Exhibit 99.1
Laserscope Reports 41% Increase in Fourth Quarter 2003 Revenues
Fourth Quarter Highlights:
* GreenLight PV fiber volumes grow 57% quarter-over-quarter
* 2003 urology revenues increase 251% over 2002
* Cash balance up to $7.2 million from $4.7 million at year-end 2002
SAN JOSE, Calif., Feb. 12 /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
fourth quarter ended December 31, 2003 increased 41% to $17.8 million from
$12.7 million in the year-ago quarter. Sequentially, revenues increased 25%
from $14.3 million for the quarter ended September 30, 2003. Net income was
$1.5 million, or $0.07 per diluted share, compared with net income of $50,000,
or break-even per diluted share, in the same quarter last year, and net income
of $533,000, or $0.03 per diluted share, for the third quarter of 2003.
"Our strong fourth quarter revenues were driven by the explosive growth of
our urology product line and very solid domestic growth of our aesthetics
products," said Eric Reuter, Laserscope's President and CEO. "We believe our
results clearly demonstrate the successful execution of our growth strategy,
which is to drive the rapid adoption of our innovative Photo-Selective
Vaporization of the Prostate (PVP(TM)) procedure. Our GreenLight PV(TM)
revenues and utilization rates continue to exceed our expectations. Total
2003 GreenLight PV revenues for the year were $15.1 million, or 26% of total
revenues, compared with $4.3 million, or 10% of total revenues, in 2002."
Gross margin was approximately 54%, compared with approximately 51% for
the fourth quarter of fiscal 2002. Sequentially, the gross margin improved
from approximately 52% for the third quarter. Selling, general and
administrative expenses were $6.8 million, or 38% of net revenues, compared
with $5.3 million, or 42% 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 as well as higher direct selling
expenses for domestic aesthetic products.
Reuter continued, "During the quarter, we sold 39 GreenLight PV laser
systems and 5,364 fibers, compared with 34 systems and 3,414 fibers in the
prior quarter. This represented an approximately 57% sequential increase in
fiber volume and sales were higher to all customer types. For the full year,
2003 GreenLight PV fiber shipments grew 284% over 2002's levels.
Additionally, backlog increased to 19 systems at the end of the fourth
quarter, compared with 12 systems at the close of the third quarter. These
results continue to indicate that PVP adoption is growing at a significant
pace in both our domestic and international markets."
"Domestic aesthetic revenues grew 37% over the fourth quarter last year,"
added Reuter. "During the fourth quarter, we received FDA clearance for
active acne treatment using our Aura(TM) laser system. We believe that this
additional FDA clearance, along with the recent launch of our versatile
Gemini(TM) aesthetic laser system, will continue to support ongoing growth in
our aesthetic business domestically and internationally. We are looking
forward to a very exciting 2004."
The Company had no short-term bank borrowings and increased its cash
position to $7.2 million at December 31, 2003 from $4.7 million at the end of
2002.
Full Year 2003 Results
For the year ended December 31, 2003, the Company reported revenues of
$57.4 million and net income of $2.5 million, or $0.13 per diluted share,
compared with revenues of $43.1 million and net income of $323,000, or $0.02
per diluted share, for the full year 2002.
Update on Reimbursement
In November 2003, the Company announced that the Centers for Medicare and
Medicaid Services (CMS) had notified Laserscope that its application for
assignment of the PVP procedure to treat Benign Prostatic Hyperplasia (BPH)
had been accepted. In determining that PVP meets the new technology APC
qualification criteria, CMS noted that the new code would be effective
April 1, 2004.
"As of today, we have not yet been informed by CMS of the level of
reimbursement under the new code," stated Reuter. "As we mentioned
previously, we continue to work with CMS and the American Urological
Association (AUA) to ensure that the hospital outpatient and physician
reimbursement rates for furnishing PVP reflect the appropriate costs of
performing the procedure. We will announce the new rates as soon as they are
released by CMS."
