IRIDEX Announces Third Quarter 2020 Financial Results
November 09 2020 - 4:05PM
IRIDEX Corporation (Nasdaq: IRIX) today reported financial results
for the third quarter ended September 26, 2020.
Third Quarter Summary
- Total revenue of $8.8 million, a decline of 17% versus $10.7
million in the prior year period, and an increase of 42%
sequentially from $6.2 million in the second quarter of 2020
- Sold 11,400 Cyclo G6 probes, a 6% increase over probes sold in
the third quarter of 2019 and a 44% increase over the 7,900 probes
sold in the second quarter of 2020
- Sold 37 Cyclo G6 Glaucoma Laser Systems compared to 82 in the
prior year period, reflecting ongoing COVID-related capital
purchase deferrals, as well as the Company's sales strategy shift
to focus on deeper procedure adoption among existing users, repeat
orders and thus increased probe sales
- Cyclo G6® product family revenue was $2.8 million, down 6%
compared to the third quarter of 2019, and up 31% from $2.1 million
in the second quarter of 2020
- Ending cash balance was $11.9 million, an increase of
approximately $0.3 million from June 27, 2020 and a year-to-date
reduction of approximately $0.7 million
- Product portfolio advancements include FDA clearance of the
Company’s new 810 laser platform with broad indications in glaucoma
and retina treatment, and introduction of a new Laser Indirect
Ophthalmoscope (LIO) delivery device that aids retinal disease
specialists in performing laser procedures
“We are encouraged by continued recovery from the trough we
experienced during the second quarter as a result of COVID. We are
particularly pleased to see our glaucoma probe volume exceed last
year’s third quarter, despite the continuing worldwide impact of
COVID on our customers and their patients,” said David I. Bruce,
President and CEO of IRIDEX. "In addition, by being effective with
cost controls and cash preservation measures, we have maintained a
healthy operating runway with cash on hand. Despite the challenges
presented by COVID, the successful release and adoption of our
revised MicroPulse P3 probe has aided us as we continue to focus on
growing awareness and adoption of our non-incisional MicroPulse
Transscleral Laser Therapy for glaucoma and strengthening our
retina laser business which will drive our long-term growth.
I am also pleased with the progress we've made on our new laser
platform, including receipt of FDA clearance on our 810 laser, the
first in a family of new lasers that offers significant savings in
manufacturing costs and gross margin improvement as they are
introduced next year,” concluded Bruce.
Third Quarter
2020 Financial
ResultsRevenue for the three months ended September 26,
2020 was $8.8 million, a decrease of 17% from $10.7 million during
the same period of the prior year. Our business continues to be
affected by the global reduction in business activity driven by
pandemic isolation measures. Recovery of revenue was led by our
single-use probe products for glaucoma and retina
surgery.
Gross profit for the third quarter of 2020 was $3.7 million,
representing a 41.5% gross margin. Gross margins remaining
essentially flat compared to the prior year period.
Operating expenses for the third quarter of 2020 decreased 10%
to $5.5 million compared to $6.1 million in the same period of the
prior year. The decrease in operating expenses was the result of
reduction in variable expenses as COVID impacted business activity
and cost savings measures implemented over the past year.
Net loss for the third quarter of 2020 decreased to $1.7
million, compared to $1.8 million for the same period of the prior
year, resulting in a net loss of $0.12 per share versus a net loss
of $0.13 per share during the same period last year.
Cash and cash equivalents increased during the quarter by
approximately $0.3 million and the Company ended the quarter with
$11.9 million in cash and cash equivalents.
Interim CFO TransitionThe
Company has amended its agreement with FLG Partners LLC, a leading
Silicon Valley CFO services and board advisory firm (FLG Partners)
to replace the current FLG Partners service provider, James
Mackaness, with Fuad Ahmad. Mr. Mackaness had notified the Company
of his need to transition due to other commitments. Mr. Ahmad will
serve as the Company’s Interim Chief Financial Officer effective
November 11, 2020.
