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A recent Forbes article calling Newport Beach-based Urohealth Systems Inc.'s prospects for profitability "doubtful" hasn't gone unanswered by chairman and CEO Charles A. Laverty.
Laverty responded by firing off a letter to Forbes president and editor-in-chief Steve Forbes detailing his objections with the article, "Ill at Urohealth," which appeared in the May 19 issue in the magazine's Streetwalker column. The letter, along with analysts' responses to the Forbes article, also was distributed to Urohealth's 1,200 employees.
"It was a terrible article," Laverty contended. "It was such nonsense."
Urohealth makes urological and gynecological medical devices and counted sales of $68 million for the nine months ending in December. A string of acquisitions boosted Urohealth's sales 79% during the nine-month period but also contributed to a net loss of $19.4 million for the period. For its fiscal third quarter ending in December, Urohealth posted a $4.8 million profit.
The article threw cold water on Laverty's ambitious strategy of growth through acquisitions, the most recent of which was Imagyn Medical Inc., Irvine. Laverty said he is undaunted:
"I am going to win the race. In order to win the race, I've got to be aggressive," he said.