BlueStone Capital Partners Initiates Coverage on Laserscope With a HOLD Rating.NEW YORK--(BUSINESS WIRE)--Nov. 18, 1998--Senior Analyst, Scott Baily of BlueStone bluestone, common name for the blue, crystalline heptahydrate of cupric sulfate called chalcanthite, a minor ore of copper. It also refers to a fine-grained, light to dark colored blue-gray sandstone. Capital Partners, L.P. initiates coverage on Laserscope (LSCP-NASDAQ) with a HOLD rating. LSCP LScP left scapuloposterior (position of fetus). is a designer, manufacturer, and marketer of a complete line of advanced medical laser systems and a broad range of related energy devices which it markets to doctor's private offices, outpatient surgical centers, and to hospitals. Analyst's Summary: - We are initiating coverage of LSCP with a HOLD rating. Following disappointing 2Q FY98 results, LSCP management announced an extensive restructuring designed to improve operating results and return the company to profitability. Despite management's swift and positive actions, we believe an 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. turnaround is not likely until the 4Q FY98 or the 1Q FY99. Until the operating performance improves, we believe the stock's upside potential Upside potential The amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar will likely be restrained. - LSCP recently announced that it sold its hospital equipment business, Ascent Medical Systems (AMS AMS - Andrew Message System ), to Heraeus Medical Inc. for $1 million in cash and $2.1 of liabilities. We view the AMS sale as a major positive since it returns LSCP to being a pure laser company, essentially completes its restructuring and helps position LSCP for improved operating results in 1999. - Although LSCP's 3Q FY98 results continued to be somewhat disappointing with revenues of $12.7 million and EPS of ($0.06), we believe the operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. will become significant as the restructuring proceeds over the next two quarters, especially after the sale of the AMS business. - LSCP has a history of strong R&D. Indeed, LSCP is one of the leading medical laser companies pursing the Photodynamic Therapy (PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT ) market. We believe the big payoff is still ahead as PDT offers future growth for LSCP. In 4Q FY98, LSCP begins shipping three new products: 1) Venus Er: YAG YAG n. A hard synthetic yttrium aluminum garnet used in laser technology and as a gemstone. [y(ttrium) + a(luminum) + g(arnet)1.] , for skin resurfacing; 2) the Levante (Dual Mode Ruby Laser), for tattoo and hair removal (international); and, 3) Aura SL, for facial vascular & pigmented lesions. BlueStone Capital Partners, L.P. is a full service investment banking and brokerage firm that delivers financial services to emerging growth and medium size companies worldwide. BlueStone Capital assists clients in maximizing their growth by providing sophisticated investment strategies that are designed to achieve clients' strategic, operating and financial goals. |
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