Exhibit 99.1
VISX Announces Second Quarter 2003 Earnings Results; CustomVue Drives
License Revenue Higher; Douglas Post Named President, COO
SANTA CLARA, Calif.--(BUSINESS WIRE)--July 23, 2003--VISX,
INCORPORATED (NYSE:EYE) today announced financial results for the
second quarter ended June 30, 2003. VISX also announced that Douglas
H. Post, 52, formerly VISX's executive vice president, operations, has
been appointed president and chief operating officer.
Second quarter revenues were $31,986,000 compared with $36,639,000
for the comparable period of the prior year. Net income was
$4,098,000, or $0.08 per diluted share, in the second quarter of 2003
compared with net income of $5,916,000, or $0.11 per diluted share, in
the comparable period of the prior year.
CustomVue procedures exceeded expectations for the quarter,
driving licensing revenue higher than VISX projected. At the same
time, international laser system sales were weak due to political
tensions and SARS related issues in the Asia Pacific region. This
weakness was offset by the strong license revenue, which exceeded the
Company's seasonally strong first quarter license revenue and
contributed to healthy gross margins of 64.4% and earnings per share
at the high end of the Company's guidance.
Liz Davila, chairman and CEO of VISX, stated, "We are only
beginning to see the effects of CustomVue procedures on our business.
The demand for CustomVue is strong and we are also seeing increased
demand for procedures overall. We believe this is directly related to
the excellent results of early CustomVue treatments, the increased
media attention to laser vision correction, and to an improving
economic environment. I am confident that the coming quarters will see
a positive impact of licensing revenue from CustomVue."
Revenue for the six months ended June 30, 2003, was $66,419,000
compared with $73,224,000 for the comparable period of the prior year.
Net income was $9,574,000, or $0.19 per share, in the first six months
of 2003 compared to net income of $12,419,000, or $0.23 per share, in
the comparable period of the prior year.
Financial Outlook:
For the third quarter of 2003, VISX believes that revenue will
increase, with total revenue in the range of $34.5 to $36.0 million.
Earnings per diluted share are also expected to increase and be in the
range of $0.10 to 0.12 cents for the third quarter of 2003.
Organizational Announcement:
VISX also announced today that Doug Post, formerly VISX executive
vice president, operations, has been named president and chief
operating officer. Post joined VISX in 1992, when Questek, VISX's
excimer laser manufacturer, was acquired. In 1996 he was named vice
president, operations and customer support. Post was promoted to
executive vice president, operations, in 2001, at which time his role
was expanded to include global marketing and sales.
Commenting on Mr. Post's appointment, Liz Davila, chairman and CEO
stated, "Under Doug's leadership, VISX built a customer service and
field support organization which is a cornerstone of our market
leadership. He then expanded manufacturing to supply STAR lasers and
now WaveScans to our growing customer base. In recent months, he has
directly overseen all aspects of the CustomVue launch. We are
fortunate to be able to promote from within someone with Doug's broad
executive talents and comprehensive understanding of our business. His
ongoing leadership will be key to our success as we maximize the
CustomVue opportunity."
Other Highlights:
VISX began shipping its CustomVue procedure for laser vision
correction within three weeks of its FDA approval on May 23, 2003.
VISX is the first U.S. supplier of custom laser vision correction for
the treatment of myopia and astigmatism. CustomVue offers more precise
measurement and correction of vision, enabling for the first time the
potential to improve vision beyond correction with contacts and
glasses.
Conference Call:
VISX management will discuss its second quarter results and future
business outlook on a conference call at 5:00 p.m. eastern time on
July 23, 2003. The call will be Webcast live at www.visx.com and will
be available for a period of one week following the call. A telephone
rebroadcast of the call will also be available for one week following
the conclusion of the call. To access the rebroadcast via telephone,
call 888-203-1112 and enter reservation number 746454.
About VISX CustomVue Vision Correction:
CustomVue laser vision correction employs a diagnostic laser
system that analyzes the optical errors in the eye. Much like a
fingerprint, each person's visual error is unique and can now be
captured through the use of the VISX WaveScan System. The information
is digitally recorded, transferred to the VISX Star S4 System and the
CustomVue vision correction procedure is customized based on the
specific refractive errors of the individual. This means that the
CustomVue procedure has the potential to improve vision beyond
correction with contacts and glasses.
