For a glimpse of what can happen with a fixed-site-only strategy, check out Beacon Eye Centers. They're an LCAV clone, and they're burning lots of cash while their procedure growth lags that of LVCI, which is rapidly blanketing the country with access sites.
LVCI has only about 5% of all U.S. lasers, but provides 20% of all access sites, thanks to its mobile strategy. LCAV, on the other hand, has maybe 9% of all U.S. lasers, but provides only 9% of access sites. LCAV is creeping toward profitability, while LVCI is racing there.
LVCI's U.S. operations turned cash flow positive in October, in November company turned EBITDA positive, and they're growing faster than anyone else, with a likely profitability date of April 1998 or sooner.
On top of that, LVCI gets to keep ALL of their profit, unlike LCAV, which will be giving away 20% to Summit. Not a good deal. |
