New York--Ophthalmic Imaging Systems (OTCBB: OISI) reported financial results for the quarter and year ended Dec. 31, 2007.

For the year ended Dec. 31, 2007, OIS reported net revenues of $14.5 million compared with net revenues of $15.8 million for 2006. Net income for the year ended Dec. 31, 2007 was $1.6 million, compared with net income of $2.2 million for the prior year. Sales and net income growth during 2007 were partially offset by two large contracts received in 2006.

For the three months ended Dec. 31, 2007, OIS reported net revenues of $3.6 million, compared with net revenues of $4.4 million for the same period in 2006. Net income for the fourth quarter of 2007 was $0.1 million, compared with net income of $0.6 million for the fourth quarter of 2006.

Gil Allon, CEO of OIS, stated, “We experienced a softening in demand for our digital imaging equipment in the second half of 2007. While we are disappointed with our overall performance for the year, we have several exciting initiatives underway that will simplify our corporate structure, address a broader market opportunity and diversify our product lines within different markets.”

“As previously announced, we recently introduced a new, wholly owned subsidiary, Abraxas Medical Solutions, which simultaneously acquired the assets of AcerMed Inc. Abraxas will focus exclusively on strengthening our foothold in the multi-billion dollar Electronic Medical Records and Practice Management software market.

We are making significant investments into Abraxas to complete development of its proprietary platform, and anticipate it to fully rollout its specialized offerings by the end of 2008. In addition, due to the acquisition of Abraxas, NextGen chose recently to discontinue its relationship with OIS, which will also affect our revenue and cash-flow over the short-term. For these reasons, we will be looking at 2008 as a transition year for OIS as a whole.”

“Also in 2007, we announced a non-binding agreement to acquire our majority shareholder, MediVision Medical Imaging. This merger will allow us to gain greater control over our research and development capabilities, sales and distribution in Europe, and simplify our capital structure. We anticipate closing this merger in the second half of 2008 once the deal is approved by the boards and shareholders of both companies,” concluded Mr. Allon.