Advanced Medical Optics Announces Fourth-Quarter and Full-Year 2006 Results.* 2006 Net Sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight Rise 8.3% to $997.5 Million; 2006 GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. of $1.21 * Q4 IOL IOL Intraocular lens, see there Sales Rise 15.2%, Led by Tecnis([R]) and ReZoom([TM] )IOLs * $14.4 Million in Q4 Refractive refractive capacity to refract light. refractive error a difference between the focal length of the cornea and lens, and the length of the eye, resulting in myopia or hyperopia. IOL Sales up 62%; 2006 Sales Total $49.2 Million * 2006 LVC LVC Lebanon Valley College LVC Laser Vision Correction LVC Live Virtual Class (Sun Microsystems) LVC Levi's Vintage Clothing LVC Live Virtual Constructive (simulation space) LVC Low Voltage Cutoff Sales Growth of 76.9% Reflects VISX Acquisition, International Expansion * Global CustomVue([TM]) Penetration Drives Q4 LVC Procedure Sales Up 14.7% * 2006 Eye Care Sales Decline 13.1% Due to Rationalization rationalization, in psychology: see defense mechanism. and Recall * Company Reiterates 2007, 2008 Revenue and Adjusted EPS Guidance * Company Begins 2007 with Announcements of Strategic Acquisitions of IntraLase and WaveFront Noun 1. wavefront - (physics) an imaginary surface joining all points in space that are reached at the same instant by a wave propagating through a medium wave front Sciences SANTA ANA Santa Ana, city, El Salvador Santa Ana (sän'tä ä`nä), city (1993 pop. 129,873), W El Salvador. It is the second largest city in the country and the commercial and processing center for a sugarcane, coffee, and cattle region. , Calif. -- Advanced Medical Optics Advanced Medical Optics, Inc., (NYSE: EYE) (known as AMO) is a global medical device leader focused on the discovery and delivery of innovative vision technologies that optimize the quality of life for people of all ages. , Inc. (AMO AMO - America's Multimedia Online ) (NYSE NYSE See: New York Stock Exchange :EYE), a global leader in ophthalmic ophthalmic /oph·thal·mic/ (of-thal´mik) ocular (1). oph·thal·mic adj. Of or relating to the eye; ocular. Ophthalmic Pertaining to the eye. surgical devices and eye care products, today announced financial results for the fourth quarter and full year 2006. AMO 2006 net sales rose 8.3 percent to $997.5 million. The rise reflects the May 2005 acquisition of VISX, Incorporated and subsequent international expansion of the company's laser vision correction (LVC) business, as well as increased demand for the company's premium intraocular lenses Intraocular lens Lens made of silicone or plastic placed within the eye; can be corrective. Mentioned in: Cataract Surgery (IOLs) and proprietary phacoemulsification phacoemulsification /phaco·emul·si·fi·ca·tion/ (-e-mul?si-fi-ka´shun) a method of cataract extraction in which the lens is fragmented by ultrasonic vibrations and simultaneously irrigated and aspirated. systems. Net sales growth in 2006 was partially offset by a loss of sales following the company's November 2006 eye care recall, a reduction in net sales related to the company's business rationalization efforts and a 0.2 percent decline related to foreign currency. For 2006, AMO reported income under Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP) of $79.5 million, or $1.21 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, including the impact of the recall. Additionally, 2006 results included the following items, which combined to reduce EPS by $0.09: * A pre-tax net gain of $96.9 million related to the settlement of legal matters, which increased after-tax EPS by $0.87 * Pre-tax net charges of $62.7 million associated with business rationalization and repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. initiatives, which reduced after-tax EPS by $0.65 * Pre-tax net charges of $22.1 million for note repurchases and deferred financing write-offs associated with the company's capital restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). , which reduced after-tax EPS by $0.26 * Pre-tax net charges of $3.3 million associated with recent acquisitions, integrations and termination of a distributor contract, and a $1.3 million unrealized loss Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. on derivative instruments Derivative instruments Contracts such as options and futures whose price is derived from the price of an underlying financial asset. , which combined to reduce after-tax EPS by $0.05. The impact of stock-based compensation expense reduced GAAP EPS by approximately $0.20 