EX-99 2 ex99-1.txt 99.1 Exhibit 99.1 OPHTHALMIC IMAGING SYSTEMS CONTACTS: Gil Allon, CEO 221 Lathrop Way, Suite I Ariel Shenhar, CFO Sacramento, CA 95815 (916) 646-2020 INVESTOR RELATIONS: Evan Smith, CFA/Erica Pettit KCSA Worldwide 212-896-1251 / 212-896-1248 FOR IMMEDIATE RELEASE --------------------- OPHTHALMIC IMAGING SYSTEMS REPORTS 2004 THIRD QUARTER AND NINE MONTH RESULTS COMPANY REPORTS 12TH CONSECUTIVE PROFITABLE QUARTER SACRAMENTO, California, November 4, 2004. Ophthalmic Imaging Systems (the "Company") (OTCBB: OISI) today reported its financial results for the third quarter ended September 30, 2004. The Company reported net revenues of $2,615,000 for the third quarter of 2004, compared with net revenues of $2,446,000 for the third quarter of 2003, an increase of approximately 7%. The Company reported net income of $327,000, or $0.02 per basic and diluted share, for the third quarter of 2004 compared with net income of $310,000, or $0.02 per basic and diluted share, for the third quarter of 2003. For the first nine months of 2004, the Company reported net income of $811,000, or $0.06 per basic share and $0.05 per diluted share, on revenues of $7,415,000. For the first nine months of 2003, the Company reported net income of $905,000, or $0.09 per basic share and $0.08 per diluted share, on revenues of $7,233,000. The decrease in earnings per share is mainly attributable to an increase of more than 45% in the weighted number of shares of common stock outstanding between the comparable nine-month periods. Gil Allon, Chief Executive Officer of the Company, commented, "We are very pleased that during the third quarter of 2004 we have seen another consecutive quarter of profitability and, as we projected earlier in the year, our traditional growth momentum is returning. We are particularly happy that our new Ophthalmology Office(TM) product line has begun to contribute to the increase in revenues. In addition, we are pleased that we were able to increase our net income in the quarter while our R&D spending increased 13% compared to the third quarter of 2003." Mr. Allon concluded, "At the joint AAO/SOE 2004 meeting last week we unveiled two new products, OIS WinStation 3200(TM) imaging system and the OIS WebStation(TM) common software platform, which we believe will significantly contribute to our sales over the coming quarters. We are extremely pleased that the record order bookings at this event exceeded our expectations. Based on the considerable attention for these products from the professional community and the orders booked at the show, we expect to begin seeing the sales benefit of these products during the fourth quarter of this year. " * * * * * C O N T I N U E D * * * * * Ophthalmic Imaging Systems Press Release November 4, 2004 Page 2 Ophthalmic Imaging Systems, a majority-owned subsidiary of MediVision, is the leading provider of ophthalmic digital imaging systems. The Company designs, develops, manufactures and markets digital imaging systems and informatics solutions for the eye care market. With over twenty years in the ophthalmic imaging business, the Company has consistently introduced new, innovative technology. The Company, together with MediVision, co-market and support their products worldwide through an extensive network of dealers, distributors, and direct representatives. OPHTHALMIC IMAGING SYSTEMS SELECTED FINANCIAL DATA
Three months ended Nine months ended September 30, September 30, ------------- ------------- 2004 2003 2004 2003 ---- ---- ---- ---- (unaudited) (unaudited) (unaudited) (unaudited) Net revenues $ 2,614,798 $ 2,446,084 $ 7,414,907 $ 7,232,522 Cost of sales 1,053,576 986,422 2,925,522 2,923,506 -------------------------------------------------------------------------- Gross profit 1,561,222 1,459,662 4,489,385 4,309,016 Sales and marketing 641,828 661,872 1,997,834 1,992,427 General and administrative 290,912 219,126 796,716 760,457 Research and development 242,847 215,003 720,033 476,234 -------------------------------------------------------------------------- Total operating expenses 1,175,587 1,096,001 3,514,583 3,229,118 -------------------------------------------------------------------------- Income from operations 385,635 363,661 974,802 1,079,898 Interest and other expense, net (58,922) (46,077) (163,590) (164,546) -------------------------------------------------------------------------- Net income before income taxes 326,713 317,584 811,212 915,352 Income taxes -- (7,500) -- (10,500) -------------------------------------------------------------------------- Net income $ 326,713 $ 310,084 $ 811,212 $ 904,852 ========================================================================== Income per basic share $ 0.02 $ 0.02 $ 0.06 $ 0.09 ========================================================================== Shares used in the calculation of net income per basic share 14,975,014 14,354,521 14,683,620 10,233,147 ========================================================================== Income per diluted share $ 0.02 $ 0.02 $ 0.05 $ 0.08 ========================================================================== Shares used in the calculation of net income per diluted share 15,981,937 15,251,916 15,716,088 10,684,385 ==========================================================================
STATEMENTS IN THIS PRESS RELEASE WHICH ARE NOT HISTORICAL DATA ARE FORWARD-LOOKING STATEMENTS WHICH INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES, OR OTHER FACTORS NOT UNDER THE COMPANY'S CONTROL, WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE, OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM THE RESULTS, PERFORMANCE, OR OTHER EXPECTATIONS IMPLIED BY THESE FORWARD-LOOKING STATEMENTS. THESE FACTORS INCLUDE, BUT ARE NOT LIMITED TO, THOSE DETAILED IN THE COMPANY'S PERIODIC FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.