Full Press Release Details
IRIDEX Reports Growing Revenue and Profits in
Mountain View, Calif. August 4, 2011 IRIDEX Corporation (Nasdaq: IRIX) today reported improved financial results for the
second quarter ended July 2, 2011.
Second quarter sales were within guidance, gross margin was below guidance and operating expenses were better
than guidance. Our core ophthalmology business saw 8% growth even with a challenging equipment environment in Europe and certain other overseas markets, stated Theodore A. Boutacoff, President and CEO. Ophthalmology domestic equipment
sales were strong and it was particularly rewarding to note that this was our best quarter to date on a worldwide basis for sales of our IQ577 yellow laser. More and more physicians are recognizing the added benefits of working with a true yellow
wavelength and having the ability to use our MicroPulseTM
technology to perform tissue sparing laser photocoagulation procedures.
Our aesthetics business performed well
compared to the second quarter of last year, although the additional aesthetics sales did impact the product mix which resulted in our gross margin being 1% lower than expected, continued Mr. Boutacoff. During the quarter we
announced our share repurchase program and purchased 25,400 shares at an average price of $3.84. We were interested in purchasing more but were limited by SEC regulations.
Guidance for third quarter of fiscal 2011: revenue of $10 million, gross margin of 45% and operating expenses of $4.5 million.
1H 2011 Business Highlights
IRIDEX management will conduct a conference call later today, Thursday, August 4, 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) 629-9821 (International) and quoting Conference ID 4460193, or by visiting the Company s website at www.iridex.com.
A telephone replay will be available beginning on Thursday, August 4, 2011 through Thursday, August 11, 2011 by dialing (800) 406-7325 (U.S.) or (303) 590-3030 (International) and entering Access Code 4460193. 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today an archived version of the webcast will be available on the Company s website at www.iridex.com.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 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 new products and projected third quarter of fiscal 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 and our Quarterly Reports on Form
10-Q for the quarters ended April 2, 2011 and July 2, 2011, 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: | |
| Jim Mackaness | Matt Clawson | |
| Chief Financial Officer | Allen & Caron | |
| 650-940-4700 | 949-474-4300 | |
| matt@allencaron.com |
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
| Three Months Ended | Six Months Ended | |||||||||||||||
| July 2, 2011 | July 3, 2010 | July 2, 2011 | July 3, 2010 | |||||||||||||
| Revenues | $ | 10,798 | $ | 9,890 | $ | 22,010 | $ | 20,648 | ||||||||
| Cost of revenues | 5,921 | 5,354 | 11,895 | 10,887 | ||||||||||||
| Gross profit | 4,877 | 4,536 | 10,115 | 9,761 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 910 | 966 | 1,874 | 1,993 | ||||||||||||
| Sales and marketing | 2,379 | 2,327 | 4,836 | 4,665 | ||||||||||||
| General and administrative | 1,153 | 1,108 | 2,358 | 2,365 | ||||||||||||
| Total operating expenses | 4,442 | 4,401 | 9,068 | 9,023 | ||||||||||||
| Income from operations | 435 | 135 | 1,047 | 738 | ||||||||||||
| Legal settlement | 800 | 800 | 800 | 800 | ||||||||||||
| Interest and other income (expense), net | (153 | ) | (50 | ) | (101 | ) | (112 | ) | ||||||||
| Income before income taxes | 1,082 | 885 | 1,746 | 1,426 | ||||||||||||
| Provision for income taxes | 173 | 71 | 271 | 127 | ||||||||||||
| Net income | $ | 909 | $ | 814 | $ | 1,475 | $ | 1,299 | ||||||||
| Net income per share - basic | $ | 0.10 | $ | 0.09 | $ | 0.16 | $ | 0.15 | ||||||||
| Net income per share - diluted | $ | 0.09 | $ | 0.08 | $ | 0.14 | $ | 0.13 | ||||||||
| Shares used in computing net income per share - basic | 8,961 | 8,965 | 8,962 | 8,907 | ||||||||||||
| Shares used in computing net income per share - diluted | 10,231 | 10,197 | 10,223 | 10,094 |
Condensed Consolidated Balance Sheets
| July 2, 2011 | January 1, 2011 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 8,875 | $ | 9,014 | ||||
| Accounts receivable, net | 7,468 | 7,526 | ||||||
| Inventories, net | 10,169 | 9,212 | ||||||
| Prepaids and other current assets | 642 | 620 | ||||||
| Total current assets | 27,154 | 26,372 | ||||||
| Property and equipment, net | 299 | 360 | ||||||
| Other long-term assets | 249 | 218 | ||||||
| Other intangible assets, net | 1,701 | 1,797 | ||||||
| Goodwill | 473 | 473 | ||||||
| Total assets | $ | 29,876 | $ | 29,220 | ||||
| Liabilities and Stockholders Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 2,099 | $ | 1,981 | ||||
| Accrued compensation | 1,506 | 2,304 | ||||||
| Accrued expenses | 1,508 | 1,822 | ||||||
| Accrued warranty | 806 | 956 | ||||||
| Deferred revenue | 2,175 | 2,134 | ||||||
| Total current liabilities | 8,094 | 9,197 | ||||||
| Long Term Liabilities: | ||||||||
| Other long-term liabilities | 610 | 596 | ||||||
| Total liabilities | 8,704 | 9,793 | ||||||
| Stockholders Equity: | ||||||||
| Convertible preferred stock | 5 | 5 | ||||||
| Common Stock | 92 | 89 | ||||||
| Additional paid-in capital | 41,699 | 41,168 | ||||||
| Accumulated other comprehensive loss | (68 | ) | (205 | ) | ||||
| Treasury stock, at cost | (831 | ) | (430 | ) | ||||
| Accumulated deficit | (19,725 | ) | (21,200 | ) | ||||
| Total stockholders equity | 21,172 | 19,427 | ||||||
| Total liabilities and stockholders equity | $ | 29,876 | $ | 29,220 |