Full Press Release Details
IRIDEX Reports 2013 Third Quarter Results
RECORD REVENUE OF $9.5 MILLION IN QUARTER
Mountain View, Calif. October 31, 2013 IRIDEX Corporation (Nasdaq: IRIX) today reported financial results for the third quarter ended September 28, 2013.
| Revenues were $9.5 million in the third quarter of 2013, up 21% from $7.9 million in the prior year comparable period and up sequentially from $9.2 million in the second quarter of 2013. | |||
| Gross margin for the third quarter of 2013 was 49.6%, comparable to 49.6% in the prior year period and up from 48.7% in the 2013 second quarter. | |||
| For the third quarter of 2013, operating income was $0.7 million compared with an operating loss of $0.6 million for the third quarter of 2012. | |||
| Net income from continuing operations was $0.5 million, or $0.05 per diluted share, for the third quarter of 2013, compared to a net loss of $0.6 million, or a loss of $0.06 per diluted share, in the third quarter of 2012. | |||
| Guidance for fourth quarter: The Company expects to achieve revenue between $10.2 million and $10.5 million, representing growth of between 11% and 14% over the prior year period. Gross margin is anticipated to come in between 49% and 51%, operating expenses between $4.4 million and $4.6 million, and the Company anticipates generating operating income. |
President and CEO Will Moore said, We saw strong sales of both consumable products and laser systems in the third quarter, exceeding our revenue guidance. We are particularly pleased because historically our third quarter is a lighter sales quarter. The integration of the independent sales force, inherited in the US with the Peregrine deal announced last quarter, has had an immediate positive impact on consumable sales.
The market acceptance of our MicroPulse tissue sparing treatments for diabetes related vision loss and glaucoma continues to gain ground. Continued Moore, We saw increased sales of MicroPulse enabled laser units this quarter compared to last year s third quarter and standing room only in a recent training seminar at a large trade show in Amsterdam. Our observation that physicians and healthcare policy makers in industrialized and developing nations are adopting value-based medicine practices and policies continues to be validated and ties in to the tremendous value our MicroPulse and continuous wavelength laser systems provide both to our customers and their healthcare systems for the treatment of sight threatening diseases. This realization creates a growing tailwind for our business and bodes well for our future.
Moore concluded, These positive results underscore the cultural shift at the Company allowing us to better execute in the marketplace. We are looking forward to an active fourth quarter in which we will continue to accelerate our market-centric initiatives, introducing three new products at the AAO conference in November and targeting additional multi-unit tenders in countries across Europe, the Middle East and South America.
Revenues for the first nine months of 2013 were $27.7 million, up 12% from $24.6 million in last year s first nine months. Operating income for the first nine months of 2013 was $2.1 million, up $3.3 million from an operating loss of $1.2 million in last year s first nine months. Net income from continuing operations for the first nine months of 2013 was $1.8 million compared to a loss of $0.4 million for the first nine months of 2012, or earnings of $0.18 per share compared to a loss of $0.05 per share on a diluted basis.
During the third quarter 2013, the Company continued to execute its share repurchase program. In total, approximately 37,000 shares have been repurchased at an average price of $5.31 under the plan approved in February 2013.
IRIDEX management will conduct a conference call later today, Thursday, October 31, 2013 at 5:00 p.m. Eastern Time. Interested parties may access the live conference call via telephone by dialing (888) 549-7880 (U.S.) or (480) 629-9644 (International) and quoting Conference ID 4646160, or by visiting the Company s website at www.iridex.com. A telephone replay will be available beginning on Thursday, October 31, 2013 through Thursday, November 7, 2013 by dialing (800) 406-7325 (U.S.) or (303) 590-3030 (International) and entering Access Code 4646160. 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 both direct and independent sales forces 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 and operational execution, the adoption of MicroPulse laser therapy and the Company s other products, anticipated new product releases and the Company s projected fiscal 2013 fourth quarter 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, 2012 and Quarterly Reports on Form 10-Q for the fiscal quarters ended March 30 and June 29, 2013 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 |
