Advanced Medical Optics (EYE)

Cataract/implant sales grew 4.4 percent versus 2005 to $519.0 million, reflecting increased demand for AMO’s premium IOLs and proprietary phacoemulsification systems.  Fourth-quarter cataract/implant sales rose 5.0 percent.  The impact of foreign currency caused a 0.2 percent decline for 2006 and a 3.3 percent increase for the fourth quarter.  Below are cataract/implant sales highlights.  Growth rates reflect comparisons to the same period in 2005 and include the impacts of foreign currency.

·              Total IOL sales rose 11.9 percent to $291.5 million, due primarily to increased demand for the company’s Tecnis® aspheric monofocal and refractive IOLs.  In the fourth quarter, IOL sales rose 15.2 percent to $79.6 million.  Partially offsetting IOL sales growth was the company’s planned rationalization of older-generation, lower-margin products that no longer fit its growth strategy.

·                  Monofocal IOL sales rose 2.2 percent for the year and 8.2 percent in the fourth quarter to $242.3 million and $65.2 million, respectively.  Fueling this performance were significant sales increases of Tecnis® monofocal IOLs, with its patented, wavefront-designed aspheric surface and a unique FDA claim for improved functional vision.

·                  Sales of refractive IOLs rose 108.6 percent to $49.2 million, reflecting demand for the company’s ReZoomTM Multifocal, Tecnis® Multifocal and VerisyseTM IOLs.  Momentum was strong through the fourth quarter, when sales grew to $14.4 million, representing a 62.4 percent increase versus the year-ago quarter and a 13.6 percent increase versus the third quarter of 2006.

·                  Viscoelastics sales declined 6.1 percent to $123.1 million, with fourth-quarter sales down 7.8 percent to $30.6 million.  The decline reflects lost sales from discontinued product lines and continued pricing pressures in Europe and Japan.

·                  Phacoemulsification sales rose 5.7 percent to $87.6 million, with fourth-quarter sales up 3.6 percent to $23.9 million.  Performance reflects strong system and pack sales.  New unit placements rose approximately 21 percent and 13 percent for the year and fourth quarter, respectively.