Fourth Quarter 2023 Results & Recent Highlights
- Generated total revenue of
$12.5 million , compared to$15.2 million in the prior year period - Cyclo G6® product family revenue in the fourth quarter of
$3.0 million , compared to$4.2 million in the prior year period- Sold 12,700 Cyclo G6 probes, compared to 16,400 in the prior year quarter
- Sold 35 Cyclo G6 Glaucoma Laser Systems in the fourth quarter of 2023, compared to 78 in the prior year quarter
- Retina product revenue was
$7.5 million , representing a decrease of 7% year-over-year - Launched new
Iridex 532® andIridex 577® Lasers in U.S. Market inJanuary 2024 - Completed clinical protocol and engaged first sites for the RUNWAY Study, a large-scale, multicenter prospective trial to demonstrate the safety and effectiveness of MicroPulse® TLT for post-cataract glaucoma patients
- Enrolled first patient in
UK multicenter registry for MicroPulse TLT clinical studies led byImperial College Healthcare NHS Trust with over 20 other sites to participate - Withdrawal of the restrictive Medicare reimbursement Local Coverage Determinations (LCDs) in late
December 2023 that had suppressedU.S. demand for glaucoma systems and probes - Cash and cash equivalents as of
December 30, 2023 was approximately$7.0 million , a reduction of$1.0 million in the quarter. The previously announced initiatives to reduce operating expenses and cash usage resulted in the lowest quarterly cash use of 2023.
Full Year 2023 Results
- Generated total revenue of
$51.9 million , compared to$57.0 million in 2022 - Cyclo G6 product family revenue of
$13.4 million , a decrease of 9% year-over-year- Sold 54,800 Cyclo G6 probes, compared to 59,800 in the prior year
- Sold 164 Cyclo G6 Glaucoma Laser Systems compared to 237 in the prior year
- Retina product revenue was
$29.4 million , representing a decrease of 7% year-over-year
“In the fourth quarter we experienced a combination of unique events that impacted our revenue. These included: (i) the LCDs, which restricted Medicare reimbursement for our laser treatment in moderate glaucoma, and caused surgeons to temporarily reduce orders for procedure probes and defer adoption of laser systems in the US, (ii) continued physician capital equipment purchasing deferrals related to higher financing costs, (iii) supply chain limitations that created a larger than typical yearend backlog, and (vi) the largest impact was from a double-digit decline in orders from key international distributors as they reduced inventory significantly in reaction to our previously-announced strategic options review and Iridex’ launch of new platforms. The aggregate effect was lower revenue in the quarter and weaker than expected overall 2023 performance.”
“We have been, and continue to be, actively pursuing our strategic review process since announcing it in the third quarter last year. Discussions are ongoing with multiple parties relating to all aspects of our business, and we are open to any transaction or series of transactions that will benefit our stockholders. We believe we are on track to reach our first agreement on the sale of certain assets soon,” Bruce added.
