Full Press Release Details
IRIDEX Reports 2012 Third Quarter Results
Mountain View, Calif. November 1, 2012 IRIDEX Corporation (Nasdaq: IRIX) today reported financial results
for the third quarter ended September 29, 2012.
Interim CEO William M. Moore said, IRIDEX implemented a number of important strategic and operational realignments during the third quarter. This included a management change at the end of August
and the subsequent elimination or reassignment of several senior executive positions. These personnel changes have been accompanied by an assessment of the Company s revenue and spending plans in order to give priority to investments that have
the potential to deliver significant near term shareholder return via either new revenues or improved efficiencies. The combination of changes was designed to improve performance and accountability at all levels of the organization.
Moore continued, Going forward, we plan to deliver shareholder value in three principal ways. First, we will return the
Company to profitability and thereafter operate the business to be consistently profitable. Second, we will take advantage of our strong position in the market to be opportunistic in acquiring or partnering with ophthalmic companies that have
developed excellent technologies. Third, we will deploy cash from our strong balance sheet and profitable operations to directly benefit our shareholders through our share buyback program.
During the third quarter, the Company repurchased 76,429 shares at an average price of
$3.65. In total, the Company has repurchased 241,000 shares at an average price of $3.82. In May 2012, the Board of Directors 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. Moore said, We are exploring all avenues open to the Company to make the ongoing buyback program more effective.
The preceding commentary relates to the results of the Company s continuing ophthalmology business. In February 2012, the Company
sold its aesthetics laser business and the financial statements reflect the results of its aesthetics laser business as discontinued operations.
Nine Month 2012 Business Highlights
management will conduct a conference call later today, Thursday, November 1, 2012 at 5:00 p.m. Eastern Time. Interested parties may access the live conference call via telephone by dialing (877) 941-1465 (U.S.) or (480) 629-9724
(International) and quoting Conference ID 4572831, or by visiting the Company s website at www.iridex.com. A telephone replay will be available beginning on Thursday, November 1, 2012 through Thursday, November 8, 2012 by
dialing (800) 406-7325 (U.S.) or (303) 590-3030 (International) and entering Access Code 4572831. 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 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 success of the Company s marketing and sales efforts, MicroPulse laser therapy, the Company s
growth strategy, the Company s acquisition strategy, sales revenue growth, operational plans, profitability, the Company s projected fiscal 2012 financial results and the Company s share repurchase program. 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 and Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31 and June 30, 2012 which were 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 | |
| CFO & COO | Allen & Caron | |
| 650-940-4700 | 949-474-4300 | |
| matt@allencaron.com |
Condensed Consolidated Statements of Operations
(In thousands, except per share
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 29, 2012 | October 1, 2011 | September 29, 2012 | October 1, 2011 | |||||||||||||
| Total revenues | $ | 7,881 | $ | 8,258 | $ | 24,631 | $ | 24,539 | ||||||||
| Cost of revenues | 3,970 | 4,268 | 12,623 | 12,527 | ||||||||||||
