false000071893700007189372024-05-072024-05-07

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported): May 7, 2024

 

 

STAAR Surgical Company

(Exact Name of Registrant as Specified in Charter)

 

 

Delaware

0-11634

95-3797439

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

 

 

 

25651 Atlantic Ocean Drive

Lake Forest, California

92630

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s Telephone Number, Including Area Code: 626-303-7902

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common

STAA

NASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1 933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 


Item 2.02 Results of Operations and Financial Condition.

 

On May 7, 2024, STAAR Surgical Company (the “Company”) published a press release reporting its financial results for the quarter ended March 29, 2024, a copy of which is furnished as Exhibit 99.1 to this report and is incorporated herein by this reference.

 

Item 7.01 Regulation FD Disclosure.

 

During a conference call and webcast scheduled to be held at 4:15 p.m. Eastern / 1:15 p.m. Pacific on May 7, 2024, the Company’s Chair of the Board, President and Chief Executive Officer, and the Company's Chief Financial Officer will discuss the Company’s results for the quarter ended March 29, 2024 and the Company’s outlook for fiscal year 2024. The Company’s slide presentation for the conference call and webcast is furnished as Exhibit 99.2 to this Current Report.

The information furnished herewith pursuant to Items 2.02 and 7.01 of this Current Report, including Exhibits 99.1 and 99.2, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information in Items 2.02 and 7.01 of this Current Report shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date of this Current Report, regardless of any general incorporation language in the filing.

 

Item 9.01 Financial Statements and Exhibits

Exhibit No.

Description

 

 

 

99.1

Press release of the Company dated May 7, 2024.

 

 

 

99.2

 

Slide presentation of the Company dated May 7, 2024.

 

 

 

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document).

 


SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

STAAR Surgical Company

May 7, 2024

By:

/s/ Tom Frinzi

Thomas G. Frinzi

President and Chief Executive Officer

 


Exhibit 99.1

img177331332_0.jpg 

STAAR Surgical Reports First Quarter 2024 Results

EVO ICL™ Continues to Outpace Refractive Industry Growth

Record Quarterly U.S. Sales and Multiple Strategic Agreements Secured

Reiterates Fiscal 2024 Net Sales Outlook and Increases Adjusted EBITDA

 

LAKE FOREST, CA, May 7, 2024 --- STAAR Surgical Company (NASDAQ: STAA), a leading developer, manufacturer and marketer of the EVO family of Implantable Collamer® Lenses (EVO ICL™) for myopia, astigmatism and presbyopia, today reported financial results for the first quarter ended March 29, 2024.

First Quarter 2024 Overview

Net sales up 5% to $77.4 million and up 7% in constant currency
ICL sales up 9% and units up 2%
Gross margin at 78.9% vs. 78.3% year ago
Net loss of $3.3 million or $0.07 loss per share vs. net income of $2.7 million or $0.05 income per share year ago
Adjusted EBITDA of $5.3 million or $0.11 per share vs. $10.0 million or $0.20 per share year ago
Record cash, cash equivalents and investments available for sale of $252.1 million at March 29, 2024

 

“Our first quarter results illustrate the impact of our commercial focus, which is driving continued market adoption and share gains of our EVO ICL,” said Tom Frinzi, President and CEO of STAAR Surgical. “Our strategic investments in people and processes in recent quarters are now bearing fruit. We are very pleased by the quickening pace of our momentum to start 2024, marked by several significant business milestones, including today’s announcement of the largest-ever practice commitment to EVO ICL in the U.S.”

Mr. Frinzi continued, “In the first quarter, STAAR continued to capture market share during a challenging macroeconomic environment for our surgeon customers and their patients. We saw strong momentum and remain well positioned to capitalize on our growth opportunities. In the U.S., sales were $5 million in the quarter, up 15% year over year and 21% sequentially. In APAC, we generated 9% sales growth, which was above our expectations, including 10% growth in China. Our EMEA region exceeded our expectations during the quarter, generating 11% sales growth with Belgium and the Netherlands joining China and Japan with a 20%+ share of refractive industry procedures1. Spain, one of Europe’s largest markets for refractive vision correction, is also quickly approaching 20% market share. The investments in our European markets started just a few years ago and are now paying off. For fiscal 2024, we are reiterating our net sales outlook range of $335 million to $340 million and expect, based on current trends, to be at the higher end of the range.”

