Exhibit 99.1
Laserscope Reports 36% Jump in Third Quarter 2003 Revenues
Third Quarter Highlights:
* GreenLight PV laser systems sold increase 70% over prior quarter
* Unit sales of GreenLight PV fiber-optics grow to approximately 3,400
* Further strengthens cash position to over $6 million from $4.7 million
at year-end 2002
* Revises 2003 guidance and issues 2004 expectations
SAN JOSE, Calif., Oct. 23 /PRNewswire-FirstCall/ -- Laserscope
(Nasdaq: LSCP), a pioneer in the development and commercialization of medical
lasers and advanced fiber-optic devices, today reported that revenues for its
third quarter ended September 30, 2003 jumped 36% to $14.3 million from
$10.5 million in the year-ago quarter. Sequentially, revenues increased 11%
from $12.9 million for the quarter ended June 30, 2003. Net income was
$533,000, or $0.03 per diluted share, compared with net income of $192,000, or
$0.01 per diluted share, in the same quarter last year, and net income of
$348,000, or $0.02 per diluted share, for the second quarter of 2003.
"We are very pleased that revenues increased significantly on both a year-
over-year and sequential basis, driven primarily by the continued adoption of
our Photo-Selective Vaporization of the Prostate (PVP(TM)) procedure, and
strong domestic and international sales and marketing efforts," said Eric
Reuter, Laserscope's President and CEO. "Every day, we are educating a
growing number of urologists, healthcare administrators and patients on the
clinically-proven, long-term benefits of our proprietary procedure. We
believe that our message is resonating with these individuals and our strong
quarterly results are evidence of this progress."
Reuter continued, "During the quarter, we sold 34 GreenLight PV(TM) laser
systems and 3,414 fibers, compared with 20 systems and 3,075 fibers in the
prior quarter. Additionally, we shipped nine systems as part of our new
rental program. Backlog declined to 12 systems at the end of the third
quarter, versus 21 systems at the close of the second quarter, primarily as a
result of progress made towards correcting the component shortage issue we
experienced earlier this year."
"In the third quarter, we saw increased interest from domestic hospitals
and clinics for our GreenLight PV products. Of the 34 systems sold during the
quarter, 15 were shipped to this customer group. We believe that this will
continue to be an important target market going forward.
"Sales for the third quarter were also bolstered by a solid performance
from our aesthetics business," added Reuter. "Domestic aesthetics revenues
grew 10% over the year-ago quarter. While we expect the urology market to be
our long-term growth catalyst, our core aesthetics business is an important
and growing part of our operations."
Gross margin was approximately 52%, compared with approximately 54% for
the third quarter of fiscal 2002. Sequentially, the gross margin improved
from approximately 50% for the second quarter. Selling, general and
administrative expenses were $5.8 million, or 40% of net revenues, compared
with $4.5 million, or 43% of net revenues, in the year-ago quarter. Increased
spending in this area came primarily from higher sales and marketing expenses
relating to the GreenLight PV products, reimbursement consulting and higher
legal expenses.
The Company had no short-term bank borrowings and increased its cash
position to $6.1 million at September 30, 2003, from $4.7 million at the end
of 2002.
Nine-Month Results
For the nine months ended September 30, 2003, the Company reported
revenues of $39.6 million and net income of $1.0 million, or $0.05 per diluted
share, compared with revenues of $30.4 million and net income of $273,000, or
$0.01 per diluted share, for the same period in 2002.
Update on Reimbursement
The Company provided an update on the issue of medical reimbursement and
recounted its recent efforts to meet this challenge. "In August, the Centers
for Medicare and Medicaid Services (CMS) announced adjusted reimbursement
rates for the various BPH treatment alternatives," stated Reuter. "These
rates are due to become effective in January 2004. While the national average
reimbursement rates for the PVP procedure in 2004 are now projected to be
slightly higher in the outpatient hospital facility, we believe that a further
increase is needed to adequately reflect the resource and equipment costs of
the procedure. As a result, we are undertaking a number of different actions
to improve the CMS reimbursement rates assigned to the procedure."
"We have recently had several constructive meetings with the CMS staff in
order to raise their awareness to the disparity that exists, and we are
hopeful that these efforts will result in positive action. However, our
guidance for 2004 is based, among other things, on the current reimbursement
rates that have been published by the CMS for 2004," concluded Reuter.
