MOUNTAIN VIEW, Calif., Aug 13, 2009 /PRNewswire-FirstCall via COMTEX/ -- IRIDEX Corporation (Nasdaq: IRIX) today reported financial results for the second quarter of 2009 ended July 4, 2009.
For the second quarter of 2009, the Company recorded a net profit of $1.2 million or $0.13 per diluted share compared to a net profit of $0.3 million or $0.03 per diluted share in the second quarter of 2008. Revenue for the second quarter of 2009 was $10.5 million, an 18.6% decrease from the $12.9 million reported for the second quarter of 2008. However, gross margins improved to 45.9% from 41.3% and cash generated from operations was $1.9 million for the second quarter compared to a decrease of $0.7 million for the comparable period in 2008.
"We have recorded our second consecutive quarter of profitability which is an outstanding achievement given the current economy. Of particular note, we have also been profitable at the operating income level for two consecutive quarters," stated Mr. Theodore A. Boutacoff, President and CEO. "Our margins have improved, we are controlling our operating expenses well and our cash generation continues to be excellent. We are beginning to see the benefits of creating a very efficient and scalable business."
"At the start of 2008, we laid out our vision and strategy for the Company. Our first objective was, and continues to be, cash generation. We have been very successful in this effort and have generated over $9 million in cash over the last six quarters; of which $6.3 million was used to pay our outstanding balance to American Medical Systems in full, and we have reduced our bank debt by $1.5 million. Our second objective was to drive the Company to profitability and we have now achieved two consecutive profitable quarters. With this momentum, we are turning our attention to our third objective which is growth. As the economy improves we anticipate seeing our current business grow. In addition, together with our internal product development we are looking at opportunities outside the Company to add complementary products that will allow us to strengthen our position within existing markets."
In April 2007 we entered into an agreement with Synergetics USA, Inc. relating to the settlement of legal claims for patent infringement. The settlement agreement called for an initial payment of $2.5 million, which was received in the second quarter of 2007, and five subsequent annual payments of $0.8 million, totaling $6.5 million. We received payments of $0.8 million in the second quarters of 2008 and 2009 and expect to receive annual payments of $0.8 million relating to this agreement in the second quarters of 2010, 2011 and 2012. These amounts are shown in our income statement as part of other income.
Conference Call
IRIDEX management will conduct a conference call later today, Thursday, August 13, 2009 at 5:00 p.m. Eastern Time. Interested parties may access the live conference call via telephone by dialing (877) 941-0843 (U.S.) or (480) 629-9643 (International) and quoting Conference ID 4133387, or by visiting the Company's website at www.iridex.com. A telephone replay will be available beginning on Thursday, August 13, 2009 through Thursday, August 20, 2009 by dialing (800) 406-7325 (U.S.) or (303) 590-3030 (International) and entering Access Code 4133387. In addition, later today an archived version of the webcast will be available on the Company's website at www.iridex.com.
About IRIDEX
IRIDEX Corporation is a leading worldwide provider of therapeutic based laser systems, consumable laser probes and delivery devices used to treat eye diseases in ophthalmology and skin conditions in the aesthetics market. 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 financial stability, growth strategy and prospects and future payments from Synergetics. Please see a detailed description of these and other risks contained in our Quarterly Report on From 10-Q for the quarter ended July 4, 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.
IRIDEX Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
July 4, June 28, July 4, June 28,
2009 2008 2009 2008
---- ---- ---- ----
Revenues $10,513 $12,922 $21,249 $24,396
Cost of revenues 5,684 7,591 11,372 14,260
----- ----- ------ ------
Gross profit 4,829 5,331 9,877 10,136
----- ----- ----- ------
Operating expenses:
Research and development 906 998 1,747 2,023
Sales and marketing 2,211 2,665 4,562 5,278
General and administrative 1,313 1,924 2,806 3,829
----- ----- ----- -----
Total operating expenses 4,430 5,587 9,115 11,130
----- ----- ----- ------
Income (loss) from operations 399 (256) 762 (994)
Legal settlement 800 800 800 800
Interest and other income
(expense), net 6 (218) (133) (372)
--- ---- ---- ----
Income (loss) before income
taxes 1,205 326 1,429 (566)
Provision for income taxes (7) (51) (7) (51)
--- --- --- ---
Net income (loss) $1,198 $275 $1,422 $(617)
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Net income (loss) per share -
basic $0.13 $0.03 $0.16 $(0.07)
===== ===== ===== ======
Net income (loss) per share -
diluted $0.13 $0.03 $0.16 $(0.07)
===== ===== ===== ======
Shares used in computing net
income (loss) per share -
Basic 8,844 8,824 8,835 8,824
===== ===== ===== =====
Diluted 9,107 8,824 8,966 8,824
===== ===== ===== =====
IRIDEX Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
July 4, January 3,
2009 2009
---- ----
Assets (unaudited)
------
Current Assets:
Cash and cash equivalents $6,618 $5,307
Accounts receivable, net 7,354 8,199
Inventories, net 10,105 11,644
Prepaids and other current assets 598 540
--- ---
Total current assets 24,675 25,690
Property and equipment, net 595 832
Other intangible assets, net 1,313 1,474
Other long term assets 334 229
--- ---
Total assets 26,917 28,225
====== ======
Liabilities and Stockholders' Equity
------------------------------------
Current Liabilities:
Accounts payable $1,389 $2,415
Bank line of credit 4,478 6,000
Accrued compensation 1,797 1,729
Accrued expenses 1,820 2,249
Accrued warranty 1,185 1,345
Deferred revenue 2,678 2,741
----- -----
Total current liabilities 13,347 16,479
------ ------
Stockholders' Equity:
Convertible preferred stock 5 5
Common Stock 89 89
Additional paid-in capital 39,511 39,105
Accumulated other comprehensive loss (196) (192)
Treasury stock, at cost (430) (430)
Accumulated deficit (25,409) (26,831)
------- -------
Total stockholders' equity 13,570 11,746
------ ------
Total liabilities and stockholders' equity $26,917 $28,225
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SOURCE IRIDEX Corporation
