LaserSight engages investment banking firm; reports third quarter results.
Michael R. Farris, president and chief executive officer of LaserSight, stated, "Our two divisions, consisting of Technologies and Health Care Services, have demonstrable strengths. However, it is the opinion of management that the financial community does not fully recognize the long-term value of the combination of our technology and managed care strategies. For that reason, the Company has engaged A.G. Edwards to explore and pursue opportunities to maximize shareholder value."
In the Technologies division, LaserSight has (i) implemented credit policies resulting in improved payment terms for third quarter unit sales, reflecting a priority to move the Company to positive cash flow; (ii) received an important scanning delivery patent in May of this year; (iii) received ISO 9002 certification with CE Mark expected in the fourth quarter, allowing for increased marketing activity in Europe; (iv) staffed its sales and marketing organization with new talent and expanded its international distributor network; (v) employed Dr. Howard Apple to lead the engineering/product development function; and (vi) continued to make progress in FDA clinical studies. Finally, the Company anticipates requesting from the FDA in early 1997 entrance into Phase 3 clinical trials.
In the Health Care Services division, LaserSight's managed care subsidiary, MEC Health Care, Inc., has seen a significant growth in revenues for the past nine months and achieved record profitability in the third quarter. This is a result of securing additional lives from the existing contracts as well as entering into new contracts with Kaiser Permanente and Healthplan Southeast. MEC continues to pursue additional managed care contract opportunities. Additionally, the Company entered the practice management business with the acquisition of the Northern New Jersey Eye Institute, which operated at a profit for the third quarter.
LaserSight reported a third quarter net loss of $2.1 million or $0.28 per share versus a net income of $759,000 or $0.11 per share a year ago. A higher allowance for sales returns on laser sales, non-operating costs relating to litigation and other claims, accrued employee severance costs, and preferred dividends accounted for $0.14 of the $0.28 per share loss. The Company also reported that third quarter revenues declined to $4.5 million from $6.8 million for the same period last year. The decrease in third quarter revenues resulted in part from (i) a higher allowance for sales returns, reflecting differences between actual experience and previously estimated amounts; (ii) a lower per unit sales price on lasers sold by LaserSight's Technologies subsidiary; (iii) a reduction in the number of units shipped; and (iv) a decrease in consulting services activities provided by The Farris Group, which resulted in a loss for the period. Technology expenses are, in part, attributable to the work required to achieve the ISO 9002 certification and CE Mark designation.
Revenue for the nine months declined to $15.1 million from $17.3 million in the comparable 1995 period. The Company reported a net loss of $3.3 million or $0.51 per share compared with a net income of $3.6 million or $0.53 per share a year ago.
LaserSight also reported of the 116 shares of preferred stock issued in the January 1996 offering, there remains only eight shares to be converted to common stock.
LaserSight Incorporated is a holding company with four operating subsidiaries engaged in the business of ophthalmic laser manufacturing and international sales, third-party managed vision care administration, ophthalmic practice management, and health and vision care consulting services.
This press release contains forward-looking statements regarding future events and future performance of the Company that involve risks and uncertainties that could materially affect actual results. Investors should refer to documents that the Company files from time to time with the Securities and Exchange Commission for a description of certain factors that could cause actual results to vary from current expectations and the forward-looking statements contained in this press release. Such filings include, without limitation, the Company's Form 10-K, Form 10-Q and Form 8-K reports and the Company's prospectus dated July 12, 1996 (File No. 333-2198). -0-
Following are selected financial results: Three Months Ended Nine Months Ended (In 000's Except Per Share Data) 9/30/96 9/30/95 9/30/96 9/30/95 Total Revenues $4,494 $6,768 $15,070 $17,331 Cost of Sales/Provider Payments 1,864 1,442 5,258 3,340 Gross Profit 2,630 5,326 9,812 13,991 Research & Development and Regulatory 326 462 1,374 920 Selling, General & Administrative Expenses 4,504 3,932 12,598 9,680 Operating Income (Loss) (2,200) 932 (4,160) 3,391 Other Income (Expense) (313) 52 (269) 1,453 Income Tax (Expense) Benefit 459 (225) 1,119 (1,225) Net Income (Loss) (2,054) 759 (3,310) 3,619 Dividends on Preferred Stock 78 - 346 - Earnings (Loss) Per Common Share - Primary $(0.28) $ 0.11 $(0.51) $ 0.53 Weighted Average Number of Common Shares and Equivalents Outstanding - Primary 7,639 7,056 7,238 6,851 Selected Balance Sheet Data: September 30, 1996 December 31, 1995 (In 000's) (In 000's) Cash and Equivalents $2,444 $ 1,598 Accounts and Notes Receivable (Current) 8,781 10,145 Total Current Assets 15,976 14,180 Total Current Liabilities 6,238 7,108 Stockholders' Equity 24,784 20,420
CONTACT: LaserSight Incorporated
Marti Benfield, Investor Relations
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|Date:||Nov 13, 1996|
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