Fourth Quarter 2023 Financial Results
Revenue for the three months ended
Fourth quarter revenue was impacted by several factors. In the retina business, deferral of capital purchases led to lower system sales in the
Gross profit for the fourth quarter of 2023 was
Operating expenses of
Net loss for the fourth quarter of 2023 was
Cash and cash equivalents totaled
Full Year 2023 Financial Results
Revenue for the year ended
Gross profit for the full year 2023 was
Operating expenses for 2023 decreased 3% to
Net loss for 2023 increased to
Webcast and Conference Call Information
Iridex’s management team will host a conference call today beginning at
About
MicroPulse® is a registered trademark of
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 clinical expectations and commercial trends, market adoption and expansion, value-maximizing transactions, demand for and utilization of the Company's products and results and expected sales volumes. The Company can provide no assurance that it will complete any value-maximizing transactions on behalf of its stockholders. 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 Quarterly Report on Form 10-Q filed with the
Investor Relations Contact
investors@iridex.com
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
| Total revenues | $ | 12,458 | $ | 15,195 | $ | 51,869 | $ | 56,972 | ||||||||
| Cost of revenues | 7,573 | 8,531 | 30,062 | 31,604 | ||||||||||||
| Gross profit | 4,885 | 6,664 | 21,807 | 25,368 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 1,694 | 1,450 | 6,829 | 7,175 | ||||||||||||
| Sales and marketing | 3,867 | 4,826 | 16,237 | 18,178 | ||||||||||||
| General and administrative | 2,405 | 1,798 | 8,748 | 7,557 | ||||||||||||
| Total operating expenses | 7,966 | 8,074 | 31,814 | 32,910 | ||||||||||||
| Loss from operations | (3,081 | ) | (1,410 | ) | (10,007 | ) | (7,542 | ) | ||||||||
| Other income, net | 181 | 276 | 527 | 60 | ||||||||||||
| Loss from operations before provision for income taxes | (2,900 | ) | (1,134 | ) | (9,480 | ) | (7,482 | ) | ||||||||
| Provision for income taxes | 60 | 14 | 90 | 65 | ||||||||||||
| Net loss | $ | (2,960 | ) | $ | (1,148 | ) | $ | (9,570 | ) | $ | (7,547 | ) | ||||
| Net loss per share: | ||||||||||||||||
| Basic | $ | (0.18 | ) | $ | (0.07 | ) | $ | (0.59 | ) | $ | (0.47 | ) | ||||
| Diluted | $ | (0.18 | ) | $ | (0.07 | ) | $ | (0.59 | ) | $ | (0.47 | ) | ||||
| Weighted average shares used in computing net loss per common share: | ||||||||||||||||
| Basic | 16,245 | 15,990 | 16,128 | 15,938 | ||||||||||||
| Diluted | 16,245 | 15,990 | 16,128 | 15,938 | ||||||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (In thousands) | ||||||||
| FY 2023 | FY 2022 | |||||||
2023 |
2022 |
|||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 7,034 | $ | 13,922 | ||||
| Accounts receivable, net | 9,654 | 9,768 | ||||||
| Inventories | 9,906 | 10,608 | ||||||
| Prepaid expenses and other current assets | 856 | 1,468 | ||||||
| Total current assets | 27,450 | 35,766 | ||||||
| Property and equipment, net | 351 | 462 | ||||||
| Intangible assets, net | 1,642 | 1,977 | ||||||
| 965 | 965 | |||||||
| Operating lease right-of-use assets, net | 2,632 | 1,665 | ||||||
| Other long-term assets | 1,396 | 1,455 | ||||||
| Total assets | $ | 34,436 | $ | 42,290 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 4,727 | $ | 3,873 | ||||
| Accrued compensation | 1,619 | 2,448 | ||||||
| Accrued expenses | 1,996 | 1,548 | ||||||
| Other current liabilities | 925 | 968 | ||||||
| Accrued warranty | 308 | 168 | ||||||
| Deferred revenue | 2,404 | 2,411 | ||||||
| Operating lease liabilities | 995 | 1,037 | ||||||
| Total current liabilities | 12,974 | 12,453 | ||||||
| Long-term liabilities: | ||||||||
| Accrued warranty | 138 | 106 | ||||||
| Deferred revenue | 10,025 | 11,742 | ||||||
| Operating lease liabilities | 1,751 | 732 | ||||||
| Other long-term liabilities | 26 | 26 | ||||||
| Total liabilities | 24,914 | 25,059 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock | 172 | 169 | ||||||
| Additional paid-in capital | 88,444 | 86,802 | ||||||
| Accumulated other comprehensive loss | (52 | ) | (24 | ) | ||||
| Accumulated deficit | (79,042 | ) | (69,716 | ) | ||||
| Total stockholders’ equity | 9,522 | 17,231 | ||||||
| Total liabilities and stockholders’ equity | $ | 34,436 | $ | 42,290 | ||||
Source: IRIDEX Corporation
