Gish Biomedical Blames Laser Project for Losses

Despite strong sales increases, Gish Biomedical Inc. in Santa Ana last week reported second-quarter losses of $178,000, largely due to the costs of winning government approval for its new ophthalmic laser.

In the year-ago period, the company had net income of $22,700. For the period ended Dec. 31, 1985, the medical equipment maker had revenues of $1.7 million, up 30% from the prior year’s $1.3 million.

For the first six months of the 1986 fiscal year, the company lost nearly $300,000, compared to a $39,700 profit in the prior year. Revenues were $3.1 million, up 24% from the year before.

Also last week, Gish announced that the Food and Drug Administration has approved its new portable ophthalmic laser, capping a long application and testing period.

Jack Brown, Gish’s chairman, said shipments of the new laser are expected to begin this month and are projected to turn the company back into a moneymaker in the current quarter.