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

To: pappy who wrote (364)	12/18/1997 12:14:00 AM
From: Amy Feller	Read Replies (1) \| Respond to of 1754

From Herb Greenberg's column in the SF Chronicle: NOW FOR THE BIZARRE Late yesterday Santa Clara-based Visx, which makes lasers used in surgery to correct nearsightedness, said it'll beat analyst estimates in the fourth quarter. But there's a catch: The only reason it'll beat estimates is because it has stopped making certain royalty payments to a partnership it formed with rival Summit Technology. Visx claimed it was only obligated to pay royalties on procedures using the partnership's patented laser if the procedures had been approved by the Food and Drug Administration. Visx didn't give any further details, but said a lawsuit on the issue is pending in Santa Clara County Superior Court. The kicker: The company says that if it had continued making the royalty payments, its earnings would have been below analyst expectations. Oh, and by the way, it also says its financial performance would have been hurt by lower- than-anticipated sales to Asia (yeah, so what else is new?) and discounts offered on trade-ins of old lasers. The double-kicker: If the court rules that Visx has to make the payments, it also will have to pay all of the suspended royalties. The impact would be big enough to have a ''material'' impact on the company's ''financial condition'' and earnings. Sounds like heads you lose, tails you lose. Company officials couldn't be reached.