Eye care product recalls over the past year affected results at Advanced Medical Optics, which posted net losses both in its 4th quarter and full fiscal year despite good results in its laser division. The company will start to implement cost-cutting measures, essentially through a 4 percent reduction in its workforce, involving up to 150 jobs.
Difficult retailing conditions at the beginning of 2008 have added to the problems stemming from AMO’s recall last May of its Complete MoisturePlus range of contact lens, after some users had developed eye infections. The company, which made an unsuccessful bid for Bausch & Lomb last year, has re-evaluated its sales projections for 2008 as it is now forecasting a 10 percent drop in laser vision correction procedures, compared with earlier expectations for 6 percent growth. AMO’s total turnover should come out $50 million lower than anticipated for the current year.
AMO’s net loss increased in the 4th quarter of 2007 to $12.3 million from $7.6 million in the year-earlier period, although revenues went up by 25 percent to $304.6 million. At constant currency rates, revenues grew by 19.7 percent. The laser division’s revenues jumped by 96.8 percent to $101.7 million, while sales of eye care products fell by 4.6 percent to $50.5 million.
Results for the full year saw AMO’s net loss amount to $192.25 million, compared with net income of $79.5 million in the year-ago period, on 9.4 percent higher revenues of $1,090 million. On a currency-neutral basis, revenues grew by 7.5 percent. During the year the laser division raised its sales by 69.7 percent to $367.8 million, while revenues from eye care products dropped by 34.6 percent to $171 million because of the product recall.