MOUNTAIN VIEW, Calif.,
Aug. 3, 2017 /PRNewswire/
-- IRIDEX Corporation (Nasdaq: IRIX) today reported financial
results for the second quarter and six months ended July 1, 2017.
Second Quarter Financial Results and Highlights
- Total revenue of $10.0 million, a
16% year-over-year decline
- Sold 69 Cyclo G6 systems and shipped approximately 7,100 G6
probes
- Participation in the 7th World Glaucoma Congress in
Helsinki, including a sold-out wet
lab demonstration on the G6 attended by over 50 glaucoma physicians
from more than 40 countries
- Clinical data on the safety and efficacy of MicroPulse®
technology presented at the American Society of Cataract and
Refractive Surgery (ASCRS) Symposium & Congress and Association
for Research in Vision and Ophthalmology (ARVO) conferences
"Our second quarter was marked by on-going execution towards our
goal of making the G6 platform the global standard of care for
glaucoma patients. Lower year-over-year revenues in the quarter
primarily reflect the continued impact of the significant expansion
and transition in our commercial infrastructure while we manage the
shift towards our G6 platform," said William M. Moore, President and CEO. "I am
encouraged by the progress we are making in the commercialization
of the G6. This includes early sales traction from our new hires,
an increasing number of repeat customers, sales to larger
customers, and an expanding number of countries where the G6 is
approved and launched."
Second Quarter 2017 Financial Results
Revenue for the
three months ended July 1, 2017
decreased 16% to $10.0 million from
$11.9 million during the same period
of the prior year. The decline in revenue was experienced across
all three product categories and was primarily driven by lower
medical retina product revenues.
Gross profit for the second quarter of 2017 was $4.5 million, or 44.9% gross margin, compared to
$5.7 million, or 48.2% gross margin,
in the same period of the prior year. Gross margin was primarily
impacted by less efficient overhead absorption due to the decrease
in revenues, partially offset by an increase in direct margins
primarily as a result of a favorable shift to higher margin
products due to product and geographic mix.
Operating expenses for the second quarter of 2017 were
$7.2 million compared to $6.1 million in the same period of the prior
year. This increase is attributable to investments to support the
Company's commercial infrastructure, including increased sales and
marketing expenses.
Loss from operations for the second quarter of 2017 was
$2.7 million, compared to loss from
operations of $0.4 million for the
same period of the prior year.
Cash and cash equivalents were $24.6
million as of July 1,
2017.
Guidance for Full Year 2017
IRIDEX projects revenue for full year 2017 to be $43 to $46 million, down from guidance of
$46 to $49 million provided on
May 3, 2017.
The Company also reduced anticipated sales of G6 systems to a
range of 350 to 400 and G6 probe shipments to range of 30,000 to
35,000. This compares to previous guidance of 400 to 450 G6 systems
and 35,000 to 40,000 G6 probe shipments provided on May 3, 2017.
IRIDEX expects revenue from its medical retina and surgical
retina businesses will decline in the mid-to-high single
digits.
The Company continues to expect revenue growth to be more
heavily weighted towards the second half of 2017 as the Company
begins to see the full benefits of its growth investments.
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: 48350268. A live and archived
webcast of the event will be available on the "Investor Relations"
section of the Company's website at: www.iridex.com. A
telephone replay will also be available beginning Thursday, August 3, 2017 through Friday, August 4, 2017 by dialing (855) 859-2056
for domestic callers or (404) 537-3406 for international callers,
using conference ID: 48350268.
About IRIDEX
IRIDEX Corporation was founded in 1989
and 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. We maintain a deep commitment to the success
of our customers, with comprehensive technical, clinical, and
service support programs. IRIDEX is dedicated to a standard of
excellence, offering superior technology for superior results.
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 70 independent distributors into over 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 amount and timing of revenue and Cyclo G6, medical
retina and surgical retina projections for fiscal 2017, future
demand and order levels for the Company's products, future
operating expenses, changes in personnel, product development and
intellectual property related matters, the adoption and effect of
Company products on its results, the markets in which the Company
operates, usage and efficacy of the Company's products, the
Company's future financial results, and the Company's strategic
plans and objectives. 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 January 2, 2017,
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.
