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AMO Falls After Q2 Earnings

Santa Ana-based Advanced Medical Optics Inc. said it swung to an operating profit in the second quarter, but the company’s shares were down Tuesday after its sales came in below expectations.

The eye device and contact lens care maker posted a profit of $25 million in the quarter compared to a loss of $423 million a year ago when Advanced Medical took charges related to its $1.2 billion buy of Visx Inc.

Advanced Medical’s revenue was up 13% to $257 million. Laser vision revenue more than tripled to $53.4 million, though the gain was partially offset by a 17% decline in eye care sales to $69.2 million.

Analysts expected Advanced Medical to post sales of $264.1 million in the quarter.

The company raised its earnings expectations for 2006 to a range of $140.8 million to $151.8 million, up from a prior forecast of $139.4 million to $150.4 million. The increase reflects a cut in debt and interest expense in the second half of the year.

Advanced Medical expects to post sales of $1.02 billion to $1.04 billion this year.

Shares of Advanced Medical were down about 4% to $47.33 in trading Tuesday.

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