-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Jz8IUlsK/+bRak6vUrA3VtL2imf5vN5p67IOrYGmkFhi1Vfqw0W9JJKYfINVwpoZ oqW4CUG0wYW57YmEFcqdFA== 0000891092-04-000676.txt : 20040212 0000891092-04-000676.hdr.sgml : 20040212 20040212080604 ACCESSION NUMBER: 0000891092-04-000676 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040212 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040212 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LASERSCOPE CENTRAL INDEX KEY: 0000851737 STANDARD INDUSTRIAL CLASSIFICATION: ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845] IRS NUMBER: 770049527 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-18053 FILM NUMBER: 04588305 BUSINESS ADDRESS: STREET 1: 3052 ORCHARD DR CITY: SAN JOSE STATE: CA ZIP: 95134 BUSINESS PHONE: 4089430636 8-K 1 e16910_8k.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report: FEBRUARY 12, 2004 Commission File Number: 000-18053 LASERSCOPE (Exact name of Registrant as specified in its charter) CALIFORNIA 77-0049527 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 3070 ORCHARD DRIVE SAN JOSE, CA 95134-2011 (Address of principal executive offices) (408) 943-0636 (Registrant's telephone number, including area code) NOT APPLICABLE (Former name or former address, if changed since last report) ITEM 7(c). EXHIBITS 99.1 Press release dated February 12, 2004. ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On February 12, 2004, Laserscope issued a press release announcing its financial results for the quarter and fiscal year ended December 31, 2003. A copy of the release is attached as Exhibit 99.1 and incorporated by reference herein. The information in this Form 8-K and the Exhibit attached hereto is being furnished pursuant to Item 12, Results of Operations and Financial Condition. It shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended or the Exchange Act, regardless of any general incorporation language in such filing. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. LASERSCOPE (Registrant) Date: February 12, 2004 By: /s/ Dennis LaLumandiere ------------------------------------- Dennis LaLumandiere Vice President, Finance, Chief Financial Officer and Secretary INDEX TO EXHIBITS EXHIBIT NUMBER DESCRIPTION - ------ ----------- 99.1 PRESS RELEASE DATED FEBRUARY 12, 2004. EX-99.1 3 e16910ex99_1.txt PRESS RELEASE Exhibit 99.1 Laserscope Reports 41% Increase in Fourth Quarter 2003 Revenues Fourth Quarter Highlights: * GreenLight PV fiber volumes grow 57% quarter-over-quarter * 2003 urology revenues increase 251% over 2002 * Cash balance up to $7.2 million from $4.7 million at year-end 2002 SAN JOSE, Calif., Feb. 12 /PRNewswire-FirstCall/ -- Laserscope (Nasdaq: LSCP), a pioneer in the development and commercialization of medical lasers and advanced fiber-optic devices, today reported that revenues for its fourth quarter ended December 31, 2003 increased 41% to $17.8 million from $12.7 million in the year-ago quarter. Sequentially, revenues increased 25% from $14.3 million for the quarter ended September 30, 2003. Net income was $1.5 million, or $0.07 per diluted share, compared with net income of $50,000, or break-even per diluted share, in the same quarter last year, and net income of $533,000, or $0.03 per diluted share, for the third quarter of 2003. "Our strong fourth quarter revenues were driven by the explosive growth of our urology product line and very solid domestic growth of our aesthetics products," said Eric Reuter, Laserscope's President and CEO. "We believe our results clearly demonstrate the successful execution of our growth strategy, which is to drive the rapid adoption of our innovative Photo-Selective Vaporization of the Prostate (PVP(TM)) procedure. Our GreenLight PV(TM) revenues and utilization rates continue to exceed our expectations. Total 2003 GreenLight PV revenues for the year were $15.1 million, or 26% of total revenues, compared with $4.3 million, or 10% of total revenues, in 2002." Gross margin was approximately 54%, compared with approximately 51% for the fourth quarter of fiscal 2002. Sequentially, the gross margin improved from approximately 52% for the third quarter. Selling, general and administrative expenses were $6.8 million, or 38% of net revenues, compared with $5.3 million, or 42% of net revenues, in the year-ago quarter. Increased spending in this area came primarily from higher sales and marketing expenses relating to the GreenLight PV products as well as higher direct selling expenses for domestic aesthetic products. Reuter continued, "During the quarter, we sold 39 GreenLight PV laser systems and 5,364 fibers, compared with 34 systems and 3,414 fibers in the prior quarter. This represented an approximately 57% sequential increase in fiber volume and sales were higher to all customer types. For the full year, 2003 GreenLight PV fiber shipments grew 284% over 2002's levels. Additionally, backlog increased to 19 systems at the end of the fourth quarter, compared with 12 systems at the close of the third quarter. These results continue to indicate that PVP adoption is growing at a significant pace in both our domestic and international markets." "Domestic aesthetic revenues grew 37% over the fourth quarter last year," added Reuter. "During the fourth quarter, we received FDA clearance for active acne treatment using our Aura(TM) laser system. We believe that this additional FDA clearance, along with the recent launch of our versatile Gemini(TM) aesthetic laser system, will continue to support ongoing growth in our aesthetic business domestically and internationally. We are looking forward to a very exciting 2004." The Company had no short-term bank borrowings and increased its cash position to $7.2 million at December 31, 2003 from $4.7 million at the end of 2002. Full Year 2003 Results For the year ended December 31, 2003, the Company reported revenues of $57.4 million and net income of $2.5 million, or $0.13 per diluted share, compared with revenues of $43.1 million and net income of $323,000, or $0.02 per diluted share, for the full year 2002. Update on Reimbursement In November 2003, the Company announced that the Centers for Medicare and Medicaid Services (CMS) had notified Laserscope that its application for assignment of the PVP procedure to treat Benign Prostatic Hyperplasia (BPH) had been accepted. In determining that PVP meets the new technology APC qualification criteria, CMS noted that the new code would be effective April 1, 2004. "As of today, we have not yet been informed by CMS of the level of reimbursement under the new code," stated Reuter. "As we mentioned previously, we continue to work with CMS and the American Urological Association (AUA) to ensure that the hospital outpatient and physician reimbursement rates for furnishing PVP reflect the appropriate costs of performing the procedure. We will announce the new rates as soon as they are released by CMS." Guidance The Company is updating its guidance for fiscal year 2004 and will further revise its guidance when news from CMS is released regarding the new technology APC reimbursement rate. The following is the updated guidance: * First quarter revenues are expected to be in the range of $15 - $16 million due to seasonal patterns in elective surgeries. The Company expects the seasonality to result in a sequential decrease in fiber volume. Additionally, first quarter sales and marketing expenses will include costs associated with the launch of the Gemini laser. * Expecting continued adoption of the PVP procedure to drive further sales growth of the GreenLight PV products, the Company is upwardly revising its 2004 revenue forecast to $70 million with growth increasing in the latter half of the year. * Gross margin, as a percentage of 2004 revenues, is expected to be in the range of 53% to 55%. * The Company expects to achieve 2004 net income of $0.32 - $0.34 per diluted share, higher than the $0.30 per diluted share provided previously. The Company expects the majority of earnings growth to be generated in the second half of the year. Management Conference Call Management of Laserscope will hold a conference call on Thursday, February 12, 2004, at 8:00 am PT / 11:00am ET to discuss the quarter results. To listen to the call, please dial 800-366-7449 (303-262-2193 for international callers) at least five minutes prior to the start time. Investors will have the opportunity to listen