SOURCE: Ophthalmic Imaging Systems

Ophthalmic Imaging Systems

May 13, 2011 20:00 ET

Ophthalmic Imaging Systems Reports First Quarter Financial Results

Announces Appointment of Full-Time Abraxas Medical Systems CEO

SACRAMENTO, CA--(Marketwire - May 13, 2011) - Ophthalmic Imaging Systems (OIS) (OTCBB: OISI), a leading digital imaging, image management, Electronic Medical Records (EMR) and Practice Management (PM) company, today reported financial results for the three months ended March 31, 2011, and provided an update on recent corporate developments.

For the first quarter of 2011, OIS reported net revenue of $3.5 million, compared with net revenue of $4.1 million for the first quarter of 2010. Lower product sales in the 2011 quarter are attributable primarily to the introduction of improved software in March for the OIS EyeScan™, which delayed product sales for two months during the quarter, and lower EMR/PM product sales due to a shift of focus and priorities at OIS' wholly owned subsidiary Abraxas Medical Systems, following the appointment of a full-time Chief Executive Officer.

Operating expenses for the first quarter of 2011 were $3.2 million, compared with $2.9 million for the first quarter of 2010. Sales and marketing expenses increased to $1.7 million, compared with $1.5 million in the prior year period, with the increase primarily due to an increase in the sales force at OIS and Abraxas.

Net loss for the first quarter of 2011 was $1.5 million, or $0.05 per share, compared with net loss of $1.5 million, or $0.06 per share, for the first quarter of 2010.

"We are reporting important recent developments aimed at supporting growth and improving our position in both the informatics solutions and ophthalmic digital imaging markets," said Gil Allon, Chief Executive Officer of OIS. "To better capitalize on favorable market dynamics in the informatics solutions market, we appointed Garret Erskine as full-time Chief Executive Officer of Abraxas. Garret is a seasoned professional with more than 20 years in healthcare IT experience. He brings Abraxas proven leadership, revenue building and operational efficiency abilities, and first-hand knowledge of the EMR solutions market. We thank our Chief Financial Officer Ariel Shenhar who had taken on the additional responsibility of leading Abraxas since inception in January 2008. With Garret's appointment, Ariel will be able to place additional focus on overseeing our financial operations during this critical time when we see prospects for significant growth.

"We also introduced improved software for the OIS EyeScan toward the end of March, which delayed product sales for two months during the quarter. Our ultraportable, modular EyeScan imaging device has capabilities to capture images of both the anterior and posterior of the eye, opening new marketing opportunities in international markets as well as within the domestic optometry market. With the introduction of the new software, we believe sales of the OIS EyeScan are now back on track."

"We increased our investment in sales and marketing activities, primarily in the U.S. market," he added. "Our sales function is separated into teams with one team solely focused on selling the OIS EyeScan, another selling Abraxas EMR and PM systems to the non-ophthalmic markets and the third selling all other product lines, including our other ophthalmic digital imaging product and OIS EMR and PM solutions, to the eye-care market. We believe this strategy and our investment will support future revenue increases."

About Ophthalmic Imaging Systems
Ophthalmic Imaging Systems (www.oisi.com) is the leading provider of ophthalmic digital imaging and informatics systems. The Company designs, develops, manufactures and markets digital imaging systems, image management and integrated EMR and PM solutions for the eye care market. With more than 25 years in the ophthalmic imaging business, the Company has consistently introduced new, innovative technologies. Through its wholly owned subsidiary, Abraxas Medical Solutions, the Company provides EMR and PM software to OB/GYN, orthopedic and primary care physicians. Both OIS EMR Version 4.1.7 and Abraxas EMR Version 4.1.7 are 2011/2012 compliant and have been certified as Complete EHR by the Certification Commission for Health Information Technology (CCHIT®), an ONCATCB, in accordance with the applicable ELIGIBLE PROVIDER certification criteria adopted by the Secretary of Health and Human Services. The 2011/2012 criteria support the Stage 1 meaningful use measures required to qualify eligible providers and hospitals for funding under the American Recovery and Reinvestment Act (ARRA). The Company markets and supports its products through an extensive network of dealers, distributors and direct representatives.

