Exhibit 99.1
OPHTHALMIC IMAGING SYSTEMS CONTACTS: Gil Allon, CEO
221 Lathrop Way, Suite I Ariel Shenhar, CFO
Sacramento, CA 95815 (916) 646-2020
INVESTOR RELATIONS: Evan Smith, CFA/Erica Pettit
KCSA Worldwide
212-896-1251 / 212-896-1248
FOR IMMEDIATE RELEASE
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OPHTHALMIC IMAGING SYSTEMS REPORTS 2004 THIRD QUARTER AND NINE MONTH RESULTS
COMPANY REPORTS 12TH CONSECUTIVE PROFITABLE QUARTER
SACRAMENTO, California, November 4, 2004. Ophthalmic Imaging Systems
(the "Company") (OTCBB: OISI) today reported its financial results for the third
quarter ended September 30, 2004.
The Company reported net revenues of $2,615,000 for the third quarter
of 2004, compared with net revenues of $2,446,000 for the third quarter of 2003,
an increase of approximately 7%. The Company reported net income of $327,000, or
$0.02 per basic and diluted share, for the third quarter of 2004 compared with
net income of $310,000, or $0.02 per basic and diluted share, for the third
quarter of 2003. For the first nine months of 2004, the Company reported net
income of $811,000, or $0.06 per basic share and $0.05 per diluted share, on
revenues of $7,415,000. For the first nine months of 2003, the Company reported
net income of $905,000, or $0.09 per basic share and $0.08 per diluted share, on
revenues of $7,233,000. The decrease in earnings per share is mainly
attributable to an increase of more than 45% in the weighted number of shares of
common stock outstanding between the comparable nine-month periods.
Gil Allon, Chief Executive Officer of the Company, commented, "We are
very pleased that during the third quarter of 2004 we have seen another
consecutive quarter of profitability and, as we projected earlier in the year,
our traditional growth momentum is returning. We are particularly happy that our
new Ophthalmology Office(TM) product line has begun to contribute to the
increase in revenues. In addition, we are pleased that we were able to increase
our net income in the quarter while our R&D spending increased 13% compared to
the third quarter of 2003."
Mr. Allon concluded, "At the joint AAO/SOE 2004 meeting last week we
unveiled two new products, OIS WinStation 3200(TM) imaging system and the OIS
WebStation(TM) common software platform, which we believe will significantly
contribute to our sales over the coming quarters. We are extremely pleased that
the record order bookings at this event exceeded our expectations. Based on the
considerable attention for these products from the professional community and
the orders booked at the show, we expect to begin seeing the sales benefit of
these products during the fourth quarter of this year. "
* * * * * C O N T I N U E D * * * * *
Ophthalmic Imaging Systems
Press Release
November 4, 2004
Page 2
Ophthalmic Imaging Systems, a majority-owned subsidiary of MediVision,
is the leading provider of ophthalmic digital imaging systems. The Company
designs, develops, manufactures and markets digital imaging systems and
informatics solutions for the eye care market. With over twenty years in the
ophthalmic imaging business, the Company has consistently introduced new,
innovative technology. The Company, together with MediVision, co-market and
support their products worldwide through an extensive network of dealers,
distributors, and direct representatives.
OPHTHALMIC IMAGING SYSTEMS
SELECTED FINANCIAL DATA
Three months ended Nine months ended
September 30, September 30,
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2004 2003 2004 2003
---- ---- ---- ----
(unaudited) (unaudited) (unaudited) (unaudited)
Net revenues $ 2,614,798 $ 2,446,084 $ 7,414,907 $ 7,232,522
Cost of sales 1,053,576 986,422 2,925,522 2,923,506
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Gross profit 1,561,222 1,459,662 4,489,385 4,309,016
Sales and marketing 641,828 661,872 1,997,834 1,992,427
General and administrative 290,912 219,126 796,716 760,457
Research and development 242,847 215,003 720,033 476,234
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Total operating expenses 1,175,587 1,096,001 3,514,583 3,229,118
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Income from operations 385,635 363,661 974,802 1,079,898
Interest and other expense, net (58,922) (46,077) (163,590) (164,546)
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Net income before income taxes 326,713 317,584 811,212 915,352
Income taxes -- (7,500) -- (10,500)
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Net income $ 326,713 $ 310,084 $ 811,212 $ 904,852
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Income per basic share $ 0.02 $ 0.02 $ 0.06 $ 0.09
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Shares used in the calculation of net
income per basic share 14,975,014 14,354,521 14,683,620 10,233,147
==========================================================================
Income per diluted share $ 0.02 $ 0.02 $ 0.05 $ 0.08
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Shares used in the calculation of net
income per diluted share 15,981,937 15,251,916 15,716,088 10,684,385
==========================================================================
STATEMENTS IN THIS PRESS RELEASE WHICH ARE NOT HISTORICAL DATA ARE
FORWARD-LOOKING STATEMENTS WHICH INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES,
OR OTHER FACTORS NOT UNDER THE COMPANY'S CONTROL, WHICH MAY CAUSE ACTUAL
RESULTS, PERFORMANCE, OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT
FROM THE RESULTS, PERFORMANCE, OR OTHER EXPECTATIONS IMPLIED BY THESE
FORWARD-LOOKING STATEMENTS. THESE FACTORS INCLUDE, BUT ARE NOT LIMITED TO, THOSE
DETAILED IN THE COMPANY'S PERIODIC FILINGS WITH THE SECURITIES AND EXCHANGE
COMMISSION.