MOUNTAIN VIEW, Calif.,
- Revenues from ophthalmology were
$8.3 million in the first quarter of 2012, up from$8.2 million in the prior year period and down sequentially from$8.6 million in the fourth quarter of 2011. - For the first quarter of 2012, net loss from continuing operations was
$0.3 million or$(0.03) per diluted share, compared with net income of$0.2 million or$0.02 per diluted share reported in the first quarter of 2011. - Gross margin for the first quarter 2012 was 48.0%, compared to 49.8% in the prior year period. Operating expenses were
$4.2 million compared to$3.8 million in the prior year period. As anticipated, margins and costs in the 2012 first quarter were impacted by the sale of the aesthetics business and related organizational changes in the period as well as increased spending on new marketing and product development initiatives. - Guidance for second quarter: revenue between
$8.5 million and $8.8 million , gross margins between 49% and 51% and operating expenses between$4.2 million and $4.4 million .
President and CEO
Beck continued, "We are increasing our investment in people and programs to make the necessary product and organizational changes that will drive sales growth. We intend to balance our investments in line with our revenue growth to maintain profitability for the year."
"I believe there are a number of very promising trends in the ophthalmic space and that these trends can be turned into substantial growth opportunities for
During the first quarter 2012, the Company continued to execute its share repurchase program. Since the beginning of 2011, approximately 157,000 shares have been repurchased at an average price of
Recent Business Highlights
- The Company closed the sale of its aesthetics business to
Cutera, Inc. for approximately$5.1 million . The sale allows the resources of the entire organization to now focus on the substantial and growing opportunity in the worldwide retina and glaucoma markets. - The Company announced the results of a clinical study evaluating the use of
IRIDEX ' MicroPulse laser therapy to treat central serous chorioretinopathy (CSC), an eye disease which results in vision problems. The study concluded tissue-sparing MicroPulse laser is superior to anti-VEGF injections for CSC, also known as CSR. - The Company hired
Ron Steckel as VP of Operations. Prior to joiningIRIDEX , Mr. Steckel had experience with a variety of medical devices including systems and consumables. This is a first step in improving manufacturing efficiencies previously highlighted by the Company. - The Company launched a new non-invasive, in-office glaucoma procedure based on its proprietary MicroPulse™ technology. The new glaucoma therapy, a tissue-sparing, repeatable therapy called MicroPulse Laser Trabeculoplasty (MLT), was introduced by
IRIDEX at the recentAmerican Society of Cataract and Refractive Surgery (ASCRS).
Conference Call
About
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 size and growth of markets in which the Company operates, the Company's growth strategy, MicroPulse laser therapy, sales revenue growth, operational plans and the Company's projected fiscal 2012 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
TABLES FOLLOW
IRIDEX Corporation | ||||
Condensed Consolidated Statements of Operations | ||||
(In thousands, except per share data) | ||||
(unaudited) | ||||
Three Months Ended |
||||
March 31, |
April 2, |
|||
2012 |
2011 |
|||
Total revenues |
$8,305 |
$8,196 |
||
Cost of revenues |
4,319 |
4,112 |
||
Gross profit |
3,986 |
4,084 |
||
Operating expenses: |
||||
Research and development |
1,182 |
963 |
||
Sales and marketing |
1,864 |
1,778 |
||
General and administrative |
1,176 |
1,083 |
||
Total operating expenses |
4,222 |
3,824 |
||
(Loss) income from operations |
(236) |
260 |
||
Other (expense) income, net |
(27) |
4 |
||
(Loss) income from continuing operations before income taxes |
(263) |
264 |
||
Provision for income tax |
2 |
79 |
||
(Loss) income from continuing operations, net of tax |
(265) |
185 |
||
(Loss) income from discontinued operations, net of tax |
(162) |
381 |
||
Gain on sale of discontinued operations, net of tax |
2,032 |
|||
Income from discontinued operations, net of tax |
1,870 |
381 |
||
Net income |
$1,605 |
$566 |
||
Net (loss) income per share: |
||||
Basic |
||||
Continuing operations |
$(0.03) |
$0.02 |
||
Discontinued operations |
$0.21 |
$0.04 |
||
Net income |
$0.18 |
$0.06 |
||
Diluted |
||||
Continuing operations |
$(0.03) |
$0.02 |
||
Discontinued operations |
$0.21 |
$0.04 |
||
Net income |
$0.18 |
$0.06 |
||
Weighted average shares used in computing net income per share Basic |
8,933 |
8,964 |
||
Diluted |
8,933 |
10,215 |
IRIDEX Corporation | |||
Condensed Consolidated Balance Sheets | |||
(In thousands) | |||
(unaudited) | |||
March 31, |
December 31, | ||
2012 |
2011 | ||
Assets |
|||
Current Assets: |
|||
Cash and cash equivalents |
$ 13,856 |
$ 10,789 | |
Accounts receivable, net |
5,142 |
5,551 | |
Inventories, net |
7,038 |
6,659 | |
Prepaids and other current assets |
1,172 |
464 | |
Current assets of discontinued operations |
1,398 |
6,043 | |
Total current assets |
28,606 |
29,506 | |
Property and equipment, net |
378 |
325 | |
Other long-term assets |
183 |
199 | |
Other intangible assets, net |
700 |
745 | |
Goodwill |
533 |
533 | |
Restricted cash related to discontinued operations |
510 |
||
Non-current assets of discontinued operations |
9 |
841 | |
Total assets |
$ 30,919 |
$ 32,149 | |
Liabilities and Stockholders' Equity |
|||
Current Liabilities: |
|||
Accounts payable |
$ 1,544 |
$ 1,580 | |
Accrued compensation |
1,487 |
1,180 | |
Accrued expenses |
1,203 |
1,920 | |
Accrued warranty |
539 |
556 | |
Deferred revenue |
907 |
1,014 | |
Current liabilities of discontinued operations |
259 |
2,663 | |
Total current liabilities |
5,939 |
8,913 | |
Long-Term Liabilities: |
|||
Other long-term liabilities |
719 |
810 | |
Total liabilities |
6,658 |
9,723 | |
Stockholders' Equity: |
|||
Convertible preferred stock |
5 |
5 | |
Common stock |
93 |
92 | |
Additional paid-in capital |
42,414 |
42,032 | |
Accumulated other comprehensive loss |
(35) | ||
Treasury stock, at cost |
(1,266) |
(1,078) | |
Accumulated deficit |
(16,985) |
(18,590) | |
Total stockholders' equity |
24,261 |
22,426 | |
Total liabilities and stockholders' equity |
$ 30,919 |
$ 32,149 |
SOURCE
Jim Mackaness, Chief Financial Officer of IRIDEX Corporation, +1-650-940-4700; or investors, Matt Clawson of Allen & Caron, +1-949-474-4300, matt@allencaron.com, for IRIDEX Corporation