IntraLase Corp., an Irvine company that makes lasers used in eye surgery, said Thursday that higher-than-expected costs widened its loss in the fourth quarter.
The company said its operating loss grew to $3.4 million in the fourth quarter, versus a loss of $2.3 million a year earlier. Revenue, however, almost doubled to $19.2 million, versus a year earlier.
The loss surprised Wall Street, sending shares down 12% to $19.6 in midday trading. But IntraLase said it boosted spending in the fourth quarter for several reasons.
“Seeing an opportunity to accelerate our momentum in the marketplace, we increased our spending for technical and clinical support services, sales, marketing and production,” said Chief Executive Robert Palmisano, in a statement.
IntraLase boosted its profit outlook for 2005. The laser maker said it expected to earn between $10 million to $12 million this year on revenue of more than $95 million. Analysts were looking for IntraLase to earn $7.7 million on revenue of $97 million this year.
The company is rolling out new lasers that cost about $350,000, compared to between $40,000 and $60,000 for existing ones used by eye surgeons.
IntraLase’s lasers are used to cut a flap in a patient’s cornea,the first step in eye surgery. Its newest laser is designed to replace existing technology that uses a metal blade, or microkeratome.
