Ocular Sciences: 2003 results

For the year ended December 31, 2003, Ocular Sciences reported net revenue of $310.6 million, up 16.3% (10% in constant currency) from net revenue of $267.1 million for the year ended December 31, 2002.

Net income for the year was $26.6 million or $1.09 per diluted share, compared with $7.2 million or $0.30 per diluted share for 2002. Net income for 2003 included approximately $11.5 million, or $0.47 per diluted share of restructuring and related expenses, net of taxes, associated with Ocular's manufacturing transition program as compared with $31.9 million, or $1.30 per diluted share of similar charges recorded in 2002. Additionally, 2003 net sales include 12 months of sales resulting from the Seiko Contact Lens business which was acquired in April 2002.

"We finished 2003 with strong sales momentum", said Stephen J. Fanning, President and Ceo of Ocular Sciences. "Our international operations generated more than 30% revenue growth (16% in constant currency) as well as increased operating leverage during the fourth quarter. Our European revenue grew nearly 36% in the fourth quarter, and 32% for the full year. On a constant currency basis, European revenue grew 18% in the fourth quarter and 15% for the year'.

The Company provided guidance for the full year ending December 31, 2004. Sales are expected to grow a minimum of 8 to 10% as compared to the minimum of 8% expected in late October. The manufacturing transition program initiated in December 2002 is expected to be completed during 2004, and $8 - $10 million in expenses are expected to be incurred during the year. While operating margins are expected to expand in 2004, the Company plans to almost double its investment in product development, focusing largely on continuous wear, silicon-hydrogel product development with a targeted market launch in 2005.