San Francisco based Altus Medical, a developer of aesthetic laser systems for dermatologists, plastic surgeons and other practitioners, who competes Israeli company Lumenis (Nasdaq:LUME), will try its luck on Nasdaq.
The privately owned company, founded in 1998, submitted an initial prospectus to the stock market at the beginning of the week, in which it hopes to raise $60 million at a still-undecided price range. Its market value for the funding round will not exceed $200 million.
Underwriters UBS Warburg and Lehman Brothers (NYSE:LEH) will lead the issue, whose influence on Lumenis, if any, will be only positive. "Altus submitting the prospectus will wake investors up to the kind of activity Lumenis is in, and create value for it once investors realize how attractive its prices are," Investec General Bank analyst Kobby Finkelstein said today.
Finkelstein added, that since Lumenis is by far the bigger player of the two, he wasn't concerned for its status in the market. Lumenis has the advantage of developing and distributing medical appliances that are based on IPL, or intense pulsed light, technology, not just on laser, which is the case for Altus.
In 2000 Altus made $1 million, and in the first nine months of 2001 it reported a $1.4 million profit. Even if the American company were to report a $2 million profit in the entire year 2001, it still couldn't begin to compare with Lumenis, which is expecting a 2001 profit of $48 million, excluding one-time expenditures.
Sales in 2000 for Altus, future ticker symbol ALTU, came to $9.5 million. In the first nine months of 2001 they totaled 13.9 million. Even if its sales were to suddenly leap to $20 million, it would still be light years away from the $315 million in revenues posted by Yokneam-based Lumenis.
Even at a market cap of $200 million, Altus's p-e ratio is at least 10. If Lumenis, currently valued at $840 million, meets its forecasts, then its multiple will be a mere 2.5.