IRIDEX Reports 2015 Third Quarter, Nine-Month Results

05 Nov, 2015, 16:05 ET from IRIDEX Corporation

MOUNTAIN VIEW, Calif., Nov. 5, 2015 /PRNewswire/ -- IRIDEX Corporation (Nasdaq: IRIX) today reported financial results for the third quarter and nine months ended October 3, 2015. 

 

  • Revenues were $9.8 million in the third quarter of 2015 compared to $10.1 million in the 2014 third quarter and $9.0 million in the second quarter of 2015. For the first nine months of 2015, revenues were $29.6 million compared to $31.0 million in the prior year period.
  • Gross margin for the 2015 third quarter was 49.3% compared to 50.9% in the third quarter of the prior year.
  • In the 2015 third quarter, the operating income was $0.1 million compared to $0.6 million in the 2014 third quarter.
  • Net income for the third quarter of 2015 was $0.4 million, or $0.04 per diluted share, compared to $0.5 million, or $0.05 per diluted share, in the prior year period. Net income for the first nine months of 2015 was $0.1 million, or $0.00 per share, compared to net income of $1.3 million, or $0.12 per diluted share, in the first nine months of 2014.
  • Guidance: For the 2015 fourth quarter, the Company anticipates revenue of $11.5 million to $11.9 million, gross margin is anticipated to come in between 48% and 50%, and operating expenses are expected to be $5.3 million to $5.5 million.

President and CEO Will Moore said, "The third quarter performance showed strong execution both in operations and commercial efforts.  We have been successful in working our way through the supply-chain issue that began impacting us during the second quarter and are now coming out of that challenge with even higher quality standards.  In addition, our glaucoma platform launch continues to be very well received, with placements ahead of schedule.  This includes our patented disposable MP3 probes and new, related disposable products and services that are approaching launch in the coming months." 

Moore continued, "We are very excited about our activity level during the third quarter, and we look forward to reporting additional progress through the close of the year.  This should include news related to the ophthalmic industry's largest annual trade show, which will occur in November.  We have a dynamic line-up which we believe will highlight the progress we are making with our glaucoma initiative."

Share Repurchase Program

During the 2015 third quarter, the Company continued to execute its share repurchase program.  Approximately 120,000 shares were repurchased at an average price of $7.25 per share.

Conference Call

IRIDEX management will conduct a conference call later today, Thursday, November 5, 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 Third Quarter Results Conference Call, or by visiting the Company's website at www.iridex.com.  A telephone replay will be available beginning on Thursday, November 5, 2015 through Thursday, November 12, 2015 by dialing (877) 870-5176 (US) or (858) 384-5517 (International) and entering Replay Pin # 13622762.  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 bookings and revenues, 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 MP3 probes and related disposable products and services, 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 fourth quarter results, including anticipated ranges of revenue, gross margin, operating expenses and gross margin rates, the Company's share repurchase program, future marketing activities, 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

Nine Months Ended

October 3,

September 27,

October 3,

September 27,

2015

2014

2015

2014

Total revenues

$    9,815

$   10,118

$  29,644

$   31,036

Cost of revenues

4,974

4,969

15,176

15,532

       Gross profit

4,841

5,149

14,468

15,504

Operating expenses:

    Research and development

1,237

1,096

4,000

3,596

    Sales and marketing

2,234

1,980

6,463

5,784

    General and administrative

1,227

1,467

4,206

4,521

       Total operating expenses

4,698

4,543

14,669

13,901

Income (loss) from operations

143

606

(201)

1,603

Other income (expense), net

164

(112)

134

(300)

Income (loss) from operations before (benefit from) provision for income taxes

307

494

(67)

1,303

(Benefit from) provision for income taxes

(135)

4

(103)

29

Net income

$        442

$        490

$         36

$     1,274

Net income per share:

    Basic

$       0.04

$       0.05

$       0.00

$       0.13

    Diluted

$       0.04

$       0.05

$       0.00

$       0.12

Weighted average shares used in computing net income per share:

    Basic

9,972

9,869

9,956

9,918

    Diluted

10,094

10,255

10,142

10,397

 

IRIDEX Corporation

Condensed Consolidated Balance Sheets

(In thousands)

(unaudited)

October 3,

January 3,

2015

2015

Assets

Current assets:

Cash and cash equivalents

$          10,213

$          13,303

Accounts receivable, net

7,736

8,337

Inventories

11,184

9,119

Prepaid expenses and other current assets

666

510

Deferred income taxes - current

1,625

1,625

Total current assets

31,424

32,894

Property and equipment, net

1,089

735

Intangible assets, net

272

284

Goodwill

533

533

Deferred income taxes - long term

7,149

7,151

Other long-term assets

184

221

Total assets

$        40,651

$        41,818

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$          2,559

$          1,758

Accrued compensation

1,311

1,863

Accrued expenses

1,536

1,770

Accrued warranty

528

469

Deferred revenue

1,211

1,179

Total current liabilities

7,145

7,039

Long-term liabilities:

Other long-term liabilities

686

1,043

Total liabilities

7,831

8,082

Stockholders' equity:

Common stock

110

108

Additional paid-in capital

37,557

38,511

Accumulated deficit

(4,847)

(4,883)

Total stockholders' equity

32,820

33,736

Total liabilities and stockholders' equity

$           40,651

$           41,818

 

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SOURCE IRIDEX Corporation



RELATED LINKS

http://www.iridex.com