Exhibit 99.1
VISX Announces Fourth Quarter and Fiscal 2003 Earnings Results
SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 27, 2004--VISX,
INCORPORATED (NYSE:EYE) today announced financial results for the
fourth quarter and twelve months ended December 31, 2003.
Fourth quarter revenues increased 6% to $38,218,000 from
$36,142,000 for the comparable period of the prior year. Net income
was $8,812,000, or $0.17 per diluted share, in the fourth quarter of
2003 compared with a net loss of $1,546,000, or a loss of $0.03 per
share, in the comparable period of the prior year.
Revenues for the twelve months ended December 31, 2003, were
$143,905,000 compared with $139,926,000 for the comparable period of
the prior year. Net income was $23,251,000, or $0.46 per diluted
share, in the twelve months of 2003 compared with net income of
$15,342,000, or $0.29 per diluted share, in the comparable period of
the prior year. The 2002 fourth quarter and fiscal year end results
included a litigation settlement pre-tax charge of $9,000,000.
Liz Davila, chairman and CEO of VISX, stated, "Strong CustomVue
procedure conversion continued this quarter, increasing our license
and other revenue by 48% compared with last year's fourth quarter.
CustomVue represented approximately 29% of the procedures ordered in
the quarter and contributed significantly to our increase in gross
margin from 58% in last year's fourth quarter to 70% in the fourth
quarter this year. We shipped 97 WaveScan units in the fourth quarter,
bringing total shipments to 440 in 2003 and to over 700 WaveScan
placements since we began shipping the product. Our focus on
CustomVue's success resulted in incremental sales and marketing
expenses in the quarter that were more than offset by a $3,000,000
legal insurance reimbursement."
Davila continued, "For the fiscal year, VISX growth in revenue and
earnings compared to last year is directly associated with our
introduction of CustomVue procedures. As the economy continues to
improve, we believe that we will see market growth that should further
impact our financial performance. We are very pleased with our results
and believe that we will experience continued top and bottom line
growth in 2004."
2003 Highlights:
-- VISX introduced the CustomVue procedure in the U.S. in June
2003. CustomVue offers individualized treatment of vision and
has the potential to offer better vision than contacts or
glasses.
-- VISX purchased all technology related to its WaveScan product
from 20/10 Perfect Vision. WaveScan provides the diagnostic
evaluation for CustomVue procedures.
-- VISX purchased 3.5 million shares of its stock, bringing its
total purchases to 23.6 million at an average price per share
of approximately $14.98.
-- VISX generated $27 million in cash from operations in 2003 and
ended the year with a cash and equivalents balance of $86
million.
Financial Outlook:
VISX reiterated its 2004 outlook of revenue in the range of
$167,000,000 to $171,000,000 and earnings per diluted share of $0.70
to $0.74. It anticipates that first quarter 2004 revenue will increase
compared with the first quarter last year and be in the range of
$41,000,000 to $43,000,000 and earnings will increase significantly to
$0.18 to $0.20 per diluted share.
About CustomVue Laser 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 Laser System and
the CustomVue laser vision correction procedure is customized based on
the specific refractive errors of the individual. With the new
CustomVue product, ophthalmologists can correct aberrations, or
imperfections, of the eye that previously were not measured. This
means that custom technology has the potential to improve vision
beyond correction with contacts and glasses.
Conference Call:
VISX management will discuss its 2003 fourth quarter and fiscal
year end results on a conference call at 4:30 p.m. eastern time on
January 27, 2004. 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. International callers should call
719-457-0820. Enter reservation number 553508.
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 respecting that as the economy continues
to improve, we believe we will see market growth that should further
impact our financial performance, that we believe we will experience
continued top and bottom line growth in 2004, that we believe 2004
revenue will be in the range of $167,000,000 to $171,000,000 and that
2004 earnings per diluted share will be $0.70 to $0.74, that we
anticipate that first quarter 2004 revenue will increase compared with
the first quarter last year and be in the range of $41,000,000 to
$43,000,000 and that first quarter 2004 earnings will increase
significantly to $0.18 to $0.20 per diluted share, 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 intense competition in the laser vision correction
industry could result in the loss of customers, an inability to
attract new customers, or a decrease in prices for our products, that
we face risks due to our reliance on sales in international markets,
that we are subject to extensive governmental regulation, which
increases our costs and could prevent us from selling our products,
that the possibility of long-term side effects and adverse publicity
regarding laser correction surgery could seriously harm our business,
that we have and may become subject to product liability claims, that
adverse economic conditions may cause our revenues to decline, and
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 Report on Form 10Q for the quarter ended September 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 STAR, VISX WaveScan, WaveScan, and
CustomVue are trademarks of VISX, Incorporated.
VISX, Incorporated
Condensed Consolidated Statement of Operations
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
----------------------- -----------------------
12/31/2003 12/31/2002 12/31/2003 12/31/2002
----------- ----------- ----------- -----------
System revenues $9,505 $15,660 $38,248 $48,595
Service and parts
revenues 4,597 4,138 18,306 18,807
License and other
revenues 24,116 16,344 87,351 72,524
----------- ----------- ----------- -----------
Total revenues 38,218 36,142 143,905 139,926
----------- ----------- ----------- -----------
Cost of revenues 11,521 15,342 52,070 50,805
Marketing, general and
administrative 7,737 10,862 38,583 42,537
Research, development
and regulatory 4,998 5,089 18,647 18,714
----------- ----------- ----------- -----------
Total costs and
expenses 24,256 31,293 109,300 112,056
----------- ----------- ----------- -----------
Income from
operations 13,962 4,849 34,605 27,870
Interest and other
income, net 322 1,014 3,452 5,611
Litigation settlements -- (9,000) -- (9,000)
----------- ----------- ----------- -----------
Income (loss)
before provision
(benefit) income
taxes 14,284 (3,137) 38,057 24,481
Provision (benefit) for
income taxes 5,472 (1,591) 14,806 9,139
----------- ----------- ----------- -----------
Net income (loss) $8,812 $(1,546) $23,251 $15,342
=========== =========== =========== ===========
Earnings per share
Basic $0.18 $(0.03) $0.47 $0.29
----------- ----------- =========== ===========
Diluted $0.17 $(0.03) $0.46 $0.29
=========== =========== =========== ===========
Shares used for
earnings per share
Basic 48,448 51,541 49,471 53,096
----------- ----------- =========== ===========
Diluted 50,716 51,541 50,937 53,816
=========== =========== =========== ===========
Condensed Consolidated Balance Sheet
(In thousands)
12/31/2003 12/31/2002
------------ ------------
Cash, cash equivalents
and short-term
investments $86,076 $122,955
Accounts receivable,
net 27,432 24,559
Inventories 11,219 12,751
Other current assets 17,250 23,488
------------ ------------
Current assets 141,977 183,753
Property and equipment,
net 9,306 6,498
Long-term deferred tax
and other assets 12,680 10,341
------------ ------------
Total assets $163,963 $200,592
============ ============
Accounts payable $3,442 $4,341
Accrued liabilities 34,722 41,061
------------ ------------
Current
liabilities 38,164 45,402
Stockholders' equity 125,799 155,190
------------ ------------
Total liabilities
and stockholders'
equity $163,963 $200,592
============ ============
CONTACT: VISX
Jackie Cossmon, 408-773-7600