Full Press Release Details
IRIDEX Reports Growing Revenue and Profits in
Announces Stock Repurchase Program
Mountain View, Calif. May 5,
2011 IRIDEX Corporation (Nasdaq: IRIX) today reported that growing demand for new products and consumables drove sales and improved financial results for the first quarter ended April 2, 2011.
The first quarter results marked a great start to the year
as we met or exceeded our internal goals in almost all commercial categories. Our direct ophthalmology business grew 10% in the first quarter as we saw an uptick in both capital equipment and growth in consumable sales, stated Theodore A.
Boutacoff, President and CEO. We also continue to see growing academic and clinical interest in our
MicroPulseTM technology, which customers are using to
perform tissue sparing laser photocoagulation procedures.
Furthermore, today we announced that the board approved
a $2 million share repurchase program. We see this as an additional tactic in our overall goal of increasing shareholder value and follows on from our recent purchase of the remaining 76,000 shares held by American Medical Systems Holding,
Guidance for second quarter of fiscal year 2011: revenue between $10.7 million and $11.0 million representing an
8% to 11% increase over Q2 2010, gross margins between 46% and 49% and operating expenses between $4.5 million and $4.7 million.
First Quarter Business Highlights
management will conduct a conference call later today, Thursday, May 5, 2011 at 5:00 p.m. Eastern Time. Interested parties may access the live conference call via telephone by dialing (877) 941-1466 (U.S.) or (480) 629-9868
(International) and quoting Conference ID 4435858, or by visiting the Company s website at www.iridex.com. A telephone replay will be available beginning on Thursday, May 5, 2011 through Thursday, May 12, 2011 by dialing
(800) 406-7325 (U.S.) or (303) 590-3030 (International) and entering Access Code 4435858. In addition, later today an archived version of the webcast will be available on the Company s website at www.iridex.com.
Corporation was founded in 1989 and is a worldwide leader in developing, manufacturing, and marketing innovative and versatile laser-based medical systems and delivery devices. We provide solutions for multiple specialties, including ophthalmology,
dermatology and otolaryngology. 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 100 independent distributors into 107 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 Company s strategic plans, growth initiatives, new products and projected 2011 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 January 1, 2011 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 | Allen & Caron | |
| 650-940-4700 | 949-474-4300 | |
| matt@allencaron.com |
Condensed Consolidated Statements of Operations
(Unaudited, In thousands except per share data)
| Three Months Ended | ||||||||
| April 2, | April 3, | |||||||
| 2011 | 2010 | |||||||
| Revenues | $ | 11,212 | $ | 10,758 | ||||
| Cost of revenues | 5,974 | 5,533 | ||||||
| Gross profit | 5,238 | 5,225 | ||||||
| Operating expenses: | ||||||||
| Research and development | 964 | 1,027 | ||||||
| Sales and marketing | 2,457 | 2,338 | ||||||
| General and administrative | 1,205 | 1,257 | ||||||
| Total operating expenses | 4,626 | 4,622 | ||||||
| Income from operations | 612 | 603 | ||||||
| Interest and other income (expense), net | 52 | (62 | ) | |||||
| Income before provision for income taxes | 664 | 541 | ||||||
| Provision for income taxes | 98 | 56 | ||||||
| Net income | $ | 566 | $ | 485 | ||||
| Net income per share - basic | $ | 0.06 | $ | 0.05 | ||||
| Net income per share - diluted | $ | 0.06 | $ | 0.05 | ||||
| Shares used in computing net income per share - basic | 8,964 | 8,850 | ||||||
| Shares used in computing net income per share - diluted | 10,215 | 9,991 |
Condensed Consolidated Balance Sheets
(In thousands, except for share data)
| April 2, | January 1, | |||||||
| 2011 | 2011 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 8,569 | $ | 9,014 | ||||
| Accounts receivable, net | 8,119 | 7,526 | ||||||
| Inventories, net | 9,197 | 9,212 | ||||||
| Prepaid expenses and other current assets | 601 | 620 | ||||||
| Total current assets | 26,486 | 26,372 | ||||||
| Property and equipment, net | 325 | 360 | ||||||
| Other intangible assets, net | 1,749 | 1,797 | ||||||
| Goodwill | 473 | 473 | ||||||
| Other long-term assets | 271 | 218 | ||||||
| Total assets | $ | 29,304 | $ | 29,220 | ||||
| Liabilities and Stockholders Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 2,007 | $ | 1,981 | ||||
| Accrued compensation | 2,070 | 2,304 | ||||||
| Accrued expenses | 1,654 | 1,822 | ||||||
| Accrued warranty | 837 | 956 | ||||||
| Deferred revenue | 2,222 | 2,134 | ||||||
| Total current liabilities | 8,790 | 9,197 | ||||||
| Long Term Liabilities: | ||||||||
| Other long-term liabilities | 605 | 596 | ||||||
| Total liabilities | 9,395 | 9,793 | ||||||
| Stockholders Equity: | ||||||||
| Convertible preferred stock | 5 | 5 | ||||||
| Common Stock | 91 | 89 | ||||||
| Additional paid-in capital | 41,408 | 41,168 | ||||||
| Accumulated other comprehensive loss | (228 | ) | (205 | ) | ||||
| Treasury stock, at cost | (733 | ) | (430 | ) | ||||
| Accumulated deficit | (20,634 | ) | (21,200 | ) | ||||
| Total stockholders equity | 19,909 | 19,427 | ||||||
| Total liabilities and stockholders equity | $ | 29,304 | $ | 29,220 |