Full Press Release Details
IRIDEX Announces 2019 Second Quarter Financial Results
MOUNTAIN VIEW, Calif., August 6, 2019 -- IRIDEX Corporation (Nasdaq: IRIX) today reported financial results for the second quarter ended June 29, 2019.
Second Quarter Highlights
"I am pleased to join the IRIDEX team at this time, when our differentiated MicroPulse glaucoma therapy offers proven safety and efficacy outcomes capable of achieving a broader share in the large population of glaucoma patients," said David I. Bruce, recently appointed President and CEO. "With a substantial base of our Cyclo G6 laser system placements worldwide, we will focus on both growing adoption by our current users and broadening awareness of the safety, efficacy, and durability of our solution to significantly expand our market penetration."
Second Quarter 2019 Financial Results
Revenue for the three months ended June 29, 2019 increased 1.2% to $10.4 million compared to $10.3 million during the same period of the prior year. Revenue growth continues to be driven by sales of IRIDEX's Cyclo G6 products.
Gross profit for the second quarter of 2019 was $4.5 million, or 43.6% gross margin, compared to $4.3 million, or 41.4% gross margin, in the same period of the prior year. The increase in gross margin was primarily due to a decrease in manufacturing overhead spending, partially offset by an increase in manufacturing overhead variances that included an adjustment to warranty expense.
Operating expenses for the second quarter of 2019 were $7.0 million compared to $7.6 million in the same period of the prior year. Lower operating expenses in the quarter reflected a reduction in costs associated with lower headcount and efficiencies gained in adjustments to the Company's sales & marketing programs, partially offset by an increase in severance costs.
Loss from operations for the second quarter of 2019 was $2.5 million, compared to loss from operations of $3.3 million for the same period of the prior year, contributing to a reduction of net cash burn to $1.6 million for the quarter.
As of June 29, 2019, the Company had cash and cash equivalents of $15.6 million and no debt.
Guidance for Full Year 2019
IRIDEX reduced its total revenue guidance for the full year 2019 to a range of $41 million to $44 million from $43 million to $46 million. The revised revenue guidance primarily reflects the following factors:
The Company also revised its expectation for Cyclo G6 system shipments to a range of 375 to 425 from 475 to 525, reflecting its shifting sales focus towards increased physician utilization.
IRIDEX confirms guidance for Cyclo G6 probe shipments in the range of 58,000 to 63,000.
Webcast and Conference Call Information
IRIDEX's management team will host a conference call today beginning at 2:00 p.m. PT / 5:00 p.m. ET. Investors interested in listening to the conference call may do so by dialing (844) 707-0665 for domestic callers or (703) 326-3030 for international callers, using conference ID: 4198453. A live and archived webcast of the event will be available on the "Investors" section of the Company's website at: www.iridex.com.
IRIDEX Corporation is a worldwide leader in developing, manufacturing, and marketing innovative and versatile laser-based medical systems, delivery devices and consumable instrumentation for the ophthalmology market. The Company's proprietary MicroPulse technology delivers a differentiated treatment that provides safe, effective, and proven treatment for targeted sight-threatening eye conditions. IRIDEX's current product line is used for the treatment of glaucoma and diabetic macular edema (DME) and other retinal diseases. IRIDEX products are sold in the United States through a direct sales force and internationally primarily through a network of independent distributors into more than 100 countries. For further information, visit the IRIDEX website at http://www.iridex.com/.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, including those statements concerning the future demand, utilization and order levels for the Company's products, plans to introduce new products, and the Company's guidance for fiscal 2019 and future financial results. These statements are not guarantees of future performance and actual results may differ materially from those described in these forward-looking statements as a result of a number of factors. Please see a detailed description of these and other risks contained in our Annual Report on Form 10-K for the fiscal year ended December 29, 2018, and Quarterly Reports on Form 10-Q for subsequent fiscal quarters, each of which was filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date and will not be updated.