 

First Quarter 2024 Financial Results

 

Net sales were $77.4 million for the first quarter of 2024, up 5% compared to $73.5 million reported in the prior year quarter. The sales increase in the first quarter was driven by ICL sales growth of $6.5 million, up 9%, and unit growth of 2% as compared to the prior year period. Cataract IOL and Other Product sales were down $2.7 million as compared to the prior year period. The Company exited its cataract IOL business in fiscal 2023.

 

 


 

 

Gross profit margin for the first quarter of 2024 was 78.9% of net sales compared to the prior year quarter of 78.3% of net sales. Product and country mix favorably impacted gross margin in the first quarter of 2024 as compared to the prior year quarter.

 

Operating expenses for the first quarter of 2024 were $63.3 million compared to the prior year quarter of $54.8 million. General and administrative expenses were $23.2 million compared to the prior year quarter of $18.1 million. The increase in general and administrative expenses was due to increased outside services and facilities costs. Selling and marketing expenses were $26.7 million compared to the prior year quarter of $26.4 million. The increase in selling and marketing expenseswas due to increased compensation-related expenses, trade shows and meetings expenses offset by decreased advertising and promotional activities. Research and development expenses were $13.4 million compared to the prior year quarter of $10.3 million. The increase in research and development expenses was due primarily to increased compensation-related expenses.

 

Operating loss for the first quarter of 2024 was $2.3 million or 2.9% of net sales as compared to operating income of $2.8 million or 3.8% of net sales for the first quarter of 2023.

 

Net loss for the first quarter of 2024 was $3.3 million or $0.07 loss per share compared with net income of $2.7 million or $0.05 income per share for the prior year quarter. The decrease in net income was attributable to increased SG&A expenses and losses on foreign currency transactions, partially offset by higher gross profit.

 

Cash, cash equivalents and investments available for sale at March 29, 2024, totaled $252.1 million, compared to $232.4 million at December 29, 2023.

 

Outlook

The Company reiterated its prior outlook for fiscal year 2024 net sales and increased its outlook for Adjusted EBITDA. The Company now expects the following for fiscal year 2024:

Net sales of $335 million to $340 million.
Adjusted EBITDA of approximately $39 million and Adjusted EBITDA per diluted share of approximately $0.75, compared to prior outlook of Adjusted EBITDA of approximately $36 million and Adjusted EBITDA per diluted share of approximately $0.70.

The outlook above contemplates EVO ICL sales growth of approximately 7% in APAC, including 10% in China; 10% growth in the Americas, including 10% in the U.S.; and EMEA sales consistent with fiscal year 2023.

 

Conference Call

The Company will host a conference call and webcast today, Tuesday, May 7 at 4:15 p.m. Eastern / 1:15 p.m. Pacific to discuss its financial results and operational progress. To access the conference call please dial 833-816-1164 for domestic participants and 412-317-1899 for international participants. No access code is required. Please ask to be joined into the STAAR Surgical Company call. The live webcast can be accessed from the investor relations section of the STAAR website at www.staar.com.

A taped replay of the conference call (Access Code 3030937) will be available for seven days beginning approximately one hour after the call’s conclusion. This replay can be accessed by dialing 877-344-7529 for domestic callers and 412-317-0088 for international callers. An archived webcast will also be available at www.staar.com.

 

1 Company estimates as of April 6, 2024, includes Spain refractive procedure market share of approximately 18%.

 

 

 


 

 

Use of Non-GAAP Financial Measures

 

To supplement the Company’s financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables include certain non-GAAP financial measures, including Adjusted EBITDA. Management uses these non-GAAP financial measures in its evaluation of Company operating performance and believes investors will find them useful in evaluating the Company’s operating performance, including cash flow generation, and in analyzing period-to-period financial performance of core business operations and underlying business trends. Non-GAAP financial measures are in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

