Exhibit 99.1
Laserscope Reports Record Revenues and Earnings for 2004 Second Quarter
Revenues Up 67%; Profits Up 759%
Second Quarter Highlights:
* GreenLight PV(TM) fiber volumes increased 176% over the prior-year
quarter
* Gross margin increased to 57%, up from 50% in the prior-year quarter
* Cash balance grew by $3.2 million to $10.4 million from the end of
2003
* International sales increased 68% over the prior-year quarter
SAN JOSE, Calif., July 28 /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
$21.4 million for its second quarter ended June 30, 2004, a 67% increase in
revenues from $12.9 million in the year-ago quarter. Sequentially, revenues
increased 14% from $18.8 million for the quarter ended March 31, 2004. Second
quarter 2004 net income was $3.0 million, or $0.13 per diluted share, compared
with net income of $348,000, or $0.02 per diluted share, in the same quarter
last year, and net income of $2.2 million, or $0.10 per diluted share, for the
first quarter of 2004.
"We are very pleased with our performance this quarter as we executed well
in all areas of our business," said Eric Reuter, President and Chief Executive
Officer of Laserscope. "As a result, we are continuing to see solid and
accelerating improvements in our core metrics of revenue, gross margins and
profitability. During the quarter, we had very strong growth in our PVP(TM)
urology business. PVP, or Photo-Selective Vaporization of the prostate, is
our innovative solution for treating Benign Prostatic Hyperplasia (BPH) using
our proprietary GreenLight PVP system. This procedure is being increasingly
recognized by leading medical authorities and industry experts around the
world as the new standard of care for treating BPH.
"GreenLight PVP system and disposable fiber optic sales are continuing to
drive impressive financial performance both domestically and internationally,
and we believe that the combination of fast growing acceptance of PVP and a
large worldwide market for the procedure will continue to fuel significant
additional growth in the future."
Gross margin for the second quarter of 2004 was approximately
57%, compared with approximately 50% for the second quarter of fiscal 2003 and
approximately 56% for the first quarter of 2004, primarily as the result of
changes in product mix. Selling, general and administrative expenses were
$8.2 million, or 38% of revenues, in the second quarter of 2004, compared with
$5.0 million, or 39% of revenues, in the year-ago quarter. Increased SG&A
spending resulted primarily from higher sales andmarketing expenses relating
to the Company's GreenLight PV products, as well as higher direct selling
expenses for the Company's domestic aesthetic products and higher expenses
relating to ensuring Sarbanes-Oxley compliance.
The Company further strengthened its balance sheet during the quarter. At
June 30, 2004, Laserscope had no short-term bank borrowings and a cash
position of $10.4 million, up from $7.2 million at the end of 2003.
Urology Business
"During the second quarter we sold a record 58 GreenLight PV laser systems
and increased sequential fiber volume by 33% to 8,490 fibers, outpacing our
first quarter successes during which we sold 49 systems and 6,403 fibers. We
believe this quarter's rapid fiber sales continue to validate the procedure's
increased worldwide adoption. We are also seeing an increasing level of
excitement and performance in our international urology business and are
looking forward to a record year from our international team."
Beginning July 1, 2004, Laserscope raised the price of its fibers in the
U.S. from per unit list prices of $670 to $820, depending on region, to a
uniform list price of $875 per unit throughout the United States.
"We believe that certain of our customers may have built inventory during
the second quarter in anticipation of the price increase," said Mr. Reuter.
"Although this may affect the rate of U.S. fiber revenue growth during the
third quarter relative to the second, we don't expect that it will materially
impact the business or our financial results for the year. Our practice is to
encourage our customers not to hold inventory, but rather order fibers based
on actual procedure demand."
Aesthetics Business
"In addition to the substantial gains in our urology business, revenues in
our aesthetics business were up strongly as well, increasing about
22% worldwide compared to the prior year. This growth was led by our newest
aesthetic product, the versatile Gemini(TM) Laser and another fine performance
by our U.S. sales and marketing organization," said Mr. Reuter. "The Gemini
was recently FDA-cleared for the treatment of acne, permanent hair reduction
and wrinkle reduction, and is now FDA-cleared for a total of 21 different
procedures. This laser system can perform over 90% of all aesthetic laser
procedures now available in a physician's office and we continue to see strong
preliminary acceptance and demand for the product in the marketplace."
