UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
August 4, 2011
IRIDEX CORPORATION
(Exact name of registrant as specified in its charter)
| Delaware | 0-27598 | 77-0210467 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
1212 Terra Bella Avenue
Mountain View, California 94043
(Address of principal executive offices, including zip code)
(650) 940-4700
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02. | Results of Operations and Financial Condition. |
On August 4, 2011, IRIDEX Corporation issued a press release discussing its financial results for its second fiscal quarter of 2011, which ended July 2, 2011. The press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
| Item 9.01. | Financial Statements and Exhibits. |
| (d) | Exhibits |
| Exhibit No. |
Description | |
| 99.1 | Press Release dated August 4, 2011. | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| IRIDEX CORPORATION | ||
| By: | /s/ THEODORE A. BOUTACOFF | |
| Theodore A. Boutacoff President and Chief Executive Officer | ||
Date: August 4, 2011
EXHIBIT INDEX
| Exhibit |
Description | |
| 99.1 | Press Release dated August 4, 2011. | |
Exhibit 99.1
| FOR IMMEDIATE RELEASE |
|
IRIDEX Reports Growing Revenue and Profits in
2011 Second Quarter
Mountain View, Calif. – August 4, 2011…IRIDEX Corporation (Nasdaq: IRIX) today reported improved financial results for the second quarter ended July 2, 2011.
| • | For the second quarter of 2011: earnings increased 13% to $0.9 million or $0.09 per diluted share, up from $0.8 million or $0.08 per diluted share reported in the second quarter of 2010. Total sales increased to $10.8 million in the second quarter of 2011, up 9% from $9.9 million in the second quarter of 2010. |
| • | For the first half of 2011: earnings increased 15% to $1.5 million or $0.14 per diluted share, up from $1.3million or $0.13 per diluted share reported in the first half of 2010. Total sales increased to $22.0 million, up 7% from $20.6 million. |
| • | Direct ophthalmology sales grew 8% in the second quarter of 2011 and 9% in the first half of 2011. |
“Second quarter sales were within guidance, gross margin was below guidance and operating expenses were better than guidance. Our core ophthalmology business saw 8% growth even with a challenging equipment environment in Europe and certain other overseas markets,” stated Theodore A. Boutacoff, President and CEO. “Ophthalmology domestic equipment sales were strong and it was particularly rewarding to note that this was our best quarter to date on a worldwide basis for sales of our IQ577 yellow laser. More and more physicians are recognizing the added benefits of working with a true yellow wavelength and having the ability to use our MicroPulseTM technology to perform tissue sparing laser photocoagulation procedures.”
“Our aesthetics business performed well compared to the second quarter of last year, although the additional aesthetics sales did impact the product mix which resulted in our gross margin being 1% lower than expected,” continued Mr. Boutacoff. “During the quarter we announced our share repurchase program and purchased 25,400 shares at an average price of $3.84. We were interested in purchasing more but were limited by SEC regulations.”
Guidance for third quarter of fiscal 2011: revenue of $10 million, gross margin of 45% and operating expenses of $4.5 million.
1H 2011 Business Highlights
| • | IQ577 Japan and Mexico regulatory approval received - allowing IRIDEX to commence commercial shipments second half 2011. |
| • | IRIDEX was granted U.S. Patent No. 7,909,816, “Directional Probe Treatment Apparatus.” The patent applies to Stepped Angled EndoProbe® laser handpieces, the Company’s best-selling class of consumable vitreoretinal products and the basis for additional vitreoretinal products planned for launch in the coming periods. |
| • | Results of a new study were published comparing the benefits of MicroPulse photocoagulation technology, similar to that used in the new generation of IRIDEX lasers, over the standard-of-care protocol for the treatment of eyes with diabetic macular edema (DME). The results indicated that treating eyes using MicroPulse mode was as effective as the standard-of-care protocol in treating DME, but with the added advantages of causing no localized laser scars and significantly improving visual acuity. DME affects an estimated 2 million people in the U.S. |
| • | The Company approved a stock repurchase program authorizing the Company to purchase in open market or privately negotiated transactions, up to $2.0 million worth of the Company’s Common Stock, from time to time during the next 12 months. |
Conference Call
IRIDEX management will conduct a conference call later today, Thursday, August 4, 2011 at 5:00 p.m. Eastern Time. Interested parties may access the live conference call via telephone by dialing (877) 941-1466 (U.S.) or (480) 629-9821 (International) and quoting Conference ID 4460193, or by visiting the Company’s website at www.iridex.com. A telephone replay will be available beginning on Thursday, August 4, 2011 through Thursday, August 11, 2011 by dialing (800) 406-7325 (U.S.) or (303) 590-3030 (International) and entering Access Code 4460193. 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 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 new products and projected third quarter of fiscal 2011 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 January 1, 2011 and our Quarterly Reports on Form 10-Q for the quarters ended April 2, 2011 and July 2, 2011, 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.
