EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1 exhibit_99-1.htm


Exhibit 99.1
 


Lumenis Ltd.Reports Full Year 2010 Financial Results

A year of Profitable Growth and Positive Cash Flow

Yokneam, Israel, March 30, 2011–Lumenis Ltd., the world's largest medical laser company developing, manufacturing and distributing a broad range of high-end medical lasers and sophisticated energy delivery equipment for surgical, ophthalmic and aesthetic applications, announced its financial results for the year ended December 31, 2010.

Highlights
 
·
Revenues of $237.7 million, up 5% from $226.1 million in 2009
 
·
GAAP operating income of $12.1 million, an increase of 613% compared to $1.7 million in 2009
 
·
Non-GAAP operating income of $11.1 million, up 39% from $8.0 million in 2009
 
·
Positive cash flow from operations of $15.3 million, including $3.3 million in legal settlements
 
“During 2010, we continued our positive momentum.  Lumenis’ revenues and profits continued to grow and we generated strong positive cash flow from operations. We are proud to be, once again, at the forefront of medical laser innovation by introducing significant new products to our robust portfolio. The Company achieved double digit growth in Latin America, China and India as we continued to aggressively invest in our infrastructure to expand our presence in the emerging markets,” said Mr. Dov Ofer, CEO of Lumenis.

Financial Results Summary for Year ended December 31, 2010:
 
Revenues: $237.7 million, an increase of 5% from $226.1 million in 2009.
 
Gross profit: $113.1 million, with 48% gross margin, compared to $108.0 million, with 48% gross margin, in 2009.
 
GAAP operating expenses: $101.0 million, a reduction of 5% from $106.4 million in 2009.
 
Non-GAAP operating expenses: $102.0 million, an increase of 2% from $100.1 million in 2009.
 
GAAP operating income: $12.1 million, an increase of 613% from $1.7 million in 2009.
 
Non-GAAP operating income: $11.1 million, up 39%from $8.0 million in 2009.
 
   
 
 
 

 
 
GAAP net income: $5.7 million, up 114%  from $2.7 million in 2009.
 
Non-GAAP net income: $6.0 million, up 32% from $4.5 million in 2009.
 
Cash flow generated from operating activities: Operating cash flow was a positive $15.3 million, including $3.3 million in proceeds from legal settlements, net of associated legal costs, compared to $18.0 million in 2009, which included a $6.6 million tax refund.
 
Cash, cash equivalents, short and long term bank deposit: $46.9 million at year end 2010, compared to $41.3 million in 2009.
 
Long-term outstanding bank debt: $99.0 million at year end 2010, compared with $107.0 million in 2009.
 
Business Highlights 2010:
 
During 2010 the Company introduced a number of significant new products and applications, addressing our customers’ needs in the core markets we serve, and targeting new procedures which we will continue to develop in the coming years.
 
·
The M22 multi-application platform was launched to deliver a wide range of alternatives that physicians need with proven treatment results in photo-rejuvenation, permanent hair reduction, age spot reduction and vein erasure.
 
·
The VersaPulse P20 compact portable laser systemoptimized for stone and soft tissue treatments is tailored to physicians’ offices and small office operating environments.  It combines mobility and versatility with the proven performance of the VersaPulse® PowerSuite™ 20W that it replaced.
 
·
The Lumenis AcuPulse 40WG CO2 laser and Fiberlase products bring new technologies to existing markets, and are unique among CO2 waveguide systems, combining performance and flexibility. This technology results in faster treatment time with more precise and consistent tissue effect, and open a wide range of potential applications that Lumenis intends to develop in the coming years.
 
·
The Lumenis’ InSight™ represents the latest in retina therapy and laser delivery technology, offering “diagnose and treat” precision at the physician's fingertips.  The system was designed to elevate performance and accuracy to new levels, allowing doctors to customize each treatment through out each procedure.
 
