SEC Filing - IRIDEX

View:

irix-8k_20210812.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
	August 12, 2021
(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. ☐

Securities registered pursuant to Section 12(b) of the Act:

Title of Class

Trading

Symbol

Name of Exchange on Which Registered

Common Stock, par value $0.01 per share

IRIX

Nasdaq Global Market

Item 2.02.Results of Operations and Financial Condition.

On August 12, 2021, IRIDEX Corporation issued a press release discussing its financial results for its second fiscal quarter of fiscal year 2021, which ended on July 3, 2021. 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 August 12, 2021.

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/ David I. Bruce
		David I. Bruce President and Chief Executive Officer

Date: August 12, 2021

-2-

irix-ex991_11.htm

Exhibit 99.1

Iridex Announces Second Quarter 2021 Financial Results

Achieved 116% Year-over-Year Revenue Growth and Record Cyclo G6 Probe Sales

Increases Full Year 2021 Guidance

MOUNTAIN VIEW, Calif., August 12, 2021 -- Iridex Corporation (Nasdaq: IRIX) today reported financial results for the second quarter ended July 3, 2021.

Second Quarter Highlights

•

Revenue of $13.4 million, highest since 2007, increased 116% from the prior year period, and 29% compared to second quarter 2019

•

Gross profit of $6.1 million, also a 14-year quarterly high, on gross margin of 45.5%

•

Cyclo G6® product family revenue of $3.6 million, an increase of 70% year-over-year

Record 16,000 Cyclo G6 probes sold, a 103% year-over-year increase

•

47 Cyclo G6 Glaucoma Laser Systems sold, compared to 42 in the prior year period

•

Retina product revenue nearly tripled year-over-year to $7.6 million

28% of revenue from PASCAL® products acquired from Topcon

•

Cash usage of $1.7 million leading to cash at quarter-end of $26.3 million

Paycheck Protection Program loan forgiveness of $2.5 million contributed to net income of $1.4 million

“Sales records this quarter demonstrate that Iridex is achieving new highs of performance, and we’re proud of the results our team has delivered,” said David I. Bruce, President and CEO of Iridex. “The measures we implemented more than a year ago to secure our business during the pandemic have enabled us to emerge even stronger today. We saw strength in both our glaucoma and retina markets, demonstrating the impact of our investments in sales and marketing, a broader distribution partnership, and product enhancements.”

Second Quarter 2021 Financial Results

Revenue for the three months ended July 3, 2021 increased 116% to $13.4 million from $6.2 million during the same period of the prior year. Excluding newly acquired PASCAL products, revenue increased 81% over the second quarter of 2020.

Gross profit for the second quarter of 2021 increased to $6.1 million, a 45.5% gross margin, compared to $2.4 million, a 38.7% gross margin, in the same period last year. The gross margin increase was primarily attributable to the impact of production efficiency initiatives, greater overhead absorption due to higher revenue and continued increase in higher margin probes within the product mix.

Operating expenses for the second quarter of 2021 increased 40% to $7.2 million compared to $5.2 million in the same period of the prior year, mainly due to additional expenses related to PASCAL operations and higher level of business activities and investments compared to the prior year quarter that was greatly impacted by the pandemic.

The Company recorded a $2.5 million non-operating gain in Other Income, net, in the second quarter of 2021 in connection with the forgiveness by the U.S. Small Business Administration of the total outstanding amount of its Paycheck Protection Program loan.

Net income for the second quarter of 2021 was $1.4 million, compared to a net loss $2.8 million in the same period of the prior year. Net income on a per share basis was $0.09 in 2021 versus a loss of $0.20 in the second quarter of 2020.

Cash usage in the second quarter was $1.7 million, which resulted in cash of $26.3 million at quarter-end.

Updated Guidance for Full Year 2021

Iridex now expects total revenue for fiscal year 2021 to range from $50 million to $52 million, reflecting growth of 38% - 43% over fiscal year 2020. This compares to the previous range of $48 million to $51 million. Cyclo G6 probe sales are expected to increase to 58,000 to 60,000 from prior guidance of 56,000 to 59,000. Glaucoma Laser System sales expectation of 250 to 275 for 2021 remains unchanged.

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: 9257308. A live and archived webcast of the event will be available on the “Investors” section of the Company’s website: www.iridex.com.

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 and 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 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, including those statements concerning the future momentum, demand and utilization of the Company's products, financial guidance, expected sales volumes and benefits from the Topcon partnership. 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 2, 2021, 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

Leigh Salvo

(415) 937-5404

investors@iridex.com

IRIDEX Corporation

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(unaudited)

	Three Months Ended						Six Months Ended
	July 3,			June 27,			July 3,			June 27,
	2021			2020			2021			2020

Total revenues	$	13,426		$	6,219		$	25,385		$	15,240
Cost of revenues		7,318			3,813			14,338			8,918
Gross profit		6,108			2,406			11,047			6,322

Operating expenses:
Research and development		1,672			807			2,837			1,526
Sales and marketing		3,646			2,693			6,628			5,845
General and administrative		1,928			1,690			4,561			3,388
Total operating expenses		7,246			5,190			14,026			10,759

Loss from operations		(1,138	)		(2,784	)		(2,979	)		(4,437	)
Other income, net		2,539			9			2,378			18
Income (loss) from operations before provision for income taxes		1,401			(2,775	)		(601	)		(4,419	)
Provision for income taxes		8			5			16			12
Net income (loss)	$	1,393		$	(2,780	)	$	(617	)	$	(4,431	)

Net income (loss) per share:
Basic	$	0.09		$	(0.20	)	$	(0.04	)	$	(0.32	)
Diluted	$	0.09		$	(0.20	)	$	(0.04	)	$	(0.32	)

Weighted average shares used in computing net income (loss) per share:
Basic		15,647			13,792			14,996			13,789
Diluted		16,307			13,792			14,996			13,789

IRIDEX Corporation

Condensed Consolidated Balance Sheets

(In thousands and unaudited)

	July 3,			January 2,
	2021			2021
Assets
Current assets:
Cash and cash equivalents	$	26,259		$	11,626
Accounts receivable, net		8,599			7,289
Inventories		7,962			5,714
Prepaid expenses and other current assets		911			730
Total current assets		43,731			25,359
Property and equipment, net		646			449
Intangible assets, net		2,301			68
Goodwill		965			533
Operating lease right-of-use assets, net		2,821			1,428
Other long-term assets		56			132
Total assets	$	50,520		$	27,969

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	2,249		$	1,148
Accrued compensation		2,068			1,965
Accrued expenses		1,454			990
Other current expenses		2,193			816
Current portion of PPP loan		-			1249
Accrued warranty		99			166
Deferred revenue		2,005			938
Operating lease liabilities		854			1,409
Total current liabilities		10,922			8,681

Long-term liabilities:
PPP Loan		-			1,248
Accrued warranty		81			81
Deferred revenue		10,479			289
Operating lease liabilities		2,136			282
Other long-term liabilities		22			22
Total liabilities		23,640			10,603

Stockholders' equity:
Common stock		167			148
Additional paid-in capital		84,265			74,181
Accumulated other comprehensive income (loss)		9			(19	)
Accumulated deficit		(57,561	)		(56,944	)
Total stockholders' equity		26,880			17,366
Total liabilities and stockholders' equity	$	50,520		$	27,969