EXHIBIT 99.1
VISX Announces Third Quarter 2003 Earnings Results;
Strong CustomVue Procedure Sales Drive Revenue and Profit Growth
SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 22, 2003--VISX,
INCORPORATED (NYSE:EYE) today announced financial results for the
third quarter and nine months ended September 30, 2003.
Third quarter revenues increased 28% to $39,268,000 from
$30,560,000 for the comparable period of the prior year. The increase
was driven by strong sales of VISX CustomVue procedures, which
increased license and other revenue by 51% from $15,609,000 in the
third quarter of last year to $23,494,000 in the third quarter of
2003.
VISX reported a 25% increase in earnings per diluted share for the
third quarter, in spite of a charge to earnings. Net income was
$4,865,000, or $0.10 per diluted share, compared with net income of
$4,469,000, or $0.08 per diluted share, in the comparable period of
the prior year.
Net income was in line with VISX guidance for the quarter, but was
impacted by a non-recurring charge of $2.3 million associated with an
accounts receivables balance with DVI Inc., a financing company that
has filed for Chapter 11 bankruptcy protection. This charge negatively
impacted the Company's earnings per diluted share by approximately
$0.03. Without this charge, VISX would have exceeded its earnings
guidance for the quarter.
Liz Davila, chairman and CEO of VISX, stated, "Our third quarter
results show the significant impact that CustomVue can have on our
revenue and earnings. In its first full quarter of introduction,
CustomVue procedures represented 39% of the $23.5 million in licensing
revenue. And at 96% gross margins, this clearly contributed to our
strong results in the quarter."
Davila continued, "Enthusiasm to adopt the CustomVue procedure is
strong. We reported a record 145 WaveScan System sales in the quarter,
beating our estimate of 115 units by a wide margin. Procedure volume
was up over the second quarter, a positive sign since the third
quarter is typically a seasonally weak quarter. We believe this
increase in volume is the result of enthusiasm by doctors and patients
for the individualized treatments that CustomVue offers, as well as
the early signs of an economic recovery."
Revenue for the nine months ended September 30, 2003, was
$105,687,000 compared with $103,784,000 for the comparable period of
the prior year. Net income was $14,439,000, or $0.28 per share, in the
first nine months of 2003 compared to net income of $16,888,000, or
$0.31 per share, in the comparable period of the prior year.
Financial Outlook:
For the fourth quarter of 2003, VISX believes that revenue will be
in the range of $37.0 to $38.0 million. Fourth quarter earnings per
diluted share are expected to increase and be in the range of $0.13 to
0.15 cents.
Organizational Announcement:
VISX also stated today that Tim Maier, executive vice-president
and chief financial officer, announced his plans to retire and will
transition his responsibilities effective March 1, 2004. The Board of
Directors has named Derek Bertocci, 49, currently vice-president and
corporate controller, to succeed Mr. Maier as chief financial officer.
Liz Davila stated, "Over the past eight years Tim has played a
critical role in shaping VISX into the company that it is today. His
dedication to VISX and commitment to excellence have made him a valued
member of our executive team. While we are truly sorry that Tim will
be leaving us, we are very fortunate to promote from within someone
with Derek's strong financial background and comprehensive
understanding of our business."
Mr. Bertocci joined VISX in 1995 as corporate controller. He was
named vice president and controller in 1998. Prior to that, he was
corporate controller for Time Warner Interactive from 1993 to 1995.
From 1987 to 1993 he was controller and assistant treasurer for Datron
Systems, Inc. Mr. Bertocci became a Certified Public Accountant in
1980. He holds a B.A. from Stanford and an MBA from USC.
Conference Call:
VISX management will discuss its third quarter results and future
business outlook on a conference call at 4:30 p.m. eastern time on
October 22, 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 608255.
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 revenue in the
fourth quarter will be in the range of $37.0 to $38.0 million, and
that EPS for the fourth quarter will be in the range of $0.13 to $0.15
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 Quarterly Reports
on Form 10Q for the quarters ended March 31, 2003 and June 30, 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, and
CustomVue and are trademarks of VISX, Incorporated.
VISX, Incorporated
Condensed Consolidated Statement of Operations
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
(Unaudited) (Unaudited)
------------------------ -----------------------
09/30/2003 09/30/2002 09/30/2003 09/30/2002
----------- ------------ ----------- -----------
System revenues $11,136 $10,216 $28,743 $32,935
Service and parts
revenues 4,638 4,735 13,709 14,669
License and other
revenues 23,494 15,609 63,235 56,180
----------- ------------ ----------- -----------
Total revenues 39,268 30,560 105,687 103,784
----------- ------------ ----------- -----------
Cost of revenues 16,335 11,539 40,549 35,463
Marketing, general and
administrative 10,538 8,831 30,846 31,675
Research, development
and regulatory 4,814 4,601 13,649 13,625
----------- ------------ ----------- -----------
Total costs and
expenses 31,687 24,971 85,044 80,763
----------- ------------ ----------- -----------
Income from
operations 7,581 5,589 20,643 23,021
Interest and other
income, net 369 1,505 3,130 4,597
----------- ------------ ----------- -----------
Income before income
taxes 7,950 7,094 23,773 27,618
Provision for income
taxes 3,085 2,625 9,334 10,730
----------- ------------ ----------- -----------
Net income $4,865 $4,469 $14,439 $16,888
=========== ============ =========== ===========
Earnings per share
Basic $0.10 $0.09 $0.29 $0.31
----------- ------------ =========== ===========
Diluted $0.10 $0.08 $0.28 $0.31
=========== ============ =========== ===========
Shares used for
earnings per share
Basic 48,065 52,483 49,816 53,620
----------- ------------ =========== ===========
Diluted 50,132 52,904 50,995 54,429
=========== ============ =========== ===========
Condensed Consolidated Balance Sheet
(In thousands)
(Unaudited)
09/30/2003 12/31/2002
----------- ------------
Cash, cash equivalents and short-term
investments $68,998 $122,955
Accounts receivable, net 24,721 24,559
Inventories 13,109 12,751
Other current assets 17,901 23,488
----------- ------------
Current assets 124,729 183,753
Property and equipment, net 7,833 6,498
Long-term deferred tax and other assets 13,413 10,341
----------- ------------
Total assets $145,975 $200,592
=========== ============
Accounts payable $4,004 $4,341
Accrued liabilities 33,924 41,061
----------- ------------
Current liabilities 37,928 45,402
Long term liabilities 219 --
Stockholders' equity 107,828 155,190
----------- ------------
Total liabilities and stockholders' equity $145,975 $200,592
=========== ============
CONTACT: VISX
Jackie Cossmon, 408-773-7600