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Recall Drives Advanced Medical Loss

Advanced Medical Optics Inc. said Tuesday it swung to a loss in the fourth quarter on lower sales after recalling a contact lens solution late last year.

The Santa Ana-based eye device and contact lens care maker posted a loss of $7.6 million in the quarter, compared to a profit of $2.3 million a year earlier.

Analysts expected Advanced Medical to lose $2.3 million.

Advanced Medical’s revenue was down 4% to $243.6 million on lower eye care product and laser vision correction sales, though better than what Wall Street expected.

The company recalled nearly 3 million bottles of its Complete MoisturePlus contact lens care solution in November because of a production issue at its Chinese plant.

The plant now has two of four lines back up and running with a third expected by the end of the month, Chief Executive Jim Mazzo said. The fourth should be up by May, he said.

Solution should start shipping to Japan again this week, he said, and to the rest of Asia in the quarter.

This year, Advanced Medical expects $20 million and $25 million in fewer sales because of the recall.

The company maintained its profit and sales guidance for 2007. The company expects to close its $808 million buy of Irvine-based IntraLase Corp. in the second quarter.

Profit for the year could be $83 million to $92 million on sales of $1.15 billion and $1.18 billion, Advanced Medical said.

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