Iridex Announces Second Quarter 2022 Financial Results
August 15 2022 - 4:05PM
Iridex Corporation (Nasdaq: IRIX) today reported financial results
for the second quarter ended July 2, 2022.
Second Quarter 2022 Highlights
- Total revenue of $13.8 million, an increase of 2% over the
prior year period
- Gross Margin was 45.6% compared to 45.5% in the prior year
period
- Cyclo G6® product family revenue of $3.5 million, a decrease of
3% year-over-year
- 15,000 Cyclo G6 probes sold, a 6% decrease year-over-year and a
2% increase quarter-over-quarter
- 48 Cyclo G6 Glaucoma Laser Systems sold, compared to 47 in the
prior year quarter
- Retina product revenue was relatively flat year-over-year at
$7.5 million
- Net Cash use of $2.7 million resulting in cash balance on July
2, 2022 of $18.0 million
- Cash reduction includes $1.1 million increase in inventories to
mitigate against potential supply-chain issues
- Achieved regulatory clearance to market and sell the Cyclo G6
Platform in China
- Sold initial systems and probes and conducted clinical launch
meetings with 70 physicians
- Hired new VP of Marketing and added five sales reps
worldwide
“Softer growth in the second quarter of 2022 demonstrates the
tougher business environment we faced after several quarters of
strong results and record revenue. Macro headwinds impacted our
international business and a COVID surge hampered procedure volumes
during the second half of the quarter as capacity limitations and
patient cancellations rose,” said David Bruce, President and CEO.
“The continued traction we are achieving, however, with our
strengthened U.S. and international commercial network leaves us
confident we are tracking for a stronger second half of the year.
We continue to make steady progress building physician adoption of
our non-incisional approach to treating glaucoma and retinal
disease worldwide.”
“In June we achieved regulatory clearance to market and sell our
Cyclo G6 platform in China by its National Medical Products
Administration (NMPA). This long-anticipated milestone is a
significant catalyst for Iridex as it opens up a vast new
population of glaucoma patients that can benefit from our
MicroPulse Transcleral Laser Therapy (TLT),” continued Bruce. “We
are also excitedly preparing for the launch of our new suite of
retina laser systems at the upcoming AAO Conference starting
September 30th.”
Second Quarter 2022 Financial ResultsRevenue
for the three months ended July 2, 2022, increased 2% to $13.8
million from $13.4 million during the same period of the prior
year.
Total product revenue from the Cyclo G6 glaucoma product family
was $3.5 million, 3% lower than second quarter of 2021. The
year-over-year decline was driven by lower OUS probe sales relative
to a record high in Q2 2021 but was still the second highest OUS
volume on record. Retina product revenue in the second quarter was
$7.5 million compared to $7.6 million in the prior year. Other
revenue, which includes royalties, services, and other legacy
products, increased 22% to $2.7 million in the second quarter of
2022 compared to the same period in 2021. The increase in other
revenue resulted from higher amortized revenue recognition from the
sale of distribution rights to Topcon plus higher service and other
product revenue.
Gross profit for the second quarter of 2022 increased 3% to $6.3
million, or a 45.6% gross margin, compared to $6.1 million, a 45.5%
gross margin in the same period of the prior year.
Operating expenses for the second quarter of 2022 increased 16%
to $8.4 million compared to $7.2 million in the same period of the
prior year. The increase is the result of the expansion of sales
and marketing programs and in continued R&D investment in
PASCAL, as well as other new product development initiatives.
Net loss for the second quarter of 2022 was $2.2 million, or
$0.14 per share, compared to a net income of $1.4 million or $0.09
per share, in the same period of the prior year. The net income
last year was due to one-time inclusion of $2.5 million
non-operating gain from PPP loan forgiveness.
Updated Guidance for Full Year 2022Iridex now
expects total revenue for fiscal year 2022 to range from $56
million to $58 million, reflecting growth of 4% to 8% over fiscal
year 2021. This compares to the previous range of $57 million to
$59 million. Cyclo G6 probe sales are now expected to range from
61,000 to 63,000, representing 5% to 8% growth. This compares to
the previous range of 67,000 to 70,000. The Company continues to
expect Glaucoma Laser System installed base to expand by 225 to 250
in 2022.
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. Individuals interested in listening to the
conference call may do so by registering here. Participants are
required to register at a minimum 15 minutes before the start of
the call. To listen to the live webcast and a replay, please visit
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 clinical and commercial momentum, market adoption and
expansion, demand for and utilization of the Company's products,
financial guidance and results and expected sales volumes. 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 Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission on May 12, 2022.
