SANTA ANA, Calif.--Advanced Medical Optics (AMO) (NYSE:EYE), based here, reported net sales of $997.5 for the year ended Dec. 31, 2006, an 8.3 percent increase over the year-ago period. In its year-end financial statement, AMO said the rise reflects the May 2005 acquisition of VISX and subsequent international expansion of the its laser vision correction (LVC) business, as well as increased demand for the company’s premium intraocular lenses (IOLs) and proprietary phacoemulsification systems.

Net sales growth in 2006 was partially offset by a loss of sales following the company’s November 2006 eyecare recall, a reduction in net sales related to the company’s business rationalization efforts and a 0.2 percent decline related to foreign currency. For 2006, AMO reported income of $79.5 million, including the impact of the recall.

“In 2006, we made progress toward our strategy to establish AMO as the refractive company,” said Jim Mazzo, AMO chairman, president and chief executive officer. “We grew our monofocal IOL, refractive IOL and phacoemulsification businesses. We expanded our LVC business and began to establish a procedure-based model overseas, while moving to strengthen our global LVC technology leadership with strategic acquisitions. We successfully repositioned our eyecare business by streamlining our offering to focus on higher-margin products, while aggressively addressing the recall at the end of the year. In addition, we prepared to introduce a series of new products across each of our businesses in 2007.”

AMO posted fourth-quarter 2006 net sales of $243.6 million, a 3.6 percent decline compared to the same quarter last year. The fourth-quarter net loss of $7.6 million was due primarily to recall-related sales declines, product returns and costs, and the tax effect of these issues, according to AMO.