Full Press Release Details
IRIDEX Reports 2011 Fourth Quarter and
Mountain View, Calif. - March 1, 2012 IRIDEX Corporation (Nasdaq: IRIX) today
reported financial results for the fourth quarter ended December 31, 2011. Due to the sale of the Company s aesthetics laser business in February 2012, the Company will be reporting its results for its continuing ophthalmology business.
President and CEO Dominik Beck said, The turn of the year 2011/12 marked the culmination of a period of intense business
development and market activity as we executed on a number of key elements of our strategic plan. By selling our aesthetics laser business, we can now focus solely on our ophthalmology business. By entering into a distribution agreement with
Alcon we have taken the next big step in making consumable products a key part of our growth strategy. And we now have growing affirmation that vision-preserving MicroPulse laser therapy is the way of the future - it makes more economic sense to
healthcare systems, it is more profitable for physicians and healthcare providers and it has improved clinical outcomes for the patient compared to the current standard of care. We now have 10 year data and a pronouncement from the UK s
National Institute of Health and Clinical Excellence to support our assertions.
As a result of these
accomplishments, IRIDEX is uniquely positioned as the only public company with an exclusive focus on the large and growing retinal disease and glaucoma markets. In the coming year we will leverage our strong clinical foundation by adding more
commercial focus to our business and product portfolio to drive significant revenue growth, continued Dr. Beck.
Guidance for first quarter of fiscal 2012: Historically, the Company has provided quarterly revenue, margin and operating expense
guidance for the coming 3-month period and intends to continue that practice in the future. Given the complexities surrounding the closing of the sale of the aesthetics business and related organizational changes in the first quarter, providing an
assessment of margin and income is not possible at this time. Revenues are expected to be in the range of $8.5 million to $8.8 million. Gross margins and operating expenses will be impacted by
special costs involved with selling the aesthetics business and the resulting organizational changes that have been made following that divestiture. For your information, the Company has provided an additional schedule with this press release that
presents the four quarters and year for 2011 separating continuing operations from discontinued operations.
quarter 2011, the Company continued to execute its share repurchase program. Since the beginning of 2011, approximately 168,000 shares have been repurchased at an average price of $3.86. The Board of Directors has approved an extension of the
Company s share repurchase program through May 2013 and an increase in the amount of cash available for the program to a total of $4 million.
Q4 2011 Business Highlights
IRIDEX management will conduct a conference call later today, Thursday, March 1, 2012 at 5:00 p.m. Eastern Time. Interested parties may access the live conference call via telephone by dialing
(800) 762-8779 (U.S.) or (480) 629-9771 (International) and quoting Conference ID 4517801, or by visiting the Company s website at www.iridex.com. A telephone replay will be available beginning on Thursday, March 1, 2012
through Thursday, March 8, 2012 by dialing (800) 406-7325 (U.S.) or (303) 590-3030 (International) and entering Access Code 4517801. In addition, later today an archived version of the webcast will be available on the Company s
website at www.iridex.com.
IRIDEX Corporation was founded in 1989 and is a worldwide leader in developing, manufacturing, and marketing innovative and versatile laser-based medical systems, delivery devices and consumable
instrumentation for the ophthalmology and otolaryngology market. We maintain a deep commitment to the success of our customers, with comprehensive technical, clinical, and service support programs. IRIDEX is dedicated to a standard of excellence,
offering superior technology for superior results. IRIDEX products are sold in the United States through a direct sales force and internationally through a combination of a direct sales force and a network of approximately 70 independent
distributors into 107 countries. For further information, visit the Company s website at http://www.iridex.com/.
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, relating to the Company s growth strategy, MicroPulse laser therapy, revenue growth and the Company s projected fiscal 2012 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 January 1, 2011 and our Quarterly Reports on Form 10-Q for the quarters ended April 2, 2011, July 2, 2011 and October 1, 2011, 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.
