Commenting on the recently completed quarter and the business environment created by the COVID-19 pandemic,
“Notwithstanding this significant potential, like many capital equipment and procedure-based medical device companies, we began to see an impact to our business starting in March as we and our customers became subject to mandated COVID-19 sheltering restrictions,” said
Recent Highlights
- Total revenue of
$9.0 million versus$10.6 million in the prior year period - Cyclo G6® product family revenue of
$2.9 million , down 6% year-over-year- Shipped 13,050 Cyclo G6 probes, down 7% year-over-year, however overall G6 probe revenues were up slightly as growing physician adoption offset discontinued bulk discounted placements offered last year
- Shipped 38 Cyclo G6 Glaucoma Laser Systems, compared to 114 in the prior year period, attributed partially to refocus toward probe utilization and partially to COVID-induced capital purchase deferral
- Reduced Operating Loss to
$1.7 million , down 46% year-over-year - Enacted measures designed to ensure business continuity, reduce operating expense, and preserve cash as the ongoing COVID-19 pandemic impacts revenue
- Subsequent to quarter end, secured approximately
$2.5 million in loan proceeds under the Payroll Protection Program of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act)
“With the reality of restricted clinical access and mandated surgical procedure deferrals, our team is working hard to create unique ways to respond in this new environment. We are simultaneously reducing costs and adjusting operations, as well as shifting our marketing and sales activities toward conducting virtual sales calls, remote proctoring for urgent cases, web-based physician certification and educational seminars to address customer needs. We are encouraged by the engagement with our customers and the progress our team has made through these efforts.
“We will continue to monitor and adjust our business activities as the US and countries worldwide begin to expand patient visits and procedure volumes when it is safe to do so and we are ready to expand our support and engagement as the environment evolves,” concluded
First Quarter 2020 Financial Results
Revenue for the three months ended
Gross profit for the first quarter of 2020 was
Operating expenses for the first quarter of 2020 decreased 24% to
Loss from operations for the first quarter of 2020 was reduced to
Cash used during the quarter was
Guidance for Full Year 2020
The COVID-19 outbreak continues to create a broadly variable business environment for
Webcast and Conference Call Information
IRIDEX’s management team will host a conference call today beginning at
About
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, including those statements concerning our response to the COVID-19 impact on our business, the future demand, utilization and order levels for our products and future 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
Investor Relations Contact
(415) 937-5404
investors@iridex.com
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
| Three Months Ended | ||||||||
| 2020 | 2019 | |||||||
| Total revenues | $ | 9,021 | $ | 10,595 | ||||
| Cost of revenues | 5,105 | 6,338 | ||||||
| Gross profit | 3,916 | 4,257 | ||||||
| Operating expenses: | ||||||||
| Research and development | 719 | 958 | ||||||
| Sales and marketing | 3,152 | 4,091 | ||||||
| General and administrative | 1,698 | 2,244 | ||||||
| Total operating expenses | 5,569 | 7,293 | ||||||
| Loss from operations | (1,653 | ) | (3,036 | ) | ||||
| Other income (expense), net | 9 | (6 | ) | |||||
| Loss from operations before provision for income taxes | (1,644 | ) | (3,042 | ) | ||||
| Provision for income taxes | 7 | 6 | ||||||
| Net loss | $ | (1,651 | ) | $ | (3,048 | ) | ||
| Net loss per share: | ||||||||
| Basic | $ | (0.12 | ) | $ | (0.22 | ) | ||
| Diluted | $ | (0.12 | ) | $ | (0.22 | ) | ||
| Weighted average shares used in computing net loss per share | ||||||||
| Basic | 13,786 | 13,630 | ||||||
| Diluted | 13,786 | 13,630 | ||||||
Condensed Consolidated Balance Sheets
(In thousands and unaudited)
| 2020 | 2019 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 11,139 | $ | 12,653 | ||||
| Accounts receivable, net | 6,987 | 9,323 | ||||||
| Inventories | 8,158 | 8,174 | ||||||
| Prepaid expenses and other current assets | 691 | 401 | ||||||
| Total current assets | 26,975 | 30,551 | ||||||
| Property and equipment, net | 707 | 730 | ||||||
| Intangible assets, net | 80 | 84 | ||||||
| 533 | 533 | |||||||
| Operating lease right-of-use assets, net | 2,461 | 2,764 | ||||||
| Other long-term assets | 140 | 151 | ||||||
| Total assets | $ | 30,896 | $ | 34,813 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,501 | $ | 2,592 | ||||
| Accrued compensation | 1,716 | 2,398 | ||||||
| Accrued expenses | 1,547 | 1,544 | ||||||
| Accrued warranty | 259 | 380 | ||||||
| Deferred revenue | 1,382 | 1,450 | ||||||
| Operating lease liabilities | 1,430 | 1,414 | ||||||
| Total current liabilities | 7,835 | 9,778 | ||||||
| Long-term liabilities: | ||||||||
| Accrued warranty | 137 | 156 | ||||||
| Deferred revenue | 320 | 360 | ||||||
| Operating lease liabilities | 1,436 | 1,795 | ||||||
| Other long-term liabilities | 19 | 19 | ||||||
| Total liabilities | 9,747 | 12,108 | ||||||
| Stockholders' equity: | ||||||||
| Common stock | 147 | 147 | ||||||
| Additional paid-in capital | 73,186 | 73,093 | ||||||
| Accumulated other comprehensive income | 82 | 80 | ||||||
| Accumulated deficit | (52,266 | ) | (50,615 | ) | ||||
| Total stockholders' equity | 21,149 | 22,705 | ||||||
| Total liabilities and stockholders' equity | $ | 30,896 | $ | 34,813 | ||||
Source: IRIDEX Corporation