EBITDA is a non-GAAP financial measure, which is calculated by adding interest income and expense, net; provision for income taxes; and depreciation and amortization to net income. In calculating Adjusted EBITDA and Adjusted EBITDA per diluted share, the Company further adjusts for stock-based compensation expense. As stock-based compensation is a non-cash expense that can vary significantly based on the timing, size and nature of awards granted, the Company believes that the exclusion of stock-based compensation expense can assist investors in comparisons of Company operating results with other peer companies because (i) the amount of such expense in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such expense can vary significantly between periods as a result of the timing of grants of new stock-based awards, including inducement grants in connection with hiring. Additionally, the Company believes that excluding stock-based compensation from Adjusted EBITDA and Adjusted EBITDA per diluted share assists management and investors in making meaningful comparisons between the Company’s operating performance and the operating performance of other companies that may use different forms of employee compensation or different valuation methodologies for their stock-based compensation. Investors should note that stock-based compensation is a key incentive offered to employees whose efforts contributed to the operating results in the periods presented and are expected to contribute to operating results in future periods. Investors should also note that such expenses will recur in the future.

The Company also presents certain financial information on a constant currency basis, which is intended to exclude the effects of foreign currency fluctuations. The Company conducts a significant part of its activities outside the U.S. It receives sales revenue and pays expenses principally in U.S. dollars, Swiss francs, Japanese yen and euros. The exchange rates between dollars and non-U.S. currencies can fluctuate greatly and can have a significant effect on the Company’s results when reported in U.S. dollars. In order to compare the Company's performance from period to period without the effect of currency, the Company will apply the same average exchange rate applicable in the prior period, or the “constant currency” rate to sales or expenses in the current period as well.

In the tables provided below, the Company has included a reconciliation of Adjusted EBITDA and Adjusted EBITDA per diluted share to net income and net income per diluted share, the most directly comparable GAAP financial measure, as well as supplemental financial information with net sales expressed in constant currency. The Company has also provided a reconciliation of forward-looking Adjusted EBITDA and Adjusted EBITDA per diluted share to net income and net income per diluted share. This represents forward-looking information, and actual results may vary. Please see the risks and assumptions referred to in the Safe Harbor section of this press release.

 

About STAAR Surgical

STAAR, which has been dedicated solely to ophthalmic surgery for over 40 years, designs, develops, manufactures and markets implantable lenses for the eye. These lenses are intended to provide visual freedom for patients, lessening or eliminating the reliance on glasses or contact lenses. All of these lenses are foldable, which permits the surgeon to insert them through a small incision. STAAR’s lens used in refractive surgery is called an Implantable Collamer® Lens or “ICL,” which includes the EVO ICL™ product line. More than 3,000,000 ICLs have been sold to date and STAAR markets these lenses in over 75 countries. To learn more about the ICL go to: EVOICL.com. Headquartered

 

 


 

 

in Lake Forest, CA, the company operates manufacturing and packaging facilities in Aliso Viejo, CA, Monrovia, CA and Nidau, Switzerland. For more information, please visit the Company’s website at www.staar.com.

 

Safe Harbor

 

All statements that are not statements of historical fact are forward-looking statements, including statements about any of the following: any financial projections, anticipated financial results, estimates and outlook (including as to net sales, Adjusted EBITDA, and Adjusted EBITDA per diluted share), plans, strategies, and objectives of management for 2024 and beyond or prospects for achieving such plans, expectations for sales, revenue, margin, expenses or earnings, and any statements of assumptions underlying any of the foregoing, including those relating to financial performance in the upcoming quarter, fiscal year 2024 and beyond. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include risks and uncertainties related to global economic conditions, as well as the factors set forth in the Company’s Annual Report on Form 10-K for the year ended December 29, 2023 under the caption “Risk Factors,” which is on file with the Securities and Exchange Commission and available in the “Investor Information” section of the company’s website under the heading “SEC Filings.” We disclaim any intention or obligation to update or revise any financial projections or forward-looking statement due to new information or events. These statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. The risks and uncertainties include the following: global economic conditions; the impact of COVID-19; the discretion of regulatory agencies to approve or reject existing, new or improved products, or to require additional actions before or after approval, or to take enforcement action; international conflicts, trade disputes and substantial dependence on demand from Asia; and the willingness of surgeons and patients to adopt a new or improved product and procedure.

 

We intend to use our website as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included on our website in the ‘Investor Relations’ sections. Accordingly, investors should monitor such portions of our website, in addition to following our press releases, SEC filings and public conference calls and webcasts.