Six-Month Results
For the six months ended June 30, 2004, the Company reported revenues of
$40.2 million and net income of $5.2 million, or $0.23 per diluted share,
compared with revenues of $25.3 million and net income of $483,000, or
$0.02 per diluted share, for the same period in 2003.
"Clearly, the momentum in our business has not slowed down, and has, in
fact, accelerated over the past several quarters" said Mr. Reuter. "Our
business plan is highly focused and our team is successfully executing against
it. As we continue to work toward increasing the visibility of our
outstanding product line in the market, we look forward to a strong and
productive year."
Guidance
As the result of its continued strong performance, Laserscope is
increasing its previous 2004 guidance in the areas of revenues, gross margin,
profitability and worldwide GreenLight fiber sales:
* Revenue is expected to be approximately $88 million in 2004, with most
of the revenue growth for the balance of the year occurring in the
traditionally strong fourth quarter.
* Gross margin, as a percentage of 2004 revenues, is expected to be in
the range of 58% - 61% for the full year.
* Net income per share is expected to be in the range of $0.55 - $0.60
per diluted share due to enhanced business prospects and also assuming
a tax rate of approximately 9% (previously 13%). The Company expects
continued growth in profitability with the highest level of growth
occurring in the traditionally strong fourth quarter.
* GreenLight fiber sales worldwide are expected to be in the range of
33,000 - 35,000 for the full year.
Management Conference Call
Management of Laserscope will hold a conference call on Wednesday,
July 28, 2004 at 8:00 am PT / 11:00am ET to discuss results for the quarter.
To participate in the call, please dial 800-257-2182 (303-262-2140 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 website at www.laserscope.com or at
www.fulldisclosure.com. Investors should go to either website a few minutes
early, as it may be necessary to download audio software to access the
conference call.
A replay of the conference call will be available through August 4, 2004
by dialing 800-405-2236 (303-590-3000 for international callers), passcode
11003294. A replay of the webcast will also be available at Laserscope's
website.
Additional information on Laserscope, including an archive of corporate
press releases, is also available on the Company's website.
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 Laurie Berman, General Inquiries, both of Financial
Relations Board, +1-310-407-6555, for Laserscope.
Laserscope
GreenLight PVTM Fiber Sales
(Units)
2004 Q1 Q2
U.S. Hospitals &
Clinics 1,599 2,003
U.S. Mobile Service
Providers 3,419 4,905
International Customer 1,385 1,582
Total 6,403 8,490
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 Six months ended
June 30, June 30,
(thousands except
per share amounts) 2004 2003 2004 2003
Net revenues $21,434 $12,862 $40,184 $25,318
Cost of sales 9,177 6,407 17,341 12,598
Gross margin 12,257 6,455 22,843 12,720
Operating expenses:
Research and development 1,345 1,097 2,584 2,105
Selling, general
and administrative 8,183 4,994 14,916 10,058
9,528 6,091 17,500 12,163
Operating income 2,729 364 5,343 557
Interest income
(expense) and other, net 442 6 373 (30)
Net income before
income taxes 3,171 370 5,716 527
Provision for income taxes 183 22 514 44
Net income $ 2,988 $ 348 $ 5,202 $ 483
Basic net income
per share $ 0.14 $ 0.02 $ 0.25 $ 0.02
Diluted net income
per share $ 0.13 $ 0.02 $ 0.23 $ 0.02
Shares used in basic
per share calculations 20,920 17,252 20,631 17,076
Shares used in diluted
per share calculations 22,861 19,415 22,782 19,151
Condensed Consolidated Balance Sheets
June 30, December 31,
(thousands) 2004 2003
Assets
Current assets:
Cash & cash equivalents $10,446 $7,158
Accounts receivable, net 16,081 12,711
Inventories 16,286 13,368
Prepayments and other current assets 1,271 1,315
Total current assets 44,084 34,552
Property and equipment, net 2,693 1,645
Other assets 882 831
Total assets $47,659 $37,028
Liabilities and Shareholders' Equity
Current liabilities $16,603 $13,830
Capital leases 40 --
Shareholders' equity 31,016 23,198
Total liabilities and
shareholders' equity $47,659 $37,028
SOURCE Laserscope
-0- 07/28/2004
/CONTACT: Eric Reuter, President & CEO, or Dennis LaLumandiere, CFO, both
of Laserscope, +1-408-943-0636; or Tricia Ross, Analyst Contact, or Laurie
Berman, General Inquiries, both of Financial Relations Board, +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 FIN
SU: ERN