OPHTHALMIC IMAGING SYSTEMS | CONTACTS: |
Gil Allon, CEO | |
221 Lathrop Way, Suite I | Ariel Shenhar, CFO |
Sacramento, CA 95815 | (916) 646-2020 |
INVESTOR RELATIONS | |
Todd Fromer / Garth Russell | |
KCSA Worldwide | |
212-896-1215 / 212-896-1250 | |
FOR IMMEDIATE RELEASE |
Ophthalmic Imaging Systems Increases Net Income 28%
for Record Profits in 2006
– – –
6th Consecutive Year of Increased Profitability
SACRAMENTO, Calif., March 12, 2007 – Ophthalmic Imaging Systems (OTCBB: OISI) (OIS) today reported financialresults for the fourth quarter and fiscal year ended December 31, 2006.
Net revenue for the year ended December 31, 2006 increased approximately 16% to $15,797,000 from $13,651,000 in 2005. Operating income for the year climbed approximately 13% to $2,144,000, compared to $1,890,000 in the prior year. Net income for 2006 increased 28% to $2,251,000, or $0.13 earnings per diluted share, compared to $1,755,000, or $0.11 earnings per diluted share, in 2005.
During 2006, OIS increased its spending in research and development by 45% to $1,616,000 from $1,112,000 in the prior year. This spending is attributable to the further development of its leading ophthalmology imaging and informatics products.
For the fourth quarter of 2006, the Company reported net revenue of $4,402,000, compared with net revenue of $4,142,000 for the fourth quarter of 2005, an increase of 6%. Operating income for the fourth quarter of 2006 climbed 10% to $560,000, compared to $510,000 in the prior year. Net income increased 25% in the fourth quarter of 2006 to $624,000, or $0.03 earnings per diluted share, from $499,000, or $0.03 earnings per diluted share, during the same period last year.
Gil Allon, Chief Executive Officer of the Company, commented, “We are pleased with the steady increase in demand for our comprehensive line of ophthalmology-specific digital imaging systems and informatics solutions. This year we expanded our sales and marketing efforts, and added the WinStation RetinaTM and the WinStation EssentialTM, both of which were major drivers for the increase in sales this year.”
“In order to maintain our position as the leading provider of cutting edge technology for ophthalmologists, we have increased spending on research and development of new products. We are excited by the potential we see in the market for an expanded line of offerings which is expected to be the outcome of the increased R&D investments.”
Ariel Shenhar, Chief Financial Officer of OIS, added, “This year, we experienced a steady increase in revenue, which led to record net income for OIS. As a result of this performance we have increased our cash position by 56%, with approximately $6.2 million as of December 31, 2006, compared to $3.9 million as of December 31, 2005. In addition, we are extremely pleased with the increase this year in total shareholder equity, which was $8.2 million as of December 31, 2006, compared to $4.6 million last year, an increase of 76%.”
About Ophthalmic Imaging Systems
Ophthalmic Imaging Systems (www.oisi.com), a majority-owned subsidiary of MediVision, is the leading provider of ophthalmic digital imaging systems. The Company designs, develops, manufactures and markets digital imaging systems and informatics solutions for the eye care market. With over twenty years in the ophthalmic imaging business, the Company has consistently introduced new, innovative technology. The Company, together with MediVision, co-market and support their products through an extensive network of dealers, distributors, and direct representatives.
OIS is a registered member Company listed onwww.OTCVillage.com.
Statements in this press release which are not historical data are forward-looking statements which involve known and unknown risks, uncertainties, or other factors not under the Company’s control, which may cause actual results, performance, or achievements of the Company to be materially different from the results, performance, or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the Company’s periodic filings with the Securities and Exchange Commission.
