Originally Published MX January/February
2002

COVER STORY

On the Money

American Medical
Systems (AMS; Minneapolis) is a market leader in medical devices for the treatment
of incontinence, erectile dysfunction, and prostate disease, and the company’s
balance sheet reflects as much. For the nine months ended September 29, 2001,
AMS’s net sales rose 15% to $84.6 million. Net income totaled $4.9 million,
versus a loss of $904,000 in the same period in 2000. Results reflect higher
sales of incontinence, erectile dysfunction, and prostate disease products;
improved gross margins; and a decrease in information technology, legal, and
interest expenses.



AMS reported net sales of $28.6 million for the third quarter of 2001, a $5.1
million, or 22%, increase over sales of $23.5 million in the same quarter of
2000. Net income in the third quarter of 2001 was $2 million, or $0.06 per share
on a fully diluted basis, a $2.3 million increase from the $0.3 million loss
in the same quarter of 2000. Third-quarter earnings before interest, taxes,