VISX “We Make Things Clear”: VISX “We Make Things Clear”


VISX Burns: VISX Burns On fire since its debut April 1998 11 consecutive profitable quarters. Stock performance as miraculous as the 20/20 vision its technology brings to the eyes. In 1998, investors saw their VISX stock rise 295%. This year the stock is up more than 205%, even though it is down considerably from its July highs.


Company Background: Company Background Founded in 1986 FDA approved in 1995 140 Woldwide Pattents 70 Still Pending


Profits: Profits 1. World wide sale of lasers 2. Servicing and parts sales 3. $250 commission per operation VisionKey card 4. Licensing of procedures and equipment


Lasers: Lasers Excimer Lasers treat: nearsightedness astigmatisms farsightedness Star S2 Laser Only US laser approved in Japan Over 60 countries


Management: Management Mark B Logan Served major health companies Bausch & Lomb Has been CEO since 1994


Competition: Competition Summit Bausch & Lomb Keravision Nidek


Why you should NOT buy: Why you should NOT buy Market cap is $2 billion more than Bausch & Lomb Pricing War? Customers are fixed and don’t come back loose perpetual royalty of maintenance KeraVision Intacts? Reversible surgery Nidek litigation


Why you should buy: Why you should buy What competition? VISX has 70-80% of the market Intacts are only approved for very low myopics very small portion of the market


Nidek Litigation: Nidek Litigation VISX WIN= it would be a significant positive for the stock. VISX LOSS= not much will change, except that Nidek will be able to sell its machines in the U.S. VISX will continue to sue doctors who use Nidek.


Not convinced?: Not convinced? Market Scope, the leading independent source of information in the refractive surgical market, recently released its annual survey of refractive surgeons. When asked what they expect to be using two years from now, the responses came in as follows: VISX 60.9%, Keravision Intacs 49.1%, Sunrise Holmium 32.5%, Nidek 19.2%, and Summit 13.7%.


Why VISX?: Why VISX? Out performs analyst expectations 60% of lasers intalled Performs 70-80% operations annually NO LONG TERM DEBT Celebrity Endorsement Tiger Woods Greg Maddux Estimated 30% earnings growth in 2000


Market: Market 157 million Americans would benefit from laser surgery they spend 13 billion annually on eye care ONLY 1 million have received laser surgery


Market Growth: Market Growth 400,000 procedures last year 900,000 predicted this year


Income Statement: Income Statement 12-month sales: $238.1 million 12-month income: $83.2 million* 12-month EPS: $1.23* Profit Margin: 34.9% Market Cap: $5045.2 million (*Includes non-recurring items)


Balance Sheet : Balance Sheet Cash: $77.6 million Current Assets: $310.4 million Current Liabilities: $50.5 million Long-term Debt: None


Balance Sheet : Balance Sheet Cash: $77.6 million Current Assets: $310.4 million Current Liabilities: $50.5 million Long-term Debt: None Ratios Price-to-earnings: 59.7 Price-to-sales: 21.2


QUESTIONS?: QUESTIONS?