LaserSight reports narrowed first quarter loss; improved operating cash flow.
The Company reported a loss of $648,000, or $0.07 per share for the first quarter of 1997 compared with a net loss of $1.2 million, or $0.19 per share in the same quarter last year. Revenues for the three months ended March 31, 1997 increased 41 percent to $6.5 million from $4.6 million the year before, while selling, general and administrative expenses increased only four percent.
LaserSight's Technology segment reported $3.5 million in revenues compared to $2.0 million in the same period of 1996. The Health Services segment had first quarter revenues of $3.0 million compared to $2.6 million for the first quarter of 1996. The Northern New Jersey Eye Institute's assets were acquired by the Company in July 1996, and was not an operating unit of the Company in the first quarter of 1996.
"MEC Health Care and Northern New Jersey Eye Institute posted increased revenues and an operating profit during the first quarter of 1997," said Michael R. Farris, president and chief executive officer. "However, The Farris Group posted substantially decreased revenues and an operating loss. As promised, we are allocating additional resources to our Health Services segment to expand our base of covered lives and HMO contracts."
Laser Systems Sold
The Company reported it sold 15 laser systems in the first quarter of 1997 compared with 10 in the same period last year. No systems were returned during the first quarter of this year compared with three returns in the first quarter of 1996. "As I have stated, those returns were a primary factor to last year's weak performance," said Farris. "We are seeing results from our more stringent terms, stronger marketing team and improved customer service.
Operating Cash Flow
"As expected, the company reported cash used in operating activities of $26,000 compared to $1.8 million during the first quarter last year. Cash used in operations has continued to decrease over the last five quarters," Farris said.
Farris said, "LaserSight is on the right track in terms of more efficient operations. We are excited about the progress we have made in building an infrastructure to carry our company forward. We have begun to see results in this first quarter and we are committed to continuing those efforts in both our Technology and Health Services segments."
LaserSight Incorporated is a holding company with operating subsidiaries engaged in the business of 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, including risks and uncertainties relating to the introduction of a new product, such as unforeseen product delays and the need for unanticipated corrections or improvements. 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. -0-
Following are selected financial results: Three Months Ended (In 000's Except Per Share Data) 3/31/97 3/31/96 Total Revenues $ 6,518 $ 4,584 Cost of Sales/Provider Payments 2,449 1,569 Gross Profit 4,069 3,015 Research, Development and Regulatory 362 736 Selling, General and Administrative Expenses 4,343 4,187 Operating Loss (636) (1,908) Other Income (Expense) (12) 28 Income Tax Benefit - 648 Net Loss (648) (1,232) Preferred Dividends (10) (130) Loss applicable to Common Shareholders (658) (1,362) Earnings (Loss) Per Common Share - Primary $ (0.07) $ (0.19) Weighted Average Number of Common Shares and Equivalents Outstanding - Primary 8,821 7,020 Selected Balance Sheet Data: March 31, 1997 December 31, 1996 (In 000's) (In 000's) Cash and Cash Equivalents $ 1,762 $ 2,004 Accounts and Notes Receivable (Current), Net 7,607 8,618 Total Current Assets 14,223 15,643 Total Current Liabilities 5,306 5,622 Stockholders' Equity 29,457 26,769
CONTACT: LaserSight Incorporated
Marti Benfield, Manager, Investor Relations