Robert:
How does .58 grab you:
VISX Reports Record Revenues and Operating Profit; Revenues Double; Operating Income Up 461% Over Prior Year
BusinessWire, Wednesday, July 15, 1998 at 16:33
SANTA CLARA, Calif.--(BW HealthWire)--July 15, 1998--VISX,
INCORPORATED (Nasdaq NM Symbol: VISX) today announced financial
results for the second quarter ended June 30, 1998.
Revenues for the second quarter of 1998 were $31,663,000 compared
to $15,595,000 for the comparable period of the prior year. Income
from operations for the second quarter of 1998 was $14,424,000
compared to $2,571,000 for the comparable period of the prior year.
Pro forma net income for the second quarter of 1998, assuming an
effective tax rate of 40%, was $0.58 per share excluding the effect of
the $35 million litigation settlement described below. The net loss
for the second quarter of 1998 was $15,329,000, or $1.01 per share,
including the effect of the $35 million litigation settlement,
compared to a net loss of $675,000, or $0.04 per share, for the
comparable period of the prior year including the effect of the $4.5
million litigation settlement described below.
Mark Logan, Chairman, President and CEO of VISX, commented, "This
quarter's solid performance can be attributed to an increased
worldwide demand for our VISX STAR S2 Smoothscan(tm), careful expense
management, and U.S. procedure growth that has once again exceeded our
expectations." Mr. Logan added, "While I think it is appropriate to
remind our investors of the slower growth rate we experienced during
the late summer of 1997, we remain optimistic and very excited about
our company's future prospects."
Revenues for the six month period ended June 30, 1998 were
$55,973,000 compared to $31,338,000 for the comparable period of the
prior year. Income from operations for the six month period ended June
30, 1998 was $24,795,000 compared to $4,423,000 for the comparable
period of the prior year. Pro forma net income for the six month
period ended June 30, 1998, assuming an effective tax rate of 40%, was
$1.04 per share excluding the effect of the $35 million litigation
settlement. The net loss for the six month period ended June 30, 1998
was $6,367,000, or $0.42 per share, including the effect of the $35
million litigation settlement, compared to net income of $2,024,000,
or $0.13 per share, for the comparable period of the prior year
including the effect of the $4.5 million litigation settlement.
In June 1998, VISX and Summit Technology, Inc. ("Summit") signed
an agreement by which they dissolved Pillar Point Partners and settled
all pending disputes and litigation between the two companies. Each
party retained all rights to license its own patents to other
manufacturers. VISX and Summit have also granted each other a
worldwide, royalty free cross license. Each party has full rights to
license its laser system users to all patents owned by either company
relating to laser ablation of corneal tissue. In accordance with the
agreement, VISX paid Summit a total of $35 million. This payment
increased VISX's net loss by $1.98 per share in the second quarter and
six month period ended June 30, 1998. In June 1997, VISX and Summit
settled certain patent disputes and each made payments to the other
company resulting in a net payment of $4.5 million to Summit. This
payment reduced VISX's net income by $0.25 per share in the second
quarter and six month period ended June 30, 1997.
The table below sets forth pro forma diluted earnings per share
information for the three months ended June 30, 1998 and 1997 and the
six months ended June 30, 1998 and 1997. Consistent with the method
used by analysts, such pro forma earnings per share information
assumes an effective tax rate of 40% and excludes the effect of the
litigation settlements described above.
*T
Pro Forma Diluted Earnings Per Share
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
Pro-forma diluted
earnings per share $ 0.58 $ 0.14 $ 1.04 $ 0.26
Weighted average common
shares and dilutive
potential common shares 16,291 15,912 15,969 15,849
*T
This release contains forward looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements are based on management's current expectations. Because of
various risks and uncertainties, actual strategies and results in
future periods may differ materially from those currently expected.
Additional discussion of factors affecting the Company's business is
contained in the Company's most recent filings with the Securities and
Exchange Commission, including VISX's Annual Report and Form 10-K for
the year ended December 31, 1997.
VISX is the worldwide leader in the development of refractive
laser technology. VISX systems are commercially available in the
United States and markets worldwide.
*T
VISX, Incorporated
Condensed Consolidated Statement of Operations
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
6/30/98 6/30/97 6/30/98 6/30/97
System sales $ 9,435 $ 8,176 $ 16,995 $ 18,273
License, service
and other revenue 22,228 7,419 38,978 13,065
Total revenues 31,663 15,595 55,973 31,338
Cost of revenues 7,477 4,558 13,307 11,022
Marketing, general
and administrative 6,956 5,872 12,654 11,187
Research, development
and regulatory 2,806 2,594 5,217 4,706
Total costs
and expenses 17,239 13,024 31,178 26,915
Income from
operations 14,424 2,571 24,795 4,423
Interest and other
income, net 1,380 1,162 2,801 2,377
Litigation settlement (35,000) (4,500) (35,000) (4,500)
Income before
provision
for income taxes (19,196) (767) (7,404) 2,300
Provision for
income taxes (3,867) (92) (1,037) 276
Net income $ (15,329) $ (675) $ (6,367) $ 2,024
Earnings Per Share
Basic $ (1.01) $ (0.04) $ (0.42) $ 0.13
Diluted $ (1.01) $ (0.04) $ (0.42) $ 0.13
Shares Used For
Earnings Per Share
Basic 15,190 15,454 15,203 15,408
Diluted 15,190 15,454 15,203 15,849
Condensed Consolidated Balance Sheet
(in thousands)
(Unaudited)
6/30/98 12/31/97
Cash, cash equivalents and
short-term investments $ 85,804 $ 100,833
Accounts receivable 20,304 16,478
Inventories 5,886 4,747
Other current assets 4,664 1,875
Current assets 116,658 123,933
Property and equipment, net 3,964 4,032
Other assets 3,812 2,387
Total assets $ 124,434 $ 130,352
Accounts payable $ 5,763 $ 5,453
Accrued liabilities 18,677 14,600
Current liabilities 24,440 20,053
Stockholders' equity 99,994 110,299
Total liabilities and
stockholders' equity $ 124,434 $ 130,352
*T
CONTACT: VISX
Lola Wood, 408/733-2020
or
Jeff Volk, 212/843-8086
E-Mail: ir@visx.com
Web: visx.com |
