Lumenis Seeking Funds in U.S. After Regaining Profitability: Reports $2.7 Million Earnings in 2009

Medical laser equipment manufacturer Lumenis is gearing up for a round of fund raising in the United States, following several years of sporadic trade in the company's shares.

Lumenis, which is controlled by Ofer Hi-Tech and Harel Beit-On's LM Partners, recently filed an annual report with the U.S. Securities and Exchange Commission showing that implementing an economic recovery plan generated $1.7 million in operating profits last year, up from $47.9 million in operating losses in 2008.

Lumenis netted $2.7 million in 2009, compared to $44.2 million in net losses the previous year. The company also saw a greater profit margin and relatively stable gross profits, even as revenues dipped 11.9% from 2008, totaling $226.1 million last year.

Lumenis raised $15 million in July 2009, mainly from the company's controlling shareholders, but also from a new investor, Agate Medical Investments.

"Our vision for the future includes plans to expand to new applications and develop new technologies that will enable us to strengthen the company's technological lead," said Lumenis CEO Dov Ofer. "We are also hoping to diversify geographically in order to create new growth possibilities."

A look at the company's balance sheet shows that the company's gross profits came to $108 million last year, compared to $109.8 million in 2008. The gross profit margin was up six percentage points from 2008, to 48% last year, reflecting a decline in marketing that was part of the recovery plan completed last year.

The plan entailed cuts in expenses and unprofitable activities, and the company also prepared to develop new products and increase the number of countries in which it sells its products. Lumenis also fired nearly 40 employees in 2009, about 5% of its work force.

The company finished 2009 with $41.3 million in cash and short-term deposits, up from $20.4 million at the end of 2008.

In the middle of the last decade Lumenis was delisted from Nasdaq after failing to file financial statements for two years. The company moved to the Pink Sheets, only to be delisted altogether four years ago, following a settlement reached between the company and the SEC over inflated revenue reporting and irregularities in Lumenis' financial reports.

This left the company's shareholders stuck with securities they couldn't sell. In principle, the company's shareholders could trade in Lumenis shares through investment houses, if somebody wanted the stuff. In order to return to trade in the United States, Lumenis will have to relist.