.comment-link {margin-left:.6em;}

Sunday, May 28, 2006

Opthalmic Imaging Systems (OISI)

OISI (sec) makes technology equipment for ocular industry: fluorescein angiography (blood is dyed, camera looks at retina, creates a "road map" for laser treatment).

Stock is selling at $1.89 and has been dropping.

According to the 10-K, gross margins are dropping (58%) and expected to drop due to a shift to "Ophthalmology Office" software products (do they have a little animated paper clip, or pair of glasses?). Also looking at the 10-K, earnings have consistently been around 11 cents per diluted share (with increasing share count). Gross margins for Q1 are 57%.

2005: $13.7 million
2004: $11.3 million
2003: $10.3 million
2002: $8.5 million
2001: $7.0 million

Net income each year has been increasing at a lower rate, mostly due to lesser benefits from income tax. So the 11 cents earned per share is more real lately, although distorted by tax NOLs and kept down by an increase in shares (mostly due to convertables converting to shares, Note 5 in 10-K).

Cash flow from operations minus capex:
2005: matches net income, but not good (AR increase)
2004: weaker than net income (AR increase, deferred tax asset boost to earnings)
2003: weak
2002: ok
2001: negative

63% of revenues are to MediVision (up from 57% in 2004).

Q1 Results: 16 million shares on May 10, 2006.
Balance sheet is rock solid.

Revenues up 45% over prior year
Sales and marketing costs: 23% of sales (down from around 27% historically)
G&A: 10%
R&D: 10% (this has been climbing from 7%)
Operating margin: 14% (up slightly)
No taxes
Net margin: 13%

I don't see why this stock is selling for more than $1.50. But less than 2 years ago, it was selling for around 70 cents.

Comments: Post a Comment

<< Home

This page is powered by Blogger. Isn't yours?