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Originally Published MX March/April 2008 COVER STORY
By the Numbers
In 2007, net sales at Advanced Medical Optics Inc. (AMO; Santa Ana, CA) rose 9.4% to $1.09 billion. The company reports that these increases reflect its recent IntraLase and WaveFront Sciences acquisitions; organic growth in cataract, implant, and laser vision corrections sales; and a 2.9% increase related to foreign currency. These growth drivers were partly offset during the year by recall-related declines in eye care sales.
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(click to enlarge) Annual revenue for Advanced Medical Optics Inc. (Santa Ana, CA) by business unit, 2005–2007.
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In announcing its year-end results, AMO also lowered its guidance for 2008, from between $1.23 billion and $1.25 billion to between $1.22 billion and $1.24 billion. AMO’s revised guidance for 2008 assumes a decline in its 2008 U.S. excimer procedures of about 10%, compared with its prior expectation of about 6% growth. The company’s revised guidance also assumes a more modest rate of growth for its U.S. femtosecond procedure and refractive intraocular lens sales than previously expected.
Following the earnings announcement, analysts acknowledged that the lowered guidance had been expected. However, several called the revised guidance “extremely conservative” and expressed optimism that certain market slowdowns would not be as severe as AMO forecasts.
During its year-end earnings call, AMO also announced plans to reduce its fixed costs through a net workforce reduction of about 4% and through consolidation of certain operations to improve facility utilization. Upon full implementation, the company expects these actions to result in annual savings of approximately $10 million to $12 million.
Copyright ©2008 MX
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