irix-8k_20190305.DOCX.htm

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8‑K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

 

March 5, 2019

 

(Date of Report (date of earliest event reported)

IRIDEX CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

0-27598

77-0210467

(State or other jurisdiction of
incorporation or organization)

(Commission File Number)

(I.R.S. Employer
Identification Number)

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))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

 

 


 

Item 2.02.

Results of Operations and Financial Condition.

 

 On March 5, 2019, IRIDEX Corporation issued a press release discussing its financial results for its fourth quarter and fiscal year 2018, which ended on December 29, 2018.  The press release is furnished herewith 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 March 5, 2019.

 

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/ William M. Moore

 

 

William M. Moore

President and Chief Executive Officer

Date: March 5, 2019

 

 

-2-

irix-ex991_7.htm

Exhibit 99.1

 

 

IRIDEX Announces 2018 Fourth Quarter and Full Year Financial Results

 

 

MOUNTAIN VIEW, Calif., March 5, 2019 -- IRIDEX Corporation (Nasdaq: IRIX) today reported financial results for the fourth quarter and year ended December 29, 2018.

 

Fourth Quarter Highlights

 

Cyclo G6® product revenue increased approximately 16% year-over-year

 

Shipped a record 12,300 Cyclo G6 probes

 

Shipped 122 Cyclo G6 Glaucoma Laser Systems

 

Revenue of $11.5 million, a 12% increase year-over-year

 

“I am pleased with the accomplishments of our team in 2018.  We took significant steps to grow our market share and future opportunity in glaucoma. The efforts we have made on the commercial front combined with the substantial clinical data supporting our G6 and MicroPulse® technology are increasing the awareness and acceptance of our G6 platform, as evidenced by the growth in sales of both G6 systems and probes,” said William M. Moore, President and CEO. “In 2019 we look to further leverage our position to grow the installed base, increase probe utilization and introduce new products to enhance our portfolio.”

 

Fourth Quarter 2018 Financial Results

Revenue for the three months ended December 29, 2018 increased 12% to $11.5 million from $10.2 million during the same period of the prior year. The increase in revenue was driven by growth from G6 product revenues and complemented by growth in retina product revenues.

 

Gross profit for the fourth quarter of 2018 was $4.7 million, or 41.0% gross margin, compared to $2.2 million, or 21.2% gross margin, in the same period of the prior year. The improvement in gross margin was due primarily to the elimination of costs associated with the voluntary product recall, partially offset by the impact of a shift in product mix.

 

Operating expenses for the fourth quarter of 2018 were $7.6 million compared to $7.4 million in the same period of the prior year. This increase is attributable to investments to support the Company’s commercial infrastructure, including increased sales and marketing, and general and administrative expenses.

 

Loss from operations for the fourth quarter of 2018 was $2.9 million, compared to loss from operations of $5.2 million for the same period of the prior year.

 

Full Year 2018 Financial Results

 


Exhibit 99.1

 

 

Revenue for the year ended December 29, 2018 increased 2.4% to $42.6 million from $41.6 million in 2017. The increase in revenue was primarily driven by growth from Cyclo G6 product revenues, partially offset by a decrease in retina product revenues.

 

Gross profit for the full year 2018 was $17.5 million, or 41.0% gross margin, compared to $15.5 million, or 37.3% gross margin, for the prior year. The improvement in gross margin was due primarily to lower manufacturing costs and the elimination of costs associated with the voluntary product recall in the prior year period, partially offset by the impact of a shift in geographic mix.

 

Operating expenses for 2018 were $30.3 million compared to $28.4 million in the prior year. This increase is attributable to investments to support the Company’s commercial infrastructure, including increased sales and marketing expenses, and general and administrative expenses.

 

Loss from operations for 2018 was $12.9 million, compared to loss from operations of $12.9 million in the prior year.

 

Cash and cash equivalents were $21.2 million as of December 29, 2018.

 

Guidance for Full Year 2019

IRIDEX projects Cyclo G6 probe shipments of 58,000 to 63,000 and projects Cyclo G6 system shipments of 475 to 525 in 2019.  Total revenue for the full year is expected to be $43 million to $46 million.

 

Webcast and Conference Call Information

IRIDEX’s management team will host a conference call today beginning at 2:00 p.m. PT / 5:00 p.m. ET.  Investors interested in listening to the conference call may do so by dialing (844) 707-0665 for domestic callers or (703) 326-3030 for international callers, using conference ID: 7159238.  A live and archived webcast of the event will be available on the “Investors” section of the Company’s website at: www.iridex.com.  A telephone replay will also be available beginning Tuesday, March 5, 2019 through Wednesday, March 6, 2019, by dialing (855) 859-2056 for domestic callers or (404) 537-3406 for international callers, using conference ID: 7159238.

