Advanced Medical Optics (EYE)

Third-quarter Cataract/Implant sales grew 4.0 percent over the same period last year to $125.2 million, primarily reflecting increased demand for the company’s premium-priced refractive and aspheric monofocal IOLs, and a 0.9 percent benefit from foreign currency.  Below are highlights of the Cataract/Implant categories for the third quarter of 2006.  Growth rates reflect comparisons to the same period in 2005 and include the impacts of foreign currency.

·                  Total IOL sales rose 10.3 percent to $69.7 million, due primarily to increased demand for the company’s Tecnis® aspheric monofocal IOLs and its portfolio of refractive IOLs.  IOL sales were unfavorably impacted by the company’s planned rationalization of older-generation, lower-margin products that no longer fit its growth strategy.

·                  Third-quarter sales of Tecnis® monofocal IOLs, with a patented, wavefront-designed aspheric surface and a unique FDA claim for improved functional vision, rose more than 200 percent.

·                  Third-quarter sales of refractive IOLs were $12.7 million, up 97.7 percent from the year-ago quarter and up 6.6 percent sequentially. The company expects 2006 refractive implants to be in the range of $45 million to $50 million.  For 2007, the company forecasts refractive implant sales growth of approximately 45 percent to $70 million.

·                  Viscoelastics sales were unchanged at $30.8 million, due primarily to lost sales from discontinued product lines and pricing pressures, primarily in parts of Europe and Japan. 

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Unit sales of the company’s flagship Healon® line of viscoelastics grew approximately 5 percent.

·                  Phacoemulsification sales declined 2.3 percent to $20.1 million, due primarily to lost sales from discontinued products and lower surgical pack sales in certain Asian markets.  During the quarter, the company’s new unit placements rose 15 percent.

Cataract/implant sales during the second quarter were $134.4 million, up 5.2 percent, despite a 0.5 percent decrease related to foreign currency. The growth was due primarily to increased sales of premium-priced refractive and monofocal intraocular lenses (IOLs) and continued growth of proprietary phacoemulsification products. Below are highlights of the cataract/implant categories for the second quarter of 2006. Growth rates reflect comparisons to the same period in 2005 and include the impacts of foreign currency.

·                  IOL sales rose 11.4 percent to $75.1 million, due primarily to increased demand for the Tecnis® monofocal IOL and growth of the refractive IOL portfolio, which includes Tecnis® Multifocal, ReZoomTM and VerisyseTM lenses. Refractive IOL sales for the quarter were $11.9 million, representing a 15.8 percent increase over the first quarter of 2006 and a 153 percent increase over the year-ago quarter. Total IOL sales were unfavorably impacted by the company’s planned rationalization of older-generation, lower-margin products that no longer fit its growth strategy.

·                  Phacoemulsification sales rose 8.8 percent to $22.2 million, led by strong performance of the company’s Sovereign® and Sovereign® Compactä systems with WhiteStar® technology, and marked the 11th consecutive quarter of growth in the category. Strong sales of systems and consumable packs across all major geographic markets contributed to the quarterly results. During the quarter, the company’s new unit placements rose 26 percent, versus the year ago quarter.

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·                  Viscoelastics sales declined 5.4 percent to $32.8 million, due primarily to lost sales from discontinued product lines and reimbursement pressures in certain European markets and Japan. Unit sales of the company’s flagship Healon® viscoelastics grew approximately 5 percent.