AMO lowers 2008 guidance in response to weakened economy

Santa Ana, CA-Advanced Medical Optics (AMO) said it has lowered its 2008 revenue guidance to a range of $1.17 billion to $1.20 billion and 2008 adjusted earnings-per-share (EPS) guidance to a range of $0.70 to $0.80.

The company previously had forecasted a 2008 revenue range of $1.22 billion to $1.24 billion and a 2008 adjusted EPS range of $1.00 to $1.15.

"The change in guidance reflects our view that deteriorating economic conditions are impacting our U.S. and European refractive procedure and system sales more significantly than we had previously anticipated," said James Mazzo, AMO chairman and chief executive officer. "In addition, our revised guidance reflects slower-than-expected eye-care sales for the balance of 2008."

AMO’s third-quarter 2008 domestic excimer laser procedures declined about 37% and its domestic femtosecond procedures declined about 12% compared with last year at this time. The company had previously thought its fourth-quarter U.S. excimer procedures would decline in the high 30% range and its U.S. femtosecond procedures would grow. Now the company said it expects both to decline further in the fourth quarter.