Full Press Release Details
IRIDEX Reports 2012 First Quarter Results
Mountain View, Calif.
May 3, 2012 IRIDEX Corporation (Nasdaq: IRIX) today reported financial results for the first quarter ended March 31, 2012. Due to the sale of the Company s aesthetics laser business in February 2012, the
Company s financial statements reflect the results of its aesthetics laser business as discontinued operations and the following commentary relates to the results of its continuing ophthalmology business.
President and CEO Dominik Beck said, While commercial traction from our new
initiatives will likely show increasingly positive results in the second half of the year, we had a solid first quarter especially in terms of our efforts in the glaucoma market. We are repositioning our products both equipment and
disposables in that segment with good results. In fact, demand for our G-Probe stepped up considerably in the period, outstripping supply and resulting in a modest backlog for the period.
Beck continued, We are increasing our investment in people and programs to make the necessary product and organizational changes
that will drive sales growth. We intend to balance our investments in line with our revenue growth to maintain profitability for the year.
I believe there are a number of very promising trends in the ophthalmic space and that these trends can be turned into substantial growth opportunities for IRIDEX and allow us to grow faster than
our historical rates. We are uniquely positioned as the only US public company with an exclusive focus on the large and growing retinal disease and glaucoma markets to capitalize on those opportunities.
During the first quarter 2012, the Company continued to execute its share repurchase program. Since the beginning of 2011, approximately
157,000 shares have been repurchased at an average price of $3.90. The Board of Directors has approved an extension of the Company s share repurchase program through March 2013 and an increase in the amount of cash available for the program to
a total of $4 million.
Recent Business Highlights
management will conduct a conference call later today, Thursday, May 3, 2012 at 5:00 p.m. Eastern Time. Interested parties may access the live conference call via telephone by dialing (877) 941-2332 (U.S.) or (480) 629-9773
(International) and quoting Conference ID 4533749, or by visiting the Company s website at www.iridex.com. A telephone replay will be available beginning on Thursday, May 3, 2012 through Thursday, May 10, 2012 by dialing
(800) 406-7325 (U.S.) or (303) 590-3030 (International) and entering Access Code 4533749. In addition, later today an archived version of the webcast will be available on the Company s website at www.iridex.com.
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 over 100 countries. For further information, visit
the Company s 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,
relating to the size and growth of markets in which the Company operates, the Company s growth strategy, MicroPulse laser therapy, sales revenue growth, operational plans 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 December 31, 2011 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
| 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
| Three Months Ended | ||||||||
| March 31, | April 2, | |||||||
| 2012 | 2011 | |||||||
| Total revenues | $ | 8,305 | $ | 8,196 | ||||
| Cost of revenues | 4,319 | 4,112 | ||||||
| Gross profit | 3,986 | 4,084 | ||||||
| Operating expenses: | ||||||||
| Research and development | 1,182 | 963 | ||||||
| Sales and marketing | 1,864 | 1,778 | ||||||
| General and administrative | 1,176 | 1,083 | ||||||
| Total operating expenses | 4,222 | 3,824 | ||||||
| (Loss) income from operations | (236 | ) | 260 | |||||
| Other (expense) income, net | (27 | ) | 4 | |||||
| (Loss) income from continuing operations before income taxes | (263 | ) | 264 | |||||
| Provision for income tax | 2 | 79 | ||||||
| (Loss) income from continuing operations, net of tax | (265 | ) | 185 | |||||
| (Loss) income from discontinued operations, net of tax | (162 | ) | 381 | |||||
| Gain on sale of discontinued operations, net of tax | 2,032 | |||||||
| Income from discontinued operations, net of tax | 1,870 | 381 | ||||||
| Net income | $ | 1,605 | $ | 566 | ||||
| Net (loss) income per share: | ||||||||
| Basic | ||||||||
| Continuing operations | $ | (0.03 | ) | $ | 0.02 | |||
| Discontinued operations | $ | 0.21 | $ | 0.04 | ||||
| Net income | $ | 0.18 | $ | 0.06 | ||||
| Diluted | ||||||||
| Continuing operations | $ | (0.03 | ) | $ | 0.02 | |||
| Discontinued operations | $ | 0.21 | $ | 0.04 | ||||
| Net income | $ | 0.18 | $ | 0.06 | ||||
| Weighted average shares used in computing net income per share | ||||||||
| Basic | 8,933 | 8,964 | ||||||
| Diluted | 8,933 | 10,215 |
Condensed Consolidated Balance Sheets
| March 31, | December 31, | |||||||
| 2012 | 2011 | |||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 13,856 | $ | 10,789 | ||||
| Accounts receivable, net | 5,142 | 5,551 | ||||||
| Inventories, net | 7,038 | 6,659 | ||||||
| Prepaids and other current assets | 1,172 | 464 | ||||||
| Current assets of discontinued operations | 1,398 | 6,043 | ||||||
| Total current assets | 28,606 | 29,506 | ||||||
| Property and equipment, net | 378 | 325 | ||||||
| Other long-term assets | 183 | 199 | ||||||
| Other intangible assets, net | 700 | 745 | ||||||
| Goodwill | 533 | 533 | ||||||
| Restricted cash related to discontinued operations | 510 | |||||||
| Non-current assets of discontinued operations | 9 | 841 | ||||||
| Total assets | $ | 30,919 | $ | 32,149 | ||||
| Liabilities and Stockholders Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 1,544 | $ | 1,580 | ||||
| Accrued compensation | 1,487 | 1,180 | ||||||
| Accrued expenses | 1,203 | 1,920 | ||||||
| Accrued warranty | 539 | 556 | ||||||
| Deferred revenue | 907 | 1,014 | ||||||
| Current liabilities of discontinued operations | 259 | 2,663 | ||||||
| Total current liabilities | 5,939 | 8,913 | ||||||
| Long-Term Liabilities: | ||||||||
| Other long-term liabilities | 719 | 810 | ||||||
| Total liabilities | 6,658 | 9,723 | ||||||
| Stockholders Equity: | ||||||||
| Convertible preferred stock | 5 | 5 | ||||||
| Common stock | 93 | 92 | ||||||
| Additional paid-in capital | 42,414 | 42,032 | ||||||
| Accumulated other comprehensive loss | (35 | ) | ||||||
| Treasury stock, at cost | (1,266 | ) | (1,078 | ) | ||||
| Accumulated deficit | (16,985 | ) | (18,590 | ) | ||||
| Total stockholders equity | 24,261 | 22,426 | ||||||
| Total liabilities and stockholders equity | $ | 30,919 | $ | 32,149 |