Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 3, 2005
IRIDEX CORPORATION
(Exact name of registrant as specified in its charter)
| Delaware | 0-27598 | 77-0210467 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
1212 Terra Bella Avenue
Mountain View, California 94043
(Address of principal executive offices, including zip code)
Mountain View, California 94043
(Address of principal executive offices, including zip code)
(408) 940-4700
(Registrant’s telephone number, including area code)
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b)) |
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c)) |
TABLE OF CONTENTS
| Item 2.02. Results of Operations and Financial Condition. | ||||||||
| Item 9.01. Financial Statements and Exhibits. | ||||||||
| SIGNATURES | ||||||||
| EXHIBIT INDEX | ||||||||
| EXHIBIT 99.1 | ||||||||
Table of Contents
Item 2.02. Results of Operations and Financial Condition.
On August 3, 2005, the Registrant reported its results of operations for its second fiscal
quarter of 2005, which ended on July 2, 2005. A copy of the press release issued by the Registrant
concerning the Registrant’s results of operations for its second fiscal quarter of 2005, which
ended on July 2, 2005, 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
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.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits
| Exhibit No. | Description | |||||
| 99.1 | Press Release dated August 3, 2005. | |||||
Table of Contents
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 |
||||
| By: | /s/ LARRY TANNENBAUM | |||
| Larry Tannenbaum Chief Financial Officer, Secretary and Senior Vice President of Finance and Administration | ||||
Date: August 3, 2005
Table of Contents
Exhibit 99.1
For Immediate Release
|
Contact: Larry Tannenbaum Chief Financial Officer 650-940-4700 |
IRIDEX REPORTS IMPROVED SECOND QUARTER
FINANCIAL RESULTS
FINANCIAL RESULTS
Net Income more than Triples
Revenue Grows 16%
Revenue Grows 16%
MOUNTAIN VIEW, CA, AUGUST 3, 2005—IRIDEX Corporation (Nasdaq/NMS: IRIX) today reported improved
financial results for the quarter ended July 2, 2005. Revenue for the quarter ended July 2, 2005
was $9.4 million, a 16% increase from the $8.1 million reported for the second quarter of 2004 as
well as a 15% sequential increase over the first quarter of 2005. The Company achieved net income
of $430,000 or $.05 per share for the second quarter of 2005 compared with $133,000 or $0.02 per
share in the second quarter of 2004 and a net loss of $20,000 or $0.00 per share during the first
quarter of 2005.
Revenue for the six-month period ended July 2, 2005 was $17.5 million, a 13% improvement compared
with the same period of 2004. Net income for the six-month period ended July 2, 2005 was $410,000
compared with net income of $116,000 during the comparable period of 2004.
Ophthalmology sales grew to $7.7 million for the second quarter of 2005, an increase of 15%
compared with the second quarter of 2004. Strong domestic VariLite product sales continued to
drive growth in the dermatology unit and second quarter dermatology sales were $1.7 million, a 20%
increase compared with the corresponding quarter in 2004. During the second quarter 2005, strong
sales growth was seen both domestically and internationally, with domestic sales growing to $5.7
million, an 18% increase compared with the second quarter of 2004, and international sales growing
to $3.7 million, a 12% increase compared to the second quarter of 2004. Since international sales
are denominated in US dollars, foreign currency fluctuations had no material impact on sales
growth.
“We are very proud of our strong financial results for the second quarter during which we achieved
year-over-year and sequential revenue and earnings growth,” said Barry G. Caldwell, IRIDEX
President and CEO. “In addition, during the first six months of 2005, our revenue and earnings
were the highest that they have been for any comparable time periods during the past five years.
We believe that the investments we have made and continue to make in our core business combined
with our strategic focus on building recurring revenue streams are continuing to generate positive
returns.”
Mr. Caldwell further commented, “As planned, the introduction of new products has enabled us to
improve our gross margins and profitability. In addition, we were able to generate more than $2.0
million in our overall cash position during the quarter and increase
it to an all time high of
$18.7 million. Looking ahead to the full year and taking into consideration the typical
seasonality we see in the third quarter, we are
raising our sales guidance for 2005 from around $35 million to a range of $36 million to $38
million.”
Cash, cash
equivalents and available for sale securities as of July 2, 2005 was $18.7 million compared with $16.6 million at April
2, 2005 and $18.0 million at January 1, 2005. Inventories decreased to $9.0 million at the end of
the second quarter, down from the $9.5 million at the end of the first quarter of 2005 and up
$39,000 from the $8.9 million at the end of the fourth quarter of 2004. Inventory turns at the end
of the second quarter were approximately 2.1 times, up from the 2.0 turns reported at the end of Q1
2005 and Q4 2004. At the end of the second quarter, accounts receivable was $7.2 million,
resulting in day sales outstanding (DSO) of 68 days, compared to the 78 days reported in Q1 2005
and the 76 days reported at the end of 2004.
