Advanced Medical Optics (EYE)

Full-Year 2007 Results

AMO’s net sales for 2007 rose 9.4% to $1,090.8 million. The rise reflects the IntraLase and WaveFront Sciences acquisitions, organic growth in cataract/implant and laser vision corrections sales and a 2.9% increase related to foreign currency, which were partially offset by recall-related declines in eye care sales. AMO reported a GAAP net loss for 2007 of $192.9 million, or a net loss of $3.22 per share. The per share loss was increased by an estimated $2.26 due to an $87.0 million charge for in-process R&D, approximately $38.2 million in transaction-related charges, a $1.3 million deferred financing cost write-off, a $6.1 million loss on derivative instruments and an estimated $2.8 million tax effect related to the above items.

AMO Announces Fourth-Quarter and Full Year 2007 Results – 3

In 2006, the company reported GAAP net income of $79.5 million, or $1.21 per diluted share, which included a $96.9 million pre-tax gain on settlement of legal matters and pre-tax net charges of $89.4 million related primarily to business repositioning initiatives, inventory provisions, charges related to discontinued products, note repurchases, an unrealized loss on derivative instruments, and an estimated $13.4 million tax effect related to the above items. These gains and charges combined to reduce 2006 GAAP EPS by $0.09.