“We also entered into a number of new distribution alliances worldwide, including a co-marketing agreement in the US with Boston Scientific for the exclusive distribution of Lumenis’ products in the GI space. We will continue to pursue additional strategic initiatives, including investigating non-organic growth opportunities, while continuing our internal product innovation and expanding our worldwide sales and distribution network,” concluded Mr. Ofer.
 
   
 
 
 

 

 
Use of Non-GAAP Financial Information
 
In addition to reporting financial results in accordance with United States generally accepted accounting principles, or GAAP, Lumenis uses non-GAAP measures of operating income, net income and earnings per share, which consist of GAAP financial measures adjusted to exclude share-based compensation charges, amortization of acquired intangible assets, restructuring and related charges, legal settlements net of associated legal costs, and a one-time tax benefit related to an Israeli Tax Authority settlement. Lumenis’ management believes the non-GAAP financial information provided in this release is useful to investors’ understanding and assessment of Lumenis’ ongoing core operating results. Our management regularly uses the non-GAAP measures in planning, forecasting, understanding and evaluating the business and decision making. We believe that these financial non-GAAP measures are useful for the investor as ameasure of the ongoing performance of Lumenis’ business. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release.
 
Availability of Form 20-F
Lumenis’ annual report on Form 20-F for the year ended December 31, 2010 is available from the Securities and Exchange Commission’s website at www.sec.gov as well as under the Investor Relations section of Lumenis’ website at www.lumenis.com. Shareholders may receive a hard copy of the report free of charge upon request.
 
About Lumenis
Lumenis, the world's largest medical laser company, is a global developer, manufacturer and distributor of laser and light-based devices for surgical, ophthalmic and aesthetic applications, with more than 800 employees worldwide. Lumenis has 270 registered patents, over 260 FDA clearances, an installed base of over 30,000 systems and a presence in over 100 countries. Lumenis endeavors to bring the finest state of the art technology products to the market, fulfilling the highest standards of excellence, quality and reliability, delivering premium value and service to its customers. The name Lumenis is derived from the Latin words meaning "Light of Life" highlighting the light, which is the basis of our technologies, used to enhance life. For more information about Lumenis and its products, please visit:www.lumenis.com.
 
For further information contact:
Aviram Steinhart
Michelle Maydan
Senior Vice President & CFO
Director Corporate Communications
Tel: 972-4-9599333
Tel:+972-4-9599004; 1-866-569-0597
aviram.steinhart@lumenis.com
mmaydan@lumenis.com
 
   
 
 
 

 
 
Lumenis® and the Lumenis logo are trademarks or registered trademarks of Lumenis Ltd.
 
Certain statements and information in this press release may be deemed to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, but are not limited to, statements relating to our objectives, plans and strategies, statements that contain projections of results of operations or of financial condition and all statements (other than statements of historical facts) that address activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future. Forward-looking statements are often characterized by the use of forward-looking terminology such as “may,” “will,” “expect,” “anticipate,” “estimate,” “continue,” “believe,” “should,” “intend,” “plan,” “project” or other similar words, but are not the only way these statements are identified. We have based these forward-looking statements on assumptions and assessments made by our management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Any forward-looking statements in this press release are made as of the date hereof, and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements may be found in our most recent Annual Report on Form 20-F, including the section therein entitled “Risk Factors,” as well in our reports on Form 6-K, filed with the Securities and Exchange Commission.
 
   
 
 
 

 
 
LUMENIS LTD
US GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except share data)
 
   
Year ended
   
Year ended
 
   
December 31
   
December 31
 
   
2010
   
2009
 
   
GAAP
   
GAAP
 
   
Audited
   
Audited
 
Revenues
           
  Products
    189,149       178,705  
  Services
    48,581       47,391  
Total revenues
    237,730       226,096  
                 
Cost of revenues
               
  Products
    96,463       88,002  
  Services
    28,207       30,050  
Total cost of revenues
    124,670       118,052  
                 
Gross profit
    113,060       108,044  
                 
Operating expenses:
               
