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IRIDEX Announces 2018 Third Quarter Financial Results and Raises Full Year 2018 Guidance

MOUNTAIN VIEW, Calif., Nov. 01, 2018 (GLOBE NEWSWIRE) -- IRIDEX Corporation (Nasdaq: IRIX) today reported financial results for the third quarter and nine months ended September 29, 2018.

Third Quarter Highlights

  • Cyclo G6™ product revenue increased approximately 23% year-over-year
  • Shipped 10,400 G6 probes
  • Shipped 117 G6 laser systems
  • Total revenue of $11.3 million
  • Received FDA Clearance to introduce updated TruFocus LIO Premiere™ Laser Accessory to the U.S. Market
  • Completed public offering of common stock with gross proceeds of $11.5 million

“Our solid performance in the third quarter includes year-over-year growth in shipments of G6 systems and probes,” said William M. Moore, President and CEO. “We are pleased with the expanding awareness and acceptance of MicroPulse technology driven by