Guidance
The Company is updating its guidance for fiscal year 2004 and will further
revise its guidance when news from CMS is released regarding the new
technology APC reimbursement rate. The following is the updated guidance:
* First quarter revenues are expected to be in the range of $15 -
$16 million due to seasonal patterns in elective surgeries. The
Company expects the seasonality to result in a sequential decrease in
fiber volume. Additionally, first quarter sales and marketing
expenses will include costs associated with the launch of the Gemini
laser.
* Expecting continued adoption of the PVP procedure to drive further
sales growth of the GreenLight PV products, the Company is upwardly
revising its 2004 revenue forecast to $70 million with growth
increasing in the latter half of the year.
* 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 $0.32 - $0.34 per
diluted share, higher than the $0.30 per diluted share provided
previously. The Company expects the majority of earnings growth to be
generated in the second half of the year.
Management Conference Call
Management of Laserscope will hold a conference call on Thursday,
February 12, 2004, at 8:00 am PT / 11:00am ET to discuss the quarter results.
To listen to the call, please dial 800-366-7449 (303-262-2193 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 February 19, 2004, by
dialing 800-405-2236 (303-590-3000 for international callers), passcode
569466. 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 Tricia Ross,
Analyst Contact, or Linda Chien, General Inquiries, both of Financial
Relations Board, +1-310-407-6555, for Laserscope.
Laserscope
GreenLight PV(TM) Fiber Sales
(Units)
2003 Q1 Q2 Q3 Q4 YTD
U.S. Hospitals &
Clinics 466 589 931 1,333 3,319
U.S. Mobile
Service
Providers 775 1,671 1,654 2,515 6,615
International
Customers 165 815 829 1,516 3,325
Total 1,406 3,075 3,414 5,364 13,259
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 Twelve months ended
(thousands except December 31, December 31,
per share amounts) 2003 2002 2003 2002
Net revenues $17,816 $12,660 $57,427 $43,088
Cost of sales 8,251 6,256 27,639 20,834
Gross margin 9,565 6,404 29,788 22,254
Operating expenses:
Research and
development 1,143 947 4,443 3,837
Selling, general and
administrative 6,802 5,303 22,638 17,626
7,945 6,250 27,081 21,463
Operating income 1,620 154 2,707 791
Interest income
(expense) and
other, net 35 (81) 12 (382)
Net income before
income taxes 1,655 73 2,719 409
Provision for
income taxes 154 23 202 86
Net income $1,501 $50 $2,517 $323
Basic net income
per share $0.08 $0.00 $0.14 $0.02
Diluted net income
per share $0.07 $0.00 $0.13 $0.02
Shares used in basic
per share calculations 17,946 16,700 17,452 16,441
Shares used in diluted
per share calculations 22,412 18,673 21,838 18,569
Condensed Consolidated Balance Sheets
December 31, December 31,
(thousands) 2003 2002
Assets
Current assets:
Cash & cash equivalents $7,158 $4,661
Accounts receivable, net 12,614 10,287
Inventories 13,368 10,445
Other current assets 1,315 1,027
Total current assets 34,455 26,420
Property and equipment, net 1,645 1,808
Intangibles and other assets 831 935
Total assets $36,931 $29,163
Liabilities and Shareholders' Equity
Current liabilities $13,733 $10,768
Convertible subordinated debentures
(long-term portion) -- 2,853
Obligations under capital leases -- 60
Shareholders' equity 23,198 15,482
Total liabilities and shareholders' equity $36,931 $29,163
SOURCE Laserscope
-0- 02/12/2004
/CONTACT: Eric Reuter, President & CEO, or Dennis LaLumandiere, CFO, both
of Laserscope, +1-408-943-0636; or Tricia Ross, Analyst Contact, or Linda
Chien, General Inquiries, both of Financial Relations Board, +1-310-407-6555,
for Laserscope/
/Web site: http://www.laserscope.com /
(LSCP)
CO: Laserscope
ST: California
IN: HEA MTC BIO
SU: ERN CCA MAV ERP