Research and development
    15,432       13,781  
Selling and marketing
    69,725       67,443  
General and administrative
    17,813       20,516  
Legal settlements,net
    (1,981 )     683  
Restructuring and other related costs
    -       3,927  
Total  operating expenses
    100,989       106,350  
                 
Operating income
    12,071       1,694  
                 
Financial expenses, net
    3,880       1,457  
                 
Taxes on income (income tax benefit)
    2,446       (2,452 )
                 
Net income
    5,745       2,689  
                 
Basic and diluted net earnings  per share:
  $ 0.03     $ 0.01  
                 
Weighted average number of shares (in thousands) used in computing basic net earnings  per share
    215,341       208,706  
                 
Weighted average number of shares (in thousands) used in computing diluted net earnings per share
    219,719       209,402  
 
 
 

 
 
LUMENIS LTD
RECONCILIATION BETWEEN GAAP TO NON-GAAP CONSOLIDATED
 STATEMENT OF OPERATIONS
U.S. dollars in thousands (except per share data)
 
   
Year ended December 31, 2010
 
   
GAAP
   
Adjustments
   
Non-GAAP
 
                   
Revenues
                 
  Products
  $ 189,149     $ -     $ 189,149  
  Services
    48,581       -       48,581  
Total revenues
    237,730       -       237,730  
                         
Cost of revenues
                       
  Products
    96,463       (70 )(a)     96,393  
  Services
    28,207       -       28,207  
Total cost of revenues
    124,670       (70 )     124,600  
                         
Gross profit
    113,060       70       113,130  
                         
Operating expenses:
                       
Research and development
    15,432       (123 )(a)     15,309  
Selling and marketing
    69,725       (243 )(a)     69,482  
General and administrative
    17,813       (578 )(a),(b)     17,235  
Legal settlements,net
    (1,981 )     1,981  (c)     -  
                         
Total  operating expenses
    100,989       1,037       102,026  
                         
Operating income
    12,071       (967 )     11,104  
                         
Financial expenses, net
    3,880       (1,207 )(d)     2,673  
                         
Taxes on income
    2,446       -       2,446  
                         
Net income
    5,745       240       5,985  
                         
Basic and diluted net earnings per share:
  $ 0.03             $ 0.03  
 
(a) The effect of stock-based compensation.
             
(b) Amortization of intangible assets amounted to $145 thousands.
         
(c) Legal settlements net of associated legal fees
         
(d) Changes in the fair market value of embedded derivative
         
               
 
 
 

 
 
LUMENIS LTD
RECONCILIATION BETWEEN GAAP TO NON-GAAP CONSOLIDATED
 STATEMENT OF OPERATIONS
U.S. dollars in thousands (except per share data)
 
   
Year ended December 31, 2009
 
   
GAAP
   
Adjustments
   
Non-GAAP
 
                   
Revenues
                 
  Products
  $ 178,705     $ -     $ 178,705  
  Services
    47,391       -       47,391  
Total revenues
    226,096       -       226,096  
                         
Cost of revenues
                       
  Products
    88,002       (60 )(a)     87,942  
  Services
    30,050               30,050  
Total cost of revenues
    118,052       (60 )     117,992  
                         
Gross profit
    108,044       60       108,104  
                         
Operating expenses:
                       
Research and development
    13,781       (46 )(a)     13,735  
Selling and marketing
    67,443       (202 )(a)     67,241  
General and administrative
    20,516       (1,382 )(a),(b)     19,134  
Legal settlements,net
    683       (683 )(d)     -  
Restructuring and other related costs
    3,927       (3,927 )     -  
Total operating expenses
    106,350       (6,240 )     100,110  
                         
Operating income
    1,694       6,300       7,994  
                         
Financial expenses, net
    1,457       -       1,457  
                         
Taxes on income (income tax benefit)
    (2,452 )     4,446  (c)     1,994  
                         
Net income
    2,689       1,854       4,543  
                         
Basic and diluted net earnings per share:
  $ 0.01             $ 0.02  
 
(a) The effect of stock-based compensation.
             
(b) Amortization of intangible assets amounted to $520 thousands.
         
