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Charges and lost sales from a contact lens solution recall drove a larger second-quarter loss at Santa Ana’s Advanced Medical Optics Inc. The company said it lost $167 million, up from a $2.7 million loss a year earlier. Without charges, the company lost $48 million, more than what analysts had expected. Revenue grew 2% to $261.4 million. Sales of contact lens solutions, which once made up about a quarter of the company’s business, fell 73% to $19 million, or 7% of sales. Revenue from IntraLase Corp., an Irvine maker of lasers used in vision correction surgery that Advanced Medical bought in April, offset the drop in solution sales. Advanced Medical recalled its Complete MoisturePlus solution in May after the product was linked to an eye infection that can cause blindness. The company also dropped its $4.23 billion takeover offer for rival Bausch & Lomb (see story page 17).
Multi-Fineline Electronix Inc., which makes printed circuits for cell phones and other devices, swung to a loss as revenue fell 20% for the quarter ended June 30. Including one-time charges related to the termination of a deal to buy sister company MFS Technology Inc., M-Flex lost $6.7 million compared with a profit of $8.3 million a year earlier. Excluding charges, M-Flex posted a loss of $1.9 million. Revenue fell to $104.1 million from $130.3 million a year earlier, a result of decreased sales to M-Flex’s largest customer, Motorola Inc.
Shares of Irvine computer maker Gateway Inc. fell 13% last week on disappointing second-quarter sales. Gateway’s revenue fell 8% to $841 million in the quarter. Wall Street was expecting $953 million in sales. The lower revenue overshadowed Gateway’s $1.9 million profit for the quarter, which reversed a $7.7 million loss a year earlier. Analysts were looking for the company to break even.
A warning for the current quarter sent shares of Santa Ana circuit board maker TTM Technologies Inc. down 15% last week. The news came as TTM reported lower profits for the second quarter (see story page 23).
Irvine-based Allergan Inc. said its second-quarter profit nearly doubled on higher sales of drugs, breast implants and wrinkle removers. Allergan, maker of wrinkle remover Botox and other drugs, posted profit of $137.8 million, up 86% from a year ago. Excluding charges related to its 2006 buy of Inamed Corp., Allergan earned $164.7 million. Analysts expected Allergan to earn $155.6 million in the quarter, excluding charges. Revenue rose 23% to $988.1 million (see story page 19).
Eyeonics Inc., an Aliso Viejo-based medical device maker, filed plans to raise up to $86.3 million in an initial public offering (see story page 27).
InSight Health Services Holdings Corp., a provider of medical scanning services, said it emerged from Chapter 11 bankruptcy. After a two-month restructuring, InSight eliminated $194.5 million of debt. The company offered 90% of its common stock to creditors in exchange for debt forgiveness. A new board of directors also has been appointed.
Foothill Ranch-based nursing home operator Skilled Healthcare Group Inc. said it’s buying 10 nursing homes and a hospice company in New Mexico for $51.5 million from affiliates of Laurel Healthcare Providers LLC in Albuquerque. The deal is expected to close in the next few weeks. It is Skilled Healthcare’s first acquisition since its $116.8 million initial public offering in May.
Valeant Pharmaceuticals International swung to a second-quarter profit, thanks to a decline in restructuring charges. The Aliso Viejo drug maker earned $16.5 million, compared with a loss of $42.5 million a year ago. Analysts expected $14.3 million in profit. Second-quarter revenue was nearly flat at $231 million, below expectations.
Apria Healthcare Group Inc., a Lake Forest home healthcare provider, posted a 13% increase in second-quarter profit from a year earlier on higher sales, beating Wall Street expectations. Apria earned $20.8 million in the quarter, versus $18.5 million a year earlier. Analysts expected Apria to make $19.6 million on revenue of $393.3 million in the quarter. Revenue was up 5% to $394 million.
First American Corp. last week said it swung to a quarterly loss driven by its title insurance business, which is struggling amid the housing and mortgage downturn. The company’s second-quarter loss was $66 million, compared to a profit of $25.5 million a year earlier. First American took a $342.1 million provision for losses in its title insurance division during the quarter. The company’s second-quarter revenue of $2.16 billion was slightly down from a year earlier.