| Company Contact: | Investor Relations Contact: | |
| Jim Mackaness | Matt Clawson | |
| Chief Financial Officer | Allen & Caron | |
| 650-940-4700 | 949-474-4300 | |
| matt@allencaron.com | ||
TABLES FOLLOW
IRIDEX Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
| July 2, 2011 |
July 3, 2010 |
July 2, 2011 |
July 3, 2010 |
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| Revenues |
$ | 10,798 | $ | 9,890 | $ | 22,010 | $ | 20,648 | ||||||||
| Cost of revenues |
5,921 | 5,354 | 11,895 | 10,887 | ||||||||||||
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| Gross profit |
4,877 | 4,536 | 10,115 | 9,761 | ||||||||||||
| Operating expenses: |
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| Research and development |
910 | 966 | 1,874 | 1,993 | ||||||||||||
| Sales and marketing |
2,379 | 2,327 | 4,836 | 4,665 | ||||||||||||
| General and administrative |
1,153 | 1,108 | 2,358 | 2,365 | ||||||||||||
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| Total operating expenses |
4,442 | 4,401 | 9,068 | 9,023 | ||||||||||||
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| Income from operations |
435 | 135 | 1,047 | 738 | ||||||||||||
| Legal settlement |
800 | 800 | 800 | 800 | ||||||||||||
| Interest and other income (expense), net |
(153 | ) | (50 | ) | (101 | ) | (112 | ) | ||||||||
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| Income before income taxes |
1,082 | 885 | 1,746 | 1,426 | ||||||||||||
| Provision for income taxes |
173 | 71 | 271 | 127 | ||||||||||||
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| Net income |
$ | 909 | $ | 814 | $ | 1,475 | $ | 1,299 | ||||||||
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| Net income per share - basic |
$ | 0.10 | $ | 0.09 | $ | 0.16 | $ | 0.15 | ||||||||
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| Net income per share - diluted |
$ | 0.09 | $ | 0.08 | $ | 0.14 | $ | 0.13 | ||||||||
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| Shares used in computing net income per share - basic |
8,961 | 8,965 | 8,962 | 8,907 | ||||||||||||
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| Shares used in computing net income per share - diluted |
10,231 | 10,197 | 10,223 | 10,094 | ||||||||||||
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IRIDEX Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(unaudited)
| July 2, 2011 |
January 1, 2011 |
|||||||
| (unaudited) | ||||||||
| Assets |
||||||||
| Current Assets: |
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| Cash and cash equivalents |
$ | 8,875 | $ | 9,014 | ||||
| Accounts receivable, net |
7,468 | 7,526 | ||||||
| Inventories, net |
10,169 | 9,212 | ||||||
| Prepaids and other current assets |
642 | 620 | ||||||
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| Total current assets |
27,154 | 26,372 | ||||||
| Property and equipment, net |
299 | 360 | ||||||
| Other long-term assets |
249 | 218 | ||||||
| Other intangible assets, net |
1,701 | 1,797 | ||||||
| Goodwill |
473 | 473 | ||||||
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| Total assets |
$ | 29,876 | $ | 29,220 | ||||
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| Liabilities and Stockholders’ Equity |
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| Current Liabilities: |
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| Accounts payable |
$ | 2,099 | $ | 1,981 | ||||
| Accrued compensation |
1,506 | 2,304 | ||||||
| Accrued expenses |
1,508 | 1,822 | ||||||
| Accrued warranty |
806 | 956 | ||||||
| Deferred revenue |
2,175 | 2,134 | ||||||
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| Total current liabilities |
8,094 | 9,197 | ||||||
| Long Term Liabilities: |
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| Other long-term liabilities |
610 | 596 | ||||||
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| Total liabilities |
8,704 | 9,793 | ||||||
| Stockholders’ Equity: |
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| Convertible preferred stock |
5 | 5 | ||||||
| Common Stock |
92 | 89 | ||||||
| Additional paid-in capital |
41,699 | 41,168 | ||||||
| Accumulated other comprehensive loss |
(68 | ) | (205 | ) | ||||
| Treasury stock, at cost |
(831 | ) | (430 | ) | ||||
| Accumulated deficit |
(19,725 | ) | (21,200 | ) | ||||
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| Total stockholders’ equity |
21,172 | 19,427 | ||||||
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| Total liabilities and stockholders’ equity |
$ | 29,876 | $ | 29,220 | ||||
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