 

CONTACT:

Investors & Media

 

Brian Moore

 

Vice President, Investor Relations and Corporate Development

 

(626) 303-7902, Ext. 3023

 

bmoore@staar.com

 

 

 

 


 

 

Consolidated Balance Sheets

 

 

 

 

 

 

(in 000's)

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

March 29, 2024

 

 

December 29, 2023

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

224,024

 

 

$

183,038

 

Investments available for sale

 

 

21,125

 

 

 

37,688

 

Accounts receivable trade, net

 

 

64,604

 

 

 

94,704

 

Inventories, net

 

 

38,581

 

 

 

35,130

 

Prepayments, deposits, and other current assets

 

 

17,381

 

 

 

14,709

 

   Total current assets

 

 

365,715

 

 

 

365,269

 

Investments available for sale

 

 

6,963

 

 

 

11,703

 

Property, plant, and equipment, net

 

 

72,337

 

 

 

66,835

 

Finance lease right-of-use assets, net

 

 

146

 

 

 

183

 

Operating lease right-of-use assets, net

 

 

34,600

 

 

 

34,387

 

Goodwill

 

 

1,786

 

 

 

1,786

 

Deferred income taxes

 

 

5,125

 

 

 

5,190

 

Other assets

 

 

5,863

 

 

 

3,339

 

   Total assets

 

$

492,535

 

 

$

488,692

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

16,560

 

 

$

13,557

 

Obligations under finance leases

 

 

166

 

 

 

165

 

Obligations under operating leases

 

 

4,403

 

 

 

4,202

 

Allowance for sales returns

 

 

6,284

 

 

 

6,174

 

Other current liabilities

 

 

35,261

 

 

 

40,938

 

   Total current liabilities

 

 

62,674

 

 

 

65,036

 

 

 

 

 

 

 

 

Obligations under finance leases

 

 

-

 

 

 

42

 

Obligations under operating leases

 

 

31,126

 

 

 

31,425

 

Deferred income taxes

 

 

1,074

 

 

 

1,077

 

Asset retirement obligations

 

 

96

 

 

 

103

 

Pension liability

 

 

4,777

 

 

 

5,055

 

   Total liabilities

 

 

99,747

 

 

 

102,738

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Common stock

 

 

491

 

 

 

488

 

Additional paid-in capital

 

 

447,716

 

 

 

436,947

 

Accumulated other comprehensive loss

 

 

(4,712

)

 

 

(4,113

)

Accumulated deficit

 

 

(50,707

)

 

 

(47,368

)

   Total stockholders' equity

 

 

392,788

 

 

 

385,954

 

   Total liabilities and stockholders' equity

 

$

492,535

 

 

$

488,692

 

 

 

 


 

 

Consolidated Statements of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in 000's except for per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date

 

 

 

% of Sales

 

 

March 29, 2024

 

 

% of Sales

 

 

March 31, 2023

 

 

Fav (Unfav) Amount

 

 

%

 

Net sales

 

 

100.0

%

 

$

77,356

 

 

 

100.0

%

 

$

73,528

 

 

$

3,828

 

 

 

5.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

21.1

%

 

 

16,321

 

 

 

21.7

%

 

 

15,966

 

 

 

(355

)

 

 

(2.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

78.9

%

 

 

61,035

 

 

 

78.3

%

 

 

57,562

 

 

 

3,473

 

 

 

6.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  General and administrative

 

 

30.0

%

 

 

23,228

 

 

 

24.7

%

 

 

18,098

 

 

 

(5,130

)

 

 

(28.3

)%

  Selling and marketing

 

 

34.5

%

 

 

26,708

 

 

 

35.8

%

 

 

26,354

 

 

 

(354

)

 

 

(1.3

)%

  Research and development

 

 

17.3

%

 

 

13,380

 

 

 

14.0

%

 

 

10,310

 

 

 

(3,070

)

 

 

(29.8

)%

    Total selling, general, and administrative expenses

 

 

81.8

%

 

 

63,316

 

 

 

74.5

%

 

 

54,762

 

 

 

(8,554

)

 

 

(15.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

-2.9

%

 

 

(2,281

)

 

 

3.8

%

 

 

2,800

 

 

 

(5,081

)

 

 

(181.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Interest income, net

 

 

2.0

%

 

 

1,529

 

 

 

2.5

%

 

 

1,822

 

 

 