| Chief Financial Officer | Allen & Caron |
| & Chief Operating Officer | 949-474-4300 |
| 650-940-4700 | matt@allencaron.com |
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 28, 2013 | September 29, 2012 | September 28, 2013 | September 29, 2012 | ||||||||||||
| Total revenues | $ | 9,526 | $ | 7,881 | $ | 27,675 | $ | 24,631 | |||||||
| Cost of revenues | 4,802 | 3,970 | 14,238 | 12,623 | |||||||||||
| Gross profit | 4,724 | 3,911 | 13,437 | 12,008 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research and development | 923 | 1,006 | 2,803 | 3,294 | |||||||||||
| Sales and marketing | 1,869 | 1,875 | 5,340 | 5,861 | |||||||||||
| General and administrative | 1,267 | 1,609 | 3,690 | 4,018 | |||||||||||
| Proceeds from demutualization of insurance carrier | (473 | ) | |||||||||||||
| Total operating expenses | 4,059 | 4,490 | 11,360 | 13,173 | |||||||||||
| Income (loss) from operations | 665 | (579 | ) | 2,077 | (1,165 | ) | |||||||||
| Legal settlement | 800 | ||||||||||||||
| Other (expense) income, net | (85 | ) | (117 | ) | (200 | ) | (192 | ) | |||||||
| Income (loss) from continuing operations before provision for (benefit from) income taxes | 580 | (696 | ) | 1,877 | (557 | ) | |||||||||
| Provision for (benefit from) income taxes | 50 | (141 | ) | 58 | (134 | ) | |||||||||
| Income (loss) from continuing operations, net of tax | 530 | (555 | ) | 1,819 | (423 | ) | |||||||||
| Income (loss) from discontinued operations, net of tax | (190 | ) | (413 | ) | |||||||||||
| Gain on sale of discontinued operations, net of tax | 2,032 | ||||||||||||||
| Income (loss) from discontinued operations, net of tax | (190 | ) | 1,619 | ||||||||||||
| Net income (loss) | $ | 530 | $ | (745 | ) | $ | 1,819 | $ | 1,196 | ||||||
| Net income (loss) per share: | |||||||||||||||
| Basic | |||||||||||||||
| Continuing operations | $ | 0.05 | $ | (0.06 | ) | $ | 0.20 | $ | (0.05 | ) | |||||
| Discontinued operations | 0.00 | (0.02 | ) | 0.00 | 0.18 | ||||||||||
| Net income (loss) | $ | 0.05 | $ | (0.08 | ) | $ | 0.20 | $ | 0.13 | ||||||
| Diluted | |||||||||||||||
| Continuing operations | $ | 0.05 | $ | (0.06 | ) | $ | 0.18 | $ | (0.05 | ) | |||||
| Discontinued operations | 0.00 | (0.02 | ) | 0.00 | 0.18 | ||||||||||
| Net income (loss) | $ | 0.05 | $ | (0.08 | ) | $ | 0.18 | $ | 0.13 | ||||||
| Weighted average shares used in computing net income (loss) per share | |||||||||||||||
| Basic | 9,796 | 9,005 | 9,044 | 8,974 | |||||||||||
| Diluted | 10,177 | 9,005 | 9,995 | 8,974 |
Condensed Consolidated Balance Sheets
| September 28, 2013 | December 29, 2012 | ||||||
| Assets | |||||||
| Current Assets: | |||||||
| Cash and cash equivalents | $ | 14,089 | $ | 11,901 | |||
| Accounts receivable, net | 5,743 | 5,480 | |||||
| Inventories | 9,998 | 8,035 | |||||
| Prepaid and other current assets | 534 | 1,129 | |||||
| Current assets of discontinued operations | 510 | ||||||
| Total current assets | 30,364 | 27,055 | |||||
| Property and equipment, net | 526 | 483 | |||||
| Intangible assets, net | 382 | 554 | |||||
| Goodwill | 533 | 533 | |||||
| Other long-term assets | 233 | 287 | |||||
| Total assets | $ | 32,038 | $ | 28,912 | |||
| Liabilities and Stockholders' Equity | |||||||
| Current Liabilities: | |||||||
| Accounts payable | $ | 2,077 | $ | 2,105 | |||
| Accrued compensation | 1,538 | 1,563 | |||||
| Accrued expenses | 1,370 | 1,242 | |||||
| Accrued warranty | 472 | 453 | |||||
| Deferred revenue | 1,062 | 1,004 | |||||
| Total current liabilities | 6,519 | 6,367 | |||||
| Long-Term Liabilities: | |||||||
| Other long-term liabilities | 441 | 640 | |||||
| Total liabilities | 6,960 | 7,007 | |||||
| Stockholders' Equity: | |||||||
| Convertible preferred stock | 5 | ||||||
| Common stock | 103 | 94 | |||||
| Additional paid-in capital | 40,308 | 38,958 | |||||
| Accumulated deficit | (15,333 | ) | (17,152 | ) | |||
| Total stockholders' equity | 25,078 | 21,905 | |||||
| Total liabilities and stockholders' equity | $ | 32,038 | $ | 28,912 |