Contact lens solutions make up only about a quarter of Advanced Medical Optics Inc.’s $1 billion in yearly sales. But they’re set to drive a big loss at the Santa Ana-based company this year.
Advanced Medical said Tuesday it expects a loss of up to $69 million for the year, versus a profit of up to $93 million expected earlier.
Sales for the year could come in at $1.05 billion to $1.07 billion, down from a previous range of $1.15 billion to $1.18 billion.
The company said it sees a return to profits in 2008, though at a lower level than previously expected.
A late May recall of Advanced Medical’s Complete MoisturePlus contact lens solution is behind the changed outlook. The company voluntarily recalled the solution because of a possible link to eye infection.
In late May, the Centers for Disease Control and Prevention confirmed 138 cases of eye infection, with 21 of those reporting use of Complete MoisturePlus in the prior month, according to the Associated Press.
Eye surgery devices make up the bulk of Advanced Medical’s business.
Wall Street, which expected the financial fallout from the recall, largely brushed off the news. Shares of Advanced Medical, already down 20% since late May, closed flat on Tuesday with a market value of $2 billion.
