- Revenues were
$11.8 million in the fourth quarter of 2014, a record for the Company and up 11% from$10.6 million in the 2013 fourth quarter. Revenues for 2014 were$42.8 million , also a record, up 12% from$38.3 million in 2013. - Gross margin for the 2014 fourth quarter was 50.1%, up from 48.6% in the fourth quarter of the prior year.
- Operating income in the 2014 fourth quarter was
$1.0 million , up 77% compared with operating income of$0.6 million in the 2013 fourth quarter. - Net income for 2014 was
$10.0 million , or$0.97 per diluted share. This includes a$1.0 million non-cash other expense for the adjustment of the Company's earn-out liability and an$8.8 million non-cash credit for the release of the Company's deferred tax valuation allowance. Net income for 2013 was$2.2 million , or$0.22 per diluted share. See below for more details. - Guidance: The Company expects to achieve revenue of
$48 million to $51 million for the full year 2015. Although we will continue to assess the impact to our business of the recent strong currency adjustments on a global basis. For the 2015 first quarter, we anticipate revenue of$10.8 million to $11.2 million , gross margin is anticipated to come in between 49% and 51%, and operating expenses are expected to be$5.0 million to $5.2 million .
President and CEO
"Last week I attended the
Recent Business Highlights
IRIDEX debuts Cyclo G6 Glaucoma Laser Platform and Presents New Clinical Data at theAmerican Glaucoma Society's Annual Meeting- IRIDEX Receives FDA Clearance for Cyclo G6 Glaucoma Laser Platform for the Treatment of Multiple Stages of Glaucoma.
Share Repurchase Program
During the 2014 fourth quarter, the Company continued to execute its share repurchase program. For the full year 2014, we repurchased approximately 562,000 shares at an average price of
Adjustment of contingent liability
We continue to generate revenues from our RetinaLabs acquisition, and anticipate generating revenues from our Ocunetics transaction. Both of these deals were structured with an earn-out component. Because our expectations of the future revenues to be generated from these deals has increased, we now anticipate increasing our payments under the earn-out conditions. We have increased the contingent liability on the balance sheet by
Release of deferred tax valuation allowance
We have a deferred tax asset on our balance sheet, primarily as a result of net operating losses that we have been carrying forward. The deferred tax asset has historically been recorded at net $0 on the balance sheet because we have also been carrying a valuation allowance for the full amount of the deferred tax asset. Based on the continued strong performance of the Company, notably 3 years of profitability and 9 consecutive profitable quarters management believes that it is more likely than not that the Company will realize the deferred tax asset. This has resulted in us booking a credit to the income tax expense for
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, including those statements concerning its preliminary and anticipated revenues, the impact of future changes in currency exchange rates, future demand and order levels for the Company's products, the markets in which the Company operates, trends in treatment and product adoption and usage, product plans and future product releases, the Company's guidance concerning fiscal 2015 first quarter and annual financial results, including anticipated ranges of revenue, gross margin, operating expenses and gross margin rates, the Company's share repurchase program, and the Company's strategic plans and objectives. 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 |
Twelve Months Ended |
||||||
January 3, |
December 28, |
January 3, |
December 28, |
||||
2015 |
2013 |
2015 |
2013 |
||||
Total revenues |
$ 11,778 |
$ 10,598 |
$ 42,814 |
$ 38,273 |
|||
Cost of revenues |
5,877 |
5,448 |
21,409 |
19,686 |
|||
Gross profit |
5,901 |
5,150 |
21,405 |
18,587 |
|||
Operating expenses: |
|||||||
Research and development |
1,033 |
881 |
4,629 |
3,684 |
|||
Sales and marketing |
2,371 |
2,380 |
8,155 |
7,720 |
|||
General and administrative |
1,513 |
1,333 |
6,034 |
5,023 |
|||
Proceeds from demutualization of insurance carrier |
- |
- |
- |
(473) |
|||
Total operating expenses |
4,917 |
4,594 |
18,818 |
15,954 |
|||
Income from operations |
984 |
556 |
2,587 |
2,633 |
|||
Other expense, net |
955 |
171 |
1,255 |
371 |
|||
Income from operations before (benefit from) provision for income taxes |
29 |
385 |
1,332 |
2,262 |
|||
(Benefit from) provision for income taxes |
(8,735) |
(27) |
(8,706) |
31 |
|||
Net income |
$ 8,764 |
$ 412 |
$ 10,038 |
$ 2,231 |
|||
Net income per share: |
|||||||
Basic |
$0.89 |
$0.04 |
$1.01 |
$0.24 |
|||
Diluted |
$0.86 |
$0.04 |
$0.97 |
$0.22 |
|||
Weighted average shares used in computing net income per share: |
|||||||
Basic |
9,815 |
9,848 |
9,892 |
9,245 |
|||
Diluted |
10,235 |
10,431 |
10,357 |
10,104 |
IRIDEX Corporation |
|||
Condensed Consolidated Balance Sheets |
|||
(In thousands) |
|||
(unaudited) |
|||
January 3, |
December 28, |
||
2015 |
2013 |
||
Assets |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 13,303 |
$ 13,444 |
|
Accounts receivable, net |
8,337 |
7,345 |
|
Inventories |
9,119 |
10,605 |
|
Prepaids and other current assets |
510 |
576 |
|
Deferred income taxes – current |
1,625 |
- |
|
Total current assets |
32,894 |
31,970 |
|
Property and equipment, net |
735 |
543 |
|
Intangible assets, net |
284 |
328 |
|
Goodwill |
533 |
533 |
|
Deferred income taxes – long term |
7,151 |
- |
|
Other long-term assets |
221 |
303 |
|
Total assets |
$ 41,818 |
$ 33,677 |
|
Liabilities and Stockholders' Equity |
|||
Current liabilities: |
|||
Accounts payable |
$ 1,758 |
$ 2,278 |
|
Accrued compensation |
1,863 |
1,891 |
|
Accrued expenses |
1,770 |
1,592 |
|
Accrued warranty |
469 |
468 |
|
Deferred revenue |
1,179 |
1,133 |
|
Total current liabilities |
7,039 |
7,362 |
|
Long-term liabilities: |
|||
Other long-term liabilities |
1,043 |
461 |
|
Total liabilities |
8,082 |
7,823 |
|
Stockholders' equity: |
|||
Common stock |
108 |
104 |
|
Additional paid-in capital |
38,511 |
40,671 |
|
Accumulated deficit |
(4,883) |
(14,921) |
|
Total stockholders' equity |
33,736 |
25,854 |
|
Total liabilities and stockholders' equity |
$ 41,818 |
$ 33,677 |
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SOURCE
Company Contact: Jim Mackaness, Chief Financial Officer & Chief Operating Officer, 650-940-4700; Investor Relations Contact: Matt Clawson, Pure Communications, 949-370-8500, matt@purecommunicationsinc.com