Exhibit 99.1
Laserscope Reports 22% Increase in Second Quarter 2003 Revenues
Second Quarter Highlights:
* Sales of GreenLight PV laser systems triple and fiber-optics double
over prior quarter
* Strong and growing backlog of laser systems demonstrate continued
traction
* Cash position increases to $5.6 million from $4.7 million at 2002 year
end
SAN JOSE, Calif., July 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 second quarter ended June 30, 2003
increased 22% to $12.9 million from $10.5 million in the year-ago quarter.
Sequentially, revenues increased from $12.5 million for the quarter ended March
31, 2003. Net income was $348,000, or $0.02 per share, compared with net income
of $128,000, or $0.01 per share, in the same quarter last year, and net income
of $135,000, or $0.01 per share, for the first quarter of 2003.
"The second quarter marks the seventh consecutive quarter of
year-over-year revenue growth," said Eric Reuter, Laserscope's President and
CEO. "We are especially pleased with the tremendous performance of our
urology business where growing acceptance of our Benign Prostatic Hyperplasia
(BPH) treatment solution is driving sales. Urologists, hospital
administrators and patients alike are recognizing the unmatched, long-term
clinical results and patient benefits of the Photo-Selective Vaporization of
the Prostate (PVP(TM)) procedure.
"In late April, we introduced a new brand name for our PVP product line
that we believe better captured the essence and capability of our technology,"
continued Reuter. "During the quarter, we shipped 20 GreenLight PV(TM)
(formerly known as Niagara PV(TM)) laser systems and 3,075 fibers, up
considerably from six systems and 1,400 fibers in the previous quarter.
Furthermore, we ended the second quarter with a backlog of 21 GreenLight PV
laser systems. We additionally booked eight laser system orders for a new
rental program that addresses the desire by many new urologists who are
trained in the PVP procedure to rent the system and gain initial experience
prior to purchasing. We believe these strong results are evidence of the
significant progress we have made in achieving our stated goal of making the
PVP procedure the standard of care for BPH.
"While sales of our urology products are ramping, our aesthetics business
continues to perform well in the U.S. and is generating cash that we are
redeploying into marketing and research and development," added Reuter.
"Domestic aesthetics revenues grew 5% over the second quarter of 2002."
Gross margin was approximately 50%, compared with approximately 53% for
last year's second quarter. Sequentially, the gross margin was relatively
unchanged. Selling, general and administrative expenses were $5.0 million, or
39% of net revenues, compared with $4.3 million, or 41% of net revenues, in
the year-ago quarter. This demonstrates the Company's good operating leverage
despite increased spending on sales, marketing and training efforts to promote
awareness of the PVP procedure.
The Company's cash position increased to $5.6 million at June 30, 2003
from $4.8 million at March 31, 2003 and 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 GreenLight PV laser systems and fiber-optic devices.
Six-Month Results
For the six months ended June 30, 2003, the Company reported revenues of
$25.3 million and net income of $483,000, or $0.03 per share, compared with
revenues of $19.9 million and net income of $81,000, or breakeven per share,
for the same period in 2002.
Sales Momentum and Traction of GreenLight PV Products
Reuter continued, "Our fiber volume growth in the second quarter, which
increased by almost 120% over first quarter's level, was exciting and exceeded
our expectations. We are particularly pleased with the jump in fiber sales to
U.S. mobile service providers, which grew from 775 fibers in the first quarter
to more than 1,670 in the second quarter. We believe that mobile service
providers are the key to driving PVP procedural growth and utilization rates.
These results demonstrate that we are successfully meeting our number one goal
of growing adoption of the PVP procedure."
Patent Protects Proprietary Technology
In April, Laserscope received a patent for the technology and applications
of the Company's GreenLight PV laser. "The patent covers our GreenLight PV
laser and fiber-optic delivery device when applied in the treatment of BPH and
is potentially extendible to other soft tissue applications," said Reuter.
"The key to the success of the PVP procedure is the ability to create the high
power green light that allows urologists to precisely and quickly vaporize
tissue without harming the surrounding area, a feature unmatched by
alternative treatment technologies. We believe that this patent further
establishes our technology leadership, building an important competitive
barrier to entry and giving us a strong market advantage going forward."
Summary of 98th Annual American Urological Association Meeting
The Company presented three well-received clinical studies at this year's
American Urological Association's meeting held in Chicago, April 27-30, 2003.
First, Dr. Reza Malek presented five years of long-term follow-up results from
the Mayo Clinic study, which mirrored the previously released three-year
follow-up results and continued to confirm the procedure's long-term
durability. Second, Dr. Jaspreet Sandhu presented the results from a study
conducted at the Weill Cornell Medical Center of NewYork-Presbyterian Hospital
that showed the safe and effective use of the PVP procedure on 29 BPH patients
with large prostate glands. Finally, in a podium presentation, Dr. Alexis Te
presented detailed results of the ongoing multi-site clinical evaluation of
145 patients at six treatment centers around the United States over the past
18 months. The key immediate post-operative and one year follow-up statistics
reinforced the findings at the Mayo Clinic and demonstrated that the clinical
results achieved with the PVP procedure were unequaled by any other known
technology.
