Exhibit 99.1
OPHTHALMIC IMAGING
SYSTEMS
OPHTHALMIC IMAGING SYSTEMS CONTACTS:
GIL ALLON, CEO
Ariel Shenhar, CFO
221 Lathrop Way, Suite I (916) 646-2020
SACRAMENTO, CA 95815 INVESTOR RELATIONS
TODD FROMER / GARTH RUSSELL
KCSA Worldwide
212-896-1215 / 212-896-1250
FOR IMMEDIATE RELEASE
OPHTHALMIC IMAGING SYSTEMS ANNOUNCES RECORD FOURTH QUARTER AND YEAR-END RESULTS
Company Reports 13th Consecutive Profitable Quarter
SACRAMENTO, Calif., February 28, 2005 - Ophthalmic Imaging Systems
(OTCBB: OISI) today reported record financial results for the fourth quarter and
fiscal year ended December 31, 2004.
The Company reported net revenues of $3,403,000 for the fourth quarter
of 2004 compared with net revenues of $2,712,000 for the fourth quarter of 2003,
an increase of 25%. Net income for the fourth quarter of 2004 climbed
approximately 68% to $893,000, or $0.06 per basic and diluted share, compared
with net income of $533,000, or $0.04 per basic and diluted share, for the
fourth quarter of 2003.
For the 2004 fiscal year, net revenues rose 9% to $10,818,000 from
$9,945,000 in fiscal 2003. Net income for 2004 was $1,705,000, compared with net
income of $1,438,000 for 2003, an increase of 19%. Earnings per share in 2004
were $0.12 per basic and $0.11 per diluted share versus $0.13 per basic and
$0.12 per diluted share for fiscal year 2003. The decrease in earnings per share
is mainly attributable to an increase of more than 31% in the weighted number of
shares of common stock outstanding between the comparable 12-month periods.
Gil Allon, Chief Executive Officer of the Company, commented, "We are
pleased with our record 2004 results. Our performance in the fourth quarter was
particularly strong, reflecting initial sales of the OIS WinStation 3200TM
imaging system, and the OIS WebStationTM common software platform, released in
October of 2004."
"The successful launch of these two proprietary products, and the
introduction of the Ophthalmology OfficeTM product line, together with NextGen
Healthcare Information Systems, significantly broadened our market. Throughout
the year, we increased our commitment to R&D in order to strengthen our product
pipeline, while continuing to offer the most advanced eye care imaging products
available. OIS achieved many of its operational and financial goals in 2004 and
remains committed to expanding its growth in 2005," Mr. Allon concluded.
"OIS has established a firm financial footing as it continues to
expand. The Company strengthened its balance sheet mainly through solid market
performance. OIS's shareholder equity ending December 31, 2004 increased to $2.4
million, compared to $26,500 for the year ended 2003. As of December 31, 2004
current assets exceed current liabilities by $1.7 million, compared to $0.6
million a year ago," stated Ariel Shenhar, Chief Financial Officer. "With the
recent $9 million financing commitment from Dutchess Private Equities Fund II,
we are positioned to continue investing in research and development, enhancing
our product and technology platforms, and focusing on building sales momentum."
* * * * C O N T I N U E D* * * * *
LATHROP WAY, SUITE I SACRAMENTO, CA 95815 (800) 338-8436 (916) 646-2020
FAX (916) 646-0207 O WWW.OISI.COM
A SUBSIDIARY OF MEDIVISION IN ALLIANCE WITH AGFA
Ophthalmic Imaging Systems
Press Release
FEBRUARY 28, 2005
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 through an extensive network of dealers, distributors,
and direct representatives.
(Tables Follow)
OPHTHALMIC IMAGING SYSTEMS
SELECTED FINANCIAL DATA
STATEMENT OF INCOME
Unaudited Audited
Three months ended Twelve months ended
December 31, December 31,
----------------------------- -----------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
Net revenues $ 3,403,472 $ 2,712,305 $ 10,818,379 $ 9,944,827
Cost of sales 1,364,528 1,032,174 4,290,049 3,955,680
------------ ------------ ------------ ------------
Gross profit 2,038,944 1,680,131 6,528,330 5,989,147
Sales and marketing 938,266 923,421 2,936,100 2,915,848
General and administrative 409,048 308,177 1,205,765 1,068,634
Research and development 267,736 225,786 987,769 702,020
------------ ------------ ------------ ------------
Total operating expenses 1,615,050 1,457,384 5,129,634 4,686,502
------------ ------------ ------------ ------------
Income from operations 423,894 222,747 1,398,696 1,302,645
Interest and other expense, net (88,511) (104,905) (252,100) (269,451)
------------ ------------ ------------ ------------
Net income before provision for income tax
benefit 335,383 117,842 1,146,596 1,033,194
Income tax Benefit 558,000 415,500 558,000 405,000
------------ ------------ ------------ ------------
Net income $ 893,383 $ 533,342 $ 1,704,596 $ 1,438,194
============ ============ ============ ============
Income per basic share $ 0.06 $ 0.04 $ 0.12 $ 0.13
============ ============ ============ ============
Shares used in the calculation of net
income per basic share 15,033,585 14,370,530 14,771,112 11,267,493
============ ============ ============ ============
Income per diluted share $ 0.06 $ 0.03 $ 0.11 $ 0.12
============ ============ ============ ============
Shares used in the calculation of net
income per diluted share 15,940,595 15,455,665 15,772,214 11,887,205
============ ============ ============ ============
LATHROP WAY, SUITE I SACRAMENTO, CA 95815 (800) 338-8436 (916) 646-2020
FAX (916) 646-0207 O WWW.OISI.COM
A SUBSIDIARY OF MEDIVISION IN ALLIANCE WITH AGFA
Ophthalmic Imaging Systems
Press Release
FEBRUARY 28, 2005
Page 3
CONDENSED BALANCE SHEET
Audited
Years ended
December 31,
-----------------------------
2004 2003
------------ ------------
Assets
Current assets:
Cash and cash equivalents $ 1,990,310 $ 1,272,034
Accounts receivable, net 1,855,009 1,536,610
Inventories 515,391 416,420
Deferred tax asset and
other current assets 1,218,393 714,653
------------ ------------
Total current assets 5,579,103 3,939,717
------------ ------------
Furniture and equipment, net 150,487 150,912
Receivable from related party 1,055,512
Other assets 287,929 232,821
------------ ------------
Total assets $ 7,073,031 $ 4,323,450
============ ============
Liabilities and
stockholders' equity
Current liabilities:
Accounts payable $ 472,167 $ 523,539
Accrued liabilities 2,588,907 2,249,153
Notes payable-short term portion 776,338 409,613
Notes payable to related party 200,979
------------ ------------
Total current liabilities 3,837,412 3,383,284
------------ ------------
Line of credit 150,000
Notes payable less current portion 838,362 763,637
------------ ------------
Total liabilities 4,675,774 4,296,921
============ ============
Stockholders' equity:
Common stock 14,502,320 13,836,188
Accumulated deficit (12,105,063) (13,809,659)
------------ ------------
Total stockholder's equity 2,397,257 26,529
------------ ------------
Total liabilities and
stockholders' equity $ 7,073,031 $ 4,323,450
============ ============
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.
LATHROP WAY, SUITE I SACRAMENTO, CA 95815 (800) 338-8436 (916) 646-2020
FAX (916) 646-0207 O WWW.OISI.COM
A SUBSIDIARY OF MEDIVISION IN ALLIANCE WITH AGFA