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CST: 24/08/2019 04:11:10   

IRIDEX Announces 2019 Second Quarter Financial Results

17 Days ago

MOUNTAIN VIEW, Calif., Aug. 06, 2019 (GLOBE NEWSWIRE) -- IRIDEX Corporation (Nasdaq: IRIX) today reported financial results for the second quarter ended June 29, 2019.

Second Quarter Highlights

  • Total revenue of $10.4 million
    ○  Cyclo G6 product family revenue of $3.4 million, an 11% increase year-over-year
  • Shipped a record 14,200 Cyclo G6 probes, a 23% year-over-year increase
  • Shipped 85 Cyclo G6® Glaucoma Lasers, compared to 125 in the prior year
  • Published results in the journal, Cornea, from the first study to confirm outcomes and safety profile of MicroPulse® glaucoma therapy for patients with prior keratoplasty

“I am pleased to join the IRIDEX team at this time, when our differentiated MicroPulse® glaucoma therapy offers proven safety and efficacy outcomes capable of achieving a broader share in the large population of glaucoma patients,” said David I. Bruce, recently appointed President and CEO. “With a substantial base of our Cyclo G6 laser system placements worldwide, we will focus on both growing adoption by our current users and broadening awareness of the safety, efficacy, and durability of our solution to significantly expand our market penetration.”

Second Quarter 2019 Financial Results
Revenue for the three months ended June 29, 2019 increased 1.2% to $10.4 million compared to $10.3 million during the same period of the prior year. Revenue growth continues to be driven by sales of IRIDEX’s Cyclo G6 products.  

Gross profit for the second quarter of 2019 was $4.5 million, or 43.6% gross margin, compared to $4.3 million, or 41.4% gross margin, in the same period of the prior year. The increase in gross margin was primarily due to a decrease in manufacturing overhead spending, partially offset by an increase in manufacturing overhead variances that included an adjustment to warranty expense.

Operating expenses for the second quarter of 2019 were $7.0 million compared to $7.6 million in the same period of the prior year. Lower operating expenses in the quarter reflected a reduction in costs associated with lower headcount and efficiencies gained in adjustments to the Company’s sales & marketing programs, partially offset by an increase in severance costs.

Loss from operations for the second quarter of 2019 was $2.5 million, compared to loss from operations of $3.3 million for the same period of the prior year, contributing to a reduction of net cash burn to $1.6 million for the quarter.

As of June 29, 2019, the Company had cash and cash equivalents of $15.6 million and no debt.

Guidance for Full Year 2019
IRIDEX reduced its total revenue guidance for the full year 2019 to a range of $41 million to $44 million from $43 million to $46 million. The revised revenue guidance primarily reflects the following factors:

  • Lower than expected upside in its retina business following the re-introduction of its LIO delivery device last year
  • The strategic shift in sales team focus toward driving adoption and probe utilization, resulting in lower revenue contribution from Cyclo G6 system sales
  • Delay in regulatory approval in China of its Cyclo G6 glaucoma platform

The Company also revised its expectation for Cyclo G6 system shipments to a range of 375 to 425 from 475 to 525, reflecting its shifting sales focus towards increased physician utilization.   

IRIDEX confirms guidance for Cyclo G6 probe shipments in the range of 58,000 to 63,000.

Webcast and Conference Call Information
IRIDEX’s management team will host a conference call today beginning at 2:00 p.m. PT / 5:00 p.m. ET.  Investors interested in listening to the conference call may do so by dialing (844) 707-0665 for domestic callers or (703) 326-3030 for international callers, using conference ID: 4198453.  A live and archived webcast of the event will be available on the “Investors” section of the Company’s website at: www.iridex.com

About IRIDEX
IRIDEX Corporation is a worldwide leader in developing, manufacturing, and marketing innovative and versatile laser-based medical systems, delivery devices and consumable instrumentation for the ophthalmology market. The Company’s proprietary MicroPulse® technology delivers a differentiated treatment that provides safe, effective, and proven treatment for targeted sight-threatening eye conditions. IRIDEX’s current product line is used for the treatment of glaucoma and diabetic macular edema (DME) and other retinal diseases. IRIDEX products are sold in the United States through a direct sales force and internationally primarily through a network of independent distributors into more than 100 countries. For further information, visit the IRIDEX 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, including those statements concerning the future demand, utilization and order levels for the Company's products, plans to introduce new products, and the Company’s guidance for fiscal 2019 and future financial results. 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 December 29, 2018, and Quarterly Reports on Form 10-Q for subsequent fiscal quarters, each of which was 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.

Investor Relations Contact
Leigh Salvo
(415) 937-5404
investors@iridex.com

 
IRIDEX Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
             
    Three Months Ended     Six Months Ended  
    June 29, 2019     June 30, 2018     June 29, 2019     June 30, 2018  
                                 
Total revenues   $ 10,426     $ 10,304     $ 21,021     $ 19,813  
Cost of revenues     5,877       6,036       12,215       11,623  
Gross profit     4,549       4,268       8,806       8,190  
                                 
Operating expenses:                                
Research and development     929       901       1,887       2,005  
Sales and marketing     3,462       4,168       7,553       8,218  
General and administrative     2,626       2,481       4,870       4,866  
Total operating expenses     7,017       7,550       14,310       15,089  
                                 
Loss from operations     (2,468 )     (3,282 )     (5,504 )     (6,899 )
Other income, net     58       6       52       24  
Loss from operations before provision for income taxes     (2,410 )     (3,276 )     (5,452 )     (6,875 )
Provision for income taxes     9       4       15       8  
Net loss   $ (2,419 )   $ (3,280 )   $ (5,467 )   $ (6,883 )
                                 
Net loss per share:                                
Basic   $ (0.18 )   $ (0.28 )   $ (0.40 )   $ (0.59 )
Diluted   $ (0.18 )   $ (0.28 )   $ (0.40 )   $ (0.59 )
                                 
Weighted average shares used in computing net loss per share                                
Basic     13,648       11,644       13,639       11,636  
Diluted     13,648       11,644       13,639       11,636  
                                 


 
IRIDEX Corporation
Condensed Consolidated Balance Sheets
(In thousands and unaudited)
         
    June 29, 2019
    December 29, 2018
 
Assets                
Current assets:              
Cash and cash equivalents   $ 15,633     $ 21,194  
Accounts receivable, net     8,083       9,083  
Inventories     8,974       8,794  
Prepaid expenses and other current assets     593       547  
Total current assets     33,283       39,618  
Property and equipment, net     991       1,220  
Intangible assets, net     92       100  
Goodwill     533       533  
Operating lease right-of-use assets, net     3,390       -  
Other long-term assets     196       201  
Total assets   $ 38,485     $ 41,672  
                 
Liabilities and Stockholders' Equity              
Current liabilities:              
Accounts payable   $ 2,196     $ 2,516  
Accrued compensation     2,150       2,962  
Accrued expenses     2,055       2,763  
Accrued warranty     490       622  
Deferred revenue     1,514       1,639  
Operating lease liabilities     1,363       -  
Total current liabilities     9,768       10,502  
               
Long-term liabilities:              
Accrued warranty     86       238  
Deferred revenue     469       586  
Operating lease liabilities     2,516       -  
Other long-term liabilities     17       385  
Total liabilities     12,856       11,711  
               
Stockholders' equity:              
Common stock     147       145  
Additional paid-in capital     72,685       71,548  
Accumulated other comprehensive income     66       70  
Accumulated deficit     (47,269 )     (41,802 )
Total stockholders' equity     25,629       29,961  
Total liabilities and stockholders' equity   $ 38,485     $ 41,672  
                 

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