Investor Relations Contact
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | ||||||||||||||
| Total revenues | $ | 10,426 | $ | 10,304 | $ | 21,021 | $ | 19,813 | |||||||||
| Cost of revenues | 5,877 | 6,036 | 12,215 | 11,623 | |||||||||||||
| Gross profit | 4,549 | 4,268 | 8,806 | 8,190 | |||||||||||||
| Operating expenses: | |||||||||||||||||
| Research and development | 929 | 901 | 1,887 | 2,005 | |||||||||||||
| Sales and marketing | 3,462 | 4,168 | 7,553 | 8,218 | |||||||||||||
| General and administrative | 2,626 | 2,481 | 4,870 | 4,866 | |||||||||||||
| Total operating expenses | 7,017 | 7,550 | 14,310 | 15,089 | |||||||||||||
| Loss from operations | (2,468 | ) | (3,282 | ) | (5,504 | ) | (6,899 | ) | |||||||||
| Other income, net | 58 | 6 | 52 | 24 | |||||||||||||
| Loss from operations before provision for income taxes | (2,410 | ) | (3,276 | ) | (5,452 | ) | (6,875 | ) | |||||||||
| Provision for income taxes | 9 | 4 | 15 | 8 | |||||||||||||
| Net loss | $ | (2,419 | ) | $ | (3,280 | ) | $ | (5,467 | ) | $ | (6,883 | ) | |||||
| Net loss per share: | |||||||||||||||||
| Basic | $ | (0.18 | ) | $ | (0.28 | ) | $ | (0.40 | ) | $ | (0.59 | ) | |||||
| Diluted | $ | (0.18 | ) | $ | (0.28 | ) | $ | (0.40 | ) | $ | (0.59 | ) | |||||
| Weighted average shares used in computing net loss per share | |||||||||||||||||
| Basic | 13,648 | 11,644 | 13,639 | 11,636 | |||||||||||||
| Diluted | 13,648 | 11,644 | 13,639 | 11,636 |
Condensed Consolidated Balance Sheets
(In thousands and unaudited)
| June 29, 2019 | December 29, 2018 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 15,633 | $ | 21,194 | ||
| Accounts receivable, net | 8,083 | 9,083 | ||||
| Inventories | 8,974 | 8,794 | ||||
| Prepaid expenses and other current assets | 593 | 547 | ||||
| Total current assets | 33,283 | 39,618 | ||||
| Property and equipment, net | 991 | 1,220 | ||||
| Intangible assets, net | 92 | 100 | ||||
| Goodwill | 533 | 533 | ||||
| Operating lease right-of-use assets, net | 3,390 | - | ||||
| Other long-term assets | 196 | 201 | ||||
| Total assets | $ | 38,485 | $ | 41,672 | ||
| Liabilities and Stockholders' Equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 2,196 | $ | 2,516 | ||
| Accrued compensation | 2,150 | 2,962 | ||||
| Accrued expenses | 2,055 | 2,763 | ||||
| Accrued warranty | 490 | 622 | ||||
| Deferred revenue | 1,514 | 1,639 | ||||
| Operating lease liabilities | 1,363 | - | ||||
| Total current liabilities | 9,768 | 10,502 | ||||
| Long-term liabilities: | ||||||
| Accrued warranty | 86 | 238 | ||||
| Deferred revenue | 469 | 586 | ||||
| Operating lease liabilities | 2,516 | - | ||||
| Other long-term liabilities | 17 | 385 | ||||
| Total liabilities | 12,856 | 11,711 | ||||
| Stockholders' equity: | ||||||
| Common stock | 147 | 145 | ||||
| Additional paid-in capital | 72,685 | 71,548 | ||||
| Accumulated other comprehensive income | 66 | 70 | ||||
| Accumulated deficit | (47,269 | ) | (41,802) | |||
| Total stockholders' equity | 25,629 | 29,961 | ||||
| Total liabilities and stockholders' equity | $ | 38,485 | $ | 41,672 |