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 Strategic Communications 212-896-1215 / 212-896-1250
|
OPHTHALMIC IMAGING SYSTEMS REPORTS FOURTH QUARTER AND YEAR END 2007 RESULTS
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Company Reports 25th Consecutive Profitable Quarter
SACRAMENTO, CALIF., MARCH 19, 2008 – Ophthalmic Imaging Systems (OIS) (OTC BB: OISI) today reported financial results for the quarter and year ended December 31, 2007.
For the year ended December 31, 2007, OIS reported net revenues of $14.5 million compared with net revenues of $15.8 million for 2006. Net income for the year ended December 31, 2007 was $1.6 million, or $0.09 per basic and diluted share compared with net income of $2.2 million, or $0.14 and $0.13 per basic and diluted share, respectively, for the prior year. Sales and net income growth during 2007 were partially offset by two large contracts received in 2006.
For the three months ended December 31, 2007, OIS reported net revenues of $3.6 million, compared with net revenues of $4.4 million for the same period in 2006. Net income for the fourth quarter of 2007 was $0.1 million, or $0.01 per basic and diluted share, compared with net income of $0.6 million, or $0.04 and $0.03 per basic and diluted share, respectively, for the fourth quarter of 2006.
As of December 31, 2007, OIS reported $7.6 million in cash and investments. This included approximately $2.75 million from the issuance of 6.5% convertible notes due 2010, which was conducted in October 2007. The Company reported $10.1 million in total shareholder equity as of December 31, 2007, compared to $8.2 million as of December 31, 2006.
Gil Allon, Chief Executive Officer of OIS, stated, “We experienced a softening in demand for our digital imaging equipment in the second half of 2007. While we are disappointed with our overall performance for the year, we have several exciting initiatives underway that will simplify our corporate structure, address a broader market opportunity and diversify our product lines within different markets.”
“As previously announced, we recently introduced a new, wholly owned subsidiary, Abraxas Medical Solutions, which simultaneously acquired the assets of AcerMed Inc. Abraxas will focus exclusively on strengthening our foothold in the multi-billion dollar Electronic Medical Records and Practice Management software market.
OIS | WWW.OISI.COM |
221 LATHROP WAY, SUITE I | MAIN 800.338.8436 |
SACRAMENTO, CA 95815 USA | FAX 916.646.0207 |
Ophthalmic Imaging Systems
Press Release
March 19, 2008
We are making significant investments into Abraxas to complete development of its proprietary platform, and anticipate it to fully rollout its specialized offerings by the end of 2008. In addition, due to the acquisition of Abraxas, NextGen chose recently to discontinue its relationship with OIS, which will also affect our revenue and cash-flow over the short-term. For these reasons, we will be looking at 2008 as a transition year for OIS as a whole.”
“Also in 2007, we announced a non-binding agreement to acquire our majority shareholder, MediVision Medical Imaging. This merger will allow us to gain greater control over our research and development capabilities, sales and distribution in Europe, and simplify our capital structure. We anticipate closing this merger in the second half of 2008 once the deal is approved by the Board of Directors and shareholders of both companies,” concluded Mr. Allon.
OIS strengthened its Board of Directors in 2007 and the first quarter of 2008 with the appointment of three new independent board members, including Jonathan R. Phillips, William D. Greer, CPA, and Marc De Clerck. OIS’ Board of Directors currently has six members, four of which are independent.
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-markets and supports their products through an extensive network of dealers, distributors, and direct representatives.
OIS is a registered member Company listed on www.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.
* * * C O N T I N U E D* * * * *
OIS | WWW.OISI.COM |
221 LATHROP WAY, SUITE I | MAIN 800.338.8436 |
SACRAMENTO, CA 95815 USA | FAX 916.646.0207 |
Ophthalmic Imaging Systems
Press Release
March 19, 2008
Selected Financial Data
CONDENSED STATEMENTS OF OPERATIONS