per share. In 2005, the company reported a GAAP net loss of $453.2 million, or a loss of $8.28 per share. After-tax charges of $536.9 million related primarily to acquisitions, recapitalizations and rationalization and repositioning actions had the effect of reducing per-share results by $9.73. "In 2006, we made progress toward our strategy to establish AMO as the refractive company," said Jim Mazzo, AMO chairman, president and chief executive officer. "We grew our monofocal IOL Noun 1. monofocal IOL - a lens with a single focus that is used after cataract surgery to provide clear distance vision monofocal lens implant interocular lens implant, IOL, lens implant - a clear plastic lens that is implanted in the eye; usually done when , refractive IOL and phacoemulsification businesses. We expanded our LVC business and began to establish a procedure-based model overseas, while moving to strengthen our global LVC technology leadership with strategic acquisitions. We successfully repositioned our eye care business by streamlining our offering to focus on higher-margin products, while aggressively addressing the recall at the end of the year. In addition, we prepared to introduce a series of new products across each of our businesses in 2007." Fourth-Quarter Results Fourth-quarter 2006 net sales of $243.6 million represented a 3.6 percent decline compared to the same quarter last year. The fourth-quarter net loss of $7.6 million, or a loss of $0.13 per share, was due primarily to recall-related sales declines, product returns and costs, and the tax effect of these issues. Final repositioning costs and the unrealized loss on derivative instruments increased the per share loss by $0.03. This performance compares to net income of $2.3 million, or $0.03 per share, in the same period last year. The fourth-quarter 2005 results were reduced by $0.37 due to the combined effect of after-tax charges of $25.8 million primarily related to rationalization and repositioning actions, as well as a tax benefit of $5.7 million for repatriation Repatriation The process of converting a foreign currency into the currency of one's own country. Notes: If you are American, converting British Pounds back to U.S. dollars is an example of repatriation. of foreign earnings and an unrealized gain Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. on derivative instruments. Cataract/Implant Overview Cataract/implant sales grew 4.4 percent versus 2005 to $519.0 million, reflecting increased demand for AMO's premium IOLs and proprietary phacoemulsification systems. Fourth-quarter cataract/implant sales rose 5.0 percent. The impact of foreign currency caused a 0.2 percent decline for 2006 and a 3.3 percent increase for the fourth quarter. Below are cataract/implant sales highlights. Growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. reflect comparisons to the same period in 2005 and include the impacts of foreign currency.
-- Total IOL sales rose 11.9 percent to $291.5 million, due primarily
to increased demand for the company's Tecnis(R) aspheric monofocal
and refractive IOLs. In the fourth quarter, IOL sales rose 15.2
percent to $79.6 million. Partially offsetting IOL sales growth was
the company's planned rationalization of older-generation,
lower-margin products that no longer fit its growth strategy.
-- Monofocal IOL sales rose 2.2 percent for the year and 8.2
percent in the fourth quarter to $242.3 million and $65.2
million, respectively. Fueling this performance were
significant sales increases of Tecnis(R) monofocal IOLs, with
its patented, wavefront-designed aspheric surface and a unique
FDA claim for improved functional vision.
-- Sales of refractive IOLs rose 108.6 percent to $49.2 million,
reflecting demand for the company's ReZoom(TM) Multifocal,
Tecnis(R) Multifocal and Verisyse(TM) IOLs. Momentum was strong
through the fourth quarter, when sales grew to $14.4 million,
representing a 62.4 percent increase versus the year-ago
quarter and a 13.6 percent increase versus the third quarter of
2006.
-- Viscoelastics sales declined 6.1 percent to $123.1 million, with
fourth-quarter sales down 7.8 percent to $30.6 million. The decline
reflects lost sales from discontinued product lines and continued
pricing pressures in Europe and Japan.
-- Phacoemulsification sales rose 5.7 percent to $87.6 million, with
fourth-quarter sales up 3.6 percent to $23.9 million. Performance
reflects strong system and pack sales. New unit placements rose
approximately 21 percent and 13 percent for the year and fourth
quarter, respectively.