IRIDEX
Corporation
|
Condensed
Consolidated Statements of Operations
|
(In thousands, except
per share data)
|
(unaudited)
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
July 1,
|
|
|
July 2,
|
|
|
July 1,
|
|
|
July 2,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
$
|
10,002
|
|
|
$
|
11,908
|
|
|
$
|
20,485
|
|
|
$
|
23,839
|
|
Cost of
revenues
|
|
|
5,507
|
|
|
|
6,174
|
|
|
|
11,525
|
|
|
|
12,808
|
|
Gross
profit
|
|
|
4,495
|
|
|
|
5,734
|
|
|
|
8,960
|
|
|
|
11,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
1,528
|
|
|
|
1,392
|
|
|
|
3,024
|
|
|
|
2,751
|
|
Sales and
marketing
|
|
|
3,654
|
|
|
|
2,405
|
|
|
|
6,577
|
|
|
|
4,834
|
|
General and
administrative
|
|
|
2,054
|
|
|
|
2,331
|
|
|
|
3,958
|
|
|
|
3,688
|
|
Total operating
expenses
|
|
|
7,236
|
|
|
|
6,128
|
|
|
|
13,559
|
|
|
|
11,273
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(2,741)
|
|
|
|
(394)
|
|
|
|
(4,599)
|
|
|
|
(242)
|
|
Other expense,
net
|
|
|
(1)
|
|
|
|
(21)
|
|
|
|
(3)
|
|
|
|
(32)
|
|
Loss from operations
before provision for (benefit from) income taxes
|
|
|
(2,742)
|
|
|
|
(415)
|
|
|
|
(4,602)
|
|
|
|
(274)
|
|
Provision for
(benefit from) income taxes
|
|
|
8
|
|
|
|
(87)
|
|
|
|
14
|
|
|
|
(47)
|
|
Net loss
|
|
$
|
(2,750)
|
|
|
$
|
(328)
|
|
|
$
|
(4,616)
|
|
|
$
|
(227)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.24)
|
|
|
$
|
(0.03)
|
|
|
$
|
(0.40)
|
|
|
$
|
(0.02)
|
|
Diluted
|
|
$
|
(0.24)
|
|
|
$
|
(0.03)
|
|
|
$
|
(0.40)
|
|
|
$
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in computing net loss per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
11,546
|
|
|
|
10,085
|
|
|
|
11,532
|
|
|
|
10,060
|
|
Diluted
|
|
|
11,546
|
|
|
|
10,085
|
|
|
|
11,532
|
|
|
|
10,060
|
|
IRIDEX
Corporation
|
Condensed
Consolidated Balance Sheets
|
(In thousands and
unaudited)
|
|
|
|
July
1,
|
|
|
December
31,
|
|
|
|
2017
|
|
|
2016
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
24,594
|
|
|
$
|
23,747
|
|
Accounts receivable,
net
|
|
|
7,049
|
|
|
|
10,025
|
|
Inventories
|
|
|
11,388
|
|
|
|
11,643
|
|
Prepaids and other
current assets
|
|
|
488
|
|
|
|
450
|
|
Total current
assets
|
|
|
43,519
|
|
|
|
45,865
|
|
Property and
equipment, net
|
|
|
1,561
|
|
|
|
1,534
|
|
Intangible assets,
net
|
|
|
124
|
|
|
|
132
|
|
Goodwill
|
|
|
533
|
|
|
|
533
|
|
Other long-term
assets
|
|
|
49
|
|
|
|
80
|
|
Total
assets
|
|
$
|
45,786
|
|
|
$
|
48,144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,781
|
|
|
$
|
1,994
|
|
Accrued
compensation
|
|
|
2,158
|
|
|
|
2,346
|
|
Accrued
expenses
|
|
|
1,804
|
|
|
|
2,135
|
|
Accrued
warranty
|
|
|
666
|
|
|
|
603
|
|
Deferred
revenue
|
|
|
1,345
|
|
|
|
1,383
|
|
Total current
liabilities
|
|
|
7,754
|
|
|
|
8,461
|
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
Other long-term
liabilities
|
|
|
442
|
|
|
|
523
|
|
Total
liabilities
|
|
|
8,196
|
|
|
|
8,984
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
126
|
|
|
|
124
|
|
Additional paid-in
capital
|
|
|
58,202
|
|
|
|
55,158
|
|
Accumulated
deficit
|
|
|
(20,738)
|
|
|
|
(16,122)
|
|
Total
stockholders' equity
|
|
|
37,590
|
|
|
|
39,160
|
|
Total
liabilities and stockholders' equity
|
|
$
|
45,786
|
|
|
$
|
48,144
|
|
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SOURCE IRIDEX Corporation