SACRAMENTO, CA--(Marketwire - November 08, 2010) - Ophthalmic Imaging Systems (OIS) (OTCBB: OISI), a leading digital imaging, image management, Electronic Medical Records (EMR) and Practice Management (PM) company, today reported financial results for the three and nine months ended September 30, 2010, and provided an update on recent corporate developments.
For the third quarter of 2010, OIS reported record net revenue of $4.9 million, up 25% or $992,000 from net revenue of $3.9 million for the third quarter of 2009, primarily due to higher product sales. Gross margin for the three months ended September 30, 2010 was 55%, compared with 58% in the prior year period, with the decline due to product mix.
Operating expenses for the third quarter of 2010 were $3.2 million, compared with $2.1 million for the third quarter of 2009. Sales and marketing expenses increased to $1.7 million compared with $959,000 in the prior year period, with the increase primarily due to expenses to introduce and support the launch of OIS EyeScan™ in international and U.S. eye care markets.
The net loss for the third quarter of 2010 was $466,788, or $0.02 per share, compared with net income of $85,656, or $0.00 per share, for the third quarter of 2009.
"We are reporting record net revenue for the quarter and nine month period with strong growth coming from both our informatics and eye imaging businesses," said Gil Allon, Chief Executive Officer of OIS. "We continue to gain traction with our informatics solutions, due to the strength of our product and service offerings and favorable market dynamics. OIS is the only provider of a single EMR/PM, PACS and Imaging solution for ophthalmology practices, and our wholly owned subsidiary Abraxas Medical Solutions is expanding into the OB/GYN and orthopedic specialty markets with a single-platform EMR/PM and scheduling solution.
"We received a warm reception at last month's American Academy of Ophthalmology meeting to our recently launched clinical content for OIS EMR v 4.1, a CCHIT 08-approved Ambulatory EHR. We also showcased the expanded capabilities of the OIS Symphony™ with the new Web Digital Reporter module, as well as the addition of new Symphony Link partners. These offerings build on the established position of OIS Symphony as the gold standard for eye care image management systems.
"We are pleased with early acceptance of our OIS EyeScan," he added. "This is the only FDA-approved portable device that allows for scanning both the anterior and posterior of the eye. We recently added a seventh product module, which enables eye care professionals to capture retinal images without dilating a patient's eye. We believe the new module further supports our market expansion opportunity beyond U.S. ophthalmologists to the approximate 35,000 domestic optometrists and eye care professionals in international markets."
Nine Month Financial Results
For the nine months ended September 30, 2010, OIS reported record net revenue of $13.8 million, up 50% from net revenue of $9.2 million for the nine months ended September 30, 2009. The $4.6 million increase is primarily due to higher product sales. Gross margin for the nine months ended September 30, 2010 reached 57% from 53% for the first nine months in 2009, mainly due to an increase in higher-margin software revenue. Operating expenses for the nine months ended September 30, 2010 were $9.4 million, compared with $10.9 million for the comparable period last year, which included $4.4 million in impairment expense related to the debt of MediVision Medical Imaging Ltd. The net loss for the nine months ended September 30, 2010 was $1.8 million, or $0.06 per share, compared with a net loss for the nine months ended September 30, 2009 of $5.0 million, or $0.25 per share.
As of September 30, 2010, the Company had current assets of $11 million, which included $2.0 million in cash from the final installment under a June 2009 purchase agreement with U.M. AccelMed, LP completed in May 2010, and stockholders' equity of $5.9 million.
About Ophthalmic Imaging Systems
Ophthalmic Imaging Systems (www.oisi.com) is the leading provider of ophthalmic digital imaging and informatics systems. The Company designs, develops, manufactures and markets digital imaging systems, image management and integrated EMR and PM solutions for the eye care market. With more than 25 years in the ophthalmic imaging business, the Company has consistently introduced new, innovative technologies. Through its wholly owned subsidiary, Abraxas Medical Solutions, the Company provides EMR and PM software to OB/GYN, orthopedic and primary care physicians. The Company markets and supports its 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.
