ESC Medical Systems (Nasdaq symbol: ESCM) announced sales of
$43.9 million for the first quarter of 2001, compared with
$36.0 million from the same quarter a year ago in 2000. As a
percentage of sales the gross profit was 65 percent in the
three months period ended March 31, 2001 compared to 54
percent in the same period in 2000. According to the
company, the significant increase in gross profit is due to
the increase in sales and a more favorable product mix.
Net profits, excluding one time gains and charges, were
$6.575 million, or $0.22 per share, compared with $952,000,
or $0.03 per share for the corresponding quarter in 2000.
Analysts were forecasting an EPS (excluding one time charges
and gains) of $0.19. Including one-time charges and gains
ESC earned $4.228 million, or $0.14 per fully diluted share
in the first quarter 2001.
ESC Medical President and CEO Yacha Sutton said: "Q1
demonstrated the continued growing strength of our business
in what is usually a seasonally slow quarter. I'm
particularly satisfied by our continuing margin expansion.
Looking ahead, demand continues to be strong."
ESC Medical said that the results for the first quarter
include one-time charges of $2.3 million associated with the
acquisition of Coherent Medical Group and $1.5 million to
settle litigation against the company. Also, there was a one
time gain of $1.5 million stemming from a favorable tax
audit of ESC Medical completed by the Israeli government in
the first quarter for the years 1994-1998.
ESC Medical is a world leader in the design, manufacture,
marketing and servicing of a broad range of medical devices
that incorporate proprietary intense pulsed light
technology, state-of-the-art lasers and accessories as well
as other technologies. The Company's systems incorporate
these technologies for applications in aesthetic
dermatology, plastic and reconstructive surgery, ear, nose
and throat procedures and oral and dental surgery, among
others. The Company's systems are designed for use in a
variety of medical environments, ranging from physicians'
offices to acute care hospitals.
ESC Medical Systems will be changing its name to Lumenis
pending shareholder approval.
About a two years ago the company was taken over by new
ownership and management. Professor Yaakov Frenkel, former
Governor of the Bank of Israel and now one of the top
executives of Merrill Lynch, is chairman of the board. The
company has shown a remarkable turnaround in sales and
profits since the new management has taken over.