(293

)

 

 

(16.1

)%

  Gain (loss) on foreign currency transactions

 

 

-3.0

%

 

 

(2,297

)

 

 

0.0

%

 

 

34

 

 

 

(2,331

)

 

 

(6855.9

)%

  Royalty income

 

 

0.7

%

 

 

508

 

 

 

0.0

%

 

 

-

 

 

 

508

 

 

 

0.0

%

  Other income, net

 

 

0.4

%

 

 

330

 

 

 

0.1

%

 

 

63

 

 

 

267

 

 

 

423.8

%

    Total other income, net

 

 

0.1

%

 

 

70

 

 

 

2.6

%

 

 

1,919

 

 

 

(1,849

)

 

 

(96.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before provision for income taxes

 

 

-2.8

%

 

 

(2,211

)

 

 

6.4

%

 

 

4,719

 

 

 

(6,930

)

 

 

(146.9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

1.5

%

 

 

1,128

 

 

 

2.7

%

 

 

2,009

 

 

 

881

 

 

 

43.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 

-4.3

%

 

 

(3,339

)

 

 

3.7

%

 

 

2,710

 

 

 

(6,049

)

 

 

(223.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share - basic

 

 

 

 

 

(0.07

)

 

 

 

 

 

0.06

 

 

 

 

 

 

 

Net income (loss) per share - diluted

 

 

 

 

 

(0.07

)

 

 

 

 

 

0.05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

 

 

 

 

48,907

 

 

 

 

 

 

48,247

 

 

 

 

 

 

 

Weighted average shares outstanding - diluted

 

 

 

 

 

48,907

 

 

 

 

 

 

49,500

 

 

 

 

 

 

 

 

 


 

 

Consolidated Statements of Cash Flows

 

 

 

 

 

 

(in 000's)

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date

 

 

 

March 29, 2024

 

 

March 31, 2023

 

Cash flows from operating activities:

 

 

 

 

 

 

Net income (loss)

 

$

(3,339

)

 

$

2,710

 

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

 

 

 

 

 

 

Depreciation of property and equipment

 

 

1,237

 

 

 

1,113

 

Amortization of long-lived intangibles

 

 

-

 

 

 

7

 

Accretion/Amortization of investments available for sale

 

 

(120

)

 

 

(983

)

Deferred income taxes

 

 

61

 

 

 

57

 

Change in net pension liability

 

 

(93

)

 

 

(13

)

Stock-based compensation expense

 

 

6,339

 

 

 

6,065

 

Provision for sales returns and bad debts

 

 

128

 

 

 

(377

)

Inventory provision

 

 

646

 

 

 

614

 

Changes in working capital:

 

 

 

 

 

 

Accounts receivable

 

 

29,837

 

 

 

(1,110

)

Inventories

 

 

(4,002

)

 

 

(3,920

)

Prepayments, deposits and other assets

 

 

(5,485

)

 

 

(4,249

)

Accounts payable

 

 

1,519

 

 

 

(3,168

)

Other current liabilities

 

 

(5,048

)

 

 

(1,840

)

Net cash provided by (used in) operating activities

 

 

21,680

 

 

 

(5,094

)

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

Acquisition of property and equipment

 

 

(5,202

)

 

 

(2,901

)

Purchase of investments available for sale

 

 

-

 

 

 

(27,445

)

Proceeds from sale or maturity of investments available for sale

 

 

21,389

 

 

 

40,279

 

Net provided by investing activities

 

 

16,187

 

 

 

9,933

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

Repayment of finance lease obligations

 

 

(40

)

 

 

(42

)

Repurchase of employee common stock for taxes withheld

 

 

(1,229

)

 

 

(1,849

)

Proceeds from vested restricted stock and exercise of stock options

 

 

5,325

 

 

 

530

 

Net cash provided by (used in) financing activities

 

 

4,056

 

 

 

(1,361

)

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(937

)

 

 

10

 

 

 

 

 

 

 

 

Increase in cash and cash equivalents

 

 

40,986

 

 

 

3,488

 

Cash and cash equivalents, at beginning of the period

 

 

183,038

 

 

 

86,480

 

Cash and cash equivalents, at end of the period

 

$

224,024

 

 

$

89,968

 

 

 

 


 

 

