Revenues for the fourth quarter of 2008 were
Revenues for the fiscal year ended
Mr. Theodore A. Boutacoff, President and CEO stated, "2008 presented us
with a number of challenges. At the beginning of the year we set our goals to
become cash flow positive, pay the
"Going forward, our primary financial focus will remain cash management, we will closely monitor our revenues and manage our expenses accordingly; and we expect a 5-10% improvement in gross margins as a result of us working through a number of issues that were negatively impacting our margins in 2008. Our dominant market focus will be our Ophthalmology business which we see as our core competency and where we believe we can achieve long term sustainable growth. Furthermore, our Ophthalmology business has historically been less impacted during recessionary times due to demand for Ophthalmology treatments being non-elective and reimbursable by insurance and because a significant portion of our Ophthalmology business comes from recurring revenues, consisting of disposable products and service. These recurring revenues for 2008 totaled 53% of our Ophthalmology sales. Including Aesthetics service revenue, total recurring revenues represented 50% of total company revenues."
Gross margin for the fourth quarter of 2008 was 37.5% compared with 44.6%, for the fourth quarter of 2007. Gross margin for the full year 2008 represented 40.6% of revenues, compared with 43.7% for 2007. Gross margins for the fourth quarter of 2008 and for the full year 2008 were negatively impacted by: amortization of intangible assets; expensing of previously capitalized manufacturing overhead costs as a consequence of reducing inventory levels during 2008; and increases in inventory reserves, primarily relating to aesthetics inventory. The aggregate impact of these items for the fourth quarter of 2008 was to reduce gross margin by 11.6% and for the full year 2008 by 8.3%.
Excluding the impairment charge for the write down of goodwill and
intangible assets, operating expenses for the fourth quarter 2008 were
Liquidity and Capital Resources
As of
Use of Non-GAAP Financial Measures
In addition to disclosing financial results calculated in accordance with
GAAP, this release contains non-GAAP financial measures that exclude the
effects of costs associated with the write down of goodwill and intangible
assets acquired in the AMS/Laserscope aesthetics acquisition in
The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the Company's performance and when planning, forecasting, and analyzing future periods. The non-GAAP financial measures also facilitate management's internal comparisons to the Company's historical performance. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for or superior to financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP should be carefully evaluated.
Conference Call
Interested parties may access the live conference call via telephone by
dialing (800) 366-8058 (US) or (303) 262-2190 (International), or visit the
Company's website at www.iridex.com. A telephone replay will be available
beginning on
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, relating to the company's growth
strategy and prospects, gross margins, revenues, and liquidity and capital
resources. Please see a detailed description of these risks contained in our
Annual Report on Form 10-K for the fiscal year ended
IRIDEX Corporation
Condensed Consolidated Statements of Operations
(In thousands, except pet share data)
(Unaudited)
Three Months Ended Twelve Months Ended
January 3, December 29, January 3, December 29,
2009 2007 2009 2007
---- ---- ---- ----
Revenues $12,145 $14,142 $48,528 $55,532
Cost of revenues 7,592 7,836 28,849 31,248
----- ----- ------ ------
Gross profit 4,553 6,306 19,679 24,284
----- ----- ------ ------
Operating expenses:
Research and
development 1,015 1,143 4,009 5,779
Selling, general
and administrative 4,485 6,190 17,842 27,930
Impairment of
goodwill and
intangible assets 5,364 14,690 5,364 14,690
----- ------ ----- ------
Total operating
expenses 10,864 22,023 27,215 48,399
------ ------ ------ ------
Loss from
operations (6,311) (15,717) (7,536) (24,115)
Legal settlement - 800 2,500
Interest and other
expense, net (81) (41) (507) (644)
--- --- ---- ----
Loss before income
taxes (6,392) (15,758) (7,243) (22,259)
Provision for
income taxes (111) (13) (127) (13)
---- --- ---- ---
Net loss $(6,503) $(15,771) $(7,370) $(22,272)
======= ======== ======= ========
Net loss per
share -basic and
diluted $(0.74) $(1.82) $(0.84) $(2.69)
====== ====== ====== ======
Shares used in
computing net loss
per share -basic
and diluted 8,824 8,679 8,824 8,293
===== ===== ===== =====
IRIDEX Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
January 3, December 29,
2009 2007
---- ----
Assets (unaudited)
------
Current Assets:
Cash and cash equivalents $5,307 $5,809
Restricted cash - 3,800
Accounts receivable, net 8,199 8,876
Inventories, net 11,644 15,967
Prepaids and other current assets 540 1,051
--- -----
Total current assets 25,690 35,503
Property and equipment, net 832 1,621
Goodwill 0 3,239
Other intangible assets, net 1,474 5,944
Other long term assets 229 347
--- ---
Total assets 28,225 46,654
====== ======
Liabilities and Stockholders' Equity
------------------------------------
Current Liabilities:
Accounts payable $2,415 $2,887
Bank line of credit 6,000 4,863
Accrued compensation 1,729 2,024
Accrued expenses 2,249 7,809
Accrued warranty 1,345 1,895
Deferred revenue 2,741 3,350
Bank term loan - 5,016
- -----
Total current liabilities 16,479 27,844
------ ------
Stockholders' Equity:
Convertible preferred stock,$.01 par value: Authorized: 2,000,000 shares; Issued and outstanding: 500,000 shares in 2008 and 2007 5 5 Common Stock,$.01 par value: Authorized: 30,000,000 shares; Issued and outstanding: 8,824,301 shares in 2008 and 2007 89 89 Additional paid-in capital 39,105 38,695 Accumulated other comprehensive loss (192) (88) Treasury stock, at cost (430) (430) Accumulated deficit (26,831) (19,461) ------- ------- Total stockholders' equity 11,746 18,810 ------ ------ Total liabilities and stockholders' equity $28,225 $46,654 ======= =======
SOURCE:
CONTACT:
Jim Mackaness, Chief Financial Officer of
+1-650-940-4700
Web Site: http://www.iridex.com