| Company Contact: | Investor Relations Contact: | |
| Jim Mackaness | Matt Clawson | |
| Chief Financial Officer | Allen & Caron | |
| 650-940-4700 | 949-474-4300 | |
| matt@allencaron.com |
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | January 1, | December 31, | January 1, | |||||||||||||
| 2011 | 2011 | 2011 | 2011 | |||||||||||||
| Total revenues | $ | 8,620 | $ | 9,037 | $ | 33,159 | $ | 32,308 | ||||||||
| Cost of revenues | 4,342 | 4,573 | 16,869 | 16,106 | ||||||||||||
| Gross profit | 4,278 | 4,464 | 16,290 | 16,202 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 1,166 | 885 | 3,913 | 3,753 | ||||||||||||
| Sales and marketing | 2,147 | 2,094 | 7,458 | 7,095 | ||||||||||||
| General and administrative | 1,066 | 923 | 4,259 | 4,163 | ||||||||||||
| Legal settlement, net of expenses | (1,274 | ) | (1,274 | ) | ||||||||||||
| Total operating expenses | 3,105 | 3,902 | 14,356 | 15,011 | ||||||||||||
| Income from operations | 1,173 | 562 | 1,934 | 1,191 | ||||||||||||
| Other income (expense) | ||||||||||||||||
| Legal settlement | 800 | 800 | ||||||||||||||
| Interest and other income (expense), net | (250 | ) | 4 | (296 | ) | (30 | ) | |||||||||
| Total other income (expense) | (250 | ) | 4 | 504 | 770 | |||||||||||
| Income from continuing operations before income taxes | 923 | 566 | 2,438 | 1,961 | ||||||||||||
| Provision for income taxes | 122 | 322 | 297 | 308 | ||||||||||||
| Income from continuing operations | 801 | 244 | 2,141 | 1,653 | ||||||||||||
| Income (loss) from discontinued operations, net of tax | (15 | ) | 593 | 469 | 1,393 | |||||||||||
| Net income | $ | 786 | $ | 837 | $ | 2,610 | $ | 3,046 | ||||||||
| Net income (loss) per share: | ||||||||||||||||
| Basic: | ||||||||||||||||
| Continuing operations | $ | 0.09 | $ | 0.03 | $ | 0.24 | $ | 0.18 | ||||||||
| Discontinued operations | ($ | 0.00 | ) | $ | 0.06 | $ | 0.05 | $ | 0.16 | |||||||
| $ | 0.09 | $ | 0.09 | $ | 0.29 | $ | 0.34 | |||||||||
| Diluted: | ||||||||||||||||
| Continuing operations | $ | 0.08 | $ | 0.02 | $ | 0.21 | $ | 0.16 | ||||||||
| Discontinued operations | ($ | 0.00 | ) | $ | 0.06 | $ | 0.05 | $ | 0.14 | |||||||
| $ | 0.08 | $ | 0.08 | $ | 0.26 | $ | 0.30 | |||||||||
| Weighted average shares used in computing net income per share - basic | 8,945 | 8,982 | 8,958 | 8,943 | ||||||||||||
| Weighted average shares used in computing net income per share - diluted | 10,200 | 10,200 | 10,225 | 10,134 |
Condensed Consolidated Balance Sheets
| December 31, | January 1, | |||||||
| 2011 | 2011 | |||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 10,789 | $ | 8,347 | ||||
| Accounts receivable, net | 5,551 | 5,457 | ||||||
| Inventories, net | 6,659 | 5,632 | ||||||
| Prepaids and other current assets | 464 | 389 | ||||||
| Current assets held for sale | 6,043 | 6,547 | ||||||
| Total current assets | 29,506 | 26,372 | ||||||
| Property and equipment, net | 325 | 336 | ||||||
| Other long-term assets | 199 | 206 | ||||||
| Other intangible assets, net | 745 | 821 | ||||||
| Goodwill | 533 | 473 | ||||||
| Non-current assets held for sale | 841 | 1,012 | ||||||
| Total assets | $ | 32,149 | $ | 29,220 | ||||
| Liabilities and Stockholders Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 1,580 | $ | 1,514 | ||||
| Accrued compensation | 1,180 | 1,389 | ||||||
| Accrued expenses | 1,920 | 1,438 | ||||||
| Accrued warranty | 556 | 607 | ||||||
| Deferred revenue | 1,014 | 1,002 | ||||||