Laser Vision Correction (LVC) Overview LVC sales grew 76.9 percent versus 2005 to $216.9 million, reflecting the full year benefit of the May 2005 VISX acquisition, growth in CustomVue([TM]) procedures and strong international system sales System sales is a business term used in the franchising industry. Franchisors provide supplies, marketing and administration services to franchisees in return for a part of the franchisees' revenues. Some franchisors also operate some outlets directly. . On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, LVC sales grew 6.9 percent. Fourth-quarter LVC sales declined 4.5 percent, reflecting primarily fewer system sales versus the year-ago period when the company was conducting the U.S. rollout of Iris Registration technology. The impact of foreign currency contributed an increase of 0.3 percent and 0.7 percent for the year and fourth quarter, respectively. Below are LVC sales highlights. Growth rates reflect comparisons to the same period in 2005 and include the impacts of foreign currency.
-- Procedures and related sales grew 104.7 percent to $144.3 million,
reflecting the VISX acquisition and increased global penetration of
CustomVue(TM) procedures. On a pro forma basis, procedure and
related sales grew 12.0 percent. Fourth-quarter procedure sales
grew 14.7 percent.
-- For 2006, 59.5 percent of the company's U.S. procedures were
wavefront-guided CustomVue(TM) procedures, and its U.S.
procedure volume was unchanged versus 2005.
-- International CustomVue(TM) procedures gained momentum
throughout the year and accounted for approximately 10 percent
of the company's total 2006 procedure sales. In the fourth
quarter, international procedure sales were $4.5 million, of
which approximately 80 percent were CustomVue(TM) procedures,
representing a 90 percent increase versus the same period one
year ago and a 21 percent increase versus the third quarter of
2006.
-- System sales rose 46.8 percent to $40.1 million, reflecting the
VISX acquisition and subsequent execution of AMO's international
expansion strategy. On a pro forma basis, system sales rose 1.9
percent. Fourth-quarter system sales declined 34.6 percent,
reflecting U.S. rollout of Iris Registration technology in the
year-ago period.
Eye Care Overview After successfully rationalizing and repositioning the eye care business, expanding market share and preparing to launch two new products in 2007, further progress was delayed by the recall late in 2006. Last November, the company commenced a recall of approximately 2.9 million units of its eye care products from the Asia Pacific, Japan and U.S. markets due to a production-line issue at its China manufacturing facility. To resolve the recall, the company also announced a 10-12 week plant closure to clean and sanitize To remove sensitive data from an information system, a database or an extract from a database. See sensitive. the facility and conduct an already-planned expansion, which is now nearing completion. Production has resumed on two of the four manufacturing lines and the company expects to begin shipping to its distribution centers in Japan this week. The third line is expected to commence operation this month, with shipping to Asia Pacific planned to commence prior to the end of the first quarter of 2007. The fourth line, which provides enhanced packaging capabilities, is expected to resume production in the second quarter of 2007, consistent with the original timeline. Production for the U.S. and European markets was uninterrupted during the recall as these markets are supplied by the company's facility in Spain, which was not affected by the production-line issue. As a result of the recall, the company estimated an impact to fourth-quarter and 2006 eye care sales of approximately $25 million, which was slightly higher than originally estimated due to higher returns. The $25 million impact included approximately $10 million in returns and an estimate of $15 million in lost sales. The company anticipates that it will lose an additional $20 million to $25 million in sales in 2007. In addition, the company incurred approximately $15 million in costs associated with the recall, which were recognized in cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold and SG&A expense in the fourth quarter and full year. The company anticipates that it will incur an additional $20 million to $25 million in recall-related costs in 2007. For 2006, eye care sales declined 13.1 percent versus 2005 to $261.6 million, reflecting the impact of the recall, declines in hydrogen peroxide hydrogen peroxide, chemical compound, H2O2, a colorless, syrupy liquid that is a strong oxidizing agent and, in water solution, a weak acid. It is miscible with cold water and is soluble in alcohol and ether. solution sales and lost sales associated with planned product rationalizations. These same factors caused fourth-quarter eye care sales to decline 20.2 percent to $53.0 million versus the same period last year. The impact of foreign currency caused a 0.5 percent decline for the year and a 2.8 percent increase for the fourth quarter. Below are eye care sales highlights. Growth rates reflect comparisons to the same period in 2005 and include the impacts of foreign currency.
-- Multipurpose solution sales declined 4.7 percent to $147.2 million
as growth in the first nine months of the year was offset by the
recall. Fourth-quarter multipurpose solutions sales declined 26.4
percent.
