Lumenis' 2009 revenues down 12% to $226.1M

Lumenis Ltd., a global leader in developing, manufacturing and distributing a broad range of high-end medical lasers and sophisticated energy delivery equipment for surgical, ophthalmic and aesthetic applications, today announced its financial results for the year ended December 31, 2009 and that it has filed its 2009 annual report on Form 20-F with the U.S. Securities and Exchange Commission.

Highlights

• Revenues were $226.1 million, with steady improvement during 2009
• Gross margin of 48%, a 500 basis point increase year over year
• Non-GAAP operating income of $7.3 million; GAAP operating income of $1.7 million
• Positive cash flow from operations of $18.0 million, including a $6.6 million tax refund

"2009 was a landmark year for Lumenis, with strong improvement in our business performance despite the global recession and its severe impact on capital equipment companies. With our geographic and business diversity and strategic focus on core market segments, we believe that our revenues fared better than the industry as a whole, and that we gained share in key segments. We successfully addressed the challenges of a declining revenue environment, significantly reducing expenses and returning to profitability and positive cash flow. Lumenis also resolved all material litigation and regulatory issues, while continuously focusing on our strategic business objectives. We introduced new products and developed key markets in each of our businesses - Surgical, Ophthalmic and Aesthetic - establishing a foundation for future growth," said Dov Ofer, CEO of Lumenis.  

Financial Results Summary for Year ended December 31, 2009:

Revenues: $226.1 million, a decrease of 12% from $256.5 million in 2008.  

Gross profit: $108.1 million, with 48% gross margin, compared to $109.9 million, with 43% gross margin in 2008.

GAAP operating expenses:  $106.4 million, a reduction of 33% from $157.7 million in 2008.

Non-GAAP operating expenses:  $100.8 million, a reduction of 23% from $130.7 million in 2008.

GAAP operating income: $1.7 million compared to a loss of $47.9 million in 2008.

Non-GAAP operating income: $7.3 million compared to a loss of $20.8 million in 2008.

GAAP net income and earnings per diluted share: GAAP net income was $2.7 million compared to net loss of $44.2 million in 2008. GAAP earnings per share (on a diluted basis) were $0.01, compared to a loss of $0.23 per share in 2008.

Non-GAAP net income and earnings per diluted share: Non-GAAP net income was $3.9 million compared to net loss of $21.4 million in 2008. Non-GAAP earnings per share (on a diluted basis) were $0.02, compared to a loss of $0.11 per share in 2008.

Cash flow generated from operating activities: Operating cash flow was a positive $18.0 million, compared to negative cash flow of $30.4 million in 2008.

Cash, cash equivalents and short-term bank deposits: $41.3 million at year end 2009 compared to $20.4 million in 2008.

Outstanding principal bank debt: $107.1 million at year end 2009 compared with $117.1 million in 2008.

Business Highlights

In 2009 the Company introduced innovative technologies and products to the market, extending Lumenis brands for future growth:

• Lumenis' Surgical Business introduced:
  • the AcuPulse™ CO2 Laser with the SurgiTouch™ automation system, representing an evolution in automated CO2 laser surgery
  • the Polyscope™ flexible visualization and access system as an enabling technology for our laser delivery devices
  • Slimline™ GI fibers, the first holmium laser fiber for treatment of stones in the common bile duct  
• Lumenis' Ophthalmic Business introduced:
  • the Selecta® family of ophthalmic lasers
  • the Novus® Spectra™ Dual-Port Photocoagulator
  • the LumeProbe™ a comprehensive family of premium endo-photocoagulation laser probes
• Lumenis' Aesthetic Business launched:
  • the LightSheer® Duet™ for high-speed permanent hair reduction, reducing hair removal treatment time up to 75%, eliminating the need for topical anesthetics and vastly improving patient comfort  
  • the M22™ multi-application compact solution for light-based skin treatments combining the distinction of Lumenis technology with size and features that make it more simple and accessible
• Continued to enhance sales, marketing and service infrastructure in the emerging markets.

"Looking ahead, we plan to focus on our strength as a technology innovator, leveraging our common platform to introduce new products, expand into new applications and develop new technologies to enhance our leading industry position.  We also plan to pursue geographic expansion to take advantage of growth in emerging markets and explore external growth opportunities in order to expand the markets we serve with complementary products or technologies.  Our 2009 fiscal results clearly demonstrate our ability to simultaneously deliver strong improvements in our financial results while we develop platforms for future growth," concluded Mr. Ofer.