Exhibit 99.1
Laserscope Reports Record Revenues for 2004 First Quarter
51% Revenue Increase Driven by Strong GreenLight PVP Sales
First Quarter Highlights:
* Revenues increased 51% to $18.8 million quarter-over-quarter
* Gross margin increased to 56%
* GreenLight PV(TM) fiber volumes increased by 355% quarter-over-quarter
* Cash balance grew to $8.7 million from $7.2 million at the end of 2003
SAN JOSE, Calif., April 22 /PRNewswire-FirstCall/ -- Laserscope
(Nasdaq: LSCP), a pioneer in the development and commercialization of medical
lasers and advanced fiber-optic devices, today reported record revenues of
$18.8 million for its first quarter ended March 31, 2004, a 51% increase from
$12.5 million in the year-ago quarter. Sequentially, revenues increased 5%
from $17.8 million for the quarter ended December 31, 2003. First quarter
2004 net income was $2.2 million, or $0.10 per diluted share, compared with
net income of $135,000, or $0.01 per diluted share, in the same quarter last
year, and net income of $1.5 million, or $0.07 per diluted share, for the
fourth quarter of 2003.
"We had a stellar quarter, driven primarily by strong growth in our
GreenLight PVP(TM) urology business," said Eric Reuter, President and Chief
Executive Officer of Laserscope. "Our innovative procedure for the treatment
of Benign Prostatic Hyperplasia (BPH), or enlarged prostate, continues to gain
traction at a rapid pace both domestically and internationally. Recent
substantial increases to the Medicare reimbursement rate for this procedure
done in outpatient hospitals in the United States should further encourage
utilization of our treatment going forward."
Gross margin for the first quarter of 2004 was approximately 56%, compared
with approximately 50% for the first quarter of fiscal 2003 and approximately
54% for the fourth quarter of 2003, primarily as the result of changes in
product mix and better ASPs for the company's GreenLight lasers. Selling,
general and administrative expenses were $6.7 million, or 36% of revenues, in
the first quarter of 2004, compared with $5.1 million, or 41% of revenues, in
the year-ago quarter. Increased SG&A spending resulted primarily from higher
sales and marketing expenses relating to the company's GreenLight PV products,
as well as higher direct selling expenses for domestic aesthetic products.
The company strengthened its balance sheet during the quarter. At
March 31, 2004, the company had no short-term bank borrowings and a cash
position of $8.7 million, up from $7.2 million at the end of 2003.
"During the first quarter, we sold a total of 49 GreenLight PV laser
systems and increased sequential fiber volume by 19% to 6,403 fibers, compared
to 39 systems and 5,364 fibers sold in the fourth quarter," continued
Mr. Reuter. "This performance was accomplished in spite of the normal
seasonality experienced during the Holiday period and is further indication of
the accelerating adoption of the PVP procedure. Additionally, our GreenLight
PV system backlog remained strong at 19 systems at the end of the first
quarter, the same as at the end of the fourth quarter of 2003.
"Although first quarter revenues in our aesthetics business were up only
about 4% compared to the prior year, we have a very strong aesthetic backlog,
especially for our newest Gemini Laser," said Mr. Reuter. "The Gemini, which
was recently FDA-approved for the treatment of acne, permanent hair reduction
and wrinkle reduction, is now approved for a total of 21 different procedures,
and can perform over 90% of all aesthetic laser procedures available in a
physician's office. We are seeing strong preliminary acceptance and demand
for the product in the market.
"We are continuing to successfully execute on our business plan in both
our urology and aesthetics businesses and have built considerable momentum
over the last several quarters. We believe we are on track for a strong
year."
Guidance
In recognition of strengthening adoption of the company's GreenLight PVP
treatment for enlarged prostate and the recently launched Gemini aesthetic
laser system, Laserscope is revising its financial forecast for fiscal year
2004 as follows:
* Revenue is expected to be approximately $86 million in 2004, up from a
previous forecast of $70 million.
* Gross margin, as a percentage of 2004 revenues, is expected to be in
the range of 57% to 60% for the full year.
* Net income per share is expected to be in the range of $0.50 - $0.55
per diluted share assuming a tax rate of approximately 13%, up from a
previous forecast of $0.32 - $0.34 per diluted share. The Company
expects continued growth in profitability with the highest growth
occurring in the traditionally strong fourth quarter.
* GreenLight fiber sales worldwide are expected to be in the range of
31,000 - 33,000 for the full year.
Management Conference Call
Management of Laserscope will hold a conference call on Thursday,
April 22, 2004, at 8:00 am PT / 11:00 am ET to discuss the results for the
quarter. To listen to the call, please dial 800-240-7305 (303-205-0066 for
international callers) at least five minutes prior to the start time.
Investors will also have the opportunity to listen to the conference call
live on the Internet through Laserscope's Web site at www.laserscope.com or
Thomson/CCBN's Web site at www.fulldisclosure.com. Investors should go to
either 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 April 29, 2004 by dialing
800-405-2236 (303-590-3000 for international callers), passcode 576973. A
replay of the webcast will also 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 analysts,
Tricia Ross, or general inquiries, Laurie Berman, both of Financial Relations
Board, +1-310-407-6555, for Laserscope.
-Tables to Follow -
Laserscope
GreenLight PV(TM) Fiber Sales
(Units)
2004 Q1
U.S. Hospitals & Clinics 1,599
U.S. Mobile Service Providers 3,419
International Customers 1,385
Total 6,403
2003 Q1 Q2 Q3 Q4 Year
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
LASERSCOPE FINANCIAL SUMMARY
(Unaudited)
Condensed Consolidated
Statements of Income
Three Months Ended
March 31,
(thousands except per share amounts) 2004 2003
Net revenues $18,750 $12,456
Cost of sales 8,164 6,191
Gross margin 10,586 6,265
Operating expenses:
Research and development 1,239 1,008
Selling, general and administrative 6,733 5,064
7,972 6,072
Operating income 2,614 193
Interest and other income
(expense), net (69) (36)
Income before income taxes 2,545 157
Provision for income taxes 331 22
Net income $2,214 $135
Basic net income per share $0.11 $0.01
Diluted net income per share $0.10 $0.01
Shares used in basic per share calculations 20,342 16,899
Shares used in diluted per share calculations 22,682 18,858
Condensed Consolidated Balance Sheets
March 31, December 31,
(thousands) 2004 2003
Assets
Current assets:
Cash & cash equivalents $8,700 $7,158
Accounts receivable, net 12,754 12,711
Inventories 14,681 13,368
Prepayments and other current assets 1,465 1,315
Total current assets 37,600 34,552
Property and equipment, net 1,596 1,645
Other assets 852 831
Total assets $40,048 $37,028
Liabilities and Shareholders' Equity
Current liabilities $13,830 $13,830
Shareholders' equity 26,218 23,198
Total liabilities and shareholders' equity $40,048 $37,028
SOURCE Laserscope
-0- 04/22/2004
/CONTACT: Eric Reuter, President & CEO, or Dennis LaLumandiere, CFO, both
of Laserscope, +1-408-943-0636; or analysts, Tricia Ross, or general
inquiries, Laurie Berman, both of Financial Relations Board, +1-310-407-6555,
for Laserscope/
/Web site: http://www.laserscope.com /
/Audio: http://www.fulldisclosure.com /
(LSCP)
CO: Laserscope
ST: California
IN: BIO HEA MTC CPR ECP
SU: ERN CCA ERP