FOR IMMEDIATE RELEASE
AMERICAN MEDICAL SYSTEMS TOTAL REVENUE INCREASES 58 PERCENT
TO $115.4 MILLION; CORE REVENUE INCREASES 18 PERCENT
Strong Financial Performance Driven by Balanced Growth
MINNEAPOLIS, February 15, 2007 American Medical Systems Holdings, Inc. (NASDAQ: AMMD)
reported revenues of $115.4 million for the fourth quarter of 2006, a 58 percent increase over
revenues of $73.1 million in the comparable quarter of 2005. The fourth quarter of 2006 included
$29.1 million of revenue from the Laserscope business and was the first full quarter of Laserscope
financial results since the July 2006 acquisition was completed. Excluding Laserscope revenues,
AMS revenue for the fourth quarter of 2006 was $86.3 million, which represents 18 percent growth
over the same quarter of 2005. As noted in the Companys January 5, 2007 press release announcing
preliminary sales, this growth represents strong and balanced contributions from both mens and
womens health. Fourth quarter growth over the prior period was impacted by $0.9 million of
favorable foreign exchange rates.
Revenues for 2006 totaled $358.3 million, including $47.6 million of revenue from the Laserscope
business. Excluding Laserscope revenue, AMS revenue for 2006 was $310.8 million, an 18 percent
increase from 2005 revenue of $262.6 million.
Martin J. Emerson, President and Chief Executive Officer, commented, We are very pleased with the
financial results of the fourth quarter of 2006, which exceeded the top end of both our revenue and
earnings expectations. Our fourth quarter performance capped off a very successful year which
included the completion of three significant acquisitions. These acquisitions, combined with our
internal development programs, have provided us with the most robust product technology platform at
any time in our history. We have made significant strides in our integration of these businesses
and enter 2007 with strong financial and new product momentum.
The Company reported net income for the fourth quarter of 2006 of $5.9 million, or $0.08 per share.
This compares to net income for the same period last year of $14.6 million, or $0.20 per share.
Net income for the fourth quarter of 2006 includes a loss from discontinued operations, the impact
of SFAS 123(R) expense, in-process research and development (IPR&D) charges, and certain tax items.
Adjusting for these items, net income in the fourth quarter of 2006 would have been $13.0 million,
or $0.18 per share. Fourth quarter of 2006 net income also included Laserscope related finance
charges and amortization expense of $7.4 million, or $0.10 per share.
The Company reported a net loss for 2006 of $49.3 million, or $0.70 per share, compared to net
income of $39.3 million, or $0.55 per share in 2005. Adjusting both periods for the following
items: loss from discontinued operations, the impact of SFAS 123(R) expense, IPR&D charges,
commitment fees for bridge financing, and certain tax items, results in net income for 2006 of
$49.8 million, or $0.69 per share, compared to net income for 2005 of $48.5 million, or $0.68 per
share. Full year 2006 net income also included Laserscope related finance charges and amortization
expense of $14.7 million, or $0.20 per share.