-- U.S. sales of COMPLETE(R) MoisturePlus(TM) rose 48.1 percent
for the year and 25.7 percent in the fourth quarter. According
to IRI, an independent market research firm, COMPLETE(R)
MoisturePlus(TM) dollar share of the U.S. branded multipurpose
solution market was 12.8 percent for the four weeks ended
January 28, 2007, representing an approximate 11 percent
increase since the beginning of 2006.
-- Sales of hydrogen peroxide solutions declined 19.4 percent to $62.3
million. Fourth-quarter hydrogen peroxide solution sales declined
23.6 percent to $13.9 million. The declines reflect this market's
contraction in Japan and Europe, and the impact of the planned
product rationalization.
-- Sales of other eye care products declined 24.7 percent to $52.1
million in 2006. Fourth-quarter sales for this category declined
3.2 percent to $15.2 million. The declines reflect the planned
rationalization of older-generation products.
Financial Highlights Below are additional highlights of fourth-quarter and 2006 results. Growth rates reflect comparisons to the same period one year ago.
-- Gross profit rose 9.0 percent to $618.2 million and was impacted by
$30.7 million related to the recall, including approximately $19.0
million in returns and costs, and an estimated $11.7 million impact
of lost sales. Also included were $16.3 million in charges
associated with business repositioning initiatives.
-- Fourth-quarter gross profit declined 4.1 percent to $139.0
million and was impacted by the recall and the final $1.2
million in charges associated with business repositioning
initiatives.
-- Research and development (R&D) expense was $66.1 million, or 6.6
percent of sales, compared to 6.7 percent in 2005.
-- Fourth-quarter R&D expense was $16.5 million, or 6.8 percent of
sales, compared to 6.7 percent in the year-ago period.
-- SG&A expense was $404.8 million, or 40.6 percent of sales,
including $8.3 million associated with acquisitions, integrations,
the recall and the termination of a distributor agreement. SG&A in
2006 also included $14.8 million for stock-based compensation,
which was not included in SG&A in 2005. SG&A expense for 2005 was
$396.6 million, or 43.1 percent of sales, including $23.2 million
related to acquisitions, integrations and the termination of a
distributor agreement.
-- Fourth-quarter SG&A expense was $113.7 million, or 46.7 percent
of sales, including $5.0 million associated with the recall.
Fourth-quarter SG&A also included $3.3 million for stock-based
compensation, which was not included in the prior year's
period. Fourth-quarter 2005 SG&A was $97.4 million, or 38.5
percent of sales, including $4.0 million related to
acquisitions and integrations.
-- Operating income of $197.7 million included a $96.9 million net
gain related to the settlement of legal matters, $66.0 million in
net charges associated with rationalization and repositioning
initiatives, acquisitions, integrations and termination of a
distributor contract. Operating income was also impacted by $35.7
million related to the recall, including $10.8 million impact of
estimated lost sales. The $411.3 million operating loss in 2005
reflected the impact of $536.9 million in charges related primarily
to acquisitions, recapitalizations, and product rationalizations
and repositioning actions.
-- Fourth-quarter operating income of $8.9 million was also
impacted by the $35.7 million related to the recall.
Fourth-quarter 2005 operating income of $1.0 million included
charges of $46.3 million due primarily to product
rationalization and repositioning initiatives.
-- Non-operating expense was $52.9 million, including $22.1 million in
charges and write-offs associated with note repurchases, and a $1.3
million unrealized loss on currency derivatives. In 2005,
non-operating expense was $29.0 million, including net charges of
$7.7 million for debt repayment and exchange of convertible debt,
offset by a $2.6 million unrealized gain on currency derivatives.
-- Fourth-quarter non-operating expense was $8.1 million,
including a $0.6 million unrealized gain on currency
derivatives. In the year-ago quarter, non-operating expense was
$5.8 million, including a $1.4 million charge associated with
note repurchases and a $1.3 million unrealized gain on currency
derivatives.
-- At year-end, the company's cash and equivalents were $34.5 million,
compared to $40.8 million at the end of 2005. Total debt at
year-end was $851.1 million, compared to $560.0 million at the end
of 2005. Year-end cash flow from operations was approximately $222
million, compared to cash flow from operations of $188 million for
the first nine months of 2006.
-- The company reported an income tax provision of $65.3 million,
compared to $12.9 million in 2005. The increase was due primarily
to the litigation settlement gain, recapitalization and the impact
of the recall.
