IRIDEX Reports 2013 Third Quarter Results RECORD REVENUE OF $9.5 MILLION IN QUARTER

MOUNTAIN VIEW, Calif., Oct. 31, 2013 /PRNewswire/ -- IRIDEX Corporation (Nasdaq: IRIX) today reported financial results for the third quarter ended September 28, 2013. 

  • Revenues were $9.5 million in the third quarter of 2013, up 21% from $7.9 million in the prior year comparable period and up sequentially from $9.2 million in the second quarter of 2013.
  • Gross margin for the third quarter of 2013 was 49.6%, comparable to 49.6% in the prior year period and up from 48.7% in the 2013 second quarter.
  • For the third quarter of 2013, operating income was $0.7 million compared with an operating loss of $0.6 million for the third quarter of 2012.
  • Net income from continuing operations was $0.5 million, or $0.05 per diluted share, for the third quarter of 2013, compared to a net loss of $0.6 million, or a loss of $0.06 per diluted share, in the third quarter of 2012.
  • Guidance for fourth quarter: The Company expects to achieve revenue between $10.2 million and $10.5 million, representing growth of between 11% and 14% over the prior year period. Gross margin is anticipated to come in between 49% and 51%, operating expenses between $4.4 million and $4.6 million, and the Company anticipates generating operating income.

President and CEO Will Moore said, "We saw strong sales of both consumable products and laser systems in the third quarter, exceeding our revenue guidance. We are particularly pleased because historically our third quarter is a lighter sales quarter. The integration of the independent sales force, inherited in the US with the Peregrine deal announced last quarter, has had an immediate positive impact on consumable sales.

"The market acceptance of our MicroPulse™ tissue sparing treatments for diabetes related vision loss and glaucoma continues to gain ground." Continued Moore, "We saw increased sales of MicroPulse enabled laser units this quarter compared to last year's third quarter and standing room only in a recent training seminar at a large trade show in Amsterdam. Our observation that physicians and healthcare policy makers in industrialized and developing nations are adopting value-based medicine practices and policies continues to be validated and ties in to the tremendous value our MicroPulse and continuous wavelength laser systems provide both to our customers and their healthcare systems for the treatment of sight threatening diseases.  This realization creates a growing tailwind for our business and bodes well for our future." 

Moore concluded, "These positive results underscore the cultural shift at the Company allowing us to better execute in the marketplace. We are looking forward to an active fourth quarter in which we will continue to accelerate our market-centric initiatives, introducing three new products at the AAO conference in November and targeting additional multi-unit tenders in countries across Europe, the Middle East and South America."

Revenues for the first nine months of 2013 were $27.7 million, up 12% from $24.6 million in last year's first nine months. Operating income for the first nine months of 2013 was $2.1 million, up $3.3 million from an operating loss of $1.2 million in last year's first nine months. Net income from continuing operations for the first nine months of 2013 was $1.8 million compared to a loss of $0.4 million for the first nine months of 2012, or earnings of $0.18 per share compared to a loss of $0.05 per share on a diluted basis.

During the third quarter 2013, the Company continued to execute its share repurchase program. In total, approximately 37,000 shares have been repurchased at an average price of $5.31 under the plan approved in February 2013.

Conference Call
IRIDEX management will conduct a conference call later today, Thursday, October 31, 2013 at 5:00 p.m. Eastern Time.  Interested parties may access the live conference call via telephone by dialing (888) 549-7880 (U.S.) or (480) 629-9644 (International) and quoting Conference ID 4646160, or by visiting the Company's website at www.iridex.com. A telephone replay will be available beginning on Thursday, October 31, 2013 through Thursday, November 7, 2013 by dialing (800) 406-7325 (U.S.) or (303) 590-3030 (International) and entering Access Code 4646160. In addition, later today an archived version of the webcast will be available on the Company's website at www.iridex.com.