Conference Call
IRIDEX management will conduct a conference call today at 2:00 p.m. PST/5:00 p.m. EST. Interested parties may access the live conference call via telephone by dialing 800-510-0219 US or 617-614-3451 International and entering Passcode 49455245 or by visiting the Company’s website at www.iridex.com. A telephone replay will be available beginning on August 3, 2005 through August 10, 2005 by dialing 888-286-8010 US or 617-801-6888 International and entering Passcode 38223304. In addition, an archived version of the webcast will be available beginning August 3, 2005 on the Company’s website at www.iridex.com.
IRIDEX management will conduct a conference call today at 2:00 p.m. PST/5:00 p.m. EST. Interested parties may access the live conference call via telephone by dialing 800-510-0219 US or 617-614-3451 International and entering Passcode 49455245 or by visiting the Company’s website at www.iridex.com. A telephone replay will be available beginning on August 3, 2005 through August 10, 2005 by dialing 888-286-8010 US or 617-801-6888 International and entering Passcode 38223304. In addition, an archived version of the webcast will be available beginning August 3, 2005 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.
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 and revenues. 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, and 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. 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, and 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
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 and revenues. 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, and 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. 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, and 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
fiscal year ended January 3, 2004 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 data)
(unaudited)
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
| July 2, | July 3, | July 2, | July 3, | |||||||||||||
| 2005 | 2004 | 2005 | 2004 | |||||||||||||
Sales |
$ | 9,387 | $ | 8,109 | $ | 17,532 | $ | 15,501 | ||||||||
Cost of sales |
4,842 | 4,302 | 9,309 | 8,479 | ||||||||||||
Gross profit |
4,545 | 3,807 | 8,223 | 7,022 | ||||||||||||
Operating expenses: |
||||||||||||||||
Research and development |
922 | 1,277 | 1,961 | 2,384 | ||||||||||||
Sales, general and administrative |
3,065 | 2,404 | 5,862 | 4,597 | ||||||||||||
Total operating expenses |
3,987 | 3,681 | 7,823 | 6,981 | ||||||||||||
Income from operations |
558 | 126 | 400 | 41 | ||||||||||||
Interest and other income, net |
130 | 69 | 256 | 129 | ||||||||||||
Income before income taxes |
688 | 195 | 656 | 170 | ||||||||||||
Provision for income taxes |
(258 | ) | (62 | ) | (246 | ) | (54 | ) | ||||||||
Net income |
$ | 430 | $ | 133 | $ | 410 | $ | 116 | ||||||||
Net income per common share — basic |
$ | 0.06 | $ | 0.02 | $ | 0.06 | $ | 0.02 | ||||||||
Net income per common share — diluted |
$ | 0.05 | $ | 0.02 | $ | 0.05 | $ | 0.01 | ||||||||
Shares used in per common share basic calculations |
7,362 | 7,192 | 7,339 | 7,134 | ||||||||||||
Shares used in per common share diluted calculations |
7,955 | 7,786 | 7,778 | 7,735 | ||||||||||||
IRIDEX Corporation
Condensed Consolidated Balance Sheets
(In thousands)
Condensed Consolidated Balance Sheets
(In thousands)
| July 2, | January 1, | |||||||||
| 2005 | 2005 | |||||||||
| (unaudited) | ||||||||||
| Assets | ||||||||||
Current Assets: |
||||||||||
Cash and cash equivalents |
$ | 10,482 | $ | 7,931 | ||||||
Available-for-sale securities |
8,211 | 5,773 | ||||||||
Accounts receivable, net |
7,177 | 7,404 | ||||||||
Inventories |
8,961 | 8,922 | ||||||||
Prepaids and other current assets |
974 | 814 | ||||||||
Current deferred income taxes |
1,808 | 1,808 | ||||||||
Total current assets |
37,613 | 32,652 | ||||||||
Long term portion of available-for-sale securities |
— | 4,324 | ||||||||
Property and equipment, net |
805 | 852 | ||||||||
Deferred income taxes |
1,265 | 1,265 | ||||||||
Total assets |
$ | 39,683 | $ | 39,093 | ||||||
| Liabilities and Stockholders’ Equity | ||||||||||
Current Liabilities: |
||||||||||
Accounts payable |
$ | 1,150 | $ | 1,233 | ||||||
Accrued expenses |
4,666 | 5,167 | ||||||||
Deferred revenue |
1,379 | 910 | ||||||||
Total liabilities |
7,195 | 7,310 | ||||||||
Stockholders’ Equity: |
||||||||||
Common stock |
75 | 74 | ||||||||
Additional paid-in capital |
25,588 | 25,281 | ||||||||
Accumulated other comprehensive loss |
(48 | ) | (35 | ) | ||||||
Treasury stock |
(430 | ) | (430 | ) | ||||||
Retained earnings |
7,303 | 6,893 | ||||||||
Total stockholders’ equity |
32,488 | 31,783 | ||||||||
Total liabilities and stockholders’ equity |
$ | 39,683 | $ | 39,093 | ||||||