Advanced Medical Reports 3Q Loss

10/25/2007 -   Advanced Medical Optics Inc., which makes ophthalmic surgical devices and eye care products, Thursday reported a loss in the third quarter, as lost sales from its contact lens solution recall offset revenue from newly acquired companies.

The company posted a loss of $25.9 million, or 43 cents per share, compared with a profit of $87.2 million, or $1.42 per share, a year ago.

Third-quarter earnings included a loss of 8 cents per share due to pretax acquisition charges and derivative losses.

Revenue rose 6 percent to $273.2 million from $258.6 million, boosted by higher sales generated from the acquisitions of IntraLase Corp. and WaveFront Sciences Inc.

The costs of the recall of the company's Complete multipurpose lens care solution offset revenue from IntraLase Corp., a corrective lens maker Advanced Medical bought in April, and from WaveFront, a provider of proprietary diagnostic systems.

Analysts polled by Thomson Financial expected a loss of 42 cents per share, on revenue of $267.3 million.

"While our third-quarter results were significantly impacted by the recall, we are pleased with continued progress of our cataract and laser vision correction businesses," said Jim Mazzo, AMO chairman, president and chief executive, in a statement.

The company said eye care product sales declined 49 percent to $42.2 million, with roughly $32.3 million in lost sales due to the recall.

Advanced Medical also reaffirmed its adjusted earnings and sales outlook for 2007 and 2008.

Shares of Advanced Medical Optics rose 91 cents, or 3.2 percent, to $29.58 in morning trade.