About VISX:
VISX is a worldwide market leader in the design, manufacture, and
sale of laser vision correction systems. Ophthalmologists have
performed over 5 million procedures using VISX Systems, reducing or
eliminating completely the need for contacts or glasses. Additional
information on VISX can be found on the worldwide web at www.VISX.com.
This press release contains certain forward-looking statements
based on current expectations, forecasts, and assumptions of VISX that
involve risks and uncertainties. Forward-looking statements in this
release, including statements that we are only beginning to see the
effects of CustomVue procedures on our business, that CustomVue will
have a positive impact on our business in coming quarters, that
revenue will increase in the third quarter and be in the range of
$34.5 to $36.0 million, and that EPS will be in the range of ten to
twelve cents, are based on information available to the Company as of
the date hereof. The Company's actual results could differ materially
from those stated or implied in such forward-looking statements, due
to risks and uncertainties associated with the Company's business,
which include the fact that market acceptance of our products, and
particularly of CustomVue, is uncertain and depends on broad
acceptance by physicians and patients, that adverse economic
conditions may cause our revenues to decline, that expenses are
relatively fixed in the short term and declines in revenue would have
an immediate impact on earnings per share. Further information on risk
factors is contained in the Company's most recent filings with the
Securities and Exchange Commission, including VISX's Annual Report and
Form 10K for the year ended December 31, 2002, and VISX Form 10Q for
the quarter ended March 31, 2003. The Company assumes no obligation to
update the information included in this press release, whether as a
result of new information, future events or otherwise.
Editors' Note: VISX, VISX WaveScan, WaveScan, VISX CustomVue,
CustomVue and VISX STAR S4 are trademarks of VISX, Incorporated.
VISX, Incorporated
Condensed Consolidated Statement of Operations
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
(Unaudited) (Unaudited)
------------------------- -------------------------
06/30/2003 06/30/2002 06/30/2003 06/30/2002
------------ ------------ ------------ ------------
System revenues $ 7,681 $ 12,804 $ 17,607 $ 22,719
Service and parts
revenues 4,241 4,844 9,071 9,934
License and other
revenues 20,064 18,991 39,741 40,571
------------ ------------ ------------ ------------
Total revenues 31,986 36,639 66,419 73,224
------------ ------------ ------------ ------------
Cost of revenues 11,390 11,985 24,214 24,589
Marketing, general
and administrative 10,854 11,661 20,308 22,179
Research, development
and regulatory 4,789 4,779 8,835 9,024
------------ ------------ ------------ ------------
Total costs and
expenses 27,033 28,425 53,357 55,792
------------ ------------ ------------ ------------
Income from
operations 4,953 8,214 13,062 17,432
Interest and other
income, net 1,818 1,561 2,761 3,092
------------ ------------ ------------ ------------
Income before
income taxes 6,771 9,775 15,823 20,524
Provision for
income taxes 2,673 3,859 6,249 8,105
------------ ------------ ------------ ------------
Net income $ 4,098 $ 5,916 $ 9,574 $ 12,419
============ ============ ============ ============
Earnings per share
Basic $ 0.08 $ 0.11 $ 0.19 $ 0.23
============ ============ ============ ============
Diluted $ 0.08 $ 0.11 $ 0.19 $ 0.23
============ ============ ============ ============
Shares used for
earnings per share
Basic 50,076 53,889 50,705 54,197
============ ============ ============ ============
Diluted 51,406 54,809 51,601 55,191
============ ============ ============ ============
Condensed Consolidated Balance Sheet
(In thousands)
(Unaudited)
06/30/2003 12/31/2002
------------ ------------
Cash, cash equivalents and short-term
investments $ 54,363 $ 122,955
Accounts receivable 27,146 24,559
Inventories 15,626 12,751
Other current assets 17,871 23,488
------------ ------------
Current assets 115,006 183,753
Property and equipment, net 7,600 6,498
Long-term deferred tax and other assets 14,081 10,341
------------ ------------
Total assets $ 136,687 $ 200,592
============ ============
Accounts payable $ 5,006 $ 4,341
Accrued liabilities 30,319 41,061
------------ ------------
Current liabilities 35,325 45,402
Stockholders' equity 101,362 155,190
------------ ------------
Total liabilities and stockholders' equity $ 136,687 $ 200,592
============ ============
CONTACT: VISX
Jackie Cossmon, 408-773-7600