STAAR shuffles top management

Surgical supply company loses CFO, CEO



By Andrew Blazier, Staff Writer



MONROVIA -- STAAR Surgical Co. on Thursday overhauled its executive management, replacing its chief financial officer and relieving Chief Executive David Bailey of his board chairmanship duties.

Monrovia-based STAAR, which produces surgically implanted contact lenses, said the actions were intended to help improve board governance and aid in its attempts to reign in expenses.

Among the changes, STAAR announced the resignation of former CFO John Bily, 58, who joined the firm Jan. 3, 2002. Deborah Andrews, 48, most recently the company's global controller, was promoted to vice president and principal accounting officer and will take over as interim CFO.

"We will be relentless in our pursuit of our cost reduction and efficiency objectives," Bailey said during a conference call with analysts and investors.

The company also named as its new board chairman Don Bailey, former CEO and current chairman of COMARCO Inc., an Irvine-based wireless hardware and software developer. The firm trades under the ticker symbol CMRO on the Nasdaq Stock Market.

Don Bailey, 59, is not related to David Bailey, 48, the company said.

In addition, Charles Kaufman, 50, a corporate attorney at Sheppard Mullin Richter & Hampton LLP, was installed as STAAR's first general counsel.

The flurry of board and executive activity underscored what has been a tumultuous last 18 months for STAAR Surgical. During that time, the company has run into several obstacles while attempting to obtain U.S. approval of its crucial implantable contact lens product, or ICL.

Meanwhile, the firm experienced rising financial distress as it continued to use its available cash faster than it could increase revenues.

Part of Andrews' job will be to slow the cash burn. The company completed the first quarter with $5.3 million in cash, while using $2.6 million during the quarter. At that rate, STAAR would exhaust existing cash in roughly two quarters.

Andrews indicated Thursday the firm's hemorrhaging had already begun to slow. The company spent $900,000 less cash during the quarter than it expected. And an 11-cent-per-share net loss beat analysts' average expectation by 2 cents per share, according to Thomson Financial.

STAAR generated $13.7 million in sales during the quarter, up 0.8 percent from a year ago. The loss of $2.3 million improved by 46.7 percent from the same period in 2004.

Analysts surveyed by Thomson Financial on Thursday gave STAAR Surgical an average rating of 2 on a five-point scale, with 1 being the highest.

STAAR shares closed up 4 cents, or 1 percent, on Thursday to $3.81 on the Nasdaq Stock Market. -- Andrew Blazier can be reached at (626) 962-8811, Ext. 2477, or by e-mail at andrew.blazier@sgvn.com.