>>IRVINE, CA (July 17, 1998) . . . . Premier Laser Systems Inc (Nasdaq NM:PLSIA) announced today that in addition to restating revenues for the quarter ended December 31, 1997, as previously announced, the Company will record an inventory reserve, estimated to be not less than $5,000,000, against the value of the dental lasers it built in anticipation of sales to Henry Schein, Inc. ("Schein") in the third and fourth quarters of the fiscal year ended March 31, 1998. The reserve will be recorded in the quarter ended March 31, 1998.
The Company also announced that after months of negotiations, Schein has tendered payment for only a portion of the product that was shipped to Schein customers beginning in January 1998. In addition, more than six months after the initial shipment of inventory relating to the Schein relationship, Schein has recently disclaimed rights to the inventory. As a result, the Company is using data from a recent physical inventory in order to determine how many of the systems were resold by Schein or shipped to other locations.
The Company's Chairman, President and CEO, Colette Cozean, Ph.D., commented, "We have sustained a significant amount of damage in the dental marketplace and at large, but we have delayed seeking legal remedies as we have attempted to reach a compromise solution. The most frustrating part of this situation is that Schein has stated that they are eager to carry our product line, that they have received significant interest in our products at their booths at conventions and among their sales force, and that they have not experienced any product related problems. We have been hobbled, though, by the unfair presumption that since Schein is a large company and well-recognized in the dental community, we must have acted improperly in this matter. Obviously, the collapse of our relationship with Schein has been a disappointment for us, but we are now beginning to develop direct sales and other distribution capabilities in an attempt to make up for lost time in expanding our position in the dental marketplace."
Dr. Cozean also said that the Company is hopeful that its post-Schein relaunch of its dental laser marketing and sales programs will begin to show a positive effect in the fall quarter beginning October 1, although at this point there can be no guarantees that any increase in sales will occur. She said that dental laser sales for the March and June 1998 quarters were very disappointing, and that the summer quarter is traditionally weak for dental product sales. As a result, the Company believes that the fall dental meetings -- the ADA meeting in October and the Greater New York dental meeting in November -- will be important to regaining momentum in the dental marketplace, as will further FDA clearances to expand applications for the Company's lasers. There can be no assurances that these clearances will be received, or that sales will increase following these meetings.
The Company is working diligently with its auditors, Haskell & White LLP, to complete the reaudit of fiscal 1997 and the audit of fiscal 1998. The completion of these audits is an important step in the Company's efforts to obtain permission to resume trading of the Company's securities on The Nasdaq Stock Market.
Premier Laser Systems develops, manufactures and markets several lines of proprietary medical and dental lasers, fiber optic delivery systems and associated products for a variety of dental, ophthalmic, dermatologic and surgical applications.
The statements in this release that relate to future events or performance, statements about growth, levels of sales and market size, future manufacturing capacity and efficiencies, future product shipment rates, future FDA submittals and clearances, and future product introductions are forward-looking statements that involve risks and uncertainties, including risks associated with uncertainties related to the development of markets for and commercial acceptance of the company's products and services, the availability of components, competitors' product introductions and other risks identified in the company's SEC filings. Actual results may differ from those described in these forward- looking statements. Readers are cautioned not to place undue reliance on these forward- looking statements, which speak only as of the date hereof.<<
More of the same old same old? IF IF IF IF Mrs. Cozean has done what many have accused her of -- cooking the damn books, among other things, then I hope she strangles on her credit card debt. And Pluvia, too. Maybe even ESPECIALLY Pluvia! |
