UNITED STATES
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
Date of Report (Date of earliest event reported)
November 4, 2008
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)
(650) 940-4700
(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):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02. | Results of Operations and Financial Condition. |
On November 4, 2008, IRIDEX Corporation issued a press release discussing its financial results for the third quarter ended September 27, 2008. The press release is attached hereto 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. |
| (d) | Exhibits |
| Exhibit No. |
Description | |
| 99.1 | Press Release dated November 4, 2008. | |
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/ THEODORE A. BOUTACOFF | |
| Theodore A. Boutacoff President and Chief Executive Officer | ||
Date: November 4, 2008
EXHIBIT INDEX
| Exhibit No. |
Description | |
| 99.1 | Press Release dated November 4, 2008. | |
Exhibit 99.1
| FOR IMMEDIATE RELEASE | Contact: | Jim Mackaness | ||
| Chief Financial Officer | ||||
| 650 940-4700 |
November 4, 2008
Mountain View, California
IRIDEX Reports Third Quarter 2008 Financial Results
IRIDEX Corporation (Nasdaq: IRIX) today reported financial results for the third quarter ended September 27, 2008.
Revenue for the third quarter of 2008 was $12.0 million, an 11.7% decrease from the $13.6 million reported for the third quarter of 2007. The Company recorded net loss of $0.2 million or $(0.03) per diluted share for the third quarter of 2008, an improvement over the net loss of $1.2 million or $(0.15) per diluted share reported in the third quarter of 2007.
Ophthalmology revenues were $8.2 million in the third quarter of 2008, a 4.0% increase from $7.9 million in the comparable period of 2007. Comparing third quarter 2008 vs. 2007, domestic ophthalmology revenues increased 17.0% to $5.3 million, international ophthalmology revenues decreased 13.2% to $2.9 million and ophthalmology recurring revenues, consisting of disposable products and service, increased to 49.3% of our total ophthalmology revenues compared to 46.9% for the comparable period of 2007.
Total aesthetics revenues were $3.8 million in the third quarter of 2008, a decrease of 33.4% from $5.7 million in the comparable period of 2007. In the third quarter of 2008, domestic aesthetics revenues decreased $0.6 million to $2.1 million and international aesthetics revenues decreased $1.3 million to $1.7 million when compared to the same period in 2007.
Gross profit for the third quarter of 2008 was $5.0 million, compared with $6.2 million for the third quarter of 2007. Gross margins were 41.6% and 45.6%, respectively. Operating expenses for the third quarter 2008 were $5.2 million compared with $7.2 million for 2007.
Mr. Theodore A. Boutacoff, President and CEO stated, “Operationally we continue to make progress towards financial stability as demonstrated by the substantial improvement in our quarterly operating performance year over year, reducing loss from operations from $1.1 million in the third quarter of 2007 to a loss of $0.2 million in the third quarter of 2008, primarily due to reductions in operating expenses. Furthermore, we can report that we have met all of our obligations to AMS which has been a major cash burden for us during the first 9 months of 2008. In total, including principle, interest and payments for the non-cancelable purchase orders we paid AMS $6.3 million in 2008, with $2.0 million of that being during the third quarter.”
Cash and cash equivalents were $3.0 million as of September 27, 2008 down from $4.1 million as of June 28, 2008. However, working capital increased to $9.4 million from $8.9 million over the same period. Cash used in operations for the third quarter was $1.0 million, which includes repaying the remaining amounts owed to AMS, and our bank debt as of September 27, 2008 was $6.0 million, which was unchanged from the balance as of June 28, 2008.
Conference Call
IRIDEX management will conduct a conference call later today, Tuesday, November 4, 2008 at 5:00 p.m. Eastern Time. Interested parties may access the live conference call via telephone by dialing (866) 250-4375 (US) or (303) 262-2161 (International), or by visiting the Company’s website at www.iridex.com. A telephone replay will be available beginning on Tuesday, November 4, 2008 through Tuesday, November 11, 2008 by dialing (800) 405-2236 (US) or (303) 590-3000 (International) and entering Passcode 11122023#. In addition, later today an archived version of the webcast will be available on the Company’s website at www.iridex.com.
