IRIDEX Reports 2015 Second Quarter, Six-Month Results

Aug 06, 2015, 16:05 ET from IRIDEX Corporation

MOUNTAIN VIEW, Calif., Aug. 6, 2015 /PRNewswire/ -- IRIDEX Corporation (Nasdaq: IRIX) today reported financial results for the second quarter and six months ended July 4, 2015. 

  • Revenues were $9.0 million in the second quarter of 2015 compared to $10.6 million in the 2014 second quarter.  For the first six months of 2015, revenues were $19.8 million compared to $20.9 million in the prior year period.
  • Gross margin for the 2015 second quarter was 46.7% compared to 50.0% in the second quarter of the prior year.
  • In the 2015 second quarter, the operating loss was $0.7 million compared to operating income of $0.4 million in the 2014 second quarter. 
  • Net loss for the second quarter of 2015 was $0.7 million, or $0.07 loss per share, compared to net income of $0.3 million, or $0.03 per diluted share, in the prior year period.  Net loss for the first six months of 2015 was $0.4 million, or $0.04 loss per share, compared to net income of $0.8 million, or $0.07 per diluted share, in the first six months of 2014.
  • Guidance: For the 2015 third quarter, the Company anticipates revenue of $9.7 million to $10.0 million, gross margin is anticipated to come in between 47% and 49%, and operating expenses are expected to be $4.9 million to $5.1 million.

President and CEO Will Moore said, "Demand for our products remained strong during the quarter, however, as previously announced, supply chain difficulties occurred during the quarter as we ramped up production for certain legacy and new product offerings which impacted our shipments.  We have taken corrective actions and anticipate these issues will be resolved by the end of summer."

"The launch of our Cyclo G6™ Glaucoma laser platform is going very well. The early results of patients undergoing the MicroPulse® P3 procedure continue to be impressive and a number of the early sites are already reordering the single use probes indicating good procedural volumes, and we have even seen a couple of the early sites order additional lasers," continued Moore.  "We believe the Cyclo G6 will provide a revenue growth catalyst for 2016 and beyond."

Share Repurchase Program

As of July 20, 2015, the Company had satisfied its share repurchase program established a year ago, buying approximately 367,000 shares at an average price of $8.17.  Effective today, the IRIDEX Board of Directors established a new share repurchase program, allowing the purchase of up to $2.0 million worth of the Company's common stock over the next 12 months.

Conference Call

IRIDEX management will conduct a conference call later today, Thursday, August 6, 2015, at 5:00 pm Eastern Time.  Interested parties may access the live conference call by dialing (877) 407-0784 (US) or (201) 689-8560 (International) and requesting the IRIDEX 2015 Second Quarter Results Conference Call, or by visiting the Company's website at www.iridex.com.  A telephone replay will be available beginning on Thursday, August 6, 2015 through Thursday, August 13, 2015 by dialing (877) 870-5176 (US) or (858) 384-5517 (International) and entering Replay Pin # 13614233.  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 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 its anticipated revenues, the impact of future changes in currency exchange rates, future demand and order levels for the Company's products, the timing and outcome of any steps that the Company may take to address supply chain issues, the adoption and effect of Company products, including the Cyclo G6™ Glaucoma laser platform, on our results, the markets in which the Company operates, trends in treatment and product adoption and usage, product plans and future product releases, the Company's guidance concerning fiscal 2015 third quarter results, including anticipated ranges of revenue, gross margin, operating expenses and gross margin rates, the Company's share repurchase program, 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 3, 2015, 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.

TABLES FOLLOW

 


IRIDEX Corporation

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(unaudited)



Three Months Ended


Six Months Ended


July 4,


June 28,


July 4,


June 28,


2015


2014


2015


2014









Total revenues

$    9,033


$   10,589


$  19,829


$   20,918

Cost of revenues

4,816


5,289


10,202


10,563

Gross profit

4,217


5,300


9,627


10,355









Operating expenses:








Research and development

1,482


1,306


2,763


2,500

Sales and marketing

2,158


2,056


4,229


3,804

General and administrative

1,324


1,538


2,979


3,054

Total operating expenses

4,964


4,900


9,971


9,358









(Loss) income from operations

(747)


400


(344)


997

Other expense, net

23


91


30


188

(Loss) income from operations before (benefit from) provision for income taxes

(770)


309


(374)


809

(Benefit from) provision for income taxes

(118)


12


32


25

Net (loss) income

$     (652)


$     297


$    (406)


$     784









Net (loss) income per share:








    Basic

$    (0.07)


$    0.03


$   (0.04)


$    0.08

    Diluted

$    (0.07)


$    0.03


$   (0.04)


$    0.07









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








    Basic

10,027


9,922


9,948


9,943

    Diluted

10,027


10,411


9,948


10,469

 

IRIDEX Corporation

Condensed Consolidated Balance Sheets

(In thousands)

(unaudited)



July 4,


January 3,


2015


2015

Assets




Current assets:




Cash and cash equivalents

$          12,203


$          13,303

Accounts receivable, net

7,319


8,337

Inventories

10,171


9,119

Prepaid expenses and other current assets

615


510

Deferred income taxes - current

1,625


1,625

Total current assets

31,933


32,894

Property and equipment, net

1,079


735

Intangible assets, net

276


284

Goodwill

533


533

Deferred income taxes - long term

7,151


7,151

Other long-term assets

195


221

Total assets

$        41,167


$        41,818





Liabilities and Stockholders' Equity




Current liabilities:




Accounts payable

$          2,060


$          1,758

Accrued compensation

1,470


1,863

Accrued expenses

1,806


1,770

Accrued warranty

520


469

Deferred revenue

1,199


1,179

Total current liabilities

7,055


7,039





Long-term liabilities:




Other long-term liabilities

881


1,043

Total liabilities

7,936


8,082





Stockholders' equity:




Common stock

110


108

Additional paid-in capital

38,410


38,511

Accumulated deficit

(5,289)


(4,883)

Total stockholders' equity

33,231


33,736

Total liabilities and stockholders' equity

$           41,167


$           41,818

 

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SOURCE IRIDEX Corporation



RELATED LINKS

http://www.iridex.com