Ophthalmic Imaging Systems
Selected Financial Data
Condensed Consolidated Statements of Operations
Three Months Ended Nine Months Ended
September 30, September 30,
UNAUDITED UNAUDITED UNAUDITED UNAUDITED
2010 2009 2010 2009
Net Revenue $ 4,924,881 $ 3,933,183 $ 13,818,325 $ 9,241,330
Cost of Sales 2,225,807 1,654,198 6,006,508 4,337,872
----------- ----------- ------------ ------------
Gross Profit 2,699,074 2,278,985 7,811,817 4,903,458
Sales And Marketing 1,696,581 959,282 5,017,609 2,731,518
General And
Administrative 592,416 478,484 1,694,318 1,649,391
Impairment related
to the debt of
MediVision - - - 4,436,187
Research and
development 956,565 692,512 2,663,263 1,813,830
Research and
development-related
party - - - 294,014
----------- ----------- ------------ ------------
Total Operating
Expenses 3,245,562 2,130,278 9,375,190 10,924,940
----------- ----------- ------------ ------------
Loss From Operations (546,488) 148,707 (1,563,373) (6,021,482)
Other Income –
Settlement - - - 1,200,000
Interest And Other
Expense, Net 48,675 (60,681) (273,549) (200,332)
----------- ----------- ------------ ------------
Net Loss Before Income
Taxes (497,813) 88,026 (1,836,922) (5,021,814)
Income Tax Expense 12,553 (2,370) 4,019 (5,023)
----------- ----------- ------------ ------------
Net Loss (485,260) 85,656 (1,832,903) (5,026,837)
----------- ----------- ------------ ------------
Less Noncontrolling
Interest's Share (18,472) - (32,046) -
Net Loss Attributable
To Ophthalmic Imaging
Systems $ (466,788) $ 85,656 $ (1,800,857) $ (5,026,837)
=========== =========== ============ ============
Basic And Diluted
Net Loss Per Share $ (0.02) $ (0.00) $ (0.06) $ (0.25)
Shares Used In The
Calculation Of
Basic And Diluted
Net Loss Per Share 30,301,686 26,500,059 28,305,828 20,289,626
Ophthalmic Imaging Systems
Condensed Consolidated Balance Sheets
(Unaudited)
Assets September 30, 2010 December 31, 2009
------------------ ------------------
Current assets: UNAUDITED UNAUDITED
Cash and cash equivalents $ 4,789,069 $ 5,406,239
Accounts receivable, net 4,151,638 2,710,987
Inventories, net 1,831,941 991,325
Prepaid expenses and other current
assets 391,664 179,451
------------------ ------------------
Total current assets 11,164,312 9,288,002
Restricted cash - 158,213
Furniture and equipment, net of
accumulated depreciation of
$1,240,863 and $1,076,084
respectively 491,264 481,394
Capitalized imaging software, net of
accumulated amortization of $294,413
and $168,236, respectively 210,298 336,475
Capitalized software development, net
of accumulated amortization of
$671,320 and $383,612, respectively 479,511 767,220
AcerMed asset purchase, net of
accumulated amortization of $332,542
and $190,024, respectively 237,535 380,053
Goodwill 807,000 807,000
Customer relationship intangible
assets and other intangible assets,
net of accumulated amortization of
$56,727 and $11,636, respectively
632,929 680,364
Prepaid financing - 22,195
Licensing rights intangible asset, net
of accumulated amortization of
$24,779 and $0, respectively 74,334 99,112
Other assets 9,635 17,349
------------------ ------------------
Total assets $ 14,106,818 $ 13,037,377
================== ==================
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 1,360,989 $ 867,672
Accounts payable – related party - 41,847
Accrued liabilities 1,529,194 1,115,902
Deferred extended warranty revenue-
current portion 1,782,267 1,632,491
Customer deposits 423,614 561,245
Notes payable- current portion 1,665,527 34,048
------------------ ------------------
Total current liabilities 6,761,591 4,253,205
Deferred extended warranty revenue,
less current portion 270,979 247,231
Line of credit - 150,000
Notes payable, less current portion 1,202,775 2,946,179
------------------ ------------------
Total liabilities 8,235,345 7,596,615
------------------ ------------------
Commitments and contingencies
Equity
Ophthalmic Imaging Systems'
stockholders' equity:
Common stock, no par value,
100,000,000 shares authorized;
30,302,151 and 26,500,059 issued
and outstanding at September 30,
2010 and December 31, 2009,
respectively 21,715,692 20,089,592
Additional paid-in-capital 1,099,684 420,610
Accumulated deficit (17,337,027) (15,536,170)
Cumulative translation adjustment (39,319) 2,241
----------------- -----------------
Total Ophthalmic Imaging Systems'
stockholders' equity 5,439,030 4,976,273
----------------- -----------------
Noncontrolling interest 432,443 464,489
----------------- -----------------
Total equity 5,871,473 5,440,762
----------------- -----------------
Total liabilities and
stockholders' equity $ 14,106,818 $ 13,037,377
================= =================
Contacts:
Gil Allon, CEO
Ariel Shenhar, CFO
(916) 646-2020
Investor Relations
Jody Cain
Lippert/Heilshorn & Associates
(310) 691-7100
Ophthalmic Imaging Systems
221 Lathrop Way, Suite I
Sacramento, CA 95815
