MOUNTAIN VIEW, Calif., April 9, 2010 /PRNewswire via COMTEX/ --IRIDEX Corporation (Nasdaq: IRIX) today announced that it has acquired certain assets from RetinaLabs, Inc., a privately held company based in Atlanta, Georgia. RetinaLabs develops and markets innovative retinal instrumentation used by ophthalmologists to perform vitreoretinal procedures in the operating room and the surgery center.
Pursuant to the terms of the purchase agreement, IRIDEX has acquired substantially all of the assets of RetinaLabs, including its existing product family together with certain additional intellectual property that IRIDEX anticipates incorporating into future products. The purchase price for the acquired assets consisted of $250,000 in cash consideration and 115,000 unregistered shares of IRIDEX common stock issued at closing, and an earn-out. The earn-out is tied to future revenues and could result in additional cash and share consideration to RetinaLabs based on the future performance of the acquired products and intellectual property. Other terms of the transaction were not disclosed.
"We have previously stated that our growth strategy will consist of organic initiatives supplemented by acquisitions. This acquisition represents a step towards executing this strategy and we expect it to be accretive in the near term. The majority of the products we acquired from RetinaLabs are consumables with strong gross margins. These products will be sold through our existing sales channels and we expect that sales of these products will add to our profitability," said Theodore A. Boutacoff, President and Chief Executive Officer of IRIDEX. "In addition, Frank Tighe, President of RetinaLabs, will join IRIDEX as Vice President of Vitreoretinal Instrumentation."
"RetinaLabs has a history of working with ophthalmology luminaries, notably Dr. Eugene de Juan and Dr. Mark Humayun for new product development. We believe this acquisition is illustrative of how we can strategically augment our internal R&D to generate an ongoing flow of innovative products that provide value to our customers and enhance IRIDEX's growth."
About RetinaLabs, Inc.
RetinaLabs was founded in 1997 with a commitment to the development of innovative retinal instrumentation for vitreoretinal surgeons. RetinaLabs works closely with medical luminaries to source inventions for commercialization.
About IRIDEX
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: IRIDEX's ability to successfully integrate the acquired business, market and sell the acquired products and increase IRIDEX's profitability based upon the sales of those products; IRIDEX's ability to develop, market and sell new products based upon the intellectual property acquired from RetinaLabs; IRIDEX's ability to increase its recurring revenues through the sale of the products purchased from RetinaLabs and those IRIDEX anticipates developing based upon the intellectual property acquired from RetinaLabs; and the accretive nature of the transaction. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from any future performance or value suggested in such statements. The acquisition and attempted integration of new businesses and technologies involve substantial risks, each of which could have a material adverse effect on our business or operating results. Risks associated with the purchase of certain assets of RetinaLabs include, among other things, (i) the risk that IRIDEX fails to achieve and retain anticipated synergies, including any increases in revenue, from the acquisition of certain assets of RetinaLabs and the integration of its products, technologies, customers and business; (ii) technical and regulatory risks associated with the integration of acquired technologies and products, particularly if IRIDEX is unable to integrate such technologies and products within the timeframes and at the cost IRIDEX currently expects; (iii) any inability to achieve business and financial objectives of the asset purchase; (iv) the ability to manage and maintain key customer and supplier relationships obtained in the transaction; and (v) the ability of IRIDEX to retain the key RetinaLabs employee that IRIDEX hired in connection with the transaction. IRIDEX's business is also subject to a number of additional risks. Please see a detailed description of these additional risks contained in our Annual Report on Form 10-K for the fiscal year ended January 2, 2010, 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.
SOURCE IRIDEX Corporation