About IRIDEX
IRIDEX Corporation is a leading worldwide provider of therapeutic based laser systems, disposable laser probes and delivery devices to treat eye diseases in ophthalmology and skin disorders in the aesthetics market. IRIDEX products are sold in the United States through a direct sales force and internationally through a combination of a direct sales force and a network of approximately 100 independent distributors into 107 countries. For further information, visit the Company’s website at http://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 financial stability. Please see a detailed description of these and other risks contained in our Annual Report on Form 10-K for the fiscal year ended December 29, 2007 and our Quarterly Report on Form 10-Q for the third quarter ended September 27, 2008 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)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 27, 2008 |
September 29, 2007 |
September 27, 2008 |
September 29, 2007 |
|||||||||||||
| Revenues |
$ | 11,987 | $ | 13,575 | $ | 36,383 | $ | 41,390 | ||||||||
| Cost of revenues |
6,997 | 7,390 | 21,257 | 23,412 | ||||||||||||
| Gross profit |
4,990 | 6,185 | 15,126 | 17,978 | ||||||||||||
| Operating expenses: |
||||||||||||||||
| Research and development |
972 | 1,319 | 2,995 | 4,636 | ||||||||||||
| Selling, general and administrative |
4,248 | 5,920 | 13,356 | 21,740 | ||||||||||||
| Total operating expenses |
5,220 | 7,239 | 16,351 | 26,376 | ||||||||||||
| Loss from operations |
(230 | ) | (1,054 | ) | (1,225 | ) | (8,398 | ) | ||||||||
| Legal settlement |
— | — | 800 | 2,500 | ||||||||||||
| Interest and other expense, net |
(54 | ) | (184 | ) | (426 | ) | (603 | ) | ||||||||
| Loss before income taxes |
(284 | ) | (1,238 | ) | (851 | ) | (6,501 | ) | ||||||||
| Benefit (provision) for income taxes |
35 | — | (16 | ) | — | |||||||||||
| Net loss |
$ | (249 | ) | $ | (1,238 | ) | $ | (867 | ) | $ | (6,501 | ) | ||||
| Net loss per share - basic and diluted |
$ | (0.03 | ) | $ | (0.15 | ) | $ | (0.10 | ) | $ | (0.80 | ) | ||||
| Shares used in computing net loss per share - basic and diluted |
8,824 | 8,218 | 8,824 | 8,165 | ||||||||||||
IRIDEX Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
| September 27, 2008 |
December 29, 2007 |
|||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current Assets: |
||||||||
| Cash and cash equivalents |
$ | 2,974 | $ | 5,809 | ||||
| Restricted cash |
— | 3,800 | ||||||
| Accounts receivable, net |
9,215 | 8,876 | ||||||
| Inventories, net |
13,527 | 15,967 | ||||||
| Prepaids and other current assets |
1,264 | 1,051 | ||||||
| Total current assets |
26,980 | 35,503 | ||||||
| Property and equipment, net |
1,128 | 1,621 | ||||||
| Goodwill |
3,239 | 3,239 | ||||||
| Other intangible assets, net |
4,185 | 5,944 | ||||||
| Other long term assets |
224 | 347 | ||||||
| Total assets |
35,756 | 46,654 | ||||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current Liabilities: |
||||||||
| Accounts payable |
$ | 2,593 | $ | 2,887 | ||||
| Bank line of credit |
6,000 | 4,863 | ||||||
| Accrued compensation |
1,680 | 2,024 | ||||||
| Accrued expenses |
3,235 | 7,809 | ||||||
| Accrued warranty |
1,258 | 1,895 | ||||||
| Deferred revenue |
2,805 | 3,350 | ||||||
| Bank term loan-current portion |
— | 5,016 | ||||||
| Total current liabilities |
17,571 | 27,844 | ||||||
| Stockholders’ Equity: |
||||||||
| Convertible preferred stock, $.01 par value: |
||||||||
| Authorized: 2,000,000 shares; Issued and outstanding: 500,000 shares in 2008 and 2007 |
5 | 5 | ||||||
| Common Stock, $.01 par value: |
||||||||
| Authorized: 30,000,000 shares; Issued and outstanding: 8,824,301 shares in 2008 and 2007 |
89 | 89 | ||||||
| Additional paid-in capital |
39,087 | 38,695 | ||||||
| Accumulated other comprehensive loss |
(238 | ) | (88 | ) | ||||
| Treasury stock, at cost |
(430 | ) | (430 | ) | ||||
| Accumulated deficit |
(20,328 | ) | (19,461 | ) | ||||
| Total stockholders’ equity |
18,185 | 18,810 | ||||||
| Total liabilities and stockholders’ equity |
$ | 35,756 | $ | 46,654 | ||||