Acquisitions & Financial Guidance AMO announced on January 8th its plan to acquire IntraLase Corp. (Nasdaq:ILSE ILSE International Life Saving Europe ILSE Intermediate Level Support Equipment ILSE Iterative Least-Squares Estimator ) for approximately $808 million in cash. The IntraLase acquisition complements AMO's fundamental growth strategy to be the eye care professionals' complete refractive solution by strengthening its portfolio of corneal corneal pertaining to the cornea. See also keratitis, keratopathy. corneal anomaly includes microcornea, coloboma, megalocornea, dermoid, congenital opacity. corneal black body see corneal sequestrum (below). and lens-based products and services that address a lifetime of refractive vision needs. AMO has arranged committed financing from a consortium of banks to complete the transaction, which is subject to Intralase stockholder approval as well as regulatory approvals and other customary closing conditions. Assuming successful close of the transaction early in the second quarter of 2007, AMO today reiterated its financial guidance, as follows:
> > 2007
2008
> >
Revenue (in millions) > > $1,150 - $1,175
$1,350 - $1.370
> >
Adjusted EPS > > $1.40 - $1.55
$2.25 - $2.40
This guidance includes the acquisition of WaveFront Sciences, Inc., a leading provider of proprietary wavefront diagonistic systems for refractive surgery Refractive surgery A surgical procedure that corrects visual defects. Mentioned in: Photorefractive Keratectomy and Laser-Assisted In-Situ Keratomileusis refractive surgery and medical research. As a result of the IntraLase and WaveFront Sciences transactions, AMO expects amortization to increase by approximately $30 million on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis, which would bring the company's total annual amortization to approximately $70 million, or about $0.70 per share on an after-tax basis After-tax basis The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond. . Live Webcast & Audio Replay AMO will host a live Web cast to discuss this release today at 10 a.m. ET. To participate and download slides that accompany the company's remarks, visit www.amo-inc.com. An audio replay will be available at approximately noon ET today and will continue through midnight ET on February 27th at 800-642-1687 (Passcode 7802271) or by visiting www.amo-inc.com. About Advanced Medical Optics (AMO) AMO is a global medical device leader focused on the discovery and delivery of innovative vision technologies that optimize the quality of life for people of all ages. Products in the cataract/implant line include intraocular lenses, phacoemulsification systems, viscoelastics and related products used in cataract cataract, in medicine, opacity of the lens of the eye, which impairs vision. In the young, cataracts are generally congenital or hereditary; later they are usually the result of degenerative changes brought on by aging or systemic disease (diabetes). and refractive lenticular lenticular /len·tic·u·lar/ (len-tik´u-ler) 1. pertaining to or shaped like a lens. 2. pertaining to the lens of the eye. 3. pertaining to the lenticular nucleus. surgery. Products in the laser vision correction line (Surv.) a parallel used as a new base line in laying out township in the government lands of the United States. The adoption at certain intervals of a correction line is necessitated by the convergence of of meridians, and the statute requirement that the townships must be squares. include laser systems, wavefront diagnostic systems, microkeratomes and related products used in corneal refractive surgery. AMO owns or has the rights to such ophthalmic surgical product brands as ReZoom[TM], Clariflex([R]), Sensar([R]), CeeOn([R]), Tecnis([R]) and Verisyse[TM] intraocular lenses, STAR S4 IR[TM] laser vision correction system, WaveScan Wavefront[R] System, Advanced CustomVue[TM] procedure, Sovereign([R]) and Sovereign([R]) Compact[TM] phacoemulsification systems with WhiteStar[R] technology, Amadeus([TM]) and Amadeus([TM]) II microkeratomes, Healon([R]) viscoelastics, and the Baerveldt([R])glaucoma glaucoma (glôkō`mə), ocular disorder characterized by pressure within the eyeball caused by an excessive amount of aqueous humor (the fluid substance filling the eyeball). shunt To divert, switch or bypass. . Products in the contact lens contact lens, thin plastic lens worn between the eye and eyelid that may be used instead of eyeglasses. Actors, models, and others wear them for appearance, and athletes use them for safety and convenience. care line include disinfecting solutions, enzymatic cleaners and lens rewetting drops. Among the eye care product brands the company possesses are COMPLETE([R]) Moisture PLUS[TM], COMPLETE([R]) Blink-N-Clean([R]), Consept([R])F, Consept([R]) 1 Step, Oxysept([R]) 1 Step, UltraCare([R]), Ultrazyme([R]), Total Care([TM]) and blink blink the involuntary movement of one or both eyelids of both eyes simultaneously. The frequency varies between species. Cats blink the least, with the possible exception of owls. In birds it is the lower eyelid which is moved up to meet the upper lid. [TM] branded products. Amadeus is a licensed product of, and a trademark of, SIS, Ltd. AMO is based in Santa Ana, Calif., and employs approximately 3,800 worldwide. The company has operations in 24 countries and markets products in approximately 60 countries. For more information, visit the company's Web site at www.amo-inc.com. Use of Non-GAAP Measures Our guidance for adjusted EPS for 2007 and 2008 is provided