| Current liabilities held for sale | 2,663 | 3,247 | ||||||
| Total current liabilities | 8,913 | 9,197 | ||||||
| Long-Term Liabilities: | ||||||||
| Other long-term liabilities | 810 | 596 | ||||||
| Total liabilities | 9,723 | 9,793 | ||||||
| Stockholders Equity: | ||||||||
| Convertible preferred stock | 5 | 5 | ||||||
| Common stock | 92 | 89 | ||||||
| Additional paid-in capital | 42,032 | 41,168 | ||||||
| Accumulated other comprehensive loss | (35 | ) | (205 | ) | ||||
| Treasury stock, at cost | (1,078 | ) | (430 | ) | ||||
| Accumulated deficit | (18,590 | ) | (21,200 | ) | ||||
| Total stockholders equity | 22,426 | 19,427 | ||||||
| Total liabilities and stockholders equity | $ | 32,149 | $ | 29,220 |
2011 Continuing Operations and Discontinued Operations, Quarterly and Year
(In thousands, except per share data)
| Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | Fiscal Year | ||||||||||||||||
| April 2, | July 2, | October 1, | December 31, | December 31, | ||||||||||||||||
| 2011 | 2011 | 2011 | 2011 | 2011 | ||||||||||||||||
| Total revenues | $ | 8,196 | $ | 8,085 | $ | 8,258 | $ | 8,620 | $ | 33,159 | ||||||||||
| Cost of revenues | 4,112 | 4,147 | 4,268 | 4,342 | 16,869 | |||||||||||||||
| Gross profit | 4,084 | 3,938 | 3,990 | 4,278 | 16,290 | |||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Research and development | 963 | 890 | 894 | 1,166 | 3,913 | |||||||||||||||
| Sales and marketing | 1,778 | 1,786 | 1,747 | 2,147 | 7,458 | |||||||||||||||
| General and administrative | 1,083 | 1,022 | 1,088 | 1,066 | 4,259 | |||||||||||||||
| Legal settlement, net of expenses | (1,274 | ) | (1,274 | ) | ||||||||||||||||
| Total operating expenses | 3,824 | 3,698 | 3,729 | 3,105 | 14,356 | |||||||||||||||
| Income from operations | 260 | 240 | 261 | 1,173 | 1,934 | |||||||||||||||
| Other income (expense) | ||||||||||||||||||||
| Legal settlement | 800 | 800 | ||||||||||||||||||
| Interest and other income (expense), net | 4 | 3 | (53 | ) | (250 | ) | (296 | ) | ||||||||||||
| Total other income (expense) | 4 | 803 | (53 | ) | (250 | ) | 504 | |||||||||||||
| Income from continuing operations before income taxes | 264 | 1,043 | 208 | 923 | 2,438 | |||||||||||||||
| Provision for (benefit from) income taxes | 79 | 144 | (48 | ) | 122 | 297 | ||||||||||||||
| Income from continuing operations | 185 | 899 | 256 | 801 | 2,141 | |||||||||||||||
| Income (loss) from discontinued operations, net of tax | 381 | 10 | 93 | (15 | ) | 469 | ||||||||||||||
| Net income | $ | 566 | $ | 909 | $ | 349 | $ | 786 | $ | 2,610 | ||||||||||
| Net income (loss) per share: | ||||||||||||||||||||
| Basic: | ||||||||||||||||||||
| Continuing operations | $ | 0.02 | $ | 0.10 | $ | 0.03 | $ | 0.09 | $ | 0.24 | ||||||||||
| Discontinued operations | $ | 0.04 | $ | 0.00 | $ | 0.01 | ($ | 0.00 | ) | $ | 0.05 | |||||||||
| $ | 0.06 | $ | 0.10 | $ | 0.04 | $ | 0.09 | $ | 0.29 | |||||||||||
| Diluted: | ||||||||||||||||||||
| Continuing operations | $ | 0.02 | $ | 0.09 | $ | 0.02 | $ | 0.08 | $ | 0.21 | ||||||||||
| Discontinued operations | $ | 0.04 | $ | 0.00 | $ | 0.01 | ($ | 0.00 | ) | $ | 0.05 | |||||||||
| $ | 0.06 | $ | 0.09 | $ | 0.03 | $ | 0.08 | $ | 0.26 | |||||||||||
| Weighted average shares used in computing net income per share - basic | 8,964 | 8,961 | 8,965 | 8,945 | 8,958 | |||||||||||||||
| Weighted average shares used in computing net income per share - diluted | 10,215 | 10,231 | 10,253 | 10,200 | 10,225 |