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SECURITIES AND EXCHANGE COMMISSION
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
| February 4, 2004 | ||
| 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) |
| (408) 940-4700 (Registrant’s telephone number, including area code) |
| Not Applicable (Former name or former address, if changed since last report) |
| Item 7. Financial Statements and Exhibits. | ||||||||
| Item 12. Results of Operations and Financial Condition. | ||||||||
| SIGNATURES | ||||||||
| EXHIBIT INDEX | ||||||||
| EXHIBIT 99.1 | ||||||||
Table of Contents
Item 7. Financial Statements and Exhibits.
| (c) | Exhibits |
| Exhibit No. | Description | |
| 99.1 | Press Release dated February 4, 2004. |
Item 12. Results of Operations and Financial Condition.
On February 4, 2004, the Registrant reported its results of operations for its fiscal fourth quarter and year ended January 3, 2004. A copy of the press release issued by the Registrant concerning for foregoing results is furnished 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 and 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.
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 | ||||
| Dated: February 4, 2004 | By: | /s/ LARRY TANNENBAUM | ||
| Larry Tannenbaum Chief Financial Officer, Secretary and Senior Vice President of Finance and Administration |
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EXHIBIT INDEX
| Exhibit No. | Description | |
| 99.1 | Press Release dated February 4, 2004. |
Exhibit 99.1
| For Immediate Release | Contact: | Larry Tannenbaum | ||
| Chief Financial Officer | ||||
| Officer | (650) 940-4700 |
February 4, 2004
Mountain View, California
IRIDEX Reports Profitable Fourth Quarter and Full Year
• “Cash” Position Builds to More than $16 Million
• Improved Reimbursement Climate for Company’s AMD Procedures
IRIDEX (NASDAQ/NMS:IRIX) announced sales for the fourth quarter ended January 3, 2004 of $8.8 million, down from $9.5 million in the corresponding 2002 quarter. Sales for the fourth quarter 2002 included a significant initial OEM stocking order for the Millennium EndoLase™ module sold by Bausch & Lomb. Net income for the fourth quarter 2003 was $491,000, or $0.07 per share, compared to net income of $598,000, or $0.09 per share, in the corresponding quarter of 2002.
Sales for the 2003 fiscal year were $31.7 million, up 3% from $30.6 million reported in 2002. Net income for 2003 increased 147% to $371,000, or $0.05 per share compared to $150,000 in net income, or $0.02 per share, for 2002.
For the fiscal year 2003, ophthalmology sales totaled $26.2 million, an 8% increase from the $24.1 million for the 2002 fiscal year. Sales of dermatology products totaled $5.5 million in 2003 compared to $6.5 million for 2002. Sales in the United States improved to $20.1 million in 2003 compared to $19.6 million for 2002. Additionally, international sales in 2003 increased to $11.6 million from $11.1 million in the prior year.
“We began to see the impact of our efforts to improve bottom line performance during 2003,” commented Theodore A. Boutacoff, President and Chief Executive Officer. “Our asset management programs were highly successful, resulting in a stronger balance sheet and additional cash reserves. Even with increased sales in 2003, inventories were reduced by $2.0 million and accounts receivables declined by $1.5 million. At year end, our combined cash position increased by $4.8 million to $16.3 million, which provides the resources to capitalize on the emerging opportunities for our Minimal Intensity Photocoagulation (MIP) technology.”
“We were especially pleased to see additional support and increasing evidence that our MIP approaches to treat age-related macular degeneration (AMD) and other sight threatening diseases are gaining acceptance world wide. In addition, we are encouraged by the growing number of states establishing reimbursement schedules for the use of our devices to treat this chronic and
terrible disease using our Transpupillary Thermotherapy (TTT) and Feeder Vessel Therapy (FVT) protocols,” continued Mr. Boutacoff.
Mr. Boutacoff stated, “Looking forward to 2004, without the benefit of any definitive favorable results from the AMD (TTT4CNV) clinical trials, we see slightly improved year-over-year sales growth. As has been the case the last two years, we expect the second half of 2004 to be stronger than the first half. Additionally, based on our expected introductions of new products and product mix we believe that gross margins should improve slightly for 2004 and that the overall growth in sales and continued operating efficiencies should increase profitability.”
IRIDEX management will conduct a conference call today for those interested at 2:00 p.m. PST/5:00 p.m. EST. Interested parties may access the live conference call via telephone by dialing (800) 603-0804 US/Canada or (706) 643-1370 International or visit the Company’s website at www.iridex.com. A telephone replay will be available beginning on February 4 at 6:00 p.m. PST, through February 10, 2004 by dialing (800) 642-1687 US/Canada and 706-645-9291 International and entering Conference ID # 5161562. In addition, an archived version of the webcast will be available beginning on February 6, 2004 on the Company’s website at www.iridex.com.
