Full Press Release Details
IRIDEX Reports 2016 First Quarter Results
Record First Quarter Revenues
Revenues Up 11 Percent Versus First Quarter of 2015
Mountain View, CA. - May 5, 2016 - IRIDEX Corporation (Nasdaq: IRIX) today reported financial results for the first quarter ended April 2, 2016.
President and CEO Will Moore said, "Our strong first-quarter results show the significant progress we've made on executing our strategic plan of building a strong business foundation and providing innovative, value-based medical solutions to the global ophthalmology market. IRIDEX delivered record first-quarter revenue of $11.9 million, up 11 percent year-over-year, driven by sales of our legacy laser consoles, MicroPulse lasers and Cyclo G6 glaucoma laser system. Continuing to exceed our expectations, the Cyclo G6 system generated a high level of demand in the first quarter and is rapidly becoming a breakthrough business for the Company as excitement in the glaucoma community over its competitive advantages drives our success in penetrating the large and growing market. With the growing demand for our brand and innovative products, we are confident the continued execution of our strategic plan will position IRIDEX to successfully capture revenue and growth opportunities in 2016 and beyond."
Moore continued, "Looking forward, we remain focused on providing effective therapy to the growing retinal disease and glaucoma markets and expect to continue to invest in capacity to support our growth and gain market share. Later this year, we plan to introduce additional specialty probes for the Cyclo G6 systems, adding flexibility for physicians and greater revenue potential for the platform. In the years ahead, we expect the growth engines within our business to remain solid as we aim to create a large and growing installed base for our products treating glaucoma and retinal diseases, providing stronger gross margins with our recurring revenue stream. We are well positioned to deliver our value-based treatment to the large and growing global glaucoma market and capture the international market opportunity as we roll out the Cyclo G6 systems for European commercialization.
Recent Business Highlights
Share Repurchase Program
During the 2016 first quarter, the Company continued to execute on its share repurchase program. Approximately 7,000 shares were repurchased at an average price of $9.00 per share. Approximately $1.0 million remains available under the program, which expires in August 2016.
IRIDEX management will conduct a conference call later today, Thursday, May 5, 2016, at 5:00 p.m. 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 2016 First Quarter Results Conference Call, or by visiting the Company's website at www.iridex.com. A telephone replay will be available beginning on Thursday, May 5, 2016 through Thursday, May 12, 2016 by dialing (877) 870-5176 (US) or (858) 384-5517 (International) and entering Replay Pin # 13635574. 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 IRIDEX 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, including those statements concerning its anticipated bookings and revenues, future demand and order levels for the Company's products, the adoption and effect of Company products, including MicroPulse laser products, Cyclo G6 systems and MP3 probes and related disposable products and services, on the Company's results, the markets in which the Company operates, trends in treatment and product adoption and usage, product plans and future product releases, the Company's guidance concerning fiscal 2016 results, including anticipated growth rates and ranges of revenue and operating expenses, the Company's share repurchase program, the Company's future marketing activities, the Company's plans related to partnerships and acquisitions, and the Company's strategic plans and objectives. 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 January 2, 2016, 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 | |
| Will Moore | Matt Clawson | |
| President & Chief Executive Officer | Pure Communications | |
| 650-940-4700 | 949-370-8500 | |
| matt@purecommunicationsinc.com |
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
| Three Months Ended | ||||||||
| April 2, | April 4, | |||||||
| 2016 | 2015 | |||||||
| Total revenues | $ | 11,931 | $ | 10,796 | ||||
| Cost of revenues | 6,634 | 5,386 | ||||||
| Gross profit | 5,297 | 5,410 | ||||||
| Operating expenses: | ||||||||
| Research and development | 1,359 | 1,281 | ||||||
| Sales and marketing | 2,429 | 2,071 | ||||||
| General and administrative | 1,357 | 1,655 | ||||||
| Total operating expenses | 5,145 | 5,007 | ||||||
| Income from operations | 152 | 403 | ||||||
| Other expense, net | 11 | 7 | ||||||
| Income from operations before provision for income taxes | 141 | 396 | ||||||
| Provision for income taxes | 40 | 150 | ||||||
| Net income | $ | 101 | $ | 246 | ||||
| Net income per share: | ||||||||
| Basic | $ | 0.01 | $ | 0.02 | ||||
| Diluted | $ | 0.01 | $ | 0.02 | ||||
| Weighted average shares used in computing net income per share | ||||||||
| Basic | 10,034 | 9,868 | ||||||
| Diluted | 10,140 | 10,108 |
Condensed Consolidated Balance Sheets
| April 2, | January 2, | |||||||
| 2016 | 2016 | |||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 10,514 | $ | 9,995 | ||||
| Accounts receivable, net | 9,297 | 9,282 | ||||||
| Inventories | 11,142 | 11,106 | ||||||
| Prepaids and other current assets | 425 | 386 | ||||||
| Total current assets | 31,378 | 30,769 | ||||||
| Property and equipment, net | 1,055 | 1,104 | ||||||
| Intangible assets, net | 264 | 268 | ||||||
| Goodwill | 533 | 533 | ||||||
| Deferred income taxes | 8,985 | 8,985 | ||||||
| Other long-term assets | 148 | 164 | ||||||
| Total assets | $ | 42,363 | $ | 41,823 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 2,696 | $ | 2,223 | ||||
| Accrued compensation | 1,283 | 1,572 | ||||||
| Accrued expenses | 1,635 | 1,722 | ||||||
| Accrued warranty | 610 | 603 | ||||||
| Deferred revenue | 1,311 | 1,311 | ||||||
| Total current liabilities | 7,535 | 7,431 | ||||||
| Long-Term Liabilities: | ||||||||
| Other long-term liabilities | 639 | 704 | ||||||
| Total liabilities | 8,174 | 8,135 | ||||||
| Stockholders' Equity: | ||||||||
| Common stock | 111 | 111 | ||||||
| Additional paid-in capital | 38,386 | 37,986 | ||||||
| Accumulated deficit | (4,308 | ) | (4,409 | ) | ||||
| Total stockholders' equity | 34,189 | 33,688 | ||||||
| Total liabilities and stockholders' equity | $ | 42,363 | $ | 41,823 |