than today, we might see more downside but it will come back, might actually be a great takeover since we will see consolidation in the industry.
Marc |
