IRIDEX Announces Fourth Quarter and Full Year 2019 Financial Results
March 12 2020 - 4:05PM
IRIDEX Corporation (Nasdaq: IRIX) today reported financial results
for the fourth quarter ended December 28, 2019.
Fourth Quarter Highlights
- Cyclo G6® product family revenue grew 18% year-over-year to
$3.7 million, or 31% of total revenue
- Shipped 13,700 Cyclo G6 probes, a 11% year-over-year
increase
- Shipped 107 Cyclo G6 Glaucoma Laser Systems, compared to 122
the prior year
- Total revenue of $11.8 million
- Achieved 15% reduction in operating expenses versus the
comparable quarter of 2018
- Launched revised MicroPulse P3® Device, which has been
redesigned to deliver greater stability, visualization, coupling
and fit
“IRIDEX has made significant progress in our strategic shift to
an emphasis on physician adoption of MicroPulse® transscleral laser
therapy as a key element of their glaucoma practice,” said David I.
Bruce, President and CEO of IRIDEX. “In the second half of the
year, we realigned our sales processes, launched our revised
MicroPulse P3® Device, and made operational improvements to achieve
cost efficiencies. I am confident that we will continue to build on
these achievements in working with physicians to grow adoption of
our unique non-incisional glaucoma therapy, proven in over 140,000
procedures to date and in over 20 peer-reviewed publications,” said
David I. Bruce, President and CEO of IRIDEX.
“We entered 2020 with great momentum, generating confidence in
our long-term growth opportunity. That has not changed despite the
turbulence caused by the COVID-19 virus in number of business
environments where we operate and sell today. Importantly, we
have a stable supply chain to meet anticipated demand, and the
operational efficiencies and capital resources to support our
business during this period,” concluded Bruce.
Fourth Quarter 2019 Financial ResultsRevenue
for the three months ended December 28, 2019 increased 3% to $11.8
million from $11.5 million during the same period of the prior
year. The increase in revenue was driven primarily by an increase
from G6 revenues and offset by a decrease from retina product
sales.
Gross profit for the fourth quarter of 2019 was $4.9 million, or
41.2% gross margin, compared to $4.7 million, or 41.0% gross
margin, in the same period of the prior year. Positive margin gains
from increased probe sales and decreased manufacturing overhead
spending were offset by retina pricing pressure and geographic
mix.
Operating expenses for the fourth quarter of 2019 decreased 15%
to $6.5 million compared to $7.6 million in the same period of the
prior year. This is the result of our focus on cost reduction and
efficiencies implemented throughout the second half of 2019.
Loss from operations for the fourth quarter of 2019 was reduced
to $1.6 million, compared to $2.9 million for the same period of
the prior year.
Full Year 2019 Financial Results
Revenue for the year ended December 28, 2019 increased $0.8
million to $43.4 million from $42.6 million in 2018. The increase
was driven primarily by gains in G6 probes revenue offset by a
decrease in retina product sales. The Cyclo G6 family of consoles
and probes has grown to 30% of total revenue.
Gross profit for the full year 2019 was $17.9 million, or 41.3%
gross margin, compared to $17.5 million, or 41.0% gross margin,
during the prior year. The benefits from increased probe sales and
reduced manufacturing overhead costs were offset by a shift in
geographic mix.
Operating expenses for 2019 were $26.9 million compared to $30.3
million in the prior year. This decrease is primarily from
reduction in costs associated with lower headcount and
efficiencies, along with adjustments to our sales and marketing
programs.
Loss from operations for 2019 was $9.0 million, compared to
$12.9 million in the prior year.
Cash and cash equivalents were $12.7 million as of December 28,
2019.
Guidance for Full Year 2020 The COVID-19
outbreak has created a broadly variable business environment for
IRIDEX, including regional travel restrictions, areas with limited
hospital access, and cancellation of industry and physician
meetings. The degree and timing to which these variables will
impact the Company’s business is uncertain. As a result, IRIDEX is
unable to provide a meaningful guidance range for full year 2020
financial results at this time.
Webcast and Conference Call InformationIRIDEX’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: 6384497. 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 IRIDEXIRIDEX 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 www.iridex.com.