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: 6486158. 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 impact of COVID-19 on our business, the recovery in
procedures and products sales, 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 |
|
|
Nine Months Ended |
|
|
September
26, |
|
|
September 28, |
|
|
September
26, |
|
|
September
28, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
$ |
8,803 |
|
|
$ |
10,664 |
|
|
$ |
24,043 |
|
|
$ |
31,685 |
|
Cost of revenues |
|
5,149 |
|
|
|
6,381 |
|
|
|
14,067 |
|
|
|
18,596 |
|
Gross profit |
|
3,654 |
|
|
|
4,283 |
|
|
|
9,976 |
|
|
|
13,089 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
869 |
|
|
|
1,007 |
|
|
|
2,395 |
|
|
|
2,894 |
|
Sales and marketing |
|
2,959 |
|
|
|
3,508 |
|
|
|
8,804 |
|
|
|
11,061 |
|
General and administrative |
|
1,672 |
|
|
|
1,621 |
|
|
|
5,060 |
|
|
|
6,491 |
|
Total operating expenses |
|
5,500 |
|
|
|
6,136 |
|
|
|
16,259 |
|
|
|
20,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
(1,846 |
) |
|
|
(1,853 |
) |
|
|
(6,283 |
) |
|
|
(7,357 |
) |
Other income, net |
|
135 |
|
|
|
75 |
|
|
|
153 |
|
|
|
127 |
|
Loss from operations before
provision for income taxes |
|
(1,711 |
) |
|
|
(1,778 |
) |
|
|
(6,130 |
) |
|
|
(7,230 |
) |
Provision for income
taxes |
|
8 |
|
|
|
7 |
|
|
|
20 |
|
|
|
22 |
|
Net loss |
$ |
(1,719 |
) |
|
$ |
(1,785 |
) |
|
$ |
(6,150 |
) |
|
$ |
(7,252 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.12 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.44 |
) |
|
$ |
(0.53 |
) |
Diluted |
$ |
(0.12 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.44 |
) |
|
$ |
(0.53 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used
in computing net loss per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
13,893 |
|
|
|
13,768 |
|
|
|
13,824 |
|
|
|
13,682 |
|
Diluted |
|
13,893 |
|
|
|
13,768 |
|
|
|
13,824 |
|
|
|
13,682 |
|
|
IRIDEX
CorporationCondensed Consolidated Balance
Sheets(In thousands and unaudited)
|
September
26, |
|
December
28, |
|
|
2020 |
|
2019 |
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
11,932 |
|
$ |
12,653 |
|
Accounts receivable, net |
|
6,083 |
|
|
9,323 |
|
Inventories |
|
7,004 |
|
|
8,174 |
|
Prepaid expenses and other current assets |
|
542 |
|
|
401 |
|
Total current assets |
|
25,561 |
|
|
30,551 |
|
Property and equipment,
net |
|
451 |
|
|
730 |
|
Intangible assets, net |
|
72 |
|
|
84 |
|
Goodwill |
|
533 |
|
|
533 |
|
Operating lease right-of-use
assets, net |
|
1,693 |
|
|
2,764 |
|
Other long-term assets |
|
149 |
|
|
151 |
|
Total assets |
$ |
28,459 |
|
$ |
34,813 |
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
$ |
1,475 |
|
$ |
2,592 |
|
Accrued compensation |
|
1,889 |
|
|
2,398 |
|
Accrued expenses |
|
1,682 |
|
|
1,544 |
|
Current portion of PPP loan |
|
1,526 |
|
|
- |
|
Accrued warranty |
|
182 |
|
|
380 |
|
Deferred revenue |
|
1,072 |
|
|
1,450 |
|
Operating lease liabilities |
|
1,387 |
|
|
1,414 |
|
Total current liabilities |
|
9,213 |
|
|
9,778 |
|
|
|
|
|
|
|
|
Long-term liabilities: |
|
|
|
|
|
|
PPP Loan |
|
971 |
|
|
- |
|
Accrued warranty |
|
102 |
|
|
156 |
|
Deferred revenue |
|
286 |
|
|
360 |
|
Operating lease liabilities |
|
616 |
|
|
1,795 |
|
Other long-term liabilities |
|
19 |
|
|
19 |
|
Total liabilities |
|
11,207 |
|
|
12,108 |
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
Common stock |
|
148 |
|
|
147 |
|
Additional paid-in capital |
|
73,837 |
|
|
73,093 |
|
Accumulated other comprehensive income |
|
32 |
|
|
80 |
|
Accumulated deficit |
|
(56,765 |
) |
|
(50,615 |
) |
Total stockholders' equity |
|
17,252 |
|
|
22,705 |
|
|
Total liabilities and stockholders' equity |
$ |
28,459 |
|
$ |
34,813 |
|
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