Full Press Release Details
IRIDEX Reports Strong Growth and Profits in
Quarterly Profit increases 62% as Sales and Gross Margins Strengthen
Record Operating Income and Strong Cash Generation for the Year
Mountain View, Calif. - March 3, 2011 IRIDEX Corporation (Nasdaq: IRIX) today reported that growing demand for new products and consumables drove sales and improved financial
results for the fourth quarter ended January 1, 2011.
We had an excellent fourth quarter. Excluding OEM revenue, our ophthalmology business grew 14% from $7.8
million in the fourth quarter 2009 to $8.9 million in the 2010 period driven by both increased equipment and consumable sales, stated Theodore A. Boutacoff, President and CEO. We had our best quarter to date for sales of our recently
introduced IQ577 and have seen increased and broader interest in our MicroPulseTM technology, which customers are using to perform tissue sparing laser photocoagulation.
Diluted earnings for fiscal 2010 increased 18% to $3.0 million, or $0.30 per diluted share, from $2.6 million, or $0.26 per diluted share, for fiscal 2009. For fiscal 2010, total sales were $43.7 million,
up modestly from the $43.2 million in fiscal 2009. Gross profits and operating expenses were also slightly higher in 2010 over the prior year.
We achieved a record $2.8 million operating income for the year and maintained excellent cash generation. We started the year with $3.5 million in debt and $9.4 million in cash and closed the year
with no debt and $9 million in cash. Having executed a difficult financial and operational turnaround over the past 2 years, we enter 2011 with increased financial strength and
important new technologies available to market. That improved operating platform positions us well to now accelerate growth through executing our strategy of organic initiatives supplemented by
smart acquisitions, continued Mr. Boutacoff.
2010 Business Highlights
IRIDEX management will conduct a conference call later today, Thursday, March 3, 2011 at 5:00 p.m. Eastern Time. Interested parties
may access the live conference call via telephone by dialing (877) 941-0844 (U.S.) or (480) 629-9645 (International) and quoting Conference ID 4414639, or by visiting the Company s website at www.iridex.com. A telephone replay
will be available beginning on Thursday, March 3, 2011 through Wednesday, March 9, 2011 by dialing (800) 406-7325 (U.S.) or (303) 590-3030 (International) and entering Access Code 4414639. 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 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 2, 2010 and our Quarterly Report on Form 10-Q for the third quarter ended October 2, 2010, 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 |
| IRIDEX Corporation Condensed Consolidated Statements of Operations (In thousands, except per share data) (unaudited) | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| January 1, | January 2, | January 1, | January 2, | |||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Revenues | $ | 12,228 | $ | 11,563 | $ | 43,694 | $ | 43,212 | ||||||||
| Cost of revenues | 6,335 | 6,289 | 22,791 | 22,939 | ||||||||||||
| Gross profit | 5,893 | 5,274 | 20,903 | 20,273 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 901 | 974 | 3,814 | 3,609 | ||||||||||||
| Sales and marketing | 2,820 | 2,507 | 9,804 | 9,273 | ||||||||||||
| General and administrative | 998 | 1,006 | 4,488 | 4,873 | ||||||||||||
| Total operating expenses | 4,719 | 4,487 | 18,106 | 17,755 | ||||||||||||
| Income from operations | 1,174 | 787 | 2,797 | 2,518 | ||||||||||||
| Legal settlement | 800 | 800 | ||||||||||||||
| Interest and other expense, net | (29 | ) | (40 | ) | (78 | ) | (237 | ) | ||||||||
| Income before income taxes | 1,145 | 747 | 3,519 | 3,081 | ||||||||||||
| Provision for income taxes | 308 | 230 | 473 | 496 | ||||||||||||
| Net income | $ | 837 | $ | 517 | $ | 3,046 | $ | 2,585 | ||||||||
| Net income per share - basic | $ | 0.09 | $ | 0.06 | $ | 0.34 | $ | 0.29 | ||||||||
| Net income per share - diluted | $ | 0.08 | $ | 0.05 | $ | 0.30 | $ | 0.26 | ||||||||
| Shares used in computing net income per share - basic | 8,982 | 8,847 | 8,943 | 8,840 | ||||||||||||
| Shares used in computing net income per share - diluted | 10,200 | 9,928 | 10,134 | 9,940 |
| IRIDEX Corporation Condensed Consolidated Balance Sheets (In thousands) (unaudited) | ||||||||
| January 1, 2011 | January 2, 2010 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 9,014 | $ | 9,378 | ||||
| Accounts receivable, net | 7,526 | 7,482 | ||||||
| Inventories, net | 9,212 | 8,999 | ||||||
| Prepaids and other current assets | 620 | 470 | ||||||
| Total current assets | 26,372 | 26,329 | ||||||
| Property and equipment, net | 360 | 486 | ||||||
| Other long-term assets | 218 | 323 | ||||||
| Other intangible assets, net | 1,797 | 1,153 | ||||||
| Goodwill | 473 | 0 | ||||||
| Total assets | $ | 29,220 | $ | 28,291 | ||||
| Liabilities and Stockholders Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 1,981 | $ | 1,872 | ||||
| Bank line of credit | 0 | 3,520 | ||||||
| Accrued compensation | 2,304 | 2,171 | ||||||
| Accrued expenses | 1,822 | 1,983 | ||||||
| Accrued warranty | 956 | 1,165 | ||||||
| Deferred revenue | 2,134 | 2,405 | ||||||
| Total current liabilities | 9,197 | 13,116 | ||||||
| Long Term Liabilities: | ||||||||
| Other long-term liabilities | 596 | 149 | ||||||
| Total liabilities | 9,793 | 13,265 | ||||||
| Stockholders Equity: | ||||||||
| Convertible preferred stock | 5 | 5 | ||||||
| Common Stock | 89 | 89 | ||||||
| Additional paid-in capital | 41,168 | 39,820 | ||||||
| Accumulated other comprehensive loss | (205 | ) | (212 | ) | ||||
| Treasury stock, at cost | (430 | ) | (430 | ) | ||||
| Accumulated deficit | (21,200 | ) | (24,246 | ) | ||||
| Total stockholders equity | 19,427 | 15,026 | ||||||
| Total liabilities and stockholders equity | $ | 29,220 | $ | 28,291 |