- Ophthalmology revenues in the first quarter were
$8.9 million , a first quarter record, compared to$8.3 million in the prior year period. - Gross margin for the first quarter was 47.3%, compared to 48.0% in the prior year period. Margins were impacted in the quarter by strong international sales through our distributor network with a product mix favoring laser systems, which have lower margins than the Company's consumable products.
- Operating expenses were
$3.8 million in the first quarter which were reduced to$3.3 million as a result of the Company receiving$0.5 million in the form of a cash distribution from an insurance carrier. This compares to$4.2 million in the prior year period. - Income from continuing operations for the first quarter was
$0.9 million , or$0.10 per basic share ($0.09 per diluted share), compared with a loss from continuing operations of$0.3 million , or$0.03 loss per basic and diluted share, in the prior year period. - Guidance for second quarter 2013: The Company expects to achieve revenues between
$8.9 million and $9.2 million and gross margins between 47% and 49%. Operating expenses are expected to be between$4.0 million and $4.2 million .
CEO
Moore continued, "We will look to grow and increase profitability, invest in products that our customers want and that can be delivered to the market rapidly, and be opportunistic in acquiring or partnering with ophthalmic companies that have developed excellent technologies. Peregrine is a great example of such a partnership, as it allows us to market additional consumable products at different price points. The relationship should lower our supply chain costs and we are already, jointly, working on new product initiatives in the high-margin consumable product category."
The preceding commentary relates to the results of the Company's continuing ophthalmology business. In
Recent Business Highlights
- The Company entered into a global distribution and supply agreement with
Peregrine Surgical, Ltd. , a privately held company based inNew Britain, Pennsylvania . Under the agreement,IRIDEX will become a worldwide distributor for Peregrine labeled products and Peregrine Surgical will become part of theIRIDEX supply chain for the manufacture of certainIRIDEX products. - Following a fourth quarter 2012
FDA 510(k) CE clearance, the Company commenced its full commercial launch of its TxCell Scanning Laser Delivery System. This new product saves significant time in a variety of laser photocoagulation procedures by allowing physicians to deliver the laser in a multi-spot scanning mode, a more efficient method for these procedures than the traditional single spot mode. Management believes that the clinical and practice benefits of this technology will accelerate the adoption of the proprietary MicroPulse technology as it applies to several clinical procedures. February 28, 2013 the Board approved a new one year$3.0 million stock repurchase program.
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 and trends in the markets in which the Company operates, including market adoption of new technologies; the success of the Company's development, marketing and sales efforts, including the adoption of MicroPulse laser therapy devices; the Company's growth strategy; the Company's acquisition strategy; the Company's sales revenue growth, operational plans, and profitability expectations; the Company's projected fiscal 2013 financial results; and the Company's share repurchase program. 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 30, |
March 31, |
||
2013 |
2012 |
||
Total revenues |
$ 8,939 |
$ 8,305 |
|
Cost of revenues |
4,708 |
4,319 |
|
Gross profit |
4,231 |
3,986 |
|
Operating expenses: |
|||
Research and development |
996 |
1,182 |
|
Sales and marketing |
1,625 |
1,864 |
|
General and administrative |
1,186 |
1,176 |
|
Proceeds from demutualization of insurance carrier |
(473) |
- |
|
Total operating expenses |
3,334 |
4,222 |
|
Income (loss) from continuing operations |
897 |
(236) |
|
Other expense, net |
(18) |
(27) |
|
Income (loss) from continuing operations before provision for income taxes |
879 |
(263) |
|
Provision for income taxes |
5 |
2 |
|
Income (loss) from continuing operations, net of tax |
874 |
(265) |
|
Loss from discontinued operations, net of tax |
- |
(162) |
|
Gain on sale of discontinued operations, net of tax |
- |
2,032 |
|
Income from discontinued operations, net of tax |
- |
1,870 |
|
Net income |
$ 874 |
$ 1,605 |
|
Net income (loss) per share: |
|||
Basic - |
|||
Continuing operations |
$0.10 |
($0.03) |
|
Discontinued operations |
0.00 |
0.21 |
|
Net income |
$0.10 |
$0.18 |
|
Diluted - |
|||
Continuing operations |
$0.09 |
($0.03) |
|
Discontinued operations |
0.00 |
0.21 |
|
Net income |
$0.09 |
$0.18 |
|
Weighted average shares used in computing net income (loss) per share - basic |
8,511 |
8,933 |
|
Weighted average shares used in computing net income (loss) per share - diluted |
9,802 |
8,933 |
IRIDEX Corporation Condensed Consolidated Balance Sheets (In thousands) (unaudited) |
|||
March 30, |
December 29, |
||
2013 |
2012 |
||
Assets |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 11,581 |
$ 11,901 |
|
Accounts receivable, net |
6,031 |
5,480 |
|
Inventories |
8,147 |
8,035 |
|
Prepaid expenses and other current assets |
1,123 |
1,129 |
|
Current assets of discontinued operations |
510 |
510 |
|
Total current assets |
27,392 |
27,055 |
|
Property and equipment, net |
440 |
483 |
|
Other intangible assets, net |
489 |
554 |
|
Goodwill |
533 |
533 |
|
Other long-term assets |
298 |
287 |
|
Total assets |
$ 29,152 |
$ 28,912 |
|
Liabilities and Stockholders' Equity |
|||
Current liabilities: |
|||
Accounts payable |
$ 1,280 |
$ 2,105 |
|
Accrued compensation |
1,442 |
1,563 |
|
Accrued expenses |
1,372 |
1,242 |
|
Accrued warranty |
446 |
453 |
|
Deferred revenue |
943 |
1,004 |
|
Total current liabilities |
5,483 |
6,367 |
|
Long-term liabilities: |
|||
Other long-term liabilities |
542 |
640 |
|
Total liabilities |
6,025 |
7,007 |
|
Stockholders' equity: |
|||
Convertible preferred stock |
5 |
5 |
|
Common stock |
95 |
94 |
|
Additional paid-in capital |
39,305 |
38,958 |
|
Accumulated deficit |
(16,278) |
(17,152) |
|
Total stockholders' equity |
23,127 |
21,905 |
|
Total liabilities and stockholders' equity |
$ 29,152 |
$ 28,912 |
SOURCE
IRIDEX, Jim Mackaness, CFO & COO, +1-650-940-4700 or Investor Relations, Matt Clawson, Allen & Caron, +1-949-474-4300