IRIDEX Announces First Quarter 2020 Financial Results
May 11 2020 - 4:05PM
IRIDEX Corporation (Nasdaq: IRIX) today reported financial results
for the first quarter ended March 28, 2020.
Commenting on the recently completed quarter and the business
environment created by the COVID-19 pandemic, David I. Bruce,
President and CEO of IRIDEX, said, “We saw good momentum in the
first couple months of 2020, as the rollout of our revised MP3
probe for the non-incisional treatment of glaucoma attracted the
interest of glaucoma physicians to the potential of our MicroPulse
laser therapy.” Mr. Bruce continued, “Its combination of
strong clinical efficacy, benign safety profile and minimal follow
up requirements is particularly relevant as hospitals and clinics
worldwide adjust to reduced patient access. We continue to receive
positive feedback that physicians and patients find our laser
therapy compelling as they approach the backlog of deferred
glaucoma treatment procedures.”
“Notwithstanding this significant potential, like many capital
equipment and procedure-based medical device companies, we began to
see an impact to our business starting in March as we and our
customers became subject to mandated COVID-19 sheltering
restrictions,” said Mr. Bruce.
Recent Highlights
- Total revenue of $9.0 million versus $10.6 million in the prior
year period
- Cyclo G6® product family revenue of $2.9 million, down 6%
year-over-year
- Shipped 13,050 Cyclo G6 probes, down 7% year-over-year, however
overall G6 probe revenues were up slightly as growing physician
adoption offset discontinued bulk discounted placements offered
last year
- Shipped 38 Cyclo G6 Glaucoma Laser Systems, compared to 114 in
the prior year period, attributed partially to refocus toward probe
utilization and partially to COVID-induced capital purchase
deferral
- Reduced Operating Loss to $1.7 million, down 46%
year-over-year
- Enacted measures designed to ensure business continuity, reduce
operating expense, and preserve cash as the ongoing COVID-19
pandemic impacts revenue
- Subsequent to quarter end, secured approximately $2.5 million
in loan proceeds under the Payroll Protection Program of the
Coronavirus Aid, Relief, and Economic Security Act (CARES Act)
“With the reality of restricted clinical access and mandated
surgical procedure deferrals, our team is working hard to create
unique ways to respond in this new environment. We are
simultaneously reducing costs and adjusting operations, as well as
shifting our marketing and sales activities toward conducting
virtual sales calls, remote proctoring for urgent cases, web-based
physician certification and educational seminars to address
customer needs. We are encouraged by the engagement
with our customers and the progress our team has made through these
efforts.
“We will continue to monitor and adjust our business activities
as the US and countries worldwide begin to expand patient visits
and procedure volumes when it is safe to do so and we are ready to
expand our support and engagement as the environment evolves,”
concluded Mr. Bruce.
First Quarter 2020 Financial ResultsRevenue for
the three months ended March 28, 2020 decreased 15% to $9.0 million
from $10.6 million during the same period of the prior year. The
decrease in revenue was driven primarily by a decrease in our
retina and surgical product sales.
Gross profit for the first quarter of 2020 was $3.9 million,
representing a 43.4% gross margin, an improvement of 3.2 percentage
points compared to the prior year.
Operating expenses for the first quarter of 2020 decreased 24%
to $5.6 million compared to $7.3 million in the same period of the
prior year. The decrease in operating expenses was the result of
significant cost savings measures implemented in the second half of
2019.
Loss from operations for the first quarter of 2020 was reduced
to $1.7 million, compared to $3.0 million for the same period of
the prior year.
Cash used during the quarter was $1.5 million and the Company
ended the quarter with $11.1 million in cash and cash equivalents.
Subsequent to quarter end, the Company received a loan of
approximately $2.5 million under the U.S. Treasury Department’s
Paycheck Protection Program that may be wholly or partly forgiven
if IRIDEX fulfills certain requirements under the program.
Guidance for Full Year 2020 The COVID-19
outbreak continues to create a broadly variable business
environment for IRIDEX. The degree and timing to which these
variables will impact the Company’s future business is uncertain.
As a result, IRIDEX is unable to provide a meaningful guidance
range for its full year 2020 results.
