Full Press Release Details
IRIDEX Reports 2014 First Quarter Results
Revenue Up 16% to $10.3 Million Year over Year
Mountain View, CA. - May 1, 2014 - IRIDEX Corporation (Nasdaq: IRIX) today reported financial results for the first quarter ended March 29, 2014.
President and CEO Will Moore said, "We had another excellent quarter of double-digit growth and continue to see strong demand for our products in the marketplace, both in the U.S. and internationally. Excluding the one-time gain we recorded this time last year, our 16% year over year revenue growth drove a 41% increase in operating income from the prior year quarter. I believe this demonstrates the leverage we have in our business.
Mr. Moore continued, "Our innovative, proprietary, tissue-sparing MicroPulse technology continues to prove itself clinically in terms of efficacy, durability and safety as a treatment for a variety of ophthalmic disorders, all with large and growing domestic and international markets. The demand for MicroPulse is consistent with the demand for value-based medicine solutions on a worldwide basis. More specifically in the US as the healthcare business model shifts away from a fee for service model, we believe MicroPulse with its comparable outcomes at a lower cost to society should drive revenue growth for the foreseeable future."
During the first quarter 2014, the Company continued to execute its share repurchase program buying approximately 40,000 shares at an average price of $8.69 and had approximately $2.2 million remaining available for stock purchases.
IRIDEX management will conduct a conference call later today, Thursday, May 1, 2014 at 5:00 p.m. Eastern Time. Interested parties may access the live conference call via telephone by dialing (877) 407-0784 (U.S.) or (201) 689-8560 (International) and requesting the IRIDEX First Quarter 2014 Earnings Conference Call, or by visiting the Company's website at www.iridex.com. A telephone replay will be available beginning on Thursday, May 1, 2014 through Thursday May 8, 2014 by dialing (877) 870-5176 (U.S.) or (858) 384-5517 (International) and entering Replay Pin # 13580951. In addition, later today an archived version of the webcast will be available on the Company's website at www.iridex.com.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, US and international buying patterns, the success of the Company's marketing and sales efforts and operational execution, the adoption of and demand for MicroPulse laser therapy and the Company's other products, anticipated new product releases and the Company's guidance concerning fiscal 2014 second quarter financial results, including anticipated ranges of revenue, operating expenses and gross margin rates and revenue growth rates. 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 28, 2013, 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 | Rene Caron | |
| Chief Financial Officer | Allen & Caron | |
| & Chief Operating Officer | 949-474-4300 | |
| 650-940-4700 | Rene@allencaron.com |
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
| Three Months Ended | ||||||||
| March 29, 2014 | March 30, 2013 | |||||||
| Total revenues | $ | 10,329 | $ | 8,939 | ||||
| Cost of revenues | 5,274 | 4,708 | ||||||
| Gross profit | 5,055 | 4,231 | ||||||
| Operating expenses: | ||||||||
| Research and development | 1,194 | 996 | ||||||
| Sales and marketing | 1,748 | 1,625 | ||||||
| General and administrative | 1,516 | 1,186 | ||||||
| Proceeds from demutualization of insurance carrier | - | (473 | ) | |||||
| Total operating expenses | 4,458 | 3,334 | ||||||
| Income from operations | 597 | 897 | ||||||
| Other expense, net | 97 | 18 | ||||||
| Income from operations before provision for income taxes | 500 | 879 | ||||||
| Provision for income taxes | 13 | 5 | ||||||
| Net income | $ | 487 | $ | 874 | ||||
| Net income per share: | ||||||||
| Basic | $ | 0.05 | $ | 0.10 | ||||
| Diluted | $ | 0.05 | $ | 0.09 | ||||
| Weighted average shares used in computing net income per share | ||||||||
| Basic | 9,963 | 8,511 | ||||||
| Diluted | 10,526 | 9,802 |
Condensed Consolidated Balance Sheets
| March 29, 2014 | December 28, 2013 | |||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 13,969 | $ | 13,444 | ||||
| Accounts receivable, net | 6,732 | 7,345 | ||||||
| Inventories | 9,858 | 10,605 | ||||||
| Prepaids and other current assets | 730 | 576 | ||||||
| Total current assets | 31,289 | 31,970 | ||||||
| Property and equipment, net | 575 | 543 | ||||||
| Intangible assets, net | 296 | 328 | ||||||
| Goodwill | 533 | 533 | ||||||
| Other long-term assets | 288 | 303 | ||||||
| Total assets | $ | 32,981 | $ | 33,677 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 1,770 | $ | 2,278 | ||||
| Accrued compensation | 1,398 | 1,891 | ||||||
| Accrued expenses | 1,335 | 1,592 | ||||||
| Accrued warranty | 484 | 468 | ||||||
| Deferred revenue | 1,084 | 1,133 | ||||||
| Total current liabilities | 6,071 | 7,362 | ||||||
| Long-Term Liabilities: | ||||||||
| Other long-term liabilities | 342 | 461 | ||||||
| Total liabilities | 6,413 | 7,823 | ||||||
| Stockholders' equity: | ||||||||
| Common stock | 105 | 104 | ||||||
| Additional paid-in capital | 40,897 | 40,671 | ||||||
| Accumulated deficit | (14,434 | ) | (14,921 | ) | ||||
| Total stockholders' equity | 26,568 | 25,854 | ||||||
| Total liabilities and stockholders' equity | $ | 32,981 | $ | 33,677 |