to the conference call live on the Internet through Laserscope's Web site at www.laserscope.com or CCBN at www.fulldisclosure.com. Investors should go to the Web site a few minutes early, as it may be necessary to download audio software to hear the conference call. A replay of the call will be available through February 19, 2004, by dialing 800-405-2236 (303-590-3000 for international callers), passcode 569466. A replay of the webcast will be available at Laserscope's Web site. Additional information on Laserscope including an archive of corporate press releases is also available on the Company's Web site. About Laserscope Laserscope designs, manufactures, sells and services on a worldwide basis an advanced line of medical laser systems and related energy delivery devices for the office, outpatient surgical center, and hospital markets. More information about Laserscope can be found on the Company's web site at www.laserscope.com. Except for historical information presented, the matters discussed in this announcement may contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. These risks are detailed from time to time in the Company's public disclosure filings with the U.S. Securities and Exchange Commission (SEC). Copies of Laserscope's public disclosure filings with the SEC, including the most recent Annual Report on Form 10-K and the most recent forms 10-Q are available upon request from its Investor Relations Department. For further information please contact: Eric Reuter, President & CEO, or Dennis LaLumandiere, CFO, both of Laserscope, +1-408-943-0636; or Tricia Ross, Analyst Contact, or Linda Chien, General Inquiries, both of Financial Relations Board, +1-310-407-6555, for Laserscope. Laserscope GreenLight PV(TM) Fiber Sales (Units) 2003 Q1 Q2 Q3 Q4 YTD U.S. Hospitals & Clinics 466 589 931 1,333 3,319 U.S. Mobile Service Providers 775 1,671 1,654 2,515 6,615 International Customers 165 815 829 1,516 3,325 Total 1,406 3,075 3,414 5,364 13,259 2002 Q1 Q2 Q3 Q4 Total U.S. Hospitals & Clinics 50 190 360 470 1,070 U.S. Mobile Service Providers 70 300 490 1,090 1,950 International Customers 0 70 260 100 430 Total 120 560 1,110 1,660 3,450 LASERSCOPE FINANCIAL SUMMARY (Unaudited) Condensed Consolidated Statements of Income Three months ended Twelve months ended (thousands except December 31, December 31, per share amounts) 2003 2002 2003 2002 Net revenues $17,816 $12,660 $57,427 $43,088 Cost of sales 8,251 6,256 27,639 20,834 Gross margin 9,565 6,404 29,788 22,254 Operating expenses: Research and development 1,143 947 4,443 3,837 Selling, general and administrative 6,802 5,303 22,638 17,626 7,945 6,250 27,081 21,463 Operating income 1,620 154 2,707 791 Interest income (expense) and other, net 35 (81) 12 (382) Net income before income taxes 1,655 73 2,719 409 Provision for income taxes 154 23 202 86 Net income $1,501 $50 $2,517 $323 Basic net income per share $0.08 $0.00 $0.14 $0.02 Diluted net income per share $0.07 $0.00 $0.13 $0.02 Shares used in basic per share calculations 17,946 16,700 17,452 16,441 Shares used in diluted per share calculations 22,412 18,673 21,838 18,569 Condensed Consolidated Balance Sheets December 31, December 31, (thousands) 2003 2002 Assets Current assets: Cash & cash equivalents $7,158 $4,661 Accounts receivable, net 12,614 10,287 Inventories 13,368 10,445 Other current assets 1,315 1,027 Total current assets 34,455 26,420 Property and equipment, net 1,645 1,808 Intangibles and other assets 831 935 Total assets $36,931 $29,163 Liabilities and Shareholders' Equity Current liabilities $13,733 $10,768 Convertible subordinated debentures (long-term portion) -- 2,853 Obligations under capital leases -- 60 Shareholders' equity 23,198 15,482 Total liabilities and shareholders' equity $36,931 $29,163 SOURCE Laserscope -0- 02/12/2004 /CONTACT: Eric Reuter, President & CEO, or Dennis LaLumandiere, CFO, both of Laserscope, +1-408-943-0636; or Tricia Ross, Analyst Contact, or Linda Chien, General Inquiries, both of Financial Relations Board, +1-310-407-6555, for Laserscope/ /Web site: http://www.laserscope.com / (LSCP) CO: Laserscope ST: California IN: HEA MTC BIO SU: ERN CCA MAV ERP -----END PRIVACY-ENHANCED MESSAGE-----