on a non-GAAP basis. The company's adjusted EPS guidance excludes the impact of charges or write-offs associated with acquisitions, reorganization or recapitalizations, and unrealized gains or losses on derivative instruments. The company believes this presentation is useful to investors to conduct a more meaningful, consistent comparison of the company's ongoing operating results. This presentation is also consistent with our internal use of the measure, which we use to measure the profitability of ongoing operating results against prior periods and against our internally developed targets. We believe that our investors also use this measure to analyze the sustainable profitability of the on-going business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets . The economic substance related to our use of adjusted EPS is our belief that the appropriate analysis of our profitability cannot be effectively considered while incorporating the effect of unusual items and charges that have not been experienced in prior periods. The company is not able to provide a reconciliation of projected adjusted EPS to expected reported results due to the unknown effect, timing and potential significance of special charges, and our inability to forecast charges associated with future transactions and initiatives. Our guidance for adjusted EPS includes the impact of transaction-related intangible amortization and stock-based compensation expense now being recognized under Statement of Financial Accounting Standards No. 123R (FAS123R) issued by the Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). . This non-GAAP financial measure is in addition to and in conjunction with results presented in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP. This non-GAAP financial measure reflects an additional way of viewing aspects of our operations that, when viewed with our GAAP results provide a more complete understanding of factors and trends affecting our business. These non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with generally accepted accounting principles. Cautionary Statement Regarding Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Statements contained in this document that refer to AMO's estimated or future results such as statements regarding the timing and certainty of closing the IntraLase transaction, estimates of strategic and financial benefits of the transaction, statements by Jim Mazzo, estimates of production and shipping status, lost revenue and recall expenses in the eye care business, our financial guidance and statements in the "Acquisition and Financial Guidance" section of this news release are forward-looking statements within the meaning of the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The forward-looking statements contained in this document include statements about future financial and operating results and the proposed transaction. These statements are not guarantees of future performance, involve certain risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. Therefore, actual outcomes and results may differ materially from what is expressed herein. For example, if IntraLase does not receive required stockholder approval or either of the companies fails to satisfy other conditions to closing, the transaction will not be consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. . In any forward-looking statement in which AMO expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the statement or expectation or belief will result or be achieved or accomplished. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: risks associated with uncertainty as to whether the transaction will be completed, successfully integrating AMO and IntraLase, the failure to realize the synergies and other perceived advantages resulting from the transaction, costs and potential litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. associated with the transaction, the failure to obtain the approval of IntraLase stockholders, the inability to obtain, or meet conditions imposed for, applicable regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the transaction, the failure of either party to meet the closing conditions set forth in the definitive agreement, the ability to retain key personnel both before and after the transaction, each company's ability to successfully execute its business strategies, unforeseen impacts of AMO's 2006 recall of eye care solutions, the extent and timing of regulatory approvals, the extent and timing of market acceptance of new products or product indications, manufacturing, litigation, the procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. , maintenance, enforcement and defense of patents and proprietary rights, competitive conditions in the industry, business cycles affecting the markets in which any products may be sold, changes to market assumptions for refractive IOLs and LVC, unexpected changes in reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. rates for our products, fluctuations in foreign exchange rates and interest rates, and economic conditions generally or in various geographic areas, and other risks set forth in AMO's and IntraLase's most recent Annual Reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. , especially in the "Risk Factors" sections, and their respective Current Reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. and other SEC filings. AMO is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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