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: 5765385. 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 our response to the COVID-19 impact on our business, the
future demand, utilization and order levels for our 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 28, 2019, 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 |
|
|
|
March 28, |
|
|
March 30, |
|
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
Total
revenues |
|
$ |
9,021 |
|
|
$ |
10,595 |
|
Cost of
revenues |
|
|
5,105 |
|
|
|
6,338 |
|
Gross profit |
|
|
3,916 |
|
|
|
4,257 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Research and
development |
|
|
719 |
|
|
|
958 |
|
Sales and
marketing |
|
|
3,152 |
|
|
|
4,091 |
|
General and
administrative |
|
|
1,698 |
|
|
|
2,244 |
|
Total operating expenses |
|
|
5,569 |
|
|
|
7,293 |
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
|
(1,653 |
) |
|
|
(3,036 |
) |
Other income
(expense), net |
|
|
9 |
|
|
|
(6 |
) |
Loss from
operations before provision for income taxes |
|
|
(1,644 |
) |
|
|
(3,042 |
) |
Provision
for income taxes |
|
|
7 |
|
|
|
6 |
|
Net
loss |
|
$ |
(1,651 |
) |
|
$ |
(3,048 |
) |
|
|
|
|
|
|
|
|
|
Net loss per
share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.12 |
) |
|
$ |
(0.22 |
) |
Diluted |
|
$ |
(0.12 |
) |
|
$ |
(0.22 |
) |
|
|
|
|
|
|
|
|
|
Weighted
average shares used in computing net loss per share |
|
|
|
|
|
|
|
|
Basic |
|
|
13,786 |
|
|
|
13,630 |
|
Diluted |
|
|
13,786 |
|
|
|
13,630 |
|
|
|
|
|
|
|
|
|
|
IRIDEX
CorporationCondensed Consolidated Balance
Sheets(In thousands and unaudited)
|
|
March
28, |
|
|
December
28 |
|
|
|
2020 |
|
|
2019 |
|
Assets |
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
11,139 |
|
|
$ |
12,653 |
|
Accounts receivable, net |
|
|
6,987 |
|
|
|
9,323 |
|
Inventories |
|
|
8,158 |
|
|
|
8,174 |
|
Prepaid expenses and other current assets |
|
|
691 |
|
|
|
401 |
|
Total
current assets |
|
|
26,975 |
|
|
|
30,551 |
|
Property and
equipment, net |
|
|
707 |
|
|
|
730 |
|
Intangible
assets, net |
|
|
80 |
|
|
|
84 |
|
Goodwill |
|
|
533 |
|
|
|
533 |
|
Operating
lease right-of-use assets, net |
|
|
2,461 |
|
|
|
2,764 |
|
Other
long-term assets |
|
|
140 |
|
|
|
151 |
|
Total
assets |
|
$ |
30,896 |
|
|
$ |
34,813 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,501 |
|
|
$ |
2,592 |
|
Accrued compensation |
|
|
1,716 |
|
|
|
2,398 |
|
Accrued expenses |
|
|
1,547 |
|
|
|
1,544 |
|
Accrued warranty |
|
|
259 |
|
|
|
380 |
|
Deferred revenue |
|
|
1,382 |
|
|
|
1,450 |
|
Operating lease liabilities |
|
|
1,430 |
|
|
|
1,414 |
|
Total
current liabilities |
|
|
7,835 |
|
|
|
9,778 |
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities: |
|
|
|
|
|
|
|
|
Accrued warranty |
|
|
137 |
|
|
|
156 |
|
Deferred revenue |
|
|
320 |
|
|
|
360 |
|
Operating lease liabilities |
|
|
1,436 |
|
|
|
1,795 |
|
Other long-term liabilities |
|
|
19 |
|
|
|
19 |
|
Total
liabilities |
|
|
9,747 |
|
|
|
12,108 |
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
Common stock |
|
|
147 |
|
|
|
147 |
|
Additional paid-in capital |
|
|
73,186 |
|
|
|
73,093 |
|
Accumulated other comprehensive income |
|
|
82 |
|
|
|
80 |
|
Accumulated deficit |
|
|
(52,266 |
) |
|
|
(50,615 |
) |
Total stockholders' equity |
|
|
21,149 |
|
|
|
22,705 |
|
|
Total liabilities and stockholders' equity |
|
$ |
30,896 |
|
|
$ |
34,813 |
|
|
|
|
|
|
|
|
|
|
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