Investor Relations ContactHunter
Cabiinvestors@iridex.com
IRIDEX
CorporationCondensed Consolidated Statements of
Operations(In thousands, except per share
data)(unaudited)
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
July 2, |
|
|
July 3, |
|
|
July 2, |
|
|
July 3, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
$ |
13,755 |
|
|
$ |
13,426 |
|
|
$ |
27,142 |
|
|
$ |
25,385 |
|
Cost of revenues |
|
|
7,488 |
|
|
|
7,318 |
|
|
|
14,898 |
|
|
|
14,338 |
|
Gross profit |
|
|
6,267 |
|
|
|
6,108 |
|
|
|
12,244 |
|
|
|
11,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
1,922 |
|
|
|
1,672 |
|
|
|
4,038 |
|
|
|
2,837 |
|
Sales and marketing |
|
|
4,607 |
|
|
|
3,646 |
|
|
|
8,907 |
|
|
|
6,628 |
|
General and administrative |
|
|
1,898 |
|
|
|
1,928 |
|
|
|
3,736 |
|
|
|
4,561 |
|
Total operating expenses |
|
|
8,427 |
|
|
|
7,246 |
|
|
|
16,681 |
|
|
|
14,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(2,160 |
) |
|
|
(1,138 |
) |
|
|
(4,437 |
) |
|
|
(2,979 |
) |
Other (expense) income,
net |
|
|
(64 |
) |
|
|
2,539 |
|
|
|
(158 |
) |
|
|
2,378 |
|
(Loss) income from operations
before provision for income taxes |
|
|
(2,224 |
) |
|
|
1,401 |
|
|
|
(4,595 |
) |
|
|
(601 |
) |
Provision for income
taxes |
|
|
17 |
|
|
|
8 |
|
|
|
37 |
|
|
|
16 |
|
Net (loss) income |
|
$ |
(2,241 |
) |
|
$ |
1,393 |
|
|
$ |
(4,632 |
) |
|
$ |
(617 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.14 |
) |
|
$ |
0.09 |
|
|
$ |
(0.29 |
) |
|
$ |
(0.04 |
) |
Diluted |
|
$ |
(0.14 |
) |
|
$ |
0.09 |
|
|
$ |
(0.29 |
) |
|
$ |
(0.04 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used
in computing net (loss) income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
15,894 |
|
|
|
15,647 |
|
|
|
15,888 |
|
|
|
14,996 |
|
Diluted |
|
|
15,894 |
|
|
|
16,307 |
|
|
|
15,888 |
|
|
|
14,996 |
|
IRIDEX Corporation
Condensed Consolidated Balance Sheets(In thousands
and unaudited)
|
|
July 2, |
|
|
January 1, |
|
|
|
2022 |
|
|
2022 |
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
17,966 |
|
|
$ |
23,852 |
|
Accounts receivable, net |
|
|
9,237 |
|
|
|
9,716 |
|
Inventories |
|
|
10,176 |
|
|
|
7,614 |
|
Prepaid expenses and other current assets |
|
|
2,065 |
|
|
|
1,071 |
|
Total current assets |
|
|
39,444 |
|
|
|
42,253 |
|
Property and equipment,
net |
|
|
431 |
|
|
|
428 |
|
Intangible assets, net |
|
|
2,109 |
|
|
|
2,205 |
|
Goodwill |
|
|
965 |
|
|
|
965 |
|
Operating lease right-of-use
assets, net |
|
|
2,098 |
|
|
|
2,565 |
|
Other long-term assets |
|
|
599 |
|
|
|
271 |
|
Total assets |
|
$ |
45,646 |
|
|
$ |
48,687 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
3,992 |
|
|
$ |
3,399 |
|
Accrued compensation |
|
|
2,303 |
|
|
|
3,192 |
|
Accrued expenses |
|
|
1,697 |
|
|
|
1,575 |
|
Other current expenses |
|
|
868 |
|
|
|
1,098 |
|
Accrued warranty |
|
|
131 |
|
|
|
100 |
|
Deferred revenue |
|
|
2,367 |
|
|
|
2,355 |
|
Operating lease liabilities |
|
|
994 |
|
|
|
927 |
|
Total current liabilities |
|
|
12,352 |
|
|
|
12,646 |
|
|
|
|
|
|
|
|
|
|
Long-term liabilities: |
|
|
|
|
|
|
|
|
Accrued warranty |
|
|
76 |
|
|
|
58 |
|
Deferred revenue |
|
|
12,540 |
|
|
|
10,930 |
|
Operating lease liabilities |
|
|
1,222 |
|
|
|
1,729 |
|
Other long-term liabilities |
|
|
24 |
|
|
|
25 |
|
Total liabilities |
|
|
26,214 |
|
|
|
25,388 |
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
Common stock |
|
|
169 |
|
|
|
168 |
|
Additional paid-in capital |
|
|
85,935 |
|
|
|
85,255 |
|
Accumulated other comprehensive income |
|
|
129 |
|
|
|
45 |
|
Accumulated deficit |
|
|
(66,801 |
) |
|
|
(62,169 |
) |
Total stockholders' equity |
|
|
19,432 |
|
|
|
23,299 |
|
Total liabilities and stockholders' equity |
|
$ |
45,646 |
|
|
$ |
48,687 |
|
IRIDEX (NASDAQ:IRIX)
Historical Stock Chart
From Jul 2024 to Aug 2024
IRIDEX (NASDAQ:IRIX)
Historical Stock Chart
From Aug 2023 to Aug 2024