Full Press Release Details
| FOR IMMEDIATE RELEASE | Contact: | Jim Mackaness | ||
| Chief Financial Officer | ||||
| (650) 940-4700 |
Mountain View, California
IRIDEX Reports Improved Third Quarter 2010 Financial Results
IRIDEX Corporation (Nasdaq: IRIX) today reported financial results for the third quarter ended October 2, 2010.
Our performance improved in the third quarter. Excluding OEM revenue, our
Ophthalmology business grew 5.8% from $7.4 million in the third quarter of 2009 to $7.9 million this quarter, and it was most rewarding to see our ophthalmology consumable revenues return to growth. Consumables are an important part of our overall
growth strategy as are strategic acquisitions, stated Mr. Theodore A. Boutacoff, President and CEO. Gross margin was above our guidance range due to favorable product mix and volume efficiencies and we continue to manage our
operating expenses well.
Our largest trade show, the Annual Meeting of the American Academy of Ophthalmology, was
in October and we were extremely pleased with the improved business activity at the Academy with sales and leads generated at this meeting increasing significantly over the prior year, which we believe is indicative of a turnaround in the worldwide
economies and an increasing interest in our wider product offering, continued Mr. Boutacoff.
expressed particular interest in our new IQ577 and IQ532 laser systems and in performing tissue sparing laser photocoagulation using our MicroPulse technology. The interest in MicroPulse technology was stimulated by excellent results reported
in recently published clinical studies. We see tissue sparing laser therapy as a true paradigm shift providing patients suffering from diseases such as diabetic macular edema (DME) with the clinical benefits of laser photocoagulation without
damaging the retina. The adoption of tissue sparing treatments has the potential to drive up demand for
new laser systems that are tissue sparing capable and IRIDEX leads the way with its MicroPulse technology.
Q3 Business Highlights:
IRIDEX management will conduct a conference call later today, Thursday, November 4, 2010 at 5:00 p.m. Eastern Time.
Interested parties may access the live conference call via telephone by dialing (800) 762-9441(U.S.) or (480) 629-9674 (International) and quoting Conference ID 4380709, or by visiting the Company s website at www.iridex.com. A
telephone replay will be available beginning on Thursday, November 4, 2010 through Thursday, November 11, 2010 by dialing (800) 406-7325 (U.S.) or (303) 590-3030 (International) and entering Access Code 4380709. 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 fourth quarter revenue, gross margins and operating expenses, the status of the worldwide economy, interest in our products, industry trends relating to
the treatment of diabetic macular edema and adoption and success of our product offerings. 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 Reports on Form 10-Q for the quarters ended April 3, 2010 and July 3, 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.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| October 2, 2010 | October 3, 2009 | October 2, 2010 | October 3, 2009 | |||||||||||||
| Revenues | $ | 10,818 | $ | 10,400 | $ | 31,466 | $ | 31,649 | ||||||||
| Cost of revenues | 5,569 | 5,278 | 16,456 | 16,650 | ||||||||||||
| Gross profit | 5,249 | 5,122 | 15,010 | 14,999 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 920 | 888 | 2,913 | 2,635 | ||||||||||||
| Sales and marketing | 2,319 | 2,204 | 6,984 | 6,766 | ||||||||||||
| General and administrative | 1,125 | 1,061 | 3,490 | 3,867 | ||||||||||||
| Total operating expenses | 4,364 | 4,153 | 13,387 | 13,268 | ||||||||||||
| Income from operations | 885 | 969 | 1,623 | 1,731 | ||||||||||||
| Legal settlement | 0 | 0 | 800 | 800 | ||||||||||||
| Interest and other income (expense), net | 63 | (64 | ) | (49 | ) | (197 | ) | |||||||||
| Income before income taxes | 948 | 905 | 2,374 | 2,334 | ||||||||||||
| Provision for income taxes | 38 | 259 | 165 | 266 | ||||||||||||
| Net income | $ | 910 | $ | 646 | $ | 2,209 | $ | 2,068 | ||||||||
| Net income per share - basic | $ | 0.10 | $ | 0.07 | $ | 0.25 | $ | 0.23 | ||||||||
| Net income per share - diluted | $ | 0.09 | $ | 0.07 | $ | 0.22 | $ | 0.21 | ||||||||
| Shares used in computing net income per share - basic | 8,974 | 8,845 | 8,930 | 8,845 | ||||||||||||
| Shares used in computing net income per share - diluted | 10,148 | 9,900 | 10,112 | 10,003 |
Condensed Consolidated Balance Sheets
| October 2, 2010 | January 2, 2010 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 7,092 | $ | 9,378 | ||||
| Accounts receivable, net | 7,954 | 7,482 | ||||||
| Inventories, net | 9,782 | 8,999 | ||||||
| Prepaids and other current assets | 424 | 470 | ||||||
| Total current assets | 25,252 | 26,329 | ||||||
| Property and equipment, net | 395 | 486 | ||||||
| Other long-term assets | 234 | 323 | ||||||
| Other intangible assets, net | 1,846 | 1,153 | ||||||
| Goodwill | 473 | |||||||
| Total assets | $ | 28,200 | $ | 28,291 | ||||
| Liabilities and Stockholders Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 2,381 | $ | 1,872 | ||||
| Bank line of credit | 3,520 | |||||||
| Accrued compensation | 1,992 | 2,171 | ||||||
| Accrued expenses | 1,540 | 1,983 | ||||||
| Accrued warranty | 1,043 | 1,165 | ||||||
| Deferred revenue | 2,239 | 2,405 | ||||||
| Total current liabilities | 9,195 | 13,116 | ||||||
| Long Term Liabilities: | ||||||||
| Other long-term liabilities | 585 | 149 | ||||||
| Total liabilities | 9,780 | 13,265 | ||||||
| Stockholders Equity: | ||||||||
| Convertible preferred stock | 5 | 5 | ||||||
| Common Stock | 89 | 89 | ||||||
| Additional paid-in capital | 41,005 | 39,820 | ||||||
| Accumulated other comprehensive loss | (212 | ) | (212 | ) | ||||
| Treasury stock, at cost | (430 | ) | (430 | ) | ||||
| Accumulated deficit | (22,037 | ) | (24,246 | ) | ||||
| Total stockholders equity | 18,420 | 15,026 | ||||||
| Total liabilities and stockholders equity | $ | 28,200 | $ | 28,291 |