(Tables Follow)
OPHTHALMIC IMAGING SYSTEMS
SELECTED FINANCIAL DATA
STATEMENT OF INCOME
UNAUDITED Three Months Ended DECEMBER 31, | AUDITED Twelve Months Ended DECEMBER 31, | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2006 | 2005 | 2006 | 2005 | |||||||||||
Sales - Total | $ | 4,402,016 | $ | 4,142,171 | $ | 15,797,163 | $ | 13,650,507 | ||||||
Cost of sales - Total | $ | 1,580,947 | $ | 1,731,101 | $ | 6,545,792 | $ | 5,766,883 | ||||||
Gross Profit | $ | 2,821,069 | $ | 2,411,070 | $ | 9,251,371 | $ | 7,883,624 | ||||||
Operating Expenses: | ||||||||||||||
Sales & Marketing | $ | 1,319,364 | $ | 1,180,684 | $ | 3,795,559 | $ | 3,439,046 | ||||||
General & Administrative | $ | 501,799 | $ | 444,036 | $ | 1,696,147 | $ | 1,442,959 | ||||||
Research & Development | $ | 440,197 | $ | 276,710 | $ | 1,615,758 | $ | 1,112,023 | ||||||
Total Operating Expenses | $ | 2,261,360 | $ | 1,901,430 | $ | 7,107,464 | $ | 5,994,028 | ||||||
Operating Income | $ | 559,710 | $ | 509,640 | $ | 2,143,907 | $ | 1,889,596 | ||||||
Interest & Other Expense, Net | $ | 46,317 | ($ 89,380 | ) | $ | 75,852 | ($ 187,342 | ) | ||||||
Income before Taxes | $ | 606,027 | $ | 420,260 | $ | 2,219,759 | $ | 1,702,254 | ||||||
Income Tax Benefit (expense) | $ | 17,741 | $ | 78,503 | $ | 31,000 | $ | 53,000 | ||||||
Net Income | $ | 623,767 | $ | 498,763 | $ | 2,250,759 | $ | 1,755,254 | ||||||
Basic Earnings per share | $ | 0.04 | $ | 0.03 | $ | 0.14 | $ | 0.12 | ||||||
Shares used in the calculation of basic earnings | 16,282,249 | 15,446,211 | 16,090,610 | 15,205,689 | ||||||||||
per share | ||||||||||||||
Diluted Earnings per share | $ | 0.03 | $ | 0.03 | $ | 0.13 | $ | 0.11 | ||||||
Shares used in the calculation of diluted earnings | 18,084,017 | 17,234,532 | 17,797,162 | 16,530,277 | ||||||||||
per share |
OPHTHALMIC IMAGING SYSTEMS
CONDENSED BALANCE SHEET
AUDITED As of Dec 31, 2006 | AUDITED As of Dec 31, 2005 | |||||||
---|---|---|---|---|---|---|---|---|
ASSETS: | ||||||||
Cash and investments | 6,163,857 | 3,940,706 | ||||||
Accounts receivable, net | 3,108,727 | 2,841,203 | ||||||
Receivable Related Party | 160,656 | 690,756 | ||||||
Inventories, net | 808,238 | 380,676 | ||||||
Deferred Tax Asset | 1,172,000 | 1,124,000 | ||||||
Prepaids and other current assets | 180,744 | 300,077 | ||||||
TOTAL CURRENT ASSETS | 11,594,222 | 9,277,418 | ||||||
Net property, plant and equipment | 390,553 | 107,787 | ||||||
Restricted Cash for line of credit | 159,514 | 150,000 | ||||||
Licensing Agreement | 273,808 | 0 | ||||||
Prepaid Products | 160,000 | 0 | ||||||
Other assets | 88,737 | 55,355 | ||||||
TOTAL ASSETS | 12,666,834 | 9,590,560 | ||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | 765,235 | 512,914 | ||||||
Notes payable current portion | 11,204 | 508,109 | ||||||
Accrued Liabilities | 2,018,874 | 2,045,233 | ||||||
Customer Deposits | 310,768 | 689,383 | ||||||
Deferred warranty revenue | 1,250,893 | 861,486 | ||||||
TOTAL CURRENT LIABILITIES | 4,356,974 | 4,617,125 | ||||||
LONG TERM DEBT: | ||||||||
Capital Lease-US BANCORP | ||||||||
Line of credit | 150,000 | 0 | ||||||
Notes Payable, less current portion | 3,833 | 349,237 | ||||||
TOTAL LONG TERM DEBT | 153,833 | 349,237 | ||||||
STOCKHOLDERS' EQUITY: | ||||||||
Capital stock -- Common | 16,255,077 | 14,974,007 | ||||||
Accumulated Deficit | ($ 8,099,050 | ) | ($10,349,809 | ) | ||||
TOTAL STOCKHOLDERS' EQUITY | 8,156,027 | 4,624,198 | ||||||
TOTAL LIABILITIES AND EQUITY | 12,666,834 | 9,590,560 | ||||||