Maybe some investors have become interested in LSCP. Restructuring has given us a sharper better focused organization. This press release of Nov 20 may explain something. Dick Martin
BlueStone Capital Partners Initiates Coverage on Laserscope With a HOLD Rating
BusinessWire, Friday, November 20, 1998 at 17:23
NEW YORK--(BUSINESS WIRE)--Nov. 18, 1998--Senior Analyst, Scott
Baily of BlueStone Capital Partners, L.P. initiates coverage on
Laserscope (NASDAQ:LSCP) with a HOLD rating. LSCP is a designer,
manufacturer, and marketer of a complete line of advanced medical
laser systems and a broad range of related energy devices which it
markets to doctor's private offices, outpatient surgical centers, and
to hospitals.
Analyst's Summary:
- We are initiating coverage of LSCP with a HOLD rating. Following
disappointing 2Q FY98 results, LSCP management announced an
extensive restructuring designed to improve operating results and
return the company to profitability. Despite management's swift
and positive actions, we believe an EPS turnaround is not likely
until the 4Q FY98 or the 1Q FY99. Until the operating performance
improves, we believe the stock's upside potential will likely be
restrained.
- LSCP recently announced that it sold its hospital equipment
business, Ascent Medical Systems (AMS), to Heraeus Medical Inc.
for $1 million in cash and $2.1 of liabilities. We view the AMS
sale as a major positive since it returns LSCP to being a pure
laser company, essentially completes its restructuring and helps
position LSCP for improved operating results in 1999.
- Although LSCP's 3Q FY98 results continued to be somewhat
disappointing with revenues of $12.7 million and EPS of ($0.06),
we believe the operating leverage will become significant as the
restructuring proceeds over the next two quarters, especially
after the sale of the AMS business.
- LSCP has a history of strong R&D. Indeed, LSCP is one of the
leading medical laser companies pursing the Photodynamic Therapy
(PDT) market. We believe the big payoff is still ahead as PDT
offers future growth for LSCP. In 4Q FY98, LSCP begins shipping
three new products: 1) Venus Er: YAG, for skin resurfacing; 2)
the Levante (Dual Mode Ruby Laser), for tattoo and hair removal
(international); and, 3) Aura SL, for facial vascular & pigmented
lesions.
BlueStone Capital Partners, L.P. is a full service investment
banking and brokerage firm that delivers financial services to
emerging growth and medium size companies worldwide. BlueStone Capital
assists clients in maximizing their growth by providing sophisticated
investment strategies that are designed to achieve clients' strategic,
operating and financial goals.
CONTACT: BlueStone Capital Partners LP, New York
Scott Baily, 212/850-0558
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