Eye Laser Industry - VISX and Summit BEAM Info Message Board

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Biotech / Medical : Eye Laser Industry - VISX and Summit BEAM Info

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To: Daryl Gresham who wrote (102)	10/21/1996 10:51:00 PM
From: John Binford, Jr.	of 178

Today was another great earnings release for Visx. They blew away estimates again. One thing I should also add is that Visx reports PPP revenue after it is received back from PPP. So the income from PPP is delayed by about 2 to 3 months (or 1 quarter). In other words Visx reports revenue of $120 to $140 per procedure (depends on amount kept by PPP) after it receives it back. Therefore the PPP royalties lag behind in the earnings statement and should improve dramatically in the coming year. Summit on the other hand accounts for it differently. They report it immediately as $250 in revenues per procedure and then report a cost of $140 to $160 per procedure. This is a little misleading in that they don't actually get their share until 2 or 3 months and it beefs up their revenue line. Anyway, today's release was very good news for Visx. I bet the short sellers are starting to feel pretty uneasy. A couple of institutions buying back into Visx will really squeeze the shorts. Hopefully, Atlantis Research will soon be buying back their short position and send Visx back over $40.

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