Reconciliation of Non-GAAP Financial Measure

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income to Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in 000's except for per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

Q1-22

 

 

Q2-22

 

 

Q3-22

 

 

Q4-22

 

 

2022

 

 

Q1-23

 

 

Q2-23

 

 

Q3-23

 

 

Q4-23

 

 

2023

 

 

Q1-24

 

 

2024 Outlook(2)

 

Net income - (as reported)

 

$

27,511

 

 

$

9,602

 

 

$

13,038

 

 

$

10,262

 

 

$

6,763

 

 

$

39,665

 

 

$

2,710

 

 

$

6,064

 

 

$

4,817

 

 

$

7,756

 

 

$

21,347

 

 

$

(3,339

)

 

$

-

 

Provision (benefit) for income taxes

 

 

3,793

 

 

 

1,925

 

 

 

2,431

 

 

 

2,315

 

 

 

(784

)

 

 

5,887

 

 

 

2,009

 

 

 

2,428

 

 

 

1,929

 

 

 

5,983

 

 

 

12,349

 

 

 

1,128

 

 

 

4,500

 

Other (income) expense, net

 

 

2,035

 

 

 

586

 

 

 

1,551

 

 

 

1,128

 

 

 

(5,015

)

 

 

(1,750

)

 

 

(1,919

)

 

 

105

 

 

 

(451

)

 

 

(3,334

)

 

 

(5,599

)

 

 

(70

)

 

 

-

 

Depreciation

 

 

3,608

 

 

 

994

 

 

 

1,030

 

 

 

1,077

 

 

 

1,380

 

 

 

4,481

 

 

 

1,113

 

 

 

1,285

 

 

 

1,345

 

 

 

1,368

 

 

 

5,111

 

 

 

1,237

 

 

 

4,300

 

Amortization of intangible assets

 

 

34

 

 

 

8

 

 

 

7

 

 

 

7

 

 

 

6

 

 

 

28

 

 

 

7

 

 

 

10

 

 

 

(2

)

 

 

(2

)

 

 

13

 

 

 

-

 

 

 

-

 

Stock-based compensation

 

 

14,605

 

 

 

3,894

 

 

 

5,754

 

 

 

5,727

 

 

 

4,996

 

 

 

20,371

 

 

 

6,065

 

 

 

8,423

 

 

 

8,846

 

 

 

182

 

 

 

23,516

 

 

 

6,339

 

 

 

30,300

 

Adjusted EBITDA

 

$

51,586

 

 

$

17,009

 

 

$

23,811

 

 

$

20,516

 

 

$

7,346

 

 

$

68,682

 

 

$

9,985

 

 

$

18,315

 

 

$

16,484

 

 

$

11,953

 

 

$

56,737

 

 

$

5,295

 

 

$

39,100

 

Adjusted EBITDA as a % of Revenue

 

 

22.4

%

 

 

26.9

%

 

 

29.4

%

 

 

27.0

%

 

 

11.5

%

 

 

24.2

%

 

 

13.6

%

 

 

19.8

%

 

 

20.5

%

 

 

15.7

%

 

 

17.6

%

 

 

6.8

%

 

10.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share, diluted- (as reported)

 

$

0.56

 

 

$

0.19

 

 

$

0.26

 

 

$

0.21

 

 

$

0.14

 

 

$

0.80

 

 

$

0.05

 

 

$

0.12

 

 

$

0.10

 

 

$

0.16

 

 

$

0.43

 

 

$

(0.07

)

 

$

-

 

Provision (benefit) for income taxes

 

 

0.08

 

 

 

0.04

 

 

 

0.05

 

 

 

0.05

 

 

 

(0.02

)

 

 

0.12

 

 

 

0.04

 

 

 

0.05

 

 

 

0.04

 

 

 

0.12

 

 

 

0.25

 

 

 

0.02

 

 

 

0.09

 

Other (income) expense, net

 

 

0.04

 

 

 

0.01

 

 

 

0.03

 

 

 

0.02

 

 

 

(0.10

)

 

 

(0.04

)

 

 

(0.04

)

 

 

-

 

 

 

(0.01

)

 

 

(0.07

)

 

 

(0.11

)

 

 

-

 

 

 

-

 

Depreciation

 

 

0.07

 

 

 

0.02

 

 

 

0.02

 

 

 

