EX-99 2 ex99_1-f8k022805.txt PRESS RELEASE Exhibit 99.1 OPHTHALMIC IMAGING SYSTEMS OPHTHALMIC IMAGING SYSTEMS CONTACTS: GIL ALLON, CEO Ariel Shenhar, CFO 221 Lathrop Way, Suite I (916) 646-2020 SACRAMENTO, CA 95815 INVESTOR RELATIONS TODD FROMER / GARTH RUSSELL KCSA Worldwide 212-896-1215 / 212-896-1250 FOR IMMEDIATE RELEASE OPHTHALMIC IMAGING SYSTEMS ANNOUNCES RECORD FOURTH QUARTER AND YEAR-END RESULTS Company Reports 13th Consecutive Profitable Quarter SACRAMENTO, Calif., February 28, 2005 - Ophthalmic Imaging Systems (OTCBB: OISI) today reported record financial results for the fourth quarter and fiscal year ended December 31, 2004. The Company reported net revenues of $3,403,000 for the fourth quarter of 2004 compared with net revenues of $2,712,000 for the fourth quarter of 2003, an increase of 25%. Net income for the fourth quarter of 2004 climbed approximately 68% to $893,000, or $0.06 per basic and diluted share, compared with net income of $533,000, or $0.04 per basic and diluted share, for the fourth quarter of 2003. For the 2004 fiscal year, net revenues rose 9% to $10,818,000 from $9,945,000 in fiscal 2003. Net income for 2004 was $1,705,000, compared with net income of $1,438,000 for 2003, an increase of 19%. Earnings per share in 2004 were $0.12 per basic and $0.11 per diluted share versus $0.13 per basic and $0.12 per diluted share for fiscal year 2003. The decrease in earnings per share is mainly attributable to an increase of more than 31% in the weighted number of shares of common stock outstanding between the comparable 12-month periods. Gil Allon, Chief Executive Officer of the Company, commented, "We are pleased with our record 2004 results. Our performance in the fourth quarter was particularly strong, reflecting initial sales of the OIS WinStation 3200TM imaging system, and the OIS WebStationTM common software platform, released in October of 2004." "The successful launch of these two proprietary products, and the introduction of the Ophthalmology OfficeTM product line, together with NextGen Healthcare Information Systems, significantly broadened our market. Throughout the year, we increased our commitment to R&D in order to strengthen our product pipeline, while continuing to offer the most advanced eye care imaging products available. OIS achieved many of its operational and financial goals in 2004 and remains committed to expanding its growth in 2005," Mr. Allon concluded. "OIS has established a firm financial footing as it continues to expand. The Company strengthened its balance sheet mainly through solid market performance. OIS's shareholder equity ending December 31, 2004 increased to $2.4 million, compared to $26,500 for the year ended 2003. As of December 31, 2004 current assets exceed current liabilities by $1.7 million, compared to $0.6 million a year ago," stated Ariel Shenhar, Chief Financial Officer. "With the recent $9 million financing commitment from Dutchess Private Equities Fund II, we are positioned to continue investing in research and development, enhancing our product and technology platforms, and focusing on building sales momentum." * * * * C O N T I N U E D* * * * * LATHROP WAY, SUITE I SACRAMENTO, CA 95815 (800) 338-8436 (916) 646-2020 FAX (916) 646-0207 O WWW.OISI.COM A SUBSIDIARY OF MEDIVISION IN ALLIANCE WITH AGFA Ophthalmic Imaging Systems Press Release FEBRUARY 28, 2005 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 through an extensive network of dealers, distributors, and direct representatives. (Tables Follow) OPHTHALMIC IMAGING SYSTEMS SELECTED FINANCIAL DATA STATEMENT OF INCOME
Unaudited Audited Three months ended Twelve months ended December 31, December 31, ----------------------------- ----------------------------- 2004 2003 2004 2003 ------------ ------------ ------------ ------------ Net revenues $ 3,403,472 $ 2,712,305 $ 10,818,379 $ 9,944,827 Cost of sales 1,364,528 1,032,174 4,290,049 3,955,680 ------------ ------------ ------------ ------------ Gross profit 2,038,944 1,680,131 6,528,330 5,989,147 Sales and marketing 938,266 923,421 2,936,100 2,915,848 General and administrative 409,048 308,177 1,205,765 1,068,634 Research and development 267,736 225,786 987,769 702,020 ------------ ------------ ------------ ------------ Total operating expenses 1,615,050 1,457,384 5,129,634 4,686,502 ------------ ------------ ------------ ------------ Income from operations 423,894 222,747 1,398,696 1,302,645 Interest and other expense, net (88,511) (104,905) (252,100) (269,451) ------------ ------------ ------------ ------------ Net income before provision for income tax benefit 335,383 117,842 1,146,596 1,033,194 Income tax Benefit 558,000 415,500 558,000 405,000 ------------ ------------ ------------ ------------ Net income $ 893,383 $ 533,342 $ 1,704,596 $ 1,438,194 ============ ============ ============ ============ Income per basic share $ 0.06 $ 0.04 $ 0.12 $ 0.13 ============ ============ ============ ============ Shares used in the calculation of net income per basic share 15,033,585 14,370,530 14,771,112 11,267,493 ============ ============ ============ ============ Income per diluted share $ 0.06 $ 0.03 $ 0.11 $ 0.12 ============ ============ ============ ============ Shares used in the calculation of net income per diluted share 15,940,595 15,455,665 15,772,214 11,887,205 ============ ============ ============ ============
LATHROP WAY, SUITE I SACRAMENTO, CA 95815 (800) 338-8436 (916) 646-2020 FAX (916) 646-0207 O WWW.OISI.COM A SUBSIDIARY OF MEDIVISION IN ALLIANCE WITH AGFA Ophthalmic Imaging Systems Press Release FEBRUARY 28, 2005 Page 3 CONDENSED BALANCE SHEET Audited Years ended December 31, ----------------------------- 2004 2003 ------------ ------------ Assets Current assets: Cash and cash equivalents $ 1,990,310 $ 1,272,034 Accounts receivable, net 1,855,009 1,536,610 Inventories 515,391 416,420 Deferred tax asset and other current assets 1,218,393 714,653 ------------ ------------ Total current assets 5,579,103 3,939,717 ------------ ------------ Furniture and equipment, net 150,487 150,912 Receivable from related party 1,055,512 Other assets 287,929 232,821 ------------ ------------ Total assets $ 7,073,031 $ 4,323,450 ============ ============ Liabilities and stockholders' equity Current liabilities: Accounts payable $ 472,167 $ 523,539 Accrued liabilities 2,588,907 2,249,153 Notes payable-short term portion 776,338 409,613 Notes payable to related party 200,979 ------------ ------------ Total current liabilities 3,837,412 3,383,284 ------------ ------------ Line of credit 150,000 Notes payable less current portion 838,362 763,637 ------------ ------------ Total liabilities 4,675,774 4,296,921 ============ ============ Stockholders' equity: Common stock 14,502,320 13,836,188 Accumulated deficit (12,105,063) (13,809,659) ------------ ------------ Total stockholder's equity 2,397,257 26,529 ------------ ------------ Total liabilities and stockholders' equity $ 7,073,031 $ 4,323,450 ============ ============ 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. LATHROP WAY, SUITE I SACRAMENTO, CA 95815 (800) 338-8436 (916) 646-2020 FAX (916) 646-0207 O WWW.OISI.COM A SUBSIDIARY OF MEDIVISION IN ALLIANCE WITH AGFA