Full Press Release Details
IRIDEX Reports 2016 Second Quarter, Six-Month Results
Total Revenues Up 32 Percent Year-over-Year for Second Quarter;
Cyclo G6 Glaucoma Laser System Revenues Up 66 Percent Sequentially
Mountain View, CA. - August 4, 2016 - IRIDEX Corporation (Nasdaq: IRIX) today reported financial results for the second quarter and six months ended July 2, 2016.
President and CEO Will Moore said, "Sales of the Cyclo G6 and its proprietary, disposable probes are rapidly transforming our business and providing a glimpse of how powerful the recurring revenue business model can be for this organization. In addition, the current and growing capabilities of the platform to treat glaucoma at all stages of the disease are opening up that vast market for IRIDEX. While the demand for G6 was strong, we did see sales of some legacy probes lag in the period. We are now investing in the business to boost the commercial engine and the operating footprint. Those investments are critical as we plan to raise production
to meet the growing demand, add sales talent to capture glaucoma market share and continue to innovate."
Recent Business Highlights
IRIDEX management will conduct a conference call later today, Thursday, August 4, 2016, 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 2016 Second Quarter Results Conference Call, or by visiting the Company's website at www.iridex.com. A telephone replay will be available beginning on Thursday, August 4, 2016 through Thursday, August 11, 2016 by dialing (877) 870-5176 (US) or (858) 384-5517 (International) and entering Replay Pin # 13641627. In addition, later today an archived version of the webcast will be available on the Company's website at www.iridex.com.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 revenues and revenue growth rates, seasonality in the Company's business, 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 full year 2016 results, including anticipated ranges of revenue, future marketing activities, the Company's plans related to partnerships and acquisitions, the Company's plans to invest in and grow its business, 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 the Company's Annual Report on Form 10-K for the fiscal year ended January 2, 2016, and our Quarterly Reports on Form 10-Q for subsequent fiscal quarters, each of 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:
Atabak MokariMatt Clawson
CFO & VP, Corporate DevelopmentPure Communications
650-940-4700949-370-8500
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
| Three Months Ended | Six Months Ended | |||||||||||||||
| July 2, | July 4, | July 2, | July 4, | |||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Total revenues | $ | 11,908 | $ | 9,033 | $ | 23,839 | $ | 19,829 | ||||||||
| Cost of revenues | 6,174 | 4,816 | 12,808 | 10,202 | ||||||||||||
| Gross profit | 5,734 | 4,217 | 11,031 | 9,627 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 1,392 | 1,482 | 2,751 | 2,763 | ||||||||||||
| Sales and marketing | 2,405 | 2,158 | 4,834 | 4,229 | ||||||||||||
| General and administrative | 2,331 | 1,324 | 3,688 | 2,979 | ||||||||||||
| Total operating expenses | 6,128 | 4,964 | 11,273 | 9,971 | ||||||||||||
| Loss from operations | (394 | ) | (747 | ) | (242 | ) | (344 | ) | ||||||||
| Other expense, net | 21 | 23 | 32 | 30 | ||||||||||||
| Loss from operations before (benefit from) provision for income taxes | (415 | ) | (770 | ) | (274 | ) | (374 | ) | ||||||||
| (Benefit from) provision for income taxes | (87 | ) | (118 | ) | (47 | ) | 32 | |||||||||
| Net loss | $ | (328 | ) | $ | (652 | ) | $ | (227 | ) | $ | (406 | ) | ||||
| Net loss per share: | ||||||||||||||||
| Basic | $ | (0.03 | ) | $ | (0.07 | ) | $ | (0.02 | ) | $ | (0.04 | ) | ||||
| Diluted | $ | (0.03 | ) | $ | (0.07 | ) | $ | (0.02 | ) | $ | (0.04 | ) | ||||
| Weighted average shares used in computing net loss per share | ||||||||||||||||
| Basic | 10,085 | 10,027 | 10,060 | 9,948 | ||||||||||||
| Diluted | 10,085 | 10,027 | 10,060 | 9,948 |
Condensed Consolidated Balance Sheets
| July 2, | January 2, | |||||||
| 2016 | 2016 | |||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 11,521 | $ | 9,995 | ||||
| Accounts receivable, net | 8,450 | 9,282 | ||||||
| Inventories | 12,141 | 11,106 | ||||||
| Prepaids and other current assets | 560 | 386 | ||||||
| Total current assets | 32,672 | 30,769 | ||||||
| Property and equipment, net | 1,188 | 1,104 | ||||||
| Intangible assets, net | 260 | 268 | ||||||
| Goodwill | 533 | 533 | ||||||
| Deferred income taxes-long term | 8,985 | 8,985 | ||||||
| Other long-term assets | 107 | 164 | ||||||
| Total assets | $ | 43,745 | $ | 41,823 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 3,194 | $ | 2,223 | ||||
| Accrued compensation | 1,750 | 1,572 | ||||||
| Accrued expenses | 1,838 | 1,722 | ||||||
| Accrued warranty | 610 | 603 | ||||||
| Deferred revenue | 1,271 | 1,311 | ||||||
| Total current liabilities | 8,663 | 7,431 | ||||||
| Long-Term Liabilities: | ||||||||
| Other long-term liabilities | 566 | 704 | ||||||
| Total liabilities | 9,229 | 8,135 | ||||||
| Stockholders' equity: | ||||||||
| Common stock | 112 | 111 | ||||||
| Additional paid-in capital | 39,040 | 37,986 | ||||||
| Accumulated deficit | (4,636 | ) | (4,409 | ) | ||||
| Total stockholders' equity | 34,516 | 33,688 | ||||||
| Total liabilities and stockholders' equity | $ | 43,745 | $ | 41,823 |