Premier Laser Attributes Big Losses to Contract Dispute

IRVINE — Premier Laser Systems Inc. said a longstanding contract dispute with a supplier contributed to larger losses and a 40% drop in sales in the fiscal year ended March 31.

The financially struggling Irvine maker of medical lasers and related items, which went public in January, said it has been plagued by a shortage of fiber optics used with a line of its products. For more than a year, the company has been in litigation with its former supplier of fiber optics, Infrared Fiber Systems Inc., of Silver Spring, Md. Premier said it is trying to line up a new supplier.

For the year, Premier reported a loss of $3.81 million, or $1.44 a share, compared with a loss of $3.20 million, or $2.45 a share, in the previous year. It said costs associated with the litigation contributed to the higher losses.

Sales fell to $1.25 million, from $2.08 million.

Early last year, Premier sued Infrared, alleging breach of contract, fraud and interference with its business, said Daniel Gvoski, Premier’s lawyer. Infrared denies the charges and alleges that Premier interfered with Infrared’s business, said attorney Morris Thurston. The suit is in pretrial proceedings in federal court in Santa Ana.

Last month, Premier filed a lawsuit in Superior Court in Santa Ana against its Santa Clara-based competitor, Coherent Inc., and Westinghouse Electric Corp., a former investor in Infrared. Premier alleged that Infrared’s agreement to supply fiber products to Coherent interfered with Premier’s business.

Scott Miller, Coherent’s general counsel, denied the charges. A lawyer for Westinghouse couldn’t be reached for comment.