Revenue shortfall sends Optos shares downward

SHARES in Optos fell nearly 3 per cent yesterday after the Dunfermline-based eye scanning specialist reported third-quarter revenues slightly lower than analysts' expectations.

The company - which makes machines to detect retinal detachment, glaucoma and other ailments of sight - posted revenues of $24.2 million (15.9m), versus $24.4m during the same period a year earlier. Total turnover for the first nine months of the year was $71.5m, compared to $72.2m previously.

The company was hit in part by the lower number of machines installed within the offices of high street optometrists who rent Optos machines on a pay-per-patient (PPP) formula. PPP revenues were also dented by the introduction of discounts aimed at retaining customers.

PPP revenues were 9 per cent lower than in the third quarter of last year at $22.2m.

Chief financial officer Christine Soden said Optos began offering the option of buying its machines, rather than renting, about three months ago. The move into capital sales should assist the company as it increasingly targets its machines at the more specialised ophthalmology market for the treatment of retinal disease, Soden said.

She added: "Some of those guys just weren't prepared to work with us on our old model. That is particularly true of ophthalmologists - they are used to buying their equipment."