Safe Harbor StatementThis 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 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 ContactLeigh Salvo(415)
937-5404investors@iridex.com
IRIDEX
CorporationCondensed Consolidated Statements of
Operations(In thousands, except per share
data)(unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
|
|
December 28, |
|
|
December 29, |
|
|
December 28, |
|
|
December 29, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
$ |
11,762 |
|
|
$ |
11,467 |
|
|
$ |
43,447 |
|
|
$ |
42,600 |
|
Cost of revenues |
|
|
6,912 |
|
|
|
6,762 |
|
|
|
25,508 |
|
|
|
25,129 |
|
Gross profit |
|
|
4,850 |
|
|
|
4,705 |
|
|
|
17,939 |
|
|
|
17,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
788 |
|
|
|
852 |
|
|
|
3,682 |
|
|
|
4,006 |
|
Sales and marketing |
|
|
3,791 |
|
|
|
4,420 |
|
|
|
14,852 |
|
|
|
16,782 |
|
General and administrative |
|
|
1,888 |
|
|
|
2,342 |
|
|
|
8,379 |
|
|
|
9,551 |
|
Total operating expenses |
|
|
6,467 |
|
|
|
7,614 |
|
|
|
26,913 |
|
|
|
30,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(1,617 |
) |
|
|
(2,909 |
) |
|
|
(8,974 |
) |
|
|
(12,868 |
) |
Other income, net |
|
|
82 |
|
|
|
76 |
|
|
|
209 |
|
|
|
92 |
|
Loss from operations before
provision for income taxes |
|
|
(1,535 |
) |
|
|
(2,833 |
) |
|
|
(8,765 |
) |
|
|
(12,776 |
) |
Provision for income
taxes |
|
|
26 |
|
|
|
23 |
|
|
|
48 |
|
|
|
37 |
|
Net loss |
|
$ |
(1,561 |
) |
|
$ |
(2,856 |
) |
|
$ |
(8,813 |
) |
|
$ |
(12,813 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.11 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.64 |
) |
|
$ |
(1.05 |
) |
Diluted |
|
$ |
(0.11 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.64 |
) |
|
$ |
(1.05 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used
in computing net loss per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
13,783 |
|
|
|
13,599 |
|
|
|
13,707 |
|
|
|
12,199 |
|
Diluted |
|
|
13,783 |
|
|
|
13,599 |
|
|
|
13,707 |
|
|
|
12,199 |
|
IRIDEX
CorporationCondensed Consolidated Balance
Sheets(In thousands and unaudited)
|
|
|
|
|
|
|
|
|
December
28, |
|
|
December
29 |
|
|
|
2019 |
|
|
2018 |
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
12,653 |
|
|
$ |
21,194 |
|
Accounts receivable, net |
|
|
9,323 |
|
|
|
9,083 |
|
Inventories |
|
|
8,174 |
|
|
|
8,794 |
|
Prepaid expenses and other current assets |
|
|
401 |
|
|
|
547 |
|
Total current assets |
|
|
30,551 |
|
|
|
39,618 |
|
Property and equipment,
net |
|
|
730 |
|
|
|
1,220 |
|
Intangible assets, net |
|
|
84 |
|
|
|
100 |
|
Goodwill |
|
|
533 |
|
|
|
533 |
|
Operating lease right-of-use
assets, net |
|
|
2,764 |
|
|
|
- |
|
Other long-term assets |
|
|
151 |
|
|
|
201 |
|
Total assets |
|
$ |
34,813 |
|
|
$ |
41,672 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
2,592 |
|
|
$ |
2,516 |
|
Accrued compensation |
|
|
2,398 |
|
|
|
2,962 |
|
Accrued expenses |
|
|
1,544 |
|
|
|
2,763 |
|
Accrued warranty |
|
|
380 |
|
|
|
622 |
|
Deferred revenue |
|
|
1,450 |
|
|
|
1,639 |
|
Operating lease liabilities |
|
|
1,414 |
|
|
|
- |
|
Total current liabilities |
|
|
9,778 |
|
|
|
10,502 |
|
|
|
|
|
|
|
|
|
|
Long-term liabilities: |
|
|
|
|
|
|
|
|
Accrued warranty |
|
|
156 |
|
|
|
238 |
|
Deferred revenue |
|
|
360 |
|
|
|
586 |
|
Operating lease liabilities |
|
|
1,795 |
|
|
|
- |
|
Other long-term liabilities |
|
|
19 |
|
|
|
385 |
|
Total liabilities |
|
|
12,108 |
|
|
|
11,711 |
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
Common stock |
|
|
147 |
|
|
|
145 |
|
Additional paid-in capital |
|
|
73,093 |
|
|
|
71,548 |
|
Accumulated other comprehensive income |
|
|
80 |
|
|
|
70 |
|
Accumulated deficit |
|
|
(50,615 |
) |
|
|
(41,802 |
) |
Total stockholders' equity |
|
|
22,705 |
|
|
|
29,961 |
|
Total liabilities and stockholders' equity |
|
$ |
34,813 |
|
|
$ |
41,672 |
|
IRIDEX (NASDAQ:IRIX)
Historical Stock Chart
From Mar 2024 to Apr 2024
IRIDEX (NASDAQ:IRIX)
Historical Stock Chart
From Apr 2023 to Apr 2024