Ophthalmic Imaging Systems Inc.

Ophthalmic Imaging Systems Announces Second Quarter 2009 Results

Monday 17 August 2009

 
OPHTHALMIC IMAGING SYSTEMS
CONTACTS:   
Gil Allon, CEO
221 Lathrop Way, Suite I
Ariel Shenhar, CFO
Sacramento, CA 95815
(916) 646-2020
 
INVESTOR RELATIONS        
Todd Fromer / Garth Russell
                               KCSA Strategic Communications
                                                    212-896-1215 / 212-896-1250
 
 
Ophthalmic Imaging Systems Announces Second Quarter 2009 Results
SACRAMENTO, Calif.-- Ophthalmic Imaging Systems (OIS) (OTCBB:OISI), a leading digital imaging, image management and EMR company today reported its financial results for the three and six month periods ended June 30, 2009 and provided an update on recent corporate developments.
For the three months ended June 30, 2009, OIS reported net revenues of $2.9 million compared with net revenues of $3.2 million for the same period in 2008. The decrease in revenues is due to a decline in product sales of approximately $425,000, which was offset by an increase in service revenue of approximately $160,000.
Net loss for the quarter ended June 30, 2009 was $(4.0) million, or $(0.23) per basic and diluted share, compared with net loss of $(0.4) million, or $(0.02) per basic and diluted share, respectively, for the same period in 2008. The increase in net loss is mainly attributable to the reserve for impairment for debt related to MediVision, including notes receivable, prepaid products and exclusivity rights of $4.4 million, and the amortization of research and development from the past of $185,000, which was partially offset by the settlement income received of $1.2 million.
For the six months ended June 30, 2009, OIS reported net revenues of $5.3 million, compared with net revenues of $6.3 million for the same period in 2008. The decrease in revenues is due to a decline in product sales of approximately $1.2 million, which was partially offset by an increase in service revenue of approximately $155,000.
Net loss for the six months ended June 30, 2009 was $(5.1) million, or $(0.30) per basic and diluted share, compared with net loss of $(0.7) million, or $(0.04) per basic and diluted share, respectively, for the same period in 2008. The increase in net loss is mainly attributable to the reserve for impairment for debt related to MediVision, including notes receivable, prepaid products and exclusivity rights of $4.4 million, and the amortization of research and development from the past of $371,000, which was partially offset by the settlement income received of $1.2 million.
As of June 30, 2009, the Company reported $5.5 million in cash and cash equivalents and $5.4 million in total shareholders’ equity.
“During the second quarter we accomplished several key milestones in terms of our long term strategy. However, the progress we have made is not fully reflected in our financial results as we continue to face a tough economic climate. In order to help offset some of the impact the economy has had on our business we have implemented cost cutting measures in certain areas,” stated Gil Allon, Chief Executive Officer of OIS. “Sales of OIS EMR and PM solutions and Abraxas EMR and PM solutions increased measurably in the quarter ended June 30, 2009, helping offset a decline in OIS WinStation product sales, which have been affected by the economy and changes in our market. As we have discussed previously, our EMR and PM solutions addresses a multi billion dollar market and offer a significant opportunity for growth in the future. Feedback from initial customers has been overwhelmingly positive since the initial EMR and PM solutions were launched approximately 8 months ago. Also, we just received CCHIT certification for our OIS EMR Version 4.1, which is OIS’s ophthalmology EMR solution based on Abraxas’s platform technology.”
“In order to fund our EMR and PM operations to a point where we believe they will be self sustainable, we raised approximately $4 million via a private placement with an additional $2 million due in mid-2010 based on the Company meeting specific milestones. We believe this additional capital will give us the necessary flexibility to effectively market our EMR and PM solutions through Abraxas and OIS,” continued Mr. Allon.
Mr. Allon concluded, “In addition, as we previously announced, we have entered an asset purchase agreement with MediVision Medical Imaging. By acquiring the majority of MediVision’s assets, we will be able to consolidate our R&D needs within our organization as opposed to outsourcing to MediVision, acquire MediVision’s pipeline of products, and streamline our distribution structure in Europe by acquiring 63% of CCS; MediVision's subsidiary in Germany. As a result of this agreement our second quarter results reflect the reserve for impairment for the debt related to MediVision, including notes receivable, prepaid products and exclusivity rights of $4.4 million. This impairment has drastically impacted our bottom line for the quarter and six month periods ended June 30, 2009.”
About Ophthalmic Imaging Systems
Ophthalmic Imaging Systems (www.oisi.com), is the leading provider of ophthalmic digital imaging systems. The Company designs, develops, manufactures and markets digital imaging systems and informatics solutions for the eye care market. With over twenty years in the ophthalmic imaging business, the Company has consistently introduced new, innovative technology. Through OIS’ wholly-owned subsidiary, Abraxas Medical Solutions, the company provides Electronic Medical Records and Practice Management software to Ophthalmology as well as OB/GYN, Orthopedic and Primary care. The Company, together with one of its major shareholder MediVision Medical Imaging, co-markets and supports our products through an extensive network of dealers, distributors, and direct representatives.
OIS is a registered member Company listed on www.OTCVillage.com.
Statements in this press release which are not historical data are forward-looking statements which involve known and unknown risks, uncertainties, or other factors not under the Company's control, which may cause actual results, performance, or achievements of the Company to be materially different from the results, performance, or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the Company's periodic filings with the Securities and Exchange Commission.
Ophthalmic Imaging Systems
Selected Financial Data
Condensed Consolidated Statements of Operations
 