| Gross profit | 3,911 | 3,990 | 12,008 | 12,012 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 1,006 | 894 | 3,294 | 2,747 | ||||||||||||
| Sales and marketing | 1,875 | 1,747 | 5,861 | 5,311 | ||||||||||||
| General and administrative | 1,609 | 1,088 | 4,018 | 3,193 | ||||||||||||
| Total operating expenses | 4,490 | 3,729 | 13,173 | 11,251 | ||||||||||||
| (Loss) income from continuing operations | (579 | ) | 261 | (1,165 | ) | 761 | ||||||||||
| Legal settlement | 800 | 800 | ||||||||||||||
| Other expense, net | (117 | ) | (53 | ) | (192 | ) | (46 | ) | ||||||||
| (Loss) income from continuing operations before income taxes | (696 | ) | 208 | (557 | ) | 1,515 | ||||||||||
| (Benefit from) provision for income tax expense | (141 | ) | (48 | ) | (134 | ) | 175 | |||||||||
| (Loss) income from continuing operations | (555 | ) | 256 | (423 | ) | 1,340 | ||||||||||
| (Loss) income from discontinued operations, net of tax | (190 | ) | 93 | (413 | ) | 484 | ||||||||||
| Gain on sale of discontinued operations, net of tax | 2,032 | |||||||||||||||
| (Loss) income from discontinued operations, net of tax | (190 | ) | 93 | 1,619 | 484 | |||||||||||
| Net (loss) income | $ | (745 | ) | $ | 349 | $ | 1,196 | $ | 1,824 | |||||||
| Net (loss) income per share: | ||||||||||||||||
| Basic: | ||||||||||||||||
| Continuing operations | $ | (0.06 | ) | $ | 0.03 | $ | (0.05 | ) | $ | 0.15 | ||||||
| Discontinued operations | (0.02 | ) | 0.01 | 0.18 | 0.05 | |||||||||||
| Net (loss) income | $ | (0.08 | ) | $ | 0.04 | $ | 0.13 | $ | 0.20 | |||||||
| Diluted: | ||||||||||||||||
| Continuing operations | $ | (0.06 | ) | $ | 0.02 | $ | (0.05 | ) | $ | 0.13 | ||||||
| Discontinued operations | (0.02 | ) | 0.01 | 0.18 | 0.05 | |||||||||||
| Net (loss) income | $ | (0.08 | ) | $ | 0.03 | $ | 0.13 | $ | 0.18 | |||||||
| Weighted average shares used in computing net (loss) income per share: | ||||||||||||||||
| Basic | 9,005 | 8,965 | 8,974 | 8,963 | ||||||||||||
| Diluted | 9,005 | 10,253 | 8,974 | 10,233 |
Condensed Consolidated Balance Sheets
(In thousands, except share and per share
| September 29, 2012 | December 31, 2011 | |||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 13,734 | $ | 10,789 | ||||
| Accounts receivable, net | 5,496 | 5,551 | ||||||
| Inventories, net | 7,542 | 6,659 | ||||||
| Prepaids and other current assets | 1,117 | 464 | ||||||
| Current assets of discontinued operations | 724 | 6,043 | ||||||
| Total current assets | 28,613 | 29,506 | ||||||
| Property and equipment, net | 468 | 325 | ||||||
| Intangible assets, net | 602 | 745 | ||||||
| Goodwill | 533 | 533 | ||||||
| Other long-term assets | 219 | 199 | ||||||
| Non-current assets of discontinued operations | 4 | 841 | ||||||
| Total assets | $ | 30,439 | $ | 32,149 | ||||
| Liabilities and Stockholders Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,529 | $ | 1,580 | ||||
| Accrued compensation | 1,987 | 1,180 | ||||||
| Accrued expenses | 1,000 | 1,920 | ||||||
| Accrued warranty | 528 | 556 | ||||||
| Deferred revenue | 861 | 1,014 | ||||||
| Current liabilities of discontinued operations | 67 | 2,663 | ||||||
| Total current liabilities | 5,972 | 8,913 | ||||||
| Long-term liabilities: | ||||||||
| Other long-term liabilities | 706 | 810 | ||||||
| Total liabilities | 6,678 | 9,723 | ||||||
| Stockholders equity: | ||||||||
| Convertible preferred stock | 5 | 5 | ||||||
| Common stock | 94 | 92 | ||||||
| Additional paid-in capital | 42,712 | 42,032 | ||||||
| Accumulated other comprehensive loss | (35 | ) | ||||||
| Treasury stock, at cost | (1,656 | ) | (1,078 | ) | ||||
| Accumulated deficit | (17,394 | ) | (18,590 | ) | ||||
| Total stockholders equity | 23,761 | 22,426 | ||||||
| Total liabilities and stockholders equity | $ | 30,439 | $ | 32,149 |