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 both direct and independent sales forces 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 Company's 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, relating to the size and growth of markets in which the Company operates, the success of the Company's marketing and sales efforts and operational execution, the adoption of MicroPulse laser therapy and the Company's other products, anticipated new product releases and the Company's projected fiscal 2013 fourth quarter 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 29, 2012 and Quarterly Reports on Form 10-Q for the fiscal quarters ended March 30 and June 29, 2013 which were 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.

TABLES FOLLOW


 


IRIDEX Corporation

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(unaudited)








Three Months Ended


Nine Months Ended


September 28,


September 29,


September 28,


September 29,


2013


2012


2013


2012









Total revenues

$9,526


$7,881


$27,675


$24,631

Cost of revenues

4,802


3,970


14,238


12,623

Gross profit

4,724


3,911


13,437


12,008









Operating expenses:








Research and development

923


1,006


2,803


3,294

Sales and marketing

1,869


1,875


5,340


5,861

General and administrative

1,267


1,609


3,690


4,018

Proceeds from demutualization of insurance carrier

0


0


(473)


0

Total operating expenses

4,059


4,490


11,360


13,173









Income (loss) from operations

665


(579)


2,077


(1,165)

Legal settlement

0


0


0


800

Other (expense) income, net

(85)


(117)


(200)


(192)









Income (loss) from continuing operations before provision for (benefits from) income taxes

580


(696)


1,877


(557)

Provision for (benefits from) income taxes

50


(141)


58


(134)

Income (loss) from continuing operations, net of tax

530


(555)


1,819


(423)









Income (loss) from discontinued operations, net of tax

0


(190)


0


(413)

Gain on sale of discontinued operations, net of tax

0


0


0


2,032

Income (loss) from discontinued operations, net of tax

0


(190)


0


1,619

Net income (loss)

$530


$(745)


$1,819


$1,196









Net income (loss) per share:








Basic








Continuing operations

$0.05


$(0.06)


$0.20


$(0.05)

Discontinued operations

0.00


(0.02)


0.00


0.18

    Net income (loss)

$0.05


$(0.08)


$0.20


$0.13

Diluted








Continuing operations

$0.05


$(0.06)


$0.18


$(0.05)

Discontinued operations

0.00


(0.02)


0.00


0.18

    Net income (loss)

$0.05


$(0.08)


$0.18


$0.13









Weighted average shares used in computing net income (loss) per share








    Basic

9,796


9,005


9,044


8,974

    Diluted

10,177


9,005


9,995


8,974

 

IRIDEX Corporation

Condensed Consolidated Balance Sheets

(In thousands)

(unaudited)






September 28,


December 29,


2013


2012

Assets




Current Assets:




    Cash and cash equivalents

$         14,089


$         11,901

    Accounts receivable, net

5,743


5,480

    Inventories

9,998


8,035

    Prepaid and other current assets

534


1,129

   Current assets of discontinued operations

0


510

         Total current assets

30,364


27,055

    Property and equipment, net

526


483

    Intangible assets, net

382


554

    Goodwill

533


533

    Other long-term assets

233


287

Total assets

$        32,038


$        28,912





Liabilities and Stockholders' Equity




Current Liabilities:




    Accounts payable

$         2,077


$         2,105

    Accrued compensation

1,538


1,563

    Accrued expenses

1,370


1,242

    Accrued warranty

472


453

    Deferred revenue

1,062


1,004

         Total current liabilities

6,519


6,367





Long-Term Liabilities:




    Other long-term liabilities

441


640

Total liabilities

6,960


7,007





Stockholders' Equity:




    Convertible preferred stock

0


5

    Common stock

103


94

    Additional paid-in capital

40,308


38,958

    Accumulated deficit

(15,333)


(17,152)

         Total stockholders' equity

25,078


21,905

Total liabilities and stockholders' equity

$        32,038


$        28,912

 

SOURCE IRIDEX Corporation



RELATED LINKS
http://www.iridex.com

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