Lancer Orthodontics

San Diego Business Journal, April 15, 1991

LANCER ORTHODONTICS

Joseph H. Irani President Cash compensation: unavailable* Revenue: $6,931,000* Net income (loss): ($74,000)*

* Following the resignation of former president Richard Bryant, Irani, age 63, was named company president. He is also president, CEO and a director of Newport Beach-based Bioamerica Inc., positions he has held since 1971. * His career as a scientist includes work at UC Berkeley, Westinghouse Commercial Atomic Power and Aerojet's head radiation lab, where he worked on Titan and Polaris engines. He also served as executive advisor at McDonnell Douglas in military operations in outer space. * Irani studied at the University of Texas, received a bachelor's degree in chemistry from UC Berkeley and completed three years of graduate work at the University of Utah in physics and theoretical chemistry. * Leadership style: "Goal oriented; allow workers the opportunities to demonstrate their abilities." * Residence: Laguna Niguel. Married, with four children. Hobbies/Activities: Swimming, painting. Birthplace: Baghdad, Iraq. *Lancer changed its year end to May 31, from Aug. 31 in 1990, so cash compensation figures were not available. Founded as a public company in 1970, Lancer Orthodontics Inc. manufactures and purchases various orthodontic products and sells them directly to orthodontists through company representatives and independent distributors. The company also sells certain products on a private-label basis.

In 1990 the company changed its year-end from Aug. 31 to May 31. Because of the change, operating results in 1990 reflect only nine months activity. For the nine months ended May 31, 1990, the net loss for the company was $74,200. Sales for the nine-month period totaled $6.9 million, a decrease of $2.4 million from the prior full fiscal year. On an annualized basis, net sales for 1990 would have approximated net sales in 1989.

The company has experienced reduced domestic sales growth, which appears to be common throughout the orthodontic industry. Foreign sales continue to be strong and the company expects the majority of its sales growth over the next few years to come from overseas.

Lancer is a party to two lawsuits arising out of the normal conduct of its business. The lawsuits involve the alleged violation of fiduciary and contractual relationships with the company by a former employee, and the alleged infringement of a patent held by Ormco Corp. While Lancer cannot predict the outcome of the lawsuits, the company expects these matters to have no adverse effect on the company.

Second Quarter Report, Nov. 30, 1990: The quarter's net sales increased $2,224 compared to the year earlier period, reflecting a generally flat-to-declining market and increasing competitive pressure. This trend is expected to continue until the economy in general starts to improve.

The company's May 1990 entry into a manufacturing subcontractor agreement in Mexico has resulted in substantially higher costs and expenditures during the first six months of 1991. The move also also has had an adverse effect on production levels and manufacturing efficiencies.

* Directors

Merrill Bothamley (67), a director since 1988, is chairman of the company and also served as a director for the company from 1972 to 1982. He is an investor in various business enterprises. Richard R. Bryant (59), a director since 1979, was president of the company from 1982 until his resignation this year. Prior to joining the company, he was employed for 10 years by Unitek Corp., a manufacturer of orthodontic products. Joseph H. Irani (63), a director since 1988, was appointed secretary of the company in May 1990, executive vice president in July 1990 and president upon the resignation of Richard Bryant. (See above profile.) Robert Orlando (52), a director since 1988, is a professor of pathology and has served as chief pathologist of Whittier Hospital in Whittier since 1981. He also has been a professor at the Southern California College of Optometry in Fullerton since 1972.

* Executive Cash Compensation

(Includes bonuses and directors fees.) Richard R. Bryant, president ($92,372); Carl J. Berendt, vice president ($65,251); All executive officers as a group (5 persons) ($162,289).

* Significant Stock Ownership

Common shares beneficially owned on Sept. 14, 1990 -- Percent of class: Biomerica Inc. (3,098,026 -- 41.2); Richard R. Bryant (517,793 -- 6.9); Merrill Bothamley (447,565 -- 5.9); Joseph H. Irani (436,077 -- 2.7); Officers/directors as a group (1,498,153 -- 19.9)