MONROVIA, Calif.--Refractive surgery firm Staar Surgical (Nasdaq: STAA) is seeking financing to fund its ongoing operations, after reporting a net loss of $11.3 million for its 2004 fiscal year.

The company said that due to recurring losses and negative cash flows, it is likely to be notified by its independent public accountant that there is substantial doubt about Staar's ability to continue as a going concern.

Staar said it is "taking steps to aggressively reduce operating expenses and increase its revenues, while at the same time reviewing other strategic alternatives." But a company announcement noted, "There can be no assurance that these measures will be successful."

Staar said it began reducing its reliance on outside consultants during 2004's Q4, a move expected to save the company approximately $1 million annually. In early February, Staar implemented additional cost-saving strategies, including reducing the size of its direct sales force, expected to result in another $1 million in annualized cost savings. "The company will continue to pursue other cost-savings opportunities with the goal of realizing a total of $3 million in annual cost savings," the announcement said.

"Despite these aggressive actions and considering our level of cash burn, we will need to raise additional money to fund our ongoing operations," said David Bailey, president and chief executive officer of STAAR Surgical. "We are in the process of evaluating all of our options to accomplish this goal."