Full Press Release Details
IRIDEX Reports 2014 Second Quarter, Six-Month Results
Revenue Up 15% Year over Year for Both Periods
Board of Directors Establishes New Share Repurchase Program
Mountain View, CA. - July 31, 2014 - IRIDEX Corporation (Nasdaq: IRIX) today reported financial results for the second quarter and six months ended June 28, 2014.
President and CEO Will Moore said, "The second quarter was the fifth straight quarter of double digit percentage revenue growth and, clearly, was the strongest quarter of domestic system sales in the company's history. Sales of these systems grew by more than 80% over the prior year quarter, which we see as continued evidence that MicroPulse is becoming more accepted as a leading treatment for diabetes-related retinal disease. The therapeutic benefits to patients are well documented and the advantageous economic benefits of MicroPulse as compared to drugs and other treatment modalities to health care systems are becoming more obvious."
2Q 2014 Business Highlights
Share Repurchase Program
As of last week, the company has satisfied its share repurchase program established in February, 2013, buying approximately 377,000 shares at an average price of $7.97. Effective today, the IRIDEX Board of Directors established a new share repurchase program, allowing the purchase of up to $3.0 million worth of the company's common stock over the next 12 months.
IRIDEX management will conduct a conference call later today, Thursday, July 31, 2014, at 5:00 pm Eastern Time. Interested parties may access the live conference call by dialing (877) 407-0784 (US) or (201) 689-8560 (International) and requesting the IRIDEX Second 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, July 31, 2014 through Thursday, August 7, 2014 by dialing (877) 870-5176 (US) or (858) 384-5517 (International) and entering Replay Pin # 13586659. In addition, later today an archived version of the webcast will be available on the company's website at www.iridex.com.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. The company maintains 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 as a treatment for diabetes-related retinal disease, glaucoma and other conditions, anticipated new product releases and the company's guidance concerning fiscal 2014 third quarter financial results, including anticipated ranges of revenue, operating expenses and gross margin rates and revenue growth rates, 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 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 | Matt Clawson | |
| Chief Financial Officer | Pure Communications | |
| & Chief Operating Officer | 949-370-8500 | |
| 650-940-4700 | matt@purecommunicationsinc.com |
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 28, | June 29, | June 28, | June 29, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Total revenues | $ | 10,589 | $ | 9,210 | $ | 20,918 | $ | 18,149 | ||||||||
| Cost of revenues | 5,289 | 4,728 | 10,563 | 9,436 | ||||||||||||
| Gross profit | 5,300 | 4,482 | 10,355 | 8,713 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 1,306 | 884 | 2,500 | 1,880 | ||||||||||||
| Sales and marketing | 2,056 | 1,846 | 3,804 | 3,471 | ||||||||||||
| General and administrative | 1,538 | 1,237 | 3,054 | 2,423 | ||||||||||||
| Proceeds from demutualization of insurance carrier | - | - | - | (473 | ) | |||||||||||
| Total operating expenses | 4,900 | 3,967 | 9,358 | 7,301 | ||||||||||||
| Income from operations | 400 | 515 | 997 | 1,412 | ||||||||||||
| Other expense, net | 91 | 97 | 188 | 115 | ||||||||||||
| Income from operations before provision for income taxes | 309 | 418 | 809 | 1,297 | ||||||||||||
| Provision for income taxes | 12 | 3 | 25 | 8 | ||||||||||||
| Net income | $ | 297 | $ | 415 | $ | 784 | $ | 1,289 | ||||||||
| Net income per share: | ||||||||||||||||
| Basic | $ | 0.03 | $ | 0.05 | $ | 0.08 | $ | 0.15 | ||||||||
| Diluted | $ | 0.03 | $ | 0.04 | $ | 0.07 | $ | 0.13 | ||||||||
| Weighted average shares used in computing net income per share | ||||||||||||||||
| Basic | 9,922 | 8,824 | 9,943 | 8,668 | ||||||||||||
| Diluted | 10,411 | 10,005 | 10,469 | 9,903 |
Condensed Consolidated Balance Sheets
| June 28, | December 28, | |||||||
| 2014 | 2013 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 12,862 | $ | 13,444 | ||||
| Accounts receivable, net | 7,259 | 7,345 | ||||||
| Inventories | 9,753 | 10,605 | ||||||
| Prepaids and other current assets | 586 | 576 | ||||||
| Total current assets | 30,460 | 31,970 | ||||||
| Property and equipment, net | 720 | 543 | ||||||
| Intangible assets, net | 292 | 328 | ||||||
| Goodwill | 533 | 533 | ||||||
| Other long-term assets | 259 | 303 | ||||||
| Total assets | $ | 32,264 | $ | 33,677 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,008 | $ | 2,278 | ||||
| Accrued compensation | 1,229 | 1,891 | ||||||
| Accrued expenses | 1,374 | 1,592 | ||||||
| Accrued warranty | 506 | 468 | ||||||
| Deferred revenue | 1,083 | 1,133 | ||||||
| Total current liabilities | 6,200 | 7,362 | ||||||
| Long-term liabilities: | ||||||||
| Other long-term liabilities | 345 | 461 | ||||||
| Total liabilities | 6,545 | 7,823 | ||||||
| Stockholders' equity: | ||||||||
| Common stock | 106 | 104 | ||||||
| Additional paid-in capital | 39,750 | 40,671 | ||||||
| Accumulated deficit | (14,137 | ) | (14,921 | ) | ||||
| Total stockholders' equity | 25,719 | 25,854 | ||||||
| Total liabilities and stockholders' equity | $ | 32,264 | $ | 33,677 |