EX-99 3 ex99_1-f8k080306.htm EX-99.1; PRESS RELEASE DATED AUGUST 3, 2006.

Exhibit 99.1

OPHTHALMIC IMAGING SYSTEMS ANNOUNCES
RECORD SECOND QUARTER RESULTS

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Net Revenues Increases 22%; Net Income Climbs 32%

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Company Reports 19th Consecutive Profitable Quarter

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SACRAMENTO, CALIF., AUGUST 3, 2006 – OPHTHALMIC IMAGING SYSTEMS (OIS) (OTCBB: OISI) TODAY REPORTED RECORD FINANCIAL RESULTS FOR THE SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2006.

For the quarter ended June 30, 2006, OIS reported an increase in net revenues of 22% to $3,817,000, compared with net revenue of $3,124,000 for the same period of 2005. Net income for the second quarter of 2006 climbed 32% to $535,000 compared with net income of $406,000 for the second quarter of 2005.

For the first six months of 2006, the Company reported net revenues of $7,468,000 compared with net revenues of $6,119,000 for the first six months of 2005, an increase of 22%.  Net income for the first six months of 2006 increased 38% to $1,020,000 compared with net income of $740,000 for the first six months of 2005.

Gil Allon, Chief Executive Officer of OIS, stated, “We are pleased by our continuing strong performance during the first half of the year. During the past two quarters, we have experienced robust growth resulting from our increased sales and marketing efforts, addressing large clients. In this period we entered several large contracts for our imaging and informatics offerings.  These contracts have been with high-profile customers, including Kaiser Permanente and Henry Ford Health Systems.  Our unique ability to meet the technological demands of such leading healthcare organizations strengthens our position as the leading provider of digital imaging systems and informatics solutions to the ophthalmology market.”

“As we continue to build our business, we constantly seek new opportunities to expand our customer reach. Recently, we signed an agreement to be the exclusive provider of new Digital Imaging Systems, Ophthalmology PACS and other ophthalmic products to the International Vision Network, the only specialty group purchasing program for ophthalmologists’ offices and ambulatory surgery centers. We are excited to have been selected to work with this elite group on a national basis and look forward to increasing our exposure among new and existing customers.”

About Ophthalmic Imaging Systems Ophthalmic Imaging Systems (www.oisi.com), 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.

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.

(TABLES FOLLOW)

OPHTHALMIC IMAGING SYSTEMS
SELECTED FINANCIAL DATA
CONDENSED STATEMENTS OF OPERATIONS

  THREE MONTHS ENDED
JUNE 30,
 SIX MONTHS ENDED
JUNE 30,
  2006
 2005
 2006
 2005
NET REVENUES   $3,817,196   $3,123,505   $7,467,890   $6,118,775  
COST OF SALES  $1,691,076   $1,352,439   $3,255,234   $2,640,699  
GROSS PROFIT  $2,126,120   $1,771,066   $4,212,656   $3,478,076  

   SALES AND MARKETING		  $806,754   $718,022   $1,651,172   $1,478,880  
   RESEARCH AND DEVELOPMENT  $396,341   $265,404   $762,248   $507,812  
   GENERAL AND ADMINISTRATIVE  $401,866   $325,636   $768,901   $638,632  
TOTAL OPERATING EXPENSES  $1,604,961   $1,309,062   $3,182,321   $2,625,324  
INCOME FROM OPERATIONS  $521,159   $462,004   $1,030,335   $852,752  
INTEREST AND OTHER EXPENSE, NET  $14,135   ($51,029 ) ($10,165 ) ($103,617 )
NET INCOME BEFORE INCOME TAXES  $535,294   $410,975   $1,020,170   $749,135  
   INCOME TAXES  ($5,024 ) ($9,024 )
NET INCOME  $535,294   $405,951   $1,020,170   $740,111  

   BASIC NET INCOME PER SHARE		  $0.03   $0.03   $0.06   $0.05  

   SHARES USED IN THE CALCULATION OF BASIC		  16,087,041   15,071,607   15,988,102   15,056,374  
   EARNINGS PER SHARE 

   DILUTED NET INCOME PER SHARE		  $0.03   $0.03   $0.06   $0.05  

   SHARES USED IN THE CALCULATION OF		  17,750,871   16,136,823   17,622,920   16,229,367  
   DILUTED EARNINGS PER SHARE 

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