| THREE MONTHS ENDED | TWELVE MONTHS ENDED |
| |||||||||
| DECEMBER 31, | DECEMBER 31, |
| |||||||||
| 2007 |
| 2006 | 2007 |
| 2006 |
| |||||
|
|
|
|
|
|
|
| |||||
NET REVENUES | $ | 3,554,350 |
| $ | 4,402,016 | $ | 14,489,044 |
| $ | 15,797,163 |
| |
COST OF SALES | $ | 1,614,439 |
| $ | 1,580,947 | $ | 6,265,695 |
| $ | 6,545,792 |
| |
GROSS PROFIT | $ | 1,939,911 |
| $ | 2,821,069 | $ | 8,223,349 |
| $ | 9,251,371 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
SALES AND MARKETING | $ | 1,038,673 |
| $ | 1,319,364 | $ | 3,494,926 |
| $ | 3,795,559 |
| |
RESEARCH AND DEVELOPMENT | $ | 461,612 |
| $ | 440,207 | $ | 1,631,220 |
| $ | 1,615,758 |
| |
GENERAL AND ADMINISTRATIVE | $ | 379,560 |
| $ | 501,799 | $ | 1,684,751 |
| $ | 1,696,147 |
| |
TOTAL OPERATING EXPENSES | $ | 1,879,845 |
| $ | 2,261,370 | $ | 6,810,897 |
| $ | 7,107,464 |
| |
INCOME FROM OPERATIONS | $ | 60,066 |
| $ | 559,699 | $ | 1,412,452 |
| $ | 2,143,907 |
| |
INTEREST AND OTHER EXPENSE, NET |
| ($12,523 | ) | $ | 46,317 | $ | 141,104 |
| $ | 75,852 |
| |
NET INCOME BEFORE INCOME TAXES | $ | 47,543 |
| $ | 606,016 | $ | 1,553,556 |
| $ | 2,219,759 |
| |
INCOME TAXES |
| ($50,600 | ) | $ | 17,741 |
| ($ 940 | ) | $ | 31,000 |
| |
NET INCOME | $ | 98,143 |
| $ | 623,757 | $ | 1,552,616 |
| $ | 2,250,759 |
| |
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|
|
|
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|
|
|
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|
|
| |
BASIC NET INCOME PER SHARE | $ | 0.01 |
| $ | 0.04 | $ | 0.09 |
| $ | 0.14 |
| |
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|
|
|
|
|
|
|
| |
SHARES USED IN THE CALCULATION OF BASIC |
| 16,847,627 |
|
| 16,282,249 |
| 16,682,773 |
|
| 16,090,610 |
| |
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|
|
|
|
|
|
|
|
|
|
| |
DILUTED NET INCOME PER SHARE | $ | 0.01 |
| $ | 0.03 | $ | 0.09 |
| $ | 0.13 |
| |
|
|
|
|
|
|
|
|
|
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| |
SHARES USED IN THE CALCULATION OF DILUTED EARNINGS PER SHARE |
| 17,815,988 |
|
| 18,084,017 |
| 18,023,500 |
|
| 17,797,162 |
|
OIS | WWW.OISI.COM |
221 LATHROP WAY, SUITE I | MAIN 800.338.8436 |
SACRAMENTO, CA 95815 USA | FAX 916.646.0207 |
Ophthalmic Imaging Systems
Press Release
March 19, 2008
OPHTHALMIC IMAGING SYSTEMS
CONDENSED BALANCE SHEET
|
| AUDITED |
| AUDITED |
|
|
| As of Dec 31, |
| As of Dec 31, |
|
|
| 2007 |
| 2006 |
|
ASSETS: |
|
|
|
|
|
Cash and investments |
| 7,630,284 |
| 6,163,857 |
|
Accounts receivable, net |
| 2,535,843 |
| 3,108,727 |
|
Receivable from related parties |
| 1,544,179 |
| 160,656 |
|
Inventories, net |
| 746,342 |
| 808,238 |
|
Deferred tax asset |
| 1,342,000 |
| 1,172,000 |
|
Prepaid and other current assets |
| 507,732 |
| 180,744 |
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS |
| 14,306,380 |
| 11,594,222 |
|
|
|
|
|
|
|
Net property, plant and equipment |
| 416,838 |
| 390,553 |
|
Restricted cash for line of credit |
| 168,218 |
| 159,514 |
|
Licensing agreement |
| 273,808 |
| 273,808 |
|
Prepaid products |
| 460,000 |
| 160,000 |
|
Merge capitalization |
| 527,327 |
| — |
|
Other assets |
| 534,324 |
| 88,737 |
|
|
|
|
|
|
|
TOTAL ASSETS |
| 16,686,895 |
| 12,666,834 |
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
Accounts payable |
| 726,573 |
| 765,235 |
|
Notes payable current portion |
| 1,029,643 |
| 11,204 |
|
Accrued liabilities |
| 1,437,313 |
| 2,018,874 |
|
Customer deposits |
| 55,435 |
| 310,768 |
|
Deferred warranty revenue |
| 1,604,315 |
| 1,250,893 |
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES |
| 4,853,279 |
| 4,356,974 |
|
|
|
|
|
|
|
LONG TERM DEBT: |
|
|
|
|
|
Line of credit |
| 150,000 |
| 150,000 |
|
Notes Payable, less current portion |
| 1,564,226 |
| 3,833 |
|
|
|
|
|
|
|
TOTAL LONG TERM DEBT |
| 1,714,226 |
| 153,833 |
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY: |
|
|
|
|
|
Capital stock – common |
| 16,474,720 |
| 16,255,077 |
|
Additional paid in capital |
| 191,104 |
| — |
|
Accumulated deficit |
| ($6,546,434 | ) | ($8,099,050 | ) |
TOTAL STOCKHOLDERS’ EQUITY |
| 10,119,390 |
| 8,156,027 |
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
| 16,686,895 |
| 12,666,834 |
|
OIS | WWW.OISI.COM |
221 LATHROP WAY, SUITE I | MAIN 800.338.8436 |
SACRAMENTO, CA 95815 USA | FAX 916.646.0207 |