0.02

 

 

 

0.03

 

 

 

0.09

 

 

 

0.02

 

 

 

0.03

 

 

 

0.03

 

 

 

0.03

 

 

 

0.10

 

 

 

0.03

 

 

 

0.08

 

Amortization of intangible assets

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Stock-based compensation

 

 

0.30

 

 

 

0.08

 

 

 

0.12

 

 

 

0.12

 

 

 

0.10

 

 

 

0.41

 

 

 

0.12

 

 

 

0.17

 

 

 

0.18

 

 

 

-

 

 

 

0.48

 

 

 

0.13

 

 

 

0.58

 

Adjusted EBITDA per share, diluted(1)

 

$

1.04

 

 

$

0.35

 

 

$

0.48

 

 

$

0.41

 

 

$

0.15

 

 

$

1.39

 

 

$

0.20

 

 

$

0.37

 

 

$

0.33

 

 

$

0.24

 

 

$

1.15

 

 

$

0.11

 

 

$

0.75

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - Diluted

 

 

49,456

 

 

 

49,288

 

 

 

49,223

 

 

 

49,549

 

 

 

49,389

 

 

 

49,380

 

 

 

49,500

 

 

 

49,516

 

 

 

49,370

 

 

 

49,242

 

 

 

49,427

 

 

 

49,275

 

 

 

52,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)  Adjusted EBITDA per diluted share may not add due to rounding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) 2024 Adjusted EBITDA Outlook line items are all approximations and assumes breakeven Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

ICL Sales by Geography

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in 000's)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

 

Three Months Ended

 

ICL Sales by Region(5)

 

2021

 

 

2022

 

 

2023

 

 

March 31, 2023

 

 

June 30, 2023

 

 

September 29, 2023

 

 

December 29, 2023

 

 

March 29, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas(1)

 

$

14,054

 

 

$

20,114

 

 

$

22,233

 

 

$

5,566

 

 

$

5,954

 

 

$

5,449

 

 

$

5,264

 

 

$

6,260

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA(2)

 

 

37,343

 

 

 

36,715

 

 

 

39,318

 

 

 

10,180

 

 

 

9,782

 

 

 

9,253

 

 

 

10,103

 

 

 

11,299

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

APAC(3)

 

 

161,508

 

 

 

212,883

 

 

 

257,876

 

 

 

54,879

 

 

 

77,376

 

 

 

66,367

 

 

 

59,254

 

 

 

59,592

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global ICL Sales

 

$

212,905

 

 

$

269,712

 

 

$

319,427

 

 

$

70,625

 

 

$

93,112

 

 

$

81,069

 

 

$

74,621

 

 

$

77,151

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global ICL Sales Growth

 

 

51

%

 

 

27

%

 

 

18

%

 

 

20

%

 

 

19

%

 

 

13

%

 

 

22

%

 

 

9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global ICL Unit Growth

 

 

48

%

 

 

33

%

 

 

19

%

 

 

20

%

 

 

21

%

 

 

14

%

 

 

19

%

 

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

 

Three Months Ended

 

ICL Sales by Country(4)(5)

 

2021

 

 

2022

 

 

2023

 

 

March 31, 2023

 

 

June 30, 2023

 

 

September 29, 2023

 

 

December 29, 2023

 

 

March 29, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

China

 

$

107,130

 

 

$

147,967

 

 

$

185,404

 

 

$

35,042

 

 

$

61,288

 

 

$

48,262

 

 

$

40,813

 

 

$

38,460

 

Growth

 

 

50

%

 

 

38

%

 

 

25

%

 

 

25

%

 

 

33

%

 

 

14

%

 

 

30

%

 

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Japan

 

$

28,688

 

 

$

32,623

 

 

$

36,352

 

 

$

9,203

 

 

$

8,563

 

 

$

9,091

 

 

$

9,495

 

 

$

10,227

 

Growth

 

 

56

%

 

 

14

%

 

 

11

%

 

 

6

%

 

 

13

%

 

 

12

%

 

 

16

%

 

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

South Korea

 

$

15,173

 

 

$

17,940

 

 

$

19,853

 

 

$

6,656

 

 

$

3,316

 

 

$

4,886

 

 

$

4,996

 

 

$

6,725

 

Growth

 

 

36

%

 

 

18

%