I really, really hope that a loss of 0.02 is a positive earnings surprise!
Ed
Laserscope Reports First Quarter 1998 Financial Results
Business Wire - April 23, 1998 08:22
%LASERSCOPE LSCP %CALIFORNIA %MEDICINE %BIOTECHNOLOGY %EARNINGS V%BW P%BW
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SAN JOSE, Calif.--(BW HealthWire)--April 23, 1998--Laserscope (NASDAQ:LSCP) today reported its first
quarter financial results for the period ended March 31, 1998.
Revenues for the first quarter ended March 31, 1998 were $13.6 million compared to $15.8 million in the same quarter
a year ago. The Company reported a net loss of $0.23 million, or $0.02 per share, compared to net income of $0.88
million, or $0.07 per share, in the first quarter of 1997.
In making the announcement, Robert V. McCormick, Laserscope President and CEO, said, "Our performance
continues to be affected by sluggishness in the U.S. cosmetic laser market, a decline in sales of operating room
products to U.S. hospitals, and by economic disruptions taking place in Asia. Sales of photodynamic therapy (PDT)
laser systems, however, increased following the FDA's approval of the new, minimally-invasive treatment for certain
types of early-stage lung cancer.
"In addressing the cosmetic laser market, we introduced three new laser systems last month at the American Academy
of Dermatology (AAD) Convention," said Mr. McCormick. "These systems, which are targeted at specific market
segments, were very well received by physicians. We have taken orders and reservations on all three systems and
expect to begin product shipments in the third quarter."
The Company said the new laser systems are smaller and more compact than competitive offerings in the marketplace,
offer the physician several advanced performance features, and are priced to be among the most competitive cosmetic
lasers in the industry. The Venus(tm) system is targeted at the Erbium skin resurfacing market, the Aura SL(tm) system
at the facial vein market, and the Levante(tm) system at the tattoo and hair removal market.
With respect to operating room products, Mr. McCormick said, "This is a cyclical, sometimes volatile business driven
by uneven hospital construction and renovation schedules. We have increased our product offering, however, with the
recent introduction of new surgical lighting systems which we expect to begin shipping in the third and fourth quarters
of the year."
Continuing, Mr. McCormick said, "While Laserscope sales in the Asian market represent only 10 percent of total
revenues, the Company views this market as a priority. Product shipments and orders during the quarter were below
prior year levels in several important regions, including Japan, Korea, Thailand and Indonesia."
"We are executing several strategies internationally which we believe can mitigate the situation," he said. "We will soon
be opening up multiple distribution channels in India, an important region where we have had no prior presence. We
are planning to expand our distribution in the People's Republic of China, the Philippines and Vietnam, and we will be
exploring new marketing opportunities in Chile, Costa Rica and Mexico. We will also be participating in a broad range
of international trade shows beginning in June."
The Company said its products will be showcased at the following upcoming international trade shows: Sinomed '98 in
Beijing, Clinical Dermatology 2000 in Singapore, Health and Medicare India '98 in Bombay, the Aesthetic Surgery
Conference in Sydney, the First World Congress of ENT and Laser Surgery in Athens, the Seventh Congress of the
Asian Pacific Association of Lasers in Medicine and Surgery in Ho Chi Min City, as well as several others in Europe.
First quarter 1998 results also included contributions from NWL Laser-Technologie, GmbH, in which Laserscope
increased its investment to a majority position in June 1997.
Laserscope designs, manufactures, sells and services on a worldwide basis an advanced line of medical laser systems
and related energy delivery devices for the office, outpatient surgical center and hospital markets. The Company is a
pioneer in the development and commercialization of lasers and advanced fiberoptic devices for a wide variety of
applications, including photoselective medicine to treat cancer and other diseases. More information on Laserscope
and its products can be found on the Company's Website at www.laserscope.com
Statements in this announcement about future results are preliminary and based on partial information and assumptions,
and actual results may differ. Except for the historical information presented, the matters discussed in this
announcement contain forward-looking statements that involve risks and uncertainties, including the development and
rate of growth of new markets and treatments, the timely shipment of new products, the conversion of orders into
shipments, the impact of competitive products and technologies, physician and consumer acceptance of and demand for
the medical procedures targeted by the company, general economic conditions in the U.S. and abroad, and other risks
detailed from time to time in the Company's public disclosure filings with the U.S. Securities and Exchange
Commission (SEC). Copies of Laserscope's most recent Forms 10K and 10Q are available upon request from its
Investor Relations Department.
Laserscope Financial Summary
(Unaudited)
Condensed Consolidated Statements of Operations
Three Months Ended
March 31,
(thousands except per share amounts) 1998 1997
Net revenues $13,591 $15,763
Cost of sales 7,021 8,687
Gross margin 6,570 7,076
Operating expenses:
Research and development 1,331 670
Selling, general and administrative 5,345 5,401
----- -----
6,676 6,071
Operating income (loss) (106) 1,005
Interest and other income, net 40 (26)
Income before income taxes and
minority interest (66) 979
Provision for income taxes 109 98
Income (loss) before minority interest (175) 881
Minority interest 55 --
Net income (loss) $(230) $881
Basic and diluted net income (loss)
per share $(0.02) $0.07
Shares used in basic per share
calculations 12,360 12,010
Shares used in diluted per share
calculations 12,360 13,041
Condensed Consolidated Balance Sheets
March 31, Dec. 31,
(thousands) 1998 1997
Assets
Current assets:
Cash & cash equivalents $1,384 $2,465
Accounts receivable, net 14,578 13,960
Inventories 19,420 18,656
Other current assets 994 1,017
Total current assets 36,376 36,098
Property and equipment, net 4,970 5,183
Intangibles and other assets 5,773 6,025
Total assets $47,119 $47,306
Liabilities and Shareholders' Equity
Current liabilities $15,790 $15,785
Obligations under capital leases 230 274
Mortgages and other long-term debt 2,903 2,970
Minority interest in NWL 215 160
Shareholders' equity 27,981 28,117
Total liabilities and
shareholders' equity $47,119 $47,306
CONTACT: Laserscope
Richard Wood (IR/Media) or
Dennis LaLumandiere (Financial), 408/943-0636 |
