Eye-care company Bausch & Lomb reported Q1 earnings Wednesday that were shy of the preliminary results posted on May 10. The report is one of a series of restatements and late filings for the company. In May 2006, Bausch recalled its ReNu with MoistureLoc lens cleaning solution on concerns about fungal infections. The company posted Q1 2007 net income of $18.4 million ($0.34/share) versus $11.8 million ($0.21) in Q1 2006, a 56% rise. Bausch had originally projected a 63% increase in earnings to $19.2 million ($0.35). Net sales for Q1 2007 were up 6% to $578.9 million from $546.0 million, in line with the company's forecast. The ReNu recall cut Q1 2006 earnings by an expected $19.6 million ($0.35/share) and has resulted in over 400 lawsuits. Bausch has agreed to be acquired by private equity firm Warburg Pincus for about $3.67 billion, although Advanced Medical Optics -- itself troubled by a recall on safety concerns -- has also expressed interest. In addition to the ReNu suits, the company and its directors are being sued by shareholders who oppose the sale to Warburg, in part because they believe the price is too low. The company is still compiling results for Q3 2005 and Q2 and Q3 2006.
Sources: Reuters, Forbes
Commentary: Bausch & Lomb To Be Taken Private for $4.5B; Traders Anticipate Higher Bids • Advanced Medical Optics Considering Offer for Bausch & Lomb • Goldman: Higher Bid for Bausch & Lomb Unlikely
Stocks/ETFs to watch: Bausch & Lomb Inc. (BOL), Advanced Medical Optics, Inc. (EYE). Competitors: Alcon Inc. (ACL), Cooper Companies Inc. (COO)
Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.