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Advanced Medical Optics Cuts 2008 Outlook

Santa Ana-based Advanced Medical Optics Inc., a maker of eye surgery devices and contact lens solutions, lowered its outlook for the rest of the year amid a slowdown in laser vision correction surgeries.

“The change in guidance reflects our view that deteriorating economic conditions are impacting our U.S. and European refractive procedure and system sales more significantly than we had previously anticipated,” said Jim Mazzo, Advanced Medical’s chief executive.

The company makes laser equipment used to reshape the eye’s cornea to eliminate the need for glasses or contact lenses. It made a big push into vision correction surgery gear with 2007’s $800 million buy of Irvine’s IntraLase Corp.

Advanced Medical gets a fee for each procedure done with its machines as well as sales from a disposable kit used in each surgery.

Laser vision fees and sales make up about a quarter of Advanced Medical’s revenue. Laser vision procedures remain strong in Asia, the company said, but are declining in the U.S. and Europe.

The company now expects 2008 sales of $1.17 billion to $1.2 billion, down from an earlier view of $1.22 billion to $1.24 billion.

Profits are seen coming at $43 million to $49 million, up from an earlier forecast of $61 million to $70 million.

Analysts on average had been expecting a profit of $63 million on revenue of $1.23 billion.

In 2007, Advanced Medical Optics had revenue of $1.09 billion and a loss of $193 million.

Lower sales of contact lens solutions also drove the company’s lower outlook as consumers spend less and stores order fewer bottles, the company said.

Shares of Advanced Medical closed down about 28% on a market value of $600 million. The stock is down by about half for the year.

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