 

About IRIDEX

IRIDEX Corporation is a worldwide leader in developing, manufacturing, and marketing innovative and versatile laser-based medical systems, delivery devices and consumable instrumentation for the ophthalmology market. The Company’s proprietary MicroPulse® technology delivers a differentiated treatment that provides safe, effective, and proven treatment for targeted sight-threatening eye conditions. IRIDEX’s current product line is used for the treatment of glaucoma, diabetic macular edema (DME) and other retinal diseases. IRIDEX products are sold in the United States through a direct sales force and internationally primarily through a network of independent distributors into more than 100 countries. For further information, visit the IRIDEX website at http://www.iridex.com/.

 

 


Exhibit 99.1

 

 

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 the future demand, utilization and order levels for the Company's products, plans to introduce new products, and the Company’s guidance for fiscal 2019 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 December 30, 2017, and Quarterly Reports on Form 10-Q for subsequent fiscal quarters, 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.

 

Investor Relations Contact

Lynn Pieper Lewis or Leigh Salvo

(415) 937-5404

investors@iridex.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Exhibit 99.1

 

 

 

IRIDEX Corporation

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 29,

 

 

December 30,

 

 

December 29,

 

 

December 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

11,467

 

 

$

10,243

 

 

$

42,600

 

 

$

41,593

 

Cost of revenues

 

 

6,762

 

 

 

8,073

 

 

 

25,129

 

 

 

26,090

 

Gross profit

 

 

4,705

 

 

 

2,170

 

 

 

17,471

 

 

 

15,503

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

852

 

 

 

1,180

 

 

 

4,006

 

 

 

5,208

 

Sales and marketing

 

 

4,420

 

 

 

4,195

 

 

 

16,782

 

 

 

14,541

 

General and administrative

 

 

2,342

 

 

 

1,978

 

 

 

9,551

 

 

 

8,782

 

Gain on sale of intellectual property

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(175

)

Impairment of long-lived assets

 

 

-

 

 

 

35

 

 

 

-

 

 

 

35

 

Total operating expenses

 

 

7,614

 

 

 

7,388

 

 

 

30,339

 

 

 

28,391

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(2,909

)

 

 

(5,218

)

 

 

(12,868

)

 

 

(12,888

)

Other income (expense), net

 

 

  76

 

 

 

(88

)

 

 

92

 

 

 

(107

)

Loss from operations before provision for (benefit from) income taxes

 

 

(2,833

)

 

 

(5,306

)

 

 

(12,776

)

 

 

(12,995

)

Provision for (benefit from) income taxes

 

 

23

 

 

 

(151

)

 

 

37

 

 

 

(128

)

Net loss

 

$

(2,856

)

 

$

(5,155

)

 

$

(12,813

)

 

$

(12,867

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Basic

 

$

(0.21

)

 

$

(0.44

)

 

$

(1.05

)

 

$

(1.11

)

    Diluted

 

$

(0.21

)

 

$

(0.44

)

 

$

(1.05

)

 

$

(1.11

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares used in computing net loss per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Basic

 

 

13,599

 

 

 

11,586

 

 

 

12,199

 

 

 

11,555

 

    Diluted

 

 

13,599

 

 

 

11,586

 

 

 

12,199

 

 

 

11,555

 

 

 

 

 

 


Exhibit 99.1

 

 

IRIDEX Corporation

Condensed Consolidated Balance Sheets

(In thousands and unaudited)

 

 

December 29,

 

 

December 30

,

 

 

2018

 

 

2017

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

21,194

 

 

$

21,707

 

Accounts receivable, net

 

 

9,083

 

 

 

7,863

 

Inventories

 

 

8,794

 

 

 

9,381

 

Prepaid expenses and other current assets

 

 

547

 

 

 

500

 

Total current assets

 

 

39,618

 

 

 

39,451

 

Property and equipment, net

 

 

1,220

 

 

 

1,403

 

Intangible assets, net

 

 

100

 

 

 

116

 

Goodwill

 

 

533

 

 

 

533

 

Other long-term assets

 

 

201

 

 

 

143

 

Total assets

 

$

41,672

 

 

$

41,646

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

2,516

 

 

$

1,724

 

Accrued compensation

 

 

2,962

 

 

 

2,459

 

Accrued expenses

 

 

2,763

 

 

 

2,153

 

Accrued warranty

 

 

622

 

 

 

1,536

 

Deferred revenue

 

 

2,225

 

 

 

2,520

 

Total current liabilities

 

 

11,088

 

 

 

10,392

 

 

 

 

 

 

 

 

 

 

Long-term liabilities:

 

 

 

 

 

 

 

 

Accrued warranty

 

 

238

 

 

 

199

 

Other long-term liabilities

 

 

385

 

 

 

533

 

Total liabilities

 

 

11,711

 

 

 

11,124

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Common stock

 

 

145

 

 

 

126

 

Additional paid-in capital

 

 

71,548

 

 

 

59,385

 

Accumulated other comprehensive income

 

 

70

 

 

 

-

 

Accumulated deficit

 

 

(41,802

)

 

 

(28,989

)

Total stockholders' equity

 

 

29,961

 

 

 

30,522

 

 

Total liabilities and stockholders' equity

 

$

41,672

 

 

$

41,646