AMO sales

Executive Summary

Advanced Medical Optics announces Aug. 2 its second-quarter net sales rose 1.7% to $261.4 mil. in part due to the April 2007 acquisition of IntraLase Corp. Recently AMO recalled its MoisturePlus product, which the firm estimates reduced eye care sales by $54 mil. (see next item). The Santa Ana, Calif.-based firm says the reduced sales include $31 mil. in returns and $23 mil. in lost sales. As a result, the company reported negative multipurpose sales of $7.8 mil. The firm also incurred recall-related costs of approximately $27 mil. AMO also says it began shipments this week of a Complete brand multipurpose solution it expects will be available to U.S. and European practitioners in late August (1"The Tan Sheet" July 30, 2007, In Brief). In addition, R&D expense rose 24.8% to $20.7 mil. or approximately 7.9% of sales compared to 6.4% in the 2006 second quarter...