Full Press Release Details
IRIDEX Reports Record 2012 Fourth Quarter Results
Board Approves New $3.0 Million Stock Repurchase Program
Mountain View, Calif. February 28, 2013 IRIDEX Corporation (Nasdaq: IRIX) today reported financial results for the fourth quarter ended December 29, 2012.
CEO William M. Moore said, We
have implemented a number of changes to the organization flattening the management structure and making the focus more customer-centric and market driven with an eye to profitability. We are now investing in products that our customers want, that
can be delivered to the market in a reasonable amount of time and that are aligned with growing clinical trends in ophthalmology. And we are making these changes in the framework of fiscal controls and a focus on generating cash and enhancing
Moore continued, Going forward, we will look to grow and increase profitability, we will be
opportunistic in acquiring or partnering with ophthalmic companies that have developed excellent technologies and we will continue to deploy cash from our strong balance sheet and
profitable operations to directly benefit our shareholders through our share buyback program. For the last
two years we had committed up to $4.0 million to our stock repurchase program which ended this February. Today, the Board approved a new one year $3.0 million stock repurchase program that replaces our prior two year $4.0 million program.
The preceding commentary relates to the results of the Company s continuing ophthalmology business. In February 2012,
the Company sold its aesthetics laser business and the financial statements reflect the results of its aesthetics laser business as discontinued operations.
Fourth Quarter Business Highlights
IRIDEX management will conduct a conference call later
today, Thursday, February 28, 2013 at 5:00 p.m. Eastern Time. Interested parties may access the live conference call via telephone by dialing (866) 225-8754 (U.S.) or (480) 629-9818 (International) and quoting Conference ID 4603021,
or by visiting the Company s website at www.iridex.com. A telephone replay will be available beginning on Thursday, February 28, 2013 through Thursday, March 7, 2013 by dialing (800) 406-7325 (U.S.) or (303) 590-3030
(International) and entering Access Code 4603021. In addition, later today an archived version of the webcast will be available on the Company s website at www.iridex.com.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 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 and trends in the markets in which the Company operates, the success of the Company s development, marketing and sales efforts, MicroPulse laser therapy, the Company s growth strategy, the Company s
acquisition strategy, sales revenue growth, operational plans, profitability, the Company s projected fiscal 2013 financial results 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 31, 2011 and Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2012, June 30, 2012 and September 29, 2012 which were 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 | |||
| CFO & COO | Allen & Caron | |||
| 650-940-4700 | 949-474-4300 | |||
| matt@allencaron.com |
Condensed Consolidated Statements of Operations
(In thousands, except per share
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 29, | December 31, | December 29, | December 31, | |||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Total revenues | $ | 9,228 | $ | 8,620 | $ | 33,859 | $ | 33,159 | ||||||||
| Cost of revenues | 4,890 | 4,342 | 17,513 | 16,869 | ||||||||||||
| Gross profit | 4,338 | 4,278 | 16,346 | 16,290 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 1,091 | 1,166 | 4,385 | 3,913 | ||||||||||||
| Sales and marketing | 2,034 | 2,147 | 7,895 | 7,458 | ||||||||||||
| General and administrative | 908 | 1,066 | 4,926 | 4,259 | ||||||||||||
| Legal settlement, net of expenses | (1,274 | ) | (1,274 | ) | ||||||||||||
| Total operating expenses | 4,033 | 3,105 | 17,206 | 14,356 | ||||||||||||
| Income (loss) from operations | 305 | 1,173 | (860 | ) | 1,934 | |||||||||||
| Legal settlement | 800 | 800 | ||||||||||||||
| Other expense, net | (18 | ) | (250 | ) | (210 | ) | (296 | ) | ||||||||
| Income (loss) from continuing operations before income taxes | 287 | 923 | (270 | ) | 2,438 | |||||||||||
| Provision for (benefit from) income taxes | 34 | 122 | (100 | ) | 297 | |||||||||||
| Income (loss) from continuing operations | 253 | 801 | (170 | ) | 2,141 | |||||||||||
| Income (loss) from discontinued operations, net of tax | 149 | (15 | ) | (264 | ) | 469 | ||||||||||
| (Loss) gain on sale of discontinued operations, net of tax | (160 | ) | 1,872 | |||||||||||||
| (Loss) income from discontinued operations, net of tax | (11 | ) | (15 | ) | 1,608 | 469 | ||||||||||
| Net income | $ | 242 | $ | 786 | $ | 1,438 | $ | 2,610 | ||||||||
| Net (loss) income per share: | ||||||||||||||||
| Basic: | ||||||||||||||||
| Continuing operations | $ | 0.03 | $ | 0.09 | $ | (0.02 | ) | $ | 0.24 | |||||||
| Discontinued operations | $ | (0.00 | ) | $ | (0.00 | ) | $ | 0.18 | $ | 0.05 | ||||||
| $ | 0.03 | $ | 0.09 | $ | 0.16 | $ | 0.29 | |||||||||
| Diluted: | ||||||||||||||||
| Continuing operations | $ | 0.03 | $ | 0.08 | $ | (0.02 | ) | $ | 0.21 | |||||||
| Discontinued operations | $ | (0.01 | ) | $ | (0.00 | ) | $ | 0.18 | $ | 0.05 | ||||||
| $ | 0.02 | $ | 0.08 | $ | 0.16 | $ | 0.26 | |||||||||
| Weighted average shares used in computing net income per share | ||||||||||||||||
| Basic | 8,820 | 8,945 | 8,935 | 8,958 | ||||||||||||
| Diluted | 10,071 | 10,200 | 8,935 | 10,225 |
Condensed Consolidated Balance Sheets
| December 29, 2012 | December 31, 2011 | |||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 11,901 | $ | 10,789 | ||||
| Accounts receivable, net | 5,480 | 5,551 | ||||||
| Inventories, net | 8,035 | 6,659 | ||||||
| Prepaids and other current assets | 1,129 | 464 | ||||||
| Current assets of discontinued operations | 510 | 6,043 | ||||||
| Total current assets | 27,055 | 29,506 | ||||||
| Property and equipment, net | 483 | 325 | ||||||
| Other long-term assets | 287 | 199 | ||||||
| Other intangible assets, net | 554 | 745 | ||||||
| Goodwill | 533 | 533 | ||||||
| Non-current assets of discontinued operations | 841 | |||||||
| Total assets | $ | 28,912 | $ | 32,149 | ||||
| Liabilities and Stockholders Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 2,105 | $ | 1,580 | ||||
| Accrued compensation | 1,563 | 1,180 | ||||||
| Accrued expenses | 1,242 | 1,920 | ||||||
| Accrued warranty | 453 | 556 | ||||||
| Deferred revenue | 1,004 | 1,014 | ||||||
| Current liabilities of discontinued operations | 2,663 | |||||||
| Total current liabilities | 6,367 | 8,913 | ||||||
| Long Term Liabilities: | ||||||||
| Other long-term liabilities | 640 | 810 | ||||||
| Total liabilities | 7,007 | 9,723 | ||||||
| Stockholders Equity: | ||||||||
| Convertible preferred stock | 5 | 5 | ||||||
| Common stock | 94 | 92 | ||||||
| Additional paid-in capital | 38,958 | 42,032 | ||||||
| Accumulated other comprehensive loss | (35 | ) | ||||||
| Treasury stock, at cost | (1,078 | ) | ||||||
| Accumulated deficit | (17,152 | ) | (18,590 | ) | ||||
| Total stockholders equity | 21,905 | 22,426 | ||||||
| Total liabilities and stockholders equity | $ | 28,912 | $ | 32,149 |