Results for Q4:
biz.yahoo.com
SAN JOSE, Calif.--(BW HealthWire)--March 9, 1999--Laserscope
(Nasdaq:LSCP - news) today said that it has completed its business
restructuring and reported its fourth quarter and year-end financial results for the period ended December 31, 1998.
Revenues for the fourth quarter ended December 31, 1998 were $13.2 million compared to $12.8 in the immediately
preceding quarter and $14.7 million in the same quarter a year ago. The Company reported a net loss for the quarter of
$6.9 million, or $0.55 per share, compared to a net loss of $3.4 million, or $0.27 per share, in the fourth quarter of
1997. Included in the results for the fourth quarter ended December 31, 1998 were charges of $4.0 million to write off
inventory and intangibles relating the discontinuance of marginally profitable laser product lines, $1.1 million relating to
the divestiture of the Company's AMS hospital equipment business, and severance payments of $0.2 million related to
organizational downsizing. Excluding these charges, the Company would have reported a net loss for the quarter ended
December 31, 1998 of $1.6 million, or $0.13 per share.
Revenues for the year ended December 31, 1998 were $52.7 million compared to $61.3 million a year earlier and $42.8
million in 1996. The Company reported a net loss for the year of $9.8 million, or $0.79 per share, compared to a net loss
in 1997 of $840,000, or $0.07 per share. Excluding the charges taken in the fourth quarter, the Company would have
reported a net loss of $4.5 million for the year ended December 31, 1998, or $0.36 per share.
Fiscal 1998 fourth quarter and year-end revenues and financial results reflect activities of the Company's AMS hospital
equipment business, which was sold to Heraeus Medical, Inc. on November 9, 1998.
In making the announcement, Robert V. McCormick, Laserscope President and CEO said, ''We made a series of
difficult decisions in 1998 to reposition the Company to take advantage of what we believe are the opportunities that lie
before us.
''As a result, we enter 1999 with a more directed focus. Our principal growth opportunities lie in photodynamic therapy
(PDT), cosmetic laser surgery (aesthetics), and continued globalization of our overall business. These opportunities can
be viewed as being layered on top of our traditional markets in hospital laser systems, surgical instrumentation,
disposable products and product service. Combined with lower overhead costs and a more streamlined organization, we
are confident about the future.
''Throughout the year we terminated activities in several areas where returns were marginal or unacceptable. The charges
taken in the fourth quarter and our increasing investments in R&D, both of which impacted financial results for 1998, are
indicative of these decisions.
''The charges taken in the fourth quarter included write offs of inventory and intangibles associated with the
discontinuation of two marginally profitable laser product lines which were originally acquired with the purchase of
Heraeus Surgical, Inc. in 1996. Additionally, as we reported earlier, we divested the AMS group during the quarter at a
loss of $1.1 million. Finally, we continued to re-size the organization and incurred charges of approximately $0.2 million
relating to this activity.
''Changes in our organization during the year included consolidation of manufacturing and administration facilities, a 15
percent reduction in the number of full-time employees, reorganization of our entire operations group, and the
strengthening of the senior management team through the appointment of several new, well-seasoned senior managers.
''Laserscope continues to be a leading medical laser company in the field of PDT. While PDT represents less than 10
percent of overall company revenues, three PDT applications -- esophageal cancer, early-stage lung cancer, and late-stage
lung cancer -- have already been cleared by the U.S. Food and Drug Administration, and clinical trials are underway in
other areas, including the treatment of atherosclerotic cardiovascular disease.
''Our aesthetics product line consists of some of the industry's most compact, most affordable, solid-state laser systems.
Our new hair removal laser, now in the final stages of development, is expected to represent the latest in hair removal
technology.
''We also continue to focus on our international business, which has expanded from 26 percent of total consolidated
revenues in 1996 to 42 percent of total consolidated revenues in 1998.
''We look at 1998 as a year of transformation and at 1999 as one of new headway. Our goals for 1999 are to return the
company to profitability in the second half of the year, generate positive cash flow, increase inventory turns, increase
market share in aesthetics, expand internationally, and further capitalize on our leadership position in lasers and fiber
optics for PDT.
''We believe that the restructuring process transforms Laserscope into an organization with clearer focus, tighter
controls, and a brighter future.''
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. More information on
Laserscope can be found on the company's Web site at www.laserscope.com or www.photodynamictherapy.com.
Statements in this announcement about future results are preliminary and based on partial information and assumptions,
and actual results may differ. Except for historical information presented, the matters discussed in this announcement
contain forward-looking statements that involve risks and uncertainties, including the development and growth of new
markets and treatments such as PDT, results from clinical trials, the timing of FDA and other regulatory approvals, the
impact of competitive products and technologies, physician and consumer acceptance 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.
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