Industry and Outlook
Providing an update on the shortage of some critical components that the
Company experienced in the first quarter of 2003, Reuter said, "We made good
progress on this issue and successfully shipped 20 GreenLight PV laser systems
in the second quarter. Our ongoing challenge is to improve our yield and
bring our manufacturing output up to full capacity. We are confident that we
can fulfill our backlog and field needs during this current quarter, and we
will closely monitor our suppliers' progress toward the eventual goal of being
able to ship within 30 to 60 days after receipt of a customer order."
The Company also discussed the challenge of medical reimbursement. "We
are continuing efforts to combat the reductions to reimbursement for virtually
all treatments of BPH. However, these activities may take a significant
amount of time to have an impact, and therefore, in the meantime, we will work
to continue to increase our PVP adoption within the existing reimbursement
environment," concluded Reuter.
2003 Guidance
The Company updates the following guidance for 2003:
-- Laserscope expects that overall laser sales will increase due to
continued growth in PVP products. The Company anticipates that it
will sell 9,000 to 10,000 PVP fiber-optic devices during the year, an
increase from its previous forecast of 7,500. 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.
-- Gross margin, as a percentage of 2003 revenues, is expected to be in
the range of 50% to 54%.
-- The Company expects research and development expenses during 2003 to
be approximately 8% of net revenues, but may vary from quarter to
quarter.
-- 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.
-- Overall for the year, the Company expects net income between $0.10 and
$0.15 per share.
Management Conference Call
Management of Laserscope will hold a conference call on Thursday, July 24,
2003, at 8:00 am PDT / 11:00 am EDT to discuss the quarter results. To listen
to the call, please dial 800-366-3964 (303-262-2141 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 July 31, 2003, by dialing
800-405-2236 (303-590-3000 for international callers), passcode 546780. A
replay of the webcast will be available at Laserscope's Web site.
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.
For further information, please contact Eric Reuter, President & CEO, or
Dennis LaLumandiere, CFO, both of Laserscope, +1-408-943-0636; or Scott
Malchow, Analyst Contact, or Linda Chien, General Inquiries, both of FRB|Weber
Shandwick, +1-310-407-6555, for Laserscope.
Laserscope
GreenLight PV(TM) Fiber Sales
(Units)
2003 Q1 Q2 YTD
U.S. Hospitals & Clinics 466 589 1,055
U.S. Mobile Service Providers 775 1,671 2,446
International Customers 165 815 980
Total 1,406 3,075 4,481
2002 Q1 Q2 Q3 Q4 Total
U.S. Hospitals & Clinics 50 190 360 470 1,070
U.S. Mobile Service Providers 70 300 490 1,090 1,950
International Customers 0 70 260 100 430
Total 120 560 1,110 1,660 3,450
LASERSCOPE FINANCIAL SUMMARY
(Unaudited)
Condensed Consolidated Statements of Income
Three months ended Six months ended
June 30, June 30,
(thousands except
per share amounts) 2003 2002 2003 2002
Net revenues $12,862 $10,529 $25,318 $19,949
Cost of sales 6,407 4,957 12,598 9,756
Gross margin 6,455 5,572 12,720 10,193
Operating expenses:
Research and development 1,097 1,033 2,105 2,049
Selling, general and
administrative 4,994 4,289 10,058 7,836
6,091 5,322 12,163 9,885
Operating income 364 250 557 308
Interest income (expense)
and other, net 6 (104) (30) (194)
Net income before income
taxes 370 146 527 114
Provision for income taxes 22 18 44 33
Net income $348 $128 $483 $81
Basic and diluted net
income per share $0.02 $0.01 $0.03 $0.00
Shares used in basic per
share calculations 17,252 16,335 17,076 16,262
Shares used in diluted
per share calculations 19,415 18,688 19,151 18,511
Condensed Consolidated Balance Sheets
June 30, December 31,
(thousands) 2003 2002
Assets
Current assets:
Cash & cash equivalents $5,603 $4,661
Accounts receivable, net 10,576 10,287
Inventories 11,004 10,445
Prepayments and other current assets 909 1,027
Total current assets 28,092 26,420
Property and equipment, net 1,753 1,808
Other assets 867 935
Total assets $30,712 $29,163
Liabilities and Shareholders' Equity
Current liabilities $11,229 $10,768
Convertible subordinated debentures 2,328 2,853
Obligations under capital leases 32 60
Shareholders' equity 17,123 15,482
Total liabilities and shareholders' equity $30,712 $29,163
SOURCE Laserscope
/CONTACT: Eric Reuter, President & CEO, or Dennis LaLumandiere, CFO, both
of Laserscope, +1-408-943-0636; or Scott Malchow, Analyst Contact, or Linda
Chien, General Inquiries, both of FRB|Weber Shandwick, +1-310-407-6555, for
Laserscope/
/Web site: http://www.laserscope.com
http://www.companyboardroom.com /
(LSCP)
CO: Laserscope
ST: California
IN: MTC BIO
SU: ERN ERP CCA MAV