(c) Income tax resulted from settlement of prior years tax dispute.
         
(d) Legal settlements net of associated legal fees
         
 
 
 

 
 
LUMENIS LTD
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
 
   
December 31,
   
December 31,
 
   
2010
   
2009
 
   
Audited
   
Audited
 
      ASSETS
           
             
CURRENT ASSETS
           
             
Cash and cash equivalents
    25,682       26,261  
Short-term bank deposits
    17,529       15,088  
Trade receivables, net
    47,532       40,915  
Prepaid expenses and other receivables
    9,435       10,566  
Inventories
    41,801       38,091  
                 
Total current assets
    141,979       130,921  
                 
LONG-TERM ASSETS
               
Long-term bank deposits
    3,663       -  
Finished goods used in operations, net
    3,467       3,124  
Property and equipment, net
    5,472       6,146  
Goodwill and other Intangible assets, net
    50,217       50,362  
Severance pay fund
    3,494       3,019  
Other assets
    8,135       7,208  
                 
Total long-term assets
    74,448       69,859  
                 
TOTAL ASSETS
    216,427       200,780  
                 
      LIABILITIES AND SHAREHOLDERS'  EQUITY (DEFICIENCY)
               
                 
CURRENT LIABILITIES
               
                 
Restructured debt
    12,298       9,734  
Trade payables
    27,584       18,547  
Other accounts payable and accrued expenses
    41,515       36,514  
Deferred revenues and customer advances
    16,692       16,912  
                 
Total current liabilities
    98,089       81,707  
                 
LONG-TERM LIABILITIES
               
                 
Accrued post-employment benefits
    8,626       7,294  
Other liabilities
    15,884       13,616  
Deferred revenues
    6,319       5,752  
Restructured debt
    100,449       112,860  
                 
Total long-term liabilities
    131,278       139,522  
                 
TOTAL LIABILITIES
    229,367       221,229  
                 
SHAREHOLDERS'  EQUITY (DEFICIENCY)
    (12,940 )     (20,449 )
                 
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIENCY
    216,427       200,780  
 
 
 

 
 
LUMENIS LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
 
   
Year Ended
   
Year Ended
 
   
December 31
   
December 31
 
   
2010
   
2009
 
   
Audited
   
Audited
 
Cash flow from operating activities:
           
Net income
    5,745       2,689  
Adjustments required to reconcile net income to net cash provided by operating activity:
         
Depreciation and amortization
    5,500       6,129  
Compensation related to employees share option plan
    869       1,170  
Interest payments and debt ajustment
    (2,169 )     (3,044 )
Deferred income taxes, net
    844       1,085  
Increase in trade receivables, net
    (5,613 )     (4,673 )
Decrease (increase) in inventories
    (2,780 )     16,114  
Increase in finished goods used in operations
    (3,129 )     (2,845 )
Decrease in prepaid expenses and other receivables
    1,404       879  
Increase (decrease) in trade payables
    9,280       (58 )
Increase in other accounts payables and accrued expenses, other long term liabilities and other (including short and long-term deferred revenues)
    5,151       1,537  
Increase (decrease) in accrued post-employment benefits, net
    230       (938 )
Net cash  provided by operating activities
    15,332       18,045  
                 
Cash flow from investing activities:
               
Purchase of property and equipment
    (2,109 )     (1,912 )
Net cash used by investing activities
    (2,109 )     (1,912 )
                 
Cash flow from financing activities:
               
Issuance of share capital,net
    -       14,867  
Repayment of long-term bank loan
    (8,000 )     (10,148 )
Net cash provided by (used in)  financing activities
    (8,000 )     4,719  
                 
Foreign currency translation adjustment
    302       78  
                 
Increase in cash and cash equivalents and short term  and long term bank deposits
    5,525       20,930  
Cash and cash equivalents and short term bank deposits at the beginning of the year
    41,349       20,419  
Cash and cash equivalents and short and long term bank deposits at the end of the year
    46,874       41,349