Advanced Medical Optics (NYSE:EYE), a small to mid-sized medical technology company focused on eye care, is taking on Alcon (NYSE:ACL), Bausch & Lomb (NYSE:BOL), and Novartis's (NYSE:NVS) CIBA Vision business, the big boys in the industry. It will take a while to see whether AMO's gamble pays off, but it will be an interesting fight to watch.

Third-quarter results take a little bit of effort to properly understand. The reported revenue growth figure of 25% is gaudy, but almost all of it comes from the inclusion of optical laser-surgery specialist VISX, which AMO purchased earlier in the year. Stripping out that purchase, total revenue growth looks like it was on the order of 1%.

Likewise, the operating and net profit figures have to be adjusted for a raft of various charges -- some incurred this quarter with the VISX deal, and some last year with the purchase of Pfizer's (NYSE:PFE) ophthalmic surgery business. Stripping those things out, net earnings per share seem to have increased about 17% from last year.

It was a story of two businesses at AMO this quarter. There was growth in the ophthalmic surgery business, even after excluding VISX, with implant and intraocular lens revenues both improving by mid- to high single digits. In eye care, though, sales were down almost 9% as hydrogen peroxide sales fell sharply.

Those hoping for a nice, clean, charge-free quarter anytime soon will be disappointed, since the company is advancing a "rationalization and repositioning" strategy. This move will include eliminating older products, cutting the workforce, writing down some inventory and assets, and accelerating some various productivity initiatives. While I'm innately skeptical of these kinds of moves, success here could well mean better margins down the line and better profit growth.

As it stands now, AMO is the No. 2 lens-care player behind Bausch & Lomb, the No. 2 player in cataract and vitreous care (though Bausch & Lomb is a very close No. 3), and the No. 1 player in refractive care. Walking amidst giants can be difficult, though, and the company will have to see new products like the ReZoom multifocal lens implant and artificial tears succeed if the bull case is to pan out.

Eyeball some more Foolish Takes on eye care:

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Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).