About IRIDEX
IRIDEX Corporation is a leading worldwide provider of semiconductor-based laser systems for the ophthalmology and dermatology markets. IRIDEX products are sold in the United States through a direct sales force and internationally through a network of independent distributors into more than 100 countries. For further information, visit the Company’s 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, relating to the Company’s growth prospects, revenues, gross margins and profitability, as well as the growing reimbursement trend for AMD. Actual results could differ materially from those projected in the forward-looking statements based on, among other things, the actual order and shipment rate for the Company’s ophthalmology and dermatology product lines, the rate of introduction and market acceptance of the Company’s products, the financial consequences of states not reimbursing for all of the Company’s AMD procedures, the impact of any continuing weakness and uncertainties related to general economic conditions or weakness in overall demand in the Company’s markets, especially with regard to the Company’s dermatology products which are typically used for elective procedures that can be
deferred, and the Company’s ability to continue to reduce its costs and improve its operating efficiencies. Risks and uncertainties to which the Company are subject may include, but may not necessarily be limited to, the amount of orders that the Company receives and ships, dependence on international sales and the Company’s network of independent distributors, the risks associated with bringing new products to market, the results of clinical trials and competition in our markets. Please see a detailed description of these risks contained in our Quarterly Reports on Form 10-Q and Annual Report on Form 10-K for the year ended December 28, 2002 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.
IRIDEX Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||
| January 3, | December 28, | January 3, | December 28, | |||||||||||||||
| 2004 | 2002 | 2004 | 2002 | |||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||||
Sales |
$ | 8,771 | $ | 9,521 | $ | 31,699 | $ | 30,634 | ||||||||||
Cost of sales |
4,647 | 5,151 | 17,628 | 17,046 | ||||||||||||||
Gross profit |
4,124 | 4,370 | 14,071 | 13,588 | ||||||||||||||
Operating expenses: |
||||||||||||||||||
Research and development |
1,060 | 931 | 4,032 | 4,315 | ||||||||||||||
Sales, general and administrative |
2,657 | 2,557 | 10,087 | 9,454 | ||||||||||||||
Total operating expenses |
3,717 | 3,488 | 14,119 | 13,769 | ||||||||||||||
Income (loss) from operations |
407 | 882 | (48 | ) | (181 | ) | ||||||||||||
Interest and other income, net |
58 | 56 | 212 | 122 | ||||||||||||||
Income (loss) before benefit from (provision for) income taxes |
465 | 938 | 164 | (59 | ) | |||||||||||||
Benefit from (provision for) income taxes |
26 | (340 | ) | 207 | 209 | |||||||||||||
Net income |
$ | 491 | $ | 598 | $ | 371 | $ | 150 | ||||||||||
Basic net income per common share |
$ | 0.07 | $ | 0.09 | $ | 0.05 | $ | 0.02 | ||||||||||
Diluted net income per common share |
$ | 0.07 | $ | 0.09 | $ | 0.05 | $ | 0.02 | ||||||||||
Shares used in per common share basic calculations |
6,967 | 6,904 | 6,933 | 6,870 | ||||||||||||||
Shares used in per common share diluted calculations |
7,341 | 6,988 | 7,072 | 6,928 | ||||||||||||||
IRIDEX Corporation
Condensed Consolidated Balance Sheets
(In thousands)
| January 3, | December 28, | |||||||||
| 2004 | 2002 | |||||||||
Assets |
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Current Assets: |
||||||||||
Cash and cash equivalents |
$ | 10,541 | $ | 9,186 | ||||||
Available-for-sale securities |
5,751 | 2,356 | ||||||||
Accounts receivable, net |
6,548 | 8,037 | ||||||||
Inventories |
8,721 | 10,725 | ||||||||
Prepaids and other current assets |
934 | 759 | ||||||||
Short term deferred income taxes |
972 | 1,083 | ||||||||
Total current assets |
33,467 | 32,146 | ||||||||
Property and equipment, net |
850 | 950 | ||||||||
Long term deferred income taxes |
1,507 | 1,176 | ||||||||
Total assets |
$ | 35,824 | $ | 34,272 | ||||||
Liabilities and Stockholders’ Equity |
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Current Liabilities: |
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Accounts payable |
$ | 1,029 | $ | 657 | ||||||
Accrued expenses |
3,976 | 3,417 | ||||||||
Total liabilities |
5,005 | 4,074 | ||||||||
Stockholders’ Equity: |
||||||||||
Common stock |
71 | 70 | ||||||||
Additional paid-in capital |
23,884 | 23,631 | ||||||||
Accumulated other comprehensive income |
(1 | ) | 3 | |||||||
Treasury stock |
(430 | ) | (430 | ) | ||||||
Retained earnings |
7,295 | 6,924 | ||||||||
Total stockholders’ equity |
30,819 | 30,198 | ||||||||
Total liabilities and stockholders’ equity |
$ | 35,824 | $ | 34,272 | ||||||