1003130--2/28/2008--LCA_VISION

related topics

{product, market, service}

{product, liability, claim}

{property, intellectual, protect}

{condition, economic, financial}

{regulation, government, change}

{personnel, key, retain}

{loss, insurance, financial}

{stock, price, operating}

{acquisition, growth, future}

{competitive, industry, competition}

{financial, litigation, operation}

Changes in general economic conditions may cause fluctuations in our revenues and profitability. Our industry is highly correlated with consumer confidence. Our quarterly and annual operating results are subject to significant fluctuations. Our business is very reliant upon direct-to-consumer marketing. We derive all of our revenue from laser vision correction services. A decrease in the provision of these services could result in a significant decrease in our revenues and profitability. If we are unable to attract and retain qualified independent ophthalmologists, our ability to open new vision centers, to maintain operations at existing vision centers or to attract patients could be negatively affected. If technological changes occur which render our equipment or services obsolete, or increase our cost structure, we may need to make significant capital expenditures or modify our business model, which could cause our revenues or profitability to decline. If a better-financed or lower-cost provider of laser vision correction or a competing vision treatment forces us to lower our laser surgery prices in a particular geographic area, our revenues and profitability could decline. Our business has been adversely affected in the past by deeply-discounted pricing by some competitors, and it is possible that such competitive practices may adversely affect our business in the future. We have expanded the role and mix of financing as a percentage of our revenues. As a result, our direct financing program has grown, increasing our credit risk. If laser vision correction does not gain broader market acceptance, our profitability and growth will be severely limited. Concerns about potential side effects and long-term results may negatively impact market acceptance of laser vision correction, result in potential liability for us and prevent us from growing our business. We depend on limited sources for the excimer lasers, diagnostic equipment, microkeratomes and disposable blades we use and for the third-party financing made available to our patients. Shortages of these items or services could hinder our ability to increase our procedure volume. Our business may be impaired due to government regulations which could restrict our equipment, services and relationships with ophthalmologists, optometrists and other healthcare providers. We are subject to lawsuits for patient injuries, which could subject us to significant judgments and damage our reputation. We established a captive insurance company and, if significant claims are paid, it could affect our profitability and our financial condition. Disputes with respect to intellectual property could result in a decrease in revenues and profitability.

Full 10-K form ▸

1003130--2/28/2008--LCA_VISION_INC