Guidance
The Company revises the following guidance for 2003:
* Laserscope expects that overall revenues will increase due to
continued sales growth of the PVP products. The Company anticipates
that it will sell over 11,000 PVP fiber-optic devices during the year,
an increase from its previous forecast of 9,000 to 10,000 units and
compared with the total of 3,450 devices sold in 2002. The Company
also revises its total revenue expectation for the year to exceed
$54 million.
* Gross margin, as a percentage of 2003 revenues, is expected to be in
the range of 51% to 52%.
* The Company expects research and development expenses during 2003 to
be approximately 8% of net revenues.
* 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.
* For the year, the Company expects net income of $0.10 to $0.11 per
diluted share. Laserscope is narrowing its previously forecasted
range of $0.10 to $0.15 per diluted share as a result of its
continued, significant investment in the urology business. The
Company is deploying its resources to further develop the GreenLight
technology, to support new sales and marketing initiatives, and to
address the reimbursement challenge.
Following its strong third quarter performance, the Company is issuing the
following guidance for fiscal year 2004:
* Expecting continued adoption of the PVP procedure to drive further
sales growth of the GreenLight PV products, the Company forecasts 2004
revenues to reach the $64 million level.
* Gross margin, as a percentage of 2004 revenues, is expected to be in
the range of 53% to 55%.
* The Company expects to achieve 2004 net income of $0.30 per diluted
share.
Management Conference Call
Management of Laserscope will hold a conference call on Thursday, October
23, 2003, at 8:00 am PDT / 11:00am EDT to discuss the quarter results. To
listen to the call, please dial 800-257-2101 (212-329-1455 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 at
www.fulldisclosure.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 October 30, 2003, by
dialing 800-405-2236 (303-590-3000 for international callers), passcode
556430. 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 Form 10-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 Analyst,
Tricia Ross, or General Inquiries, Linda Chien, both of FRB|Weber Shandwick,
+1-310-407-6555, for Laserscope.
Laserscope
GreenLight PV(TM) Fiber Sales
(Units)
2003 Q1 Q2 Q3 YTD
U.S. Hospitals & Clinics 466 589 931 1,986
U.S. Mobile Service Providers 775 1,671 1,654 4,100
International Customers 165 815 829 1,809
Total 1,406 3,075 3,414 7,895
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 Nine months ended
(thousands except Sept. 30, Sept. 30,
per share amounts) 2003 2002 2003 2002
Net revenues $14,293 $10,479 $39,611 $30,428
Cost of sales 6,790 4,822 19,388 14,578
Gross margin 7,503 5,657 20,223 15,850
Operating expenses:
Research and development 1,195 841 3,300 2,890
Selling, general and
administrative 5,778 4,487 15,836 12,323
6,973 5,328 19,136 15,213
Operating income 530 329 1,087 637
Interest income (expense)
and other, net 7 (107) (23) (301)
Net income (loss) before
income taxes 537 222 1,064 336
Provision for income taxes 4 30 48 63
Net income (loss) $533 $192 $1,016 $273
Basic net income (loss)
per share $0.03 $0.01 $0.06 $0.02
Diluted net income (loss)
per share $0.03 $0.01 $0.05 $0.01
Shares used in basic
per share calculations 17,705 16,541 17,440 16,355
Shares used in diluted
per share calculations 22,138 18,582 19,671 18,534
Condensed Consolidated Balance Sheets
Sept. 30, Dec. 31,
(thousands) 2003 2002
Assets
Current assets:
Cash & cash equivalents $6,086 $4,661
Accounts receivable, net 12,042 10,287
Inventories 12,301 10,445
Other current assets 1,306 1,027
Total current assets 31,735 26,420
Property and equipment, net 1,580 1,808
Intangibles and other assets 833 935
Total assets $34,148 $29,163
Liabilities and Shareholders' Equity
Current liabilities $13,648 $10,768
Convertible subordinated debentures
(long-term portion) 2,259 2,853
Obligations under capital leases 18 60
Shareholders' equity 18,223 15,482
Total liabilities and shareholders' equity $34,148 $29,163
SOURCE Laserscope
-0- 10/23/2003
/CONTACT: Eric Reuter, President & CEO, or Dennis LaLumandiere, CFO, both
of Laserscope, +1-408-943-0636; or Analyst, Tricia Ross, or General Inquiries,
Linda Chien, both of FRB|Weber Shandwick, +1-310-407-6555, for Laserscope/
/Web site: http://www.fulldisclosure.com /
/Web site: http://www.laserscope.com /
(LSCP)
CO: Laserscope
ST: California
IN: MTC HEA COR
SU: ERN ERP CCA