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
March 31,
UNAUDITEDUNAUDITED
20112010
Net Revenue$3,463,940$4,133,315
Cost of Sales2,071,8451,866,753
Gross Profit1,392,0952,266,562
Sales And Marketing1,716,8211,544,594
General And Administrative618,889516,879
Research and development849,406844,198
Total Operating Expenses3,185,1162,905,671
Loss From Operations(1,793,021)(639,109)
Interest And Other Income (Expense), Net253,933(879,981)
Net Loss Before Income Taxes(1,539,088)(1,519,090)
Income Tax (Expense) Benefit(12,862)12,876
Net Loss(1,551,950)(1,506,214)

Less Noncontrolling Interest's Share
9,64711,224

Net Loss Attributable To Ophthalmic Imaging Systems
(1,542,303)(1,494,990)
Basic And Diluted Net Loss Per Share($0.05)($0.06)
Shares Used In The Calculation Of Basic And Diluted Net Loss Per Share30,304,15126,518,618
Ophthalmic Imaging Systems
Condensed Consolidated Balance Sheets
(Unaudited)
March 31,December 31,
Assets20112010
Current assets:UNAUDITEDUNAUDITED
Cash and cash equivalents$2,795,627$3,905,910
Accounts receivable, net3,688,3354,088,269
Inventories, net1,635,9961,757,873
Prepaid expenses and other current assets495,063357,380
Total current assets8,615,02110,109,432
Furniture and equipment, net of accumulated depreciation of $986,598 and $934,371 respectively458,035470,717
Capitalized imaging software, net of accumulated amortization of $378,531 and $336,472, respectively126,180168,239
Capitalized software development, net of accumulated amortization of $863,127 and $767,224, respectively287,704383,607
AcerMed asset purchase, net of accumulated amortization of $427,554 and $380,048, respectively142,523190,029
Goodwill807,000807,000
Customer relationship intangible assets and other intangible assets, net of accumulated amortization of $98,512 and $81,137, respectively394,488411,863
Licensing rights intangible asset, net of accumulated amortization of $41,297 and $33,037, respectively57,81566,075
Other assets32,73812,524
Total assets$10,921,504$12,619,486
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable$934,087$1,256,515
Accrued liabilities1,421,4161,709,616
Derivative liability financial instruments1,369,1821,698,416
Deferred extended warranty revenue-current portion1,978,0941,722,235
Customer deposits276,670312,731
Notes payable-current portion1,470,8971,518,099
Total current liabilities7,450,3468,217,612
Deferred extended warranty revenue, less current portion252,346251,785
Notes payable, less current portion1,807,7731,301,523
Total liabilities9,510,4659,770,920
Commitments and contingencies
Equity
Ophthalmic Imaging Systems' stockholders' equity:
Preferred stock, 20,000,000 shares authorized; 0 shares issued and outstanding at March 31, 2011 and December 31, 2010, respectively
Common stock, no par value, 100,000,000 shares authorized; 30,304,151 and 30,304,151 issued and outstanding at March 31, 2011 and December 31, 2010, respectively21,722,55021,708,743
Additional paid-in-capital139,09565,544
Accumulated deficit(20,826,730)(19,284,427)
Cumulative translation adjustment(31,303)(58,368)
Total Ophthalmic Imaging Systems' stockholders' equity1,003,6122,431,492
Noncontrolling interest407,427417,074
Total equity1,411,0392,848,566
Total liabilities and stockholders' equity$10,921,504$12,619,486

Contact Information

  • Contacts:

    Gil Allon
    CEO
    Ariel Shenhar
    CFO
    (916) 646-2020

    INVESTOR RELATIONS
    Jody Cain
    Lippert/Heilshorn & Associates
    (310) 691-7100

    Ophthalmic Imaging Systems
    221 Lathrop Way, Suite I
    Sacramento, CA 95815