Full Press Release Details
| FOR IMMEDIATE RELEASE | Contact: | Jim Mackaness | ||
| Chief Financial Officer | ||||
| 650 940-4700 |
Mountain View, California
IRIDEX Reports Third Quarter 2009 Financial Results
Third Consecutive Profitable Quarter
IRIDEX Corporation (Nasdaq: IRIX) today reported financial results for the third quarter of 2009 ended October 3, 2009.
For the third quarter of 2009, the Company recorded a net profit of $0.6 million or $0.07 per diluted share compared to a net loss of $0.2
million or $(0.03) per diluted share for the third quarter of 2008. Revenue for the third quarter of 2009 was $10.4 million, a 13.2% decrease from the $12.0 million reported for the third quarter of 2008. However, gross margins improved to 49.2%
from 41.6% and cash generated from operations was $2.4 million compared to a decrease of $0.9 million.
generation remains excellent, we have generated $5.2 million in cash from operations for the year to date and our cash balance now stands at $7.9 million and we have reduced our debt from $6.0 million to $3.5 million stated
Mr. Theodore A. Boutacoff, President and CEO. We continue to see the benefits of creating a very efficient and scalable business.
We have recorded our third consecutive quarter of profitability which is an outstanding achievement given the current economy. Of particular note, we have been profitable at the operating income
level for three consecutive quarters, generating $1.0 million in operating income this quarter and $1.7 million year to date. Although our revenues were down, the majority of the decrease was in our aesthetics and OEM businesses and we were pleased
to see a rebound in demand for ophthalmology systems domestically. Our margins have improved and we are controlling our operating expenses well.
Looking forward, the outlook for our business is improving. We had a very successful American Academy of Ophthalmology where we introduced two new products; the Dual Port IQ 532 green laser system
and the Modular Multi-wavelength laser solution. In addition, our recently introduced IQ 577 yellow laser was featured in a number of physician presentations which outlined the significant clinical and patient benefits of the product. We believe
these products and their acceptance, together with other initiatives we are undertaking, provide us with growth opportunities for 2010.
IRIDEX management will conduct a conference call later today, Thursday, November 12, 2009 at 5:00 p.m. Eastern Time. Interested parties may access the live conference call via telephone by dialing
(888) 561-1721 (U.S.) or (480) 629-9868 (International) and quoting Conference ID 4181294, or by visiting the Company s website at www.iridex.com. A telephone replay will be available beginning on Thursday, November 12,
2009 through Thursday, November 19, 2009 by dialing (800) 406-7325 (U.S.) or (303) 590-3030 (International) and entering Access Code 4181294. 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
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 products, growth
strategy and prospects. Please see a detailed description of these and other risks contained in our Quarterly Report on From 10-Q for the quarter ended October 3, 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
thousands, except per share data)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| October 3, 2009 | September 27, 2008 | October 3, 2009 | September 27, 2008 | |||||||||||||
| Revenues | $ | 10,400 | $ | 11,987 | $ | 31,649 | $ | 36,383 | ||||||||
| Cost of revenues | 5,278 | 6,997 | 16,650 | 21,257 | ||||||||||||
| Gross profit | 5,122 | 4,990 | 14,999 | 15,126 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 888 | 972 | 2,635 | 2,995 | ||||||||||||
| Sales and marketing | 2,204 | 2,732 | 6,766 | 8,011 | ||||||||||||
| General and administrative | 1,061 | 1,516 | 3,867 | 5,345 | ||||||||||||
| Total operating expenses | 4,153 | 5,220 | 13,268 | 16,351 | ||||||||||||
| Income (loss) from operations | 969 | (230 | ) | 1,731 | (1,225 | ) | ||||||||||
| Legal settlement | 800 | 800 | ||||||||||||||
| Interest and other expense, net | (64 | ) | (54 | ) | (197 | ) | (426 | ) | ||||||||
| Income (loss) before income taxes | 905 | (284 | ) | 2,334 | (851 | ) | ||||||||||
| Provision for (benefit from) income taxes | 259 | (35 | ) | 266 | 16 | |||||||||||
| Net income (loss) | $ | 646 | $ | (249 | ) | $ | 2,068 | $ | (867 | ) | ||||||
| Net income (loss) per share - basic and diluted | $ | 0.07 | $ | (0.03 | ) | $ | 0.23 | $ | (0.10 | ) | ||||||
| Shares used in computing net income (loss) per share - basic | 8,845 | 8,824 | 8,845 | 8,824 | ||||||||||||
| Shares used in computing net income (loss) per share - diluted | 8,900 | 8,824 | 9,003 | 8,824 |
Condensed Consolidated Balance Sheets
| October 3, 2009 | January 3, 2009 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 7,884 | $ | 5,307 | ||||
| Accounts receivable, net | 7,148 | 8,199 | ||||||
| Inventories, net | 9,666 | 11,644 | ||||||
| Prepaids and other current assets | 489 | 540 | ||||||
| Total current assets | 25,187 | 25,690 | ||||||
| Property and equipment, net | 547 | 832 | ||||||
| Other intangible assets, net | 1,233 | 1,474 | ||||||
| Other long term assets | 357 | 229 | ||||||
| Total assets | 27,324 | 28,225 | ||||||
| Liabilities and Stockholders Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 1,314 | $ | 2,415 | ||||
| Bank line of credit | 3,500 | 6,000 | ||||||
| Accrued compensation | 2,157 | 1,729 | ||||||
| Accrued expenses | 2,147 | 2,249 | ||||||
| Accrued warranty | 1,168 | 1,345 | ||||||
| Deferred revenue | 2,713 | 2,741 | ||||||
| Total current liabilities | 12,999 | 16,479 | ||||||
| Stockholders Equity: | ||||||||
| Convertible preferred stock | 5 | 5 | ||||||
| Common Stock | 89 | 89 | ||||||
| Additional paid-in capital | 39,657 | 39,105 | ||||||
| Accumulated other comprehensive loss | (233 | ) | (192 | ) | ||||
| Treasury stock, at cost | (430 | ) | (430 | ) | ||||
| Accumulated deficit | (24,763 | ) | (26,831 | ) | ||||
| Total stockholders equity | 14,325 | 11,746 | ||||||
| Total liabilities and stockholders equity | $ | 27,324 | $ | 28,225 |