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Biotech / Medical : VISX -- Ignore unavailable to you. Want to Upgrade?

To: Jim Mac who wrote (360)	11/25/1997 8:03:00 PM
From: majormember	Respond to of 1754

ALL: I rode VISX from 11 to 37, then exited. BEAM was a loser for me. The next stock to fly, IMHO is SNRS, (Sunrise Technology). They use YAG.Holmium laser and just got approval to enter Phase III trails. With new Mgmt. in place and non-invasive procedure, it is not competing with VISX/BEAM. The market for LTK is LARGER. Current price=$4 1/4. Regards, Skane

To: Jim Mac who wrote (360)	12/16/1997 7:42:00 PM
From: John E. Stanga	Respond to of 1754

What is one to make of the following release. It seems to me a double-edged sword. How firm is the company's position to cease paying royalties? jes Tuesday December 16, 6:20 pm Eastern Time Company Press Release VISX, Incorporated Changes Outlook for 4th Quarter 1997 SANTA CLARA, Calif.--(BW HealthWire)--Dec. 16, 1997--VISX Incorporated (NASDAQ/NM:VISX - news) announced today that it has stopped making certain royalty payments under its License-Back To VISX Agreement (''Agreement'') with Pillar Point Partners (''Pillar Point''), a partnership between VISX and Summit Technology Inc. (Nasdaq:BEAM - news; ''Summit''). Commencing in October 1997 the Company no longer pays royalties to Pillar Point for certain patented procedures performed using the VISX Excimer Laser System which have not been approved by the Food and Drug Administration. This is consistent with a provision in the Agreement which provides that royalties are due only for FDA-approved procedures. As a result of this change, VISX expects that earnings for the fourth quarter will exceed analysts' current estimates. In November 1997 VISX sued for declaratory judgment that its interpretation of the Agreement is correct because Summit disagreed with the Company's decision to stop making these payments to the partnership. By the lawsuit, VISX seeks to ensure that the partners report royalties to Pillar Point on a consistent basis. That lawsuit is pending in Santa Clara County Superior Court in California. If VISX's interpretation of the Agreement were found to be incorrect, VISX could be obligated to remit to Pillar Point all the royalties not paid since October 1997. In that instance, the contribution to VISX's earnings from non-approved procedures performed on VISX Systems would be reduced to a percentage consistent with that reported in prior periods. This difference would have a material adverse effect on the Company's financial condition and results of operations. If the Company were to continue making royalty payments in a manner consistent with prior periods, it is anticipated that earnings for the fourth quarter would be below analysts' current expectations due primarily to lower-than-expected net revenues from Pillar Point, anticipated lower system sales in Asian markets, and trade-in discounts the Company has offered to owners of non-VISX lasers. The Company anticipates that procedures performed in the fourth quarter using VISX Systems will exceed its earlier expectations. Nevertheless, increased procedures by VISX users would not be sufficient to offset an expected shortfall in revenues from Pillar Point. VISX is a worldwide leader in the development of refractive laser technology. VISX Systems are commercially available in the United States and markets worldwide. The statements in this release regarding expected future operating results are forward-looking, and actual results could differ materially. Among the factors that could affect actual results are the following: the outcome of litigation between VISX and Summit; fluctuations in VISX's and Summit's contributions to Pillar Point Partners on a going-forward basis; FDA approval of certain procedures for which the Company is not now paying royalties to Pillar Point; quarterly fluctuations in customer orders; and fluctuations in the timing and number of sales of VisionKey(R) cards. Other risks and uncertainties are detailed from time to time in the Company's SEC reports, including VISX's Form 10-K for the year ended Dec. 31, 1996, and Forms 10-Q for the quarters ended March 31, June 30, and Sept. 30, 1997. In addition, although the Company expected Summit to report a higher number of procedures to Pillar Point in the fourth quarter, the Company has no knowledge of the number of procedures actually performed on Summit systems. Contact: Visx Inc. Lola Wood, 408/733-2020 ir@visx.com More Quotes and News: Summit Technology Inc (Nasdaq:BEAM - news) VISX Inc (Nasdaq:VISX - news) Related News Categories: banking, biotech, medical/pharmaceutical Help Copyright c 1997 Business Wire. All rights reserved. All the news releases provided by Business Wire are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving ina public database, redistributing via a computer network or in a printed form. Important Disclaimers and Legal Information Questions or Comments?