IRIDEX Reports 2014 Second Quarter, Six-Month Results - FOX 21/27 WFXR Roanoke/WWCW Lynchburg News, Weather

IRIDEX Reports 2014 Second Quarter, Six-Month Results

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SOURCE IRIDEX

Revenue Up 15% Year over Year for Both Periods

Board of Directors Establishes New Share Repurchase Program

MOUNTAIN VIEW, Calif., July 31, 2014 /PRNewswire/ -- IRIDEX Corporation (Nasdaq: IRIX) today reported financial results for the second quarter and six months ended June 28, 2014. 

  • Revenues were $10.6 million in the second quarter of 2014, up 15% from $9.2 million in the 2013 second quarter and up sequentially from $10.3 million in the first quarter of 2014. Revenues for the first six months of 2014 were $20.9 million, up 15% from $18.1 million in the first six months of last year.
  • Gross margin for the quarter was 50.0%, up from 48.7% in the second quarter of last year and up from 48.9% in the 2014 first quarter.
  • Operating income in the 2014 second quarter was $0.4 million compared with operating income of $0.5 million in last year's second quarter. 
  • Net income was $0.3 million, or $0.03 per diluted share, for the second quarter of 2014, compared to net income in last year's second quarter of $0.4 million, or $0.04 per diluted share.  Net income for the first half of 2014 was $0.8 million, or $0.07 per diluted share, compared to net income for the first half of 2013, which included a one-time insurance gain of $0.5 million in the 2013 first quarter, of $1.3 million, or $0.13 per diluted share.
  • Guidance for third quarter of 2014: The company expects to achieve revenue of $10.0 million to $10.3 million, representing growth of 5% to 8% over last year's third quarter. Gross margin is anticipated to come in between 48% and 50%, and operating expenses are expected to be $4.6 million to $4.8 million.

President and CEO Will Moore said, "The second quarter was the fifth straight quarter of double digit percentage revenue growth and, clearly, was the strongest quarter of domestic system sales in the company's history.  Sales of these systems grew by more than 80% over the prior year quarter, which we see as continued evidence that MicroPulse® is becoming more accepted as a leading treatment for diabetes-related retinal disease. The therapeutic benefits to patients are well documented and the advantageous economic benefits of MicroPulse as compared to drugs and other treatment modalities to health care systems are becoming more obvious."

2Q 2014 Business Highlights

  • Data from a one-year, multi-center study demonstrating the safety and durability of MicroPulse technology as a treatment for glaucoma was presented at the American Society of Cataract and Refractive Surgeons (ASCRS) conference in April.
  • More than 300 ophthalmologists attended a symposium led by Drs. Ike Ahmed, David Gossage and Elias Reichel on the versatility of MicroPulse as a treatment option for various retinal diseases and as a treatment option for glaucoma at ASCRS.

Share Repurchase Program
As of last week, the company has satisfied its share repurchase program established in February, 2013, buying approximately 377,000 shares at an average price of $7.97.  Effective today, the IRIDEX Board of Directors established a new share repurchase program, allowing the purchase of up to $3.0 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, July 31, 2014, 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 Second Quarter 2014 Earnings Conference Call, or by visiting the company's website at www.iridex.com.  A telephone replay will be available beginning on Thursday, July 31, 2014 through Thursday, August 7, 2014 by dialing (877) 870-5176 (US) or (858) 384-5517 (International) and entering Replay Pin # 13586659.  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. The company maintains 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, US and international buying patterns, the success of the company's marketing and sales efforts and operational execution, the adoption of and demand for MicroPulse laser therapy and the company's other products as a treatment for diabetes-related retinal disease, glaucoma and other conditions, anticipated new product releases and the company's guidance concerning fiscal 2014 third quarter financial results, including anticipated ranges of revenue, operating expenses and gross margin rates and revenue growth rates, and the company's share repurchase program. 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 28, 2013, 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



June 28,


June 29,


June 28,


June 29,



2014


2013


2014


2013











Total revenues

$10,589


$9,210


$20,918


$18,149


Cost of revenues

5,289


4,728


10,563


9,436


Gross profit

5,300


4,482


10,355


8,713











Operating expenses:









Research and development

1,306


884


2,500


1,880


Sales and marketing

2,056


1,846


3,804


3,471


General and administrative

1,538


1,237


3,054


2,423


Proceeds from demutualization of insurance carrier

-


-


-


(473)


Total operating expenses

4,900


3,967


9,358


7,301











Income from operations

400


515


997


1,412


Other expense, net

91


97


188


115


Income from operations before provision for income taxes

309


418


809


1,297


Provision for income taxes

12


3


25


8


Net income

$297


$415


$784


$1,289











Net income per share:









    Basic

$0.03


$0.05


$0.08


$0.15


    Diluted

$0.03


$0.04


$0.07


$0.13











Weighted average shares used in computing net income per share









    Basic

9,922


8,824


9,943


8,668


    Diluted

10,411


10,005


10,469


9,903












 


IRIDEX Corporation

Condensed Consolidated Balance Sheets

(In thousands)

(unaudited)



June 28,


December 28,


2014


2013

Assets




Current assets:




Cash and cash equivalents

$    12,862


$    13,444

Accounts receivable, net

7,259


7,345

Inventories

9,753


10,605

Prepaids and other current assets

586


576

Total current assets

30,460


31,970

Property and equipment, net

720


543

Intangible assets, net

292


328

Goodwill

533


533

Other long-term assets

259


303

Total assets

$        32,264


$        33,677









Liabilities and Stockholders' Equity




Current liabilities:




Accounts payable

$    2,008


$    2,278

Accrued compensation

1,229


1,891

Accrued expenses

1,374


1,592

Accrued warranty

506


468

Deferred revenue

1,083


1,133

Total current liabilities

6,200


7,362





Long-term liabilities:




Other long-term liabilities

345


461

Total liabilities

6,545


7,823





Stockholders' equity:




Common stock

106


104

Additional paid-in capital

39,750


40,671

Accumulated deficit

(14,137)


(14,921)

Total stockholders' equity

25,719


25,854

Total liabilities and stockholders' equity

$        32,264


$        33,677

 

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