This excerpt taken from the EYE 8-K filed Apr 27, 2006.
Company Reaffirms Guidance
(SANTA ANA, CA), April 27, 2006 Advanced Medical Optics, Inc. (AMO) [NYSE: EYE], a global leader in ophthalmic surgical devices and eye care products, today announced financial results for the first quarter of 2006.
The company reported sales of $238.2 million, a 23.7 percent increase compared to the same quarter last year, including a 4.9 percent decrease related to foreign currency. The rise reflects the May 2005 acquisition of VISX, Incorporated, as well as growth in sales of AMOs technologically advanced products. First-quarter sales were unfavorably impacted by the planned rationalization of non-strategic eye care and cataract products, and lower sales in the eye care business.
AMO reported first-quarter 2006 net income of $2.6 million, or $0.04 per share, including a $0.04 per share impact associated with stock-based compensation expense now being recognized under Statement of Financial Accounting Standards No. 123R (FAS123R) issued by the Financial Accounting Standards Board. During the first quarter, the company recorded pre-tax net charges of $35.2 million, including $3.2 million for inventory provisions and other manufacturing charges associated with discontinued products, $29.3 million related to its current business repositioning initiatives, $2.3 million in other write-offs and $0.4 million in an unrealized loss on derivative instruments. The after-tax impact of the net charges reduced earnings per share by $0.34. In the first quarter of 2005, the company reported net earnings of $13.8 million, or $0.35 per share, including a $0.01 per share unrealized gain on derivative instruments.
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AMOs strategy is to serve the full range of refractive vision care with differentiated technologies delivered through an efficient global infrastructure, said James V. Mazzo, president and chief executive officer. Our first-quarter results confirm that this strategy is working and allowing us to deliver sustained growth to shareholders. During the quarter, we experienced strong demand for our core brands, especially in our cataract/implant and laser vision correction businesses. We also moved closer to completing the accelerated rationalization and repositioning initiatives designed to improve our competitiveness, operating efficiency and growth potential. Finally, we delivered margin expansion that demonstrates the earnings power were creating for AMO.