 
 
 
 
 
 
 
 
THREE MONTHS ENDED
 
SIX MONTHS ENDED
 
 
 
JUNE 30,
 
JUNE 30,
 
 
 
2009
 
2008
 
2009
 
2008
NET REVENUES
 
$
2,898,616
 
 
$
3,162,998
 
 
$
5,308,147
 
 
$
6,310,689
 
COST OF SALES
 
$
1,413,210
 
 
$
1,480,976
 
 
$
2,683,674
 
 
$
3,024,808
 
GROSS PROFIT
 
$
1,485,406
 
 
$
1,682,022
 
 
$
2,624,473
 
 
$
3,285,881
 
 
 
 
 
 
 
 
 
 
 
 
SALES AND MARKETING
 
$
868,080
 
 
$
1,000,534
 
 
$
1,772,236
 
 
$
1,944,543
 
 
RESEARCH AND DEVELOPMENT
 
$
629,558
 
 
$
537,378
 
 
$
1,415,332
 
 
$
974,355
 
 
GENERAL AND ADMINISTRATIVE
 
$
659,884
 
 
$
562,000
 
 
$
1,170,907
 
 
$
1,085,015
 
 
 
IMPAIRMENT RELATED TO DEBT OF MEDIVISION
 
$
4,436,187
 
 
 
-
 
 
$
4,436,187
 
 
 
-
 
 
TOTAL OPERATING EXPENSES
 
$
6,593,709
 
 
$
2,099,912
 
 
$
8,794,662
 
 
$
4,003,913
 
LOSS FROM OPERATIONS
 
 
($5,108,303
)
 
 
($417,890
)
 
 
($6,170,189
)
 
 
($718,032
)
OTHER INCOME – SETTLEMENT
 
 
1,200,000
 
 
 
-
 
 
 
1,200,000
 
 
 
INTEREST AND OTHER EXPENSE, NET
 
 
($95,741
)
 
$
22,322
 
 
 
($139,651
)
 
 
($10,901
)
NET LOSS BEFORE INCOME TAXES
 
 
($4,004,044
)
 
 
($395,568
)
 
 
($5,109,840
)
 
 
($728,933
)
 
INCOME TAX EXPENSE
 
 
($500
)
 
$
2,423
 
 
 
($2,653
)
 
$
1,137
 
NET LOSS
 
 
($4,004,544
)
 
 
($393,145
)
 
 
($5,112,493
)
 
 
($727,796
)
 
 
 
 
 
 
 
 
 
 
 
BASIC AND DILUTED NET LOSS PER SHARE
 
 
($0.23
)
 
 
($0.02
)
 
 
($0.30
)
 
 
($0.04
)
 
 
 
 
 
 
 
 
 
 
 
SHARES USED IN THE CALCULATION OF BASIC AND DILUTED NET LOSS PER SHARE
 
 
17,501,989
 
 
 
16,866,831
 
 
 
17,184,410
 
 
 
16,866,831