Full Press Release Details
| FOR IMMEDIATE RELEASE | Contact: | Jim Mackaness | ||
| Chief Financial Officer | ||||
| 650 940-4700 |
Mountain View, California
IRIDEX Reports Second Quarter 2009 Financial Results
Second Consecutive Profitable Quarter
IRIDEX Corporation (Nasdaq: IRIX) today reported financial results for the second quarter of 2009 ended July 4, 2009.
For the second quarter of 2009, the Company recorded a net profit of $1.2 million or $0.13 per diluted share compared to a net profit of $0.3 million or $0.03 per diluted share in the second quarter of 2008. Revenue for the second quarter
of 2009 was $10.5 million, an 18.6% decrease from the $12.9 million reported for the second quarter of 2008. However, gross margins improved to 45.9% from 41.3% and cash generated from operations was $1.9 million for the second quarter compared to a
decrease of $0.7 million for the comparable period in 2008.
We have recorded our second consecutive quarter of profitability which
is an outstanding achievement given the current economy. Of particular note, we have also been profitable at the operating income level for two consecutive quarters, stated Mr. Theodore A. Boutacoff, President and CEO. Our
margins have improved, we are controlling our operating expenses well and our cash generation continues to be excellent. We are beginning to see the benefits of creating a very efficient and scalable business.
At the start of 2008, we laid out our vision and strategy for the Company. Our first objective was, and continues to be, cash generation. We have
been very successful in this effort and have generated over $9 million in cash over the last six quarters; of which $6.3 million was used to pay our outstanding balance to American Medical Systems in full, and we have reduced our bank debt by $1.5
million. Our second objective was to drive the Company to profitability and we have now achieved two consecutive profitable quarters. With this momentum, we are turning our attention to our third objective which is growth. As the economy improves we
anticipate seeing our current business grow. In addition, together with our internal product development we are looking at opportunities outside the Company to add complementary products that will allow us to strengthen our position within existing
In April 2007 we entered into an agreement with Synergetics USA, Inc. relating to the settlement of legal claims for patent
infringement. The settlement agreement called for an initial payment of $2.5 million, which was received in the second quarter of 2007, and five subsequent annual payments of $0.8 million, totaling $6.5 million. We received payments of $0.8 million
in the second quarters of 2008 and 2009 and expect to receive annual payments of $0.8 million relating to this agreement in the second quarters of 2010, 2011 and 2012. These amounts are shown in our income statement as part of other income.
IRIDEX management will conduct a conference call later today, Thursday, August 13, 2009 at 5:00 p.m. Eastern Time. Interested parties may access the live conference call via telephone by dialing
(877) 941-0843 (U.S.) or (480) 629-9643 (International) and quoting Conference ID 4133387, or by visiting the Company s website at www.iridex.com. A telephone replay will be available beginning on Thursday, August 13, 2009
through Thursday, August 20, 2009 by dialing (800) 406-7325 (U.S.) or (303) 590-3030 (International) and entering Access Code 4133387. In addition, later today an archived version of the webcast will be available on the Company s
website at www.iridex.com.
IRIDEX Corporation is a leading worldwide provider of therapeutic based laser systems, consumable laser probes and delivery devices used to treat eye diseases in ophthalmology and skin conditions in the aesthetics market. 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 financial stability, growth strategy and prospects and future payments from Synergetics. Please see a detailed description of these and other risks contained
in our Quarterly Report on From 10-Q for the quarter ended July 4, 2009 and our Annual Report on Form 10-K for the fiscal year ended January 3, 2009, 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.
Condensed Consolidated Statements of Operations
(In thousands, except per share
| Three Months Ended | Six Months Ended | |||||||||||||||
| July 4, 2009 | June 28, 2008 | July 4, 2009 | June 28, 2008 | |||||||||||||
| Revenues | $ | 10,513 | $ | 12,922 | $ | 21,249 | $ | 24,396 | ||||||||
| Cost of revenues | 5,684 | 7,591 | 11,372 | 14,260 | ||||||||||||
| Gross profit | 4,829 | 5,331 | 9,877 | 10,136 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 906 | 998 | 1,747 | 2,023 | ||||||||||||
| Sales and marketing | 2,211 | 2,665 | 4,562 | 5,278 | ||||||||||||
| General and administrative | 1,313 | 1,924 | 2,806 | 3,829 | ||||||||||||
| Total operating expenses | 4,430 | 5,587 | 9,115 | 11,130 | ||||||||||||
| Income (loss) from operations | 399 | (256 | ) | 762 | (994 | ) | ||||||||||
| Legal settlement | 800 | 800 | 800 | 800 | ||||||||||||
| Interest and other income (expense), net | 6 | (218 | ) | (133 | ) | (372 | ) | |||||||||
| Income (loss) before income taxes | 1,205 | 326 | 1,429 | (566 | ) | |||||||||||
| Provision for income taxes | (7 | ) | (51 | ) | (7 | ) | (51 | ) | ||||||||
| Net income (loss) | $ | 1,198 | $ | 275 | $ | 1,422 | $ | (617 | ) | |||||||
| Net income (loss) per share - basic | $ | 0.13 | $ | 0.03 | $ | 0.16 | $ | (0.07 | ) | |||||||
| Net income (loss) per share - diluted | $ | 0.13 | $ | 0.03 | $ | 0.16 | $ | (0.07 | ) | |||||||
| Shares used in computing net income (loss) per share - | ||||||||||||||||
| Basic | 8,844 | 8,824 | 8,835 | 8,824 | ||||||||||||
| Diluted | 9,107 | 8,824 | 8,966 | 8,824 |
Condensed Consolidated Balance Sheets
| July 4, 2009 | January 3, 2009 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 6,618 | $ | 5,307 | ||||
| Accounts receivable, net | 7,354 | 8,199 | ||||||
| Inventories, net | 10,105 | 11,644 | ||||||
| Prepaids and other current assets | 598 | 540 | ||||||
| Total current assets | 24,675 | 25,690 | ||||||
| Property and equipment, net | 595 | 832 | ||||||
| Other intangible assets, net | 1,313 | 1,474 | ||||||
| Other long term assets | 334 | 229 | ||||||
| Total assets | 26,917 | 28,225 | ||||||
| Liabilities and Stockholders Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 1,389 | $ | 2,415 | ||||
| Bank line of credit | 4,478 | 6,000 | ||||||
| Accrued compensation | 1,797 | 1,729 | ||||||
| Accrued expenses | 1,820 | 2,249 | ||||||
| Accrued warranty | 1,185 | 1,345 | ||||||
| Deferred revenue | 2,678 | 2,741 | ||||||
| Total current liabilities | 13,347 | 16,479 | ||||||
| Stockholders Equity: | ||||||||
| Convertible preferred stock | 5 | 5 | ||||||
| Common Stock | 89 | 89 | ||||||
| Additional paid-in capital | 39,511 | 39,105 | ||||||
| Accumulated other comprehensive loss | (196 | ) | (192 | ) | ||||
| Treasury stock, at cost | (430 | ) | (430 | ) | ||||
| Accumulated deficit | (25,409 | ) | (26,831 | ) | ||||
| Total stockholders equity | 13,570 | 11,746 | ||||||
| Total liabilities and stockholders equity | $ | 26,917 | $ | 28,225 |