This excerpt taken from the EYE 8-K filed Jul 13, 2005.
Because VISXs expenses are relatively fixed in the short term, VISXs earnings will decline if it does not meet its projected sales.
VISXs operating expenses, which include sales and marketing, research and development, and general and administrative expenses, are based on VISXs expectations of future revenues and are relatively fixed in the short term. If revenues fall below expectations, VISX will not be able to reduce its spending rapidly in response to such a shortfall. Accordingly, any shortfall in revenues below expectations would likely have an immediate impact on VISXs earnings per share, which could adversely affect the market price of VISXs common stock.