The American company's operating profit jumped by 180.0 percent to $27,244,000 in the 1st quarter ended March 30, on sales growth of 5.6 percent to $251.7 million. The gross margin shrunk by 1 percentage point to 62.5 percent. Net earnings more than quadrupled to $12,109,000. Growth in the quarter was led by expanded sales stemming from the ReZoom, Tecnis and Advanced CustomVue technologies.
Advanced Medical Optics (AMO) completed the acquisition of IntraLase Corp. on April 2 for $808 million. The sales of IntraLase, a company that specializes in laser and keratoplasty technologies, were not included in AMO's 1st quarter results. IntraLase's own turnover rose by roughly 30 percent to $39 million in the period, including $24 million in procedural sales.
AMO is currently integrating IntraLase. It expects the transaction to yield about $25-30 million in annualized synergies, with an estimated $10-15 million realized by the end of this year. Following the completion of the purchase, the company is offering $250 million of its 7.5 percent senior subordinate notes, due in 2017, to qualified institutional buyers and investors outside of the USA. Proceeds of the offering, along with borrowings from a new senior credit facility, will go to the purchase of all outstanding common stock of IntraLase to repay debt as well as for other corporate use.