Exhibit 99
Laserscope(R) FOR IMMEDIATE RELEASE
At Laserscope: At FRB|Weber Shandwick:
Eric Reuter, President & CEO Scott Malchow, Analyst Contact
Dennis LaLumandiere, CFO Linda Chien, General Inquiries
(408) 943-0636 (310) 407-6555
LASERSCOPE REPORTS FIRST QUARTER 2003 RESULTS
Revenues Up 32% Over First Quarter 2002
Strong PVP Product Sales and Growing Backlog of Laser Systems
SAN JOSE, Calif. (April 24, 2003) - Laserscope (Nasdaq: LSCP), a pioneer in the
development and commercialization of medical lasers and advanced fiber-optic
devices, today reported that revenues for its first quarter ended March 31,
2003, increased 32% to $12.5 million from $9.4 million in the first quarter a
year ago. Sequentially, revenues declined slightly from $12.7 million for the
quarter ended December 31, 2002. Net income was $135,000, or $0.01 per share,
compared with a net loss of $47,000, or break-even per share, in the same period
of 2002 and net income of $50,000, or break-even per share, for the fourth
quarter of 2002.
"Demand for our products continues to increase in both the urology and aesthetic
markets," said Eric Reuter, Laserscope's President and CEO. "There is a growing
number of urologists and hospital administrators that understand Laserscope's
approach to treating benign prostatic hyperplasia (BPH). This recognition is
fueling the rapid adoption of the Photo-Selective Vaporization of the Prostate
(PVP(TM)) procedure and driving sales of our PVP laser systems and disposable
fiber-optic devices. During the quarter, we shipped six PVP laser systems and
over 1,400 fibers. More impressive is our backlog, which ended the quarter with
twenty PVP laser systems. These results support our belief that with its
unparalleled clinical outcomes and lower cost of overall patient care, the PVP
procedure will ultimately replace the trans-urethral resection of the prostate
(TURP) as the 'gold standard' treatment."
"Our aesthetics business remains strong as well," continued Reuter. "Domestic
aesthetics revenues grew 33% over the first quarter of 2002, driven by our
alliance with McKesson Medical and the increasing demand for the wide range of
aesthetic procedures that can be performed using Laserscope equipment."
Gross margin was approximately 50%, a slight increase compared with
approximately 49% for last year's first quarter. Sequentially, the gross margin
declined marginally due to changes in product mix. Selling, general and
administrative expenses increased as a result of greater direct selling and
marketing expenses. Legal expenses did not contribute materially to our expenses
during the quarter. Legal proceedings arise out of the Company's ordinary course
of business and Laserscope expects legal costs will fluctuate from quarter to
quarter based on the level of activity.
The Company's cash position increased to $4.8 million at March 31, 2003 from
$4.7 million at the end of 2002. For the next several quarters, Laserscope
expects to continue to fund growth of its urology business with cash flow
generated from its aesthetics business and from sales of the PVP laser systems
and fiber-optic devices.
American Urology Association Meeting Activities
As the Company has previously announced, the early results from the multi-site
clinical study, which finished the treatment phase late last year, reinforced
the long-term findings of the single-site, 55-patient Mayo Clinic study. The
multi-site study consisted of 145 patients at six separate sites with the goals
of validating previous results, improving training protocols and demonstrating
the successful proliferation of the PVP procedure to many physicians. Some of
the specific clinical data from the 2002 multi-site study will be presented at
this year's American Urology Association (AUA) meeting being held in Chicago
from April 27 to April 30, 2003. On April 29, a moderated poster session
entitled "BPH - Surgical Therapy and New Technology" will include a presentation
concerning the use of PVP to treat enlarged prostates. Also on that day, Dr.
Reza Malek will present five-year data from the initial Mayo study of PVP.
Finally, on April 30, the overall results of the Company's multi-site study will
be presented in a podium session.
Laserscope will be exhibiting at the AUA meeting and will also use the forum of
the meeting to unveil a new name and marketing campaign for its PVP laser
system. "We feel that the name Niagara PV, does not fully represent the essence
and capability of our laser system. The new name for the product will add the
brand recognition that we believe will ultimately promote stronger consumer
awareness of the product. In time, patient demand for the PVP procedure, in
conjunction with the increasing support from the urology community, is expected
to drive our long-term revenue growth as more and more patients learn about the
benefits of the procedure and ask for it by name. We have selected a name that
differentiates the procedure from others in the market, is easy to remember and
allows us the flexibility to extend this technology into other applications,"
said Reuter.
Update on Industry and Outlook
In Laserscope's discussion of fourth quarter 2002 results, the Company commented
that it was experiencing a shortage of some critical components that would
likely impact its ability to ship PVP lasers in the first quarter of 2003.
"While we made progress on this issue during the first quarter, we are
continuing to work with our existing suppliers and have qualified some new
suppliers to overcome the shortages," said Reuter. "We completed and shipped six
PVP lasers during the quarter, and as mentioned earlier, we built a backlog of
twenty units. We expect a resolution to this issue soon, leading to full
production capabilities during the late second or early third quarter of this
year."
The Company also reported that it expected a seasonal decline in fiber-optic
shipments early during the first quarter but that it would recover later during
the quarter. Fiber-optic sales declined during the quarter from 1,660 in the
fourth quarter of 2002 to 1,406 during the first quarter 2003. "Due to the
increase in the installed base, and the momentum recovery we began to experience
during the quarter, we expect fiber-optic sales to begin to show growth again
during the second quarter," said Reuter.
The Company also discussed previously that significant reductions to
reimbursement for virtually all treatments of BPH are currently being
implemented by the Centers for Medicare and Medicaid Services (CMS). While these
reductions are beginning to have a short-term negative impact on the rapid
growth in sales of Laserscope's BPH treatment products, the Company's management
believes that in the long-term, the superior clinical outcomes will prove it to
be the standard of care.
"Our strategy is to continue to work with luminaries and individuals in the AUA
to develop compelling data supporting the fact that the overall cost to
healthcare delivery will be greatly reduced over time with the adoption of PVP
as a replacement for TURP," Reuter stated. "We believe that the support of the
AUA and the validation of the economics will be critical for the CMS to consider
higher reimbursement for the procedure. We are also diligently working to enlist
the support of our growing base of PVP users in this endeavor."
2003 Guidance
The Company reiterates the following guidance for 2003:
o Laserscope expects that overall laser sales will increase due to continued
growth in PVP products. The Company anticipates that it will sell
approximately 7,500 PVP fiber-optic devices during the year, with second
quarter sales of these products higher than the first quarter's.
Additionally, Laserscope believes that sales of aesthetic products will
grow moderately in all markets. The Company expects that aggregate
revenues for the year will exceed $50 million.
o Gross margin, as a percentage of 2003 revenues, is expected to be 50% to
54%.
o The Company expects research and development expenses during 2003 to be
approximately 8% of net revenues, but may vary from quarter to quarter.
o Selling, general and administrative expenses, as a percentage of net
revenues, are expected to be marginally lower than the 2002 level of 41%,
but remain relatively high in absolute terms in conjunction with
continuing investment in educational and training support and marketing
programs for the PVP products.
o Overall for the year, the Company expects net income between $0.10 and
$0.15 per share, with the majority of earnings growth generated in the
latter part of the year.
Management Conference Call
Management of Laserscope will hold a conference call on Thursday, April 24,
2003, at 8:00 am PDT / 11:00am EDT to discuss the quarter results. To listen to
the call, please dial 800-366-7640 (303-262-2190 for international callers) at
least five minutes prior to the start time.
Investors will have the opportunity to listen to the conference call live on the
Internet through Laserscope's Web site at www.laserscope.com or CCBN's
CompanyBoardroom at www.companyboardroom.com. Investors should go to the Web
site a few minutes early, as it may be necessary to download audio software to
hear the conference call.
A replay of the call will be available through May 1, 2003, by dialing
800-405-2236 (303-590-3000 for international callers), passcode 535895. A replay
of the webcast will be available at CCBN's CompanyBoardroom through May 24,
2003.
Additional information on Laserscope including an archive of corporate press
releases is also available on the Company's Web site.
About Laserscope
Laserscope designs, manufactures, sells and services on a worldwide basis an
advanced line of medical laser systems and related energy delivery devices for
the office, outpatient surgical center, and hospital markets. More information
about Laserscope can be found on the Company's web site at www.laserscope.com.
Except for historical information presented, the matters discussed in this
announcement may contain forward-looking statements that are subject to certain
risks and uncertainties that could cause actual results to differ materially
from those projected. These risks are detailed from time to time in the
Company's public disclosure filings with the U.S. Securities and Exchange
Commission (SEC). Copies of Laserscope's public disclosure filings with the SEC,
including the most recent Annual Report on Form10-K and the most recent forms
10-Q are available upon request from its Investor Relations Department.
-Tables to Follow -
Laserscope
Niagara(TM) Fiber Sales
2002
Total Q1 Q1
2002 2002 2003
---- ---- ----
U.S. Hospitals & Clinics 1,070 50 466
U.S. Mobile Service Providers 1,950 70 775
International Customers 430 0 165
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Total 3,450 120 1,406
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LASERSCOPE FINANCIAL SUMMARY
(Unaudited)
Condensed Consolidated Statements of Operations
Three Months Ended
March 31,
(thousands except per share amounts) 2003 2002
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Net revenues ...................................... $12,456 $ 9,420
Cost of sales ..................................... 6,191 4,799
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Gross margin ...................................... 6,265 4,621
Operating expenses:
Research and development ..................... 1,008 1,016
Selling, general and administrative .......... 5,064 3,547
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6,072 4,563
Operating income .................................. 193 58
Interest and other income (expense), net .......... (36) (90)
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Income (loss) before income taxes ................. 157 (32)
Provision for income taxes ........................ 22 15
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Net income (loss) ................................. $ 135 $ (47)
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Basic and diluted net income (loss) per share ..... $ 0.01 $ (0.00)
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Shares used in basic per share calculations ....... 16,899 16,155
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Shares used in diluted per share calculations ..... 18,858 16,155
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Condensed Consolidated Balance Sheets
March 31, December 31,
(thousands) 2003 2002
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Assets
Current assets:
Cash & cash equivalents ...................... $ 4,754 $ 4,661
Accounts receivable, net ..................... 10,963 10,287
Inventories .................................. 10,281 10,445
Prepayments and other current assets ......... 806 1,027
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Total current assets ................ 26,804 26,420
Property and equipment, net ....................... 1,631 1,808
Other assets ...................................... 901 935
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Total assets ........................ $29,336 $29,163
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Liabilities and Shareholders' Equity
Current liabilities ............................... $10,737 $10,768
Convertible subordinated debentures ............... 2,769 2,853
Obligations under capital leases .................. 46 60
Shareholders' equity .............................. 15,784 15,482
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Total liabilities and shareholders' equity ........ $29,336 $29,163
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