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STAAR Surgical Reports First Quarter Results

  • 2002-04-30
  • Press release
MONROVIA, Calif., Apr 30, 2002 /PRNewswire-FirstCall via COMTEX/ --

Losses less than analysts' expectations despite lower revenues. Cash flow remains positive.

STAAR Surgical Company (Nasdaq: STAA) today reported results for the first quarter ended March 29, 2002. The Company continued to be cash positive and reported losses smaller than analysts expected, despite a 6% shortfall in revenues.

Revenues for the first quarter of 2002 were $11.7 million, compared to $13.0 million in the first quarter of 2001. There was a net loss for the quarter of $997,000 or $0.06 per share, versus a net loss of $230,000 or $0.01 per share for the same period a year ago. According to FirstCall, analysts' estimate of the Company's first quarter was a loss of $0.08 per share.

David Bailey, president and chief executive officer, said, "Revenues from STAAR Surgical's Intraocular Lens (IOL(TM)) declined as the cataract business continues to suffer price pressure and a loss of market share due to our short term inability to compete effectively in the three-piece segment of the market. We are encouraged, however, by sales of our new flagship products in the areas of glaucoma and refractive."

He added, "With the release of the ICL in Canada, international sales of the ICL are growing and are broadly in line with internal expectations. We expect new approvals in the near future, which will continue the international sales growth of the ICL. In fact, we are pleased to confirm Korean approval of the ICL for myopia. We received the official certificate today allowing unrestricted sale to Korea of ICLs in the range of -3.0 diopters to -20.0 diopters.

"Sales of AquaFlow glaucoma devices continue to build in the U.S. market. On April 17th we received notification from the U.S. Department of Health and Human Services that our application for pass-through reimbursement for the AquaFlow in hospitals was granted effective July 1st. This removes the final hurdle to full commercialization in the US market. These new technologies are growing steadily and are achieving the margins we need in order to provide the platform for earnings growth in the future. I am confident we will bring sales of the cataract products and specifically the IOLs in line with plan as we work to launch new products this year. These new introductions combined with the changes we are making in the salesforce structure will allow us to regain market share over the second half of 2002.

"We remain poised to become profitable as we exit the second half of 2002," Bailey said. "With the revenue shortfall in the first quarter, we are closely monitoring our revenue projections of 6 to 8 percent growth for the year. At this time we remain cautiously optimistic that we will be able to meet this projection. The Company continues to meet its cash flow objectives with $501,000 of cash generated from operations in Q1 2002 compared to $2,287,000 of cash used in operations in Q1 2001. This represents a $2.8 million turnaround in cash which was achieved despite the lower revenues."

Bailey concluded, "We expect to continue to see strong progress in our efforts to move the Company forward into 2003. This is a transition year for the Company. Our goal remains to provide the ophthalmic community with excellent products while providing shareholders with a strong return on their investment in STAAR Surgical Company."

Founded in 1982, STAAR Surgical Company develops, manufactures and globally distributes medical devices for use in refractive, cataract and glaucoma surgery. The Company's five product lines include silicone and Collamer(TM) foldable intraocular lenses and the Sonic WAVE(TM) phacoemulsification system, all of which are used during cataract surgery, the ICL(TM) (implantable contact lens) which is a refractive lens for the treatment of near- and far-sightedness and the AquaFlow(TM) Collagen Glaucoma Drainage Device. Regulatory approvals vary from market to market with all products except the Toric ICL(TM) available in Europe and all except the ICL(TM) in the United States.

An investor conference for shareholder will be held this afternoon at 1:30 p.m. Pacific, 4.30 p.m. Eastern. To access the call dial (800) 773-2261 and tell the operator you would like to listen to call 394648. A tape replay of the call will be available until Tuesday, May 8, 2001 by dialing (800) 642-1687. The conference call will also be available the Internet at, and

For additional information about STAAR Surgical, visit the Company's web site at or . You may wish to contact David Bailey, President, STAAR Surgical, or John Bily, Chief Financial Officer, STAAR Surgical, at (626) 303-7902. To contact Bill Roberts, President, CTC, Inc., or Wayne Buckhout, CTC Inc., please call (937) 434-2700

This press release contains forward-looking statements that involve risks, uncertainties and assumptions that if they never materialize or prove incorrect, could cause STAAR Surgical Company's results to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of earnings, revenue, or other financial items, any statements of the plans, strategies, and objectives of management for future operations, any statements concerning proposed new products, services or developments, any statements regarding future economic conditions or performance, statements of belief and any statements of assumptions underlying any of the foregoing. These statements are based on expectations as of the date of this press release. Actual results may differ materially from those projected because of a number of risks and uncertainties, including those detailed from time to time in STAAR Surgical Company's reports filed with the Securities and Exchange Commission. STAAR Surgical Company assumes no obligation and does not intend to update these forward-looking statements.

    STAAR Surgical Company
    Condensed Consolidated Statements of Income
    (in 000's except for per share data)

                                                     Three Months Ended
                                                 March 29,        March 30,
                                                   2002              2001
      Sales                                      $11,631           $12,903
      Royalties                                      100                98

    Total revenue                                 11,731            13,001

    Cost of goods sold                             6,019             5,179

    Gross profit                                   5,712             7,822

      General and administrative                   2,402             2,259
      Marketing and selling                        4,002             5,091
      Research and development                     1,076               818

    Total expenses:                                7,480             8,168

    Operating income (loss)                       (1,768)             (346)

    Other income (expense)                          (120)             (106)

    Income (loss) before income taxes             (1,888)             (452)

    Income tax (benefit) provision                  (932)             (266)

    Minority interest                                 41                44

    Net income (loss)                              $(997)            $(230)

    Diluted earnings per share                    $(0.06)           $(0.01)

    Shares for diluted EPS                        17,159            16,953

    STAAR Surgical Company
    Condensed Consolidated Balance Sheet
    (in 000's except for per share data)
                                                Unaudited          Audited
                                                March 29,        December 28,
                                                   2002              2001
    Current assets                               $34,460           $35,802
    Total assets                                  63,942            65,805

    Current liabilities                           17,625            18,661
    Total liabilities                             17,899            18,977
    Stockholders' equity - net                    45,614            46,446
    Total liabilities and equity                 $63,942           $65,805

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SOURCE STAAR Surgical Company

CONTACT:          David Bailey, President, or John Bily, Chief Financial Officer
                  of STAAR Surgical, +1-626-303-7902; or Bill Roberts, President, or Wayne
                  Buckhout, +1-937-434-2700, both of CTC, Inc.

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