Exhibit 99.1
OPHTHALMIC IMAGING SYSTEMS ANNOUNCES
RECORD FOURTH QUARTER AND YEAR-END RESULTS FOR 2005
- - -
Company Reports 35% Increase in Operating Income and 21% Increase in Revenues
for the Year
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5th Consecutive Year of Increased Profitability
SACRAMENTO, CALIF., MARCH 7, 2006 - Ophthalmic Imaging Systems (OTCBB:
OISI) (OIS) today reported financial results for the fourth quarter and
fiscal year ended December 31, 2005.
OIS reported net revenue for the year ended December 31, 2005 increased
21% to $13,651,000 from $11,294,000 in 2004. Operating income for the year
climbed approximately 35% to $1,890,000, compared to $1,399,000 in the
prior year.
Net income for 2005 was $1,755,000, or $0.11 earnings per diluted share,
compared to $1,705,000, or $0.11 earnings per diluted share, in 2004. Net
income in 2005, excluding a tax benefit of $53,000, was $1,702,000, an
increase of 48% compared to net income in 2004 of $1,147,000, excluding a
tax benefit of $558,000.
The Company reported net revenue of $4,142,000 for the fourth quarter of
2005 compared with net revenues of $3,523,000 for the fourth quarter of
2004, an increase of 18%. Operating income for the fourth quarter of 2005
climbed 20% to $510,000, compared to $424,000 in the prior year.
Net income for the fourth quarter was $499,000, or $0.03 earnings per
diluted share, compared to $893,000, or $0.06 earnings per diluted share,
during the same period last year. Net income for the quarter excluding a
tax benefit of $79,000, increased approximately 25% to $421,000, compared
to fourth quarter 2004 net income of $335,000 excluding a tax benefit of
$558,000.
Gil Allon, Chief Executive Officer of the Company, commented, "Our strong
performance in 2005 led to a record year in revenue and operating income.
We continue to experience strong sales from our line of digital imaging
equipment products. In October 2005, we announced four new products, the
OIS WinStation 11KTM, OIS WinStation XPTM Version 10.3 Software, OIS
WinStation ManagerTM, and OIS Ophthalmology OfficeTM Retinal Templates. In
addition we recently announced an important contract with leading health
care provider Henry Ford Health System to upgrade the ophthalmology
departments in 15 of their locations to fully integrated digital systems.
* * * * C O N T I N U E D* * * * *
In 2005, we completed our first full year of sales for the Ophthalmology
Office, an advanced informatics line of products introduced to the
ophthalmology market in mid 2004. We continue to build sales momentum and
believe our marketing strategy for Ophthalmology Office remains on track
with a strong foundation for future sales. Our plan is to leverage our
existing digital imaging equipment customers to drive strong growth for
Ophthalmology Office in fiscal 2006."
Ariel Shenhar, Chief Financial Officer of OIS, stated, "Through our solid
market performance we continue to strengthen our cash position, which
increased 98% to $3.9 million as of December 31, 2005, from $2 million the
same period last year. As of December 31, 2005, working capital was $4.7
million, compared to $1.7 million a year ago. Total shareholder equity as
of December 31, 2005 was $4.6 million compared to $2.4 million as of
December 31, 2004, an increase of 93%."
ABOUT OPHTHALMIC IMAGING SYSTEMS
Ophthalmic Imaging Systems (www.oisi.com), 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.
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.
(TABLES FOLLOW)
OPHTHALMIC IMAGING SYSTEMS
SELECTED FINANCIAL DATA
STATEMENT OF INCOME
UNAUDITED AUDITED
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
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2005 2004 2005 2004
------------ ------------ ------------ ------------
Sales - Total $4,142,171 $3,523,202 $13,650,507 $11,293,592
Cost of sales - Total $1,731,101 $1,496,663 $5,766,883 $4,793,518
------------ ------------ ------------ ------------
Gross Profit $2,411,070 $2,026,539 $7,883,624 $6,500,074
Operating Expenses:
Sales & Marketing $1,180,684 $925,861 $3,439,046 $2,907,844
General & Administrative $444,036 $409,048 $1,442,959 $1,205,765
Research & Development $276,710 $267,736 $1,112,023 $987,769
------------ ------------ ------------ ------------
Total Operating Expenses $1,901,430 $1,602,645 $5,994,028 $5,101,378
Operating Income $509,640 $423,894 $1,889,596 $1,398,696
Interest & Other Expense, Net ($88,877) ($88,511) ($187,342) ($252,100)
------------ ------------ ------------ ------------
Income before Taxes $420,763 $335,383 $1,702,254 $1,146,596
Income Tax Benefit (expense) $78,000 $558,000 $53,000 $558,000
------------ ------------ ------------ ------------
Net Income $498,763 $893,383 $1,755,254 $1,704,596
============ ============ ============ ============
Basic Earnings per share $0.03 $0.06 $0.12 $0.12
Shares used in the calculation of basic earnings 15,446,211 15,033,585 15,205,689 14,771,112
per share
Diluted Earnings per share $0.03 $0.06 $0.11 $0.11
Shares used in the calculation of diluted 17,234,532 15,940,595 16,530,277 15,772,214
earnings per share
OPHTHALMIC IMAGING SYSTEMS
CONDENSED BALANCE SHEET
As of Dec 31, As of Dec 31,
2005 2004
Actual Actual
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ASSETS:
Cash and investments 3,940,706 1,990,310
Accounts receivable, net 2,841,203 1,855,009
Receivable-Related Party 690,756
Inventories, net 380,676 515,391
Deferred Tax Asset 1,124,000 1,029,000
Other current assets 300,077 189,393
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TOTAL CURRENT ASSETS 9,277,418 5,579,103
Furniture & Equipment 107,787 150,487
Receivable-Related Party 1,055,512
Other assets 205,355 287,929
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TOTAL ASSETS 9,590,560 7,073,031
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CURRENT LIABILITIES:
Accounts payable 512,914 472,167
Note Payable Short Term 508,109 776,338
Accrued liabilities 3,596,102 2,588,907
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TOTAL CURRENT LIABILITIES 4,617,125 3,837,412
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LONG TERM DEBT:
Notes Payable, less current portion 349,237 838,362
----------- -----------
TOTAL LIABILITIES 4,966,362 4,675,774
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STOCKHOLDERS' EQUITY:
Capital stock -- Common 14,974,007 14,502,320
Retained earnings (deficit) (10,349,809) (12,105,063)
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TOTAL STOCKHOLDERS' EQUITY 4,624,198 2,397,257
=========== ===========
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TOTAL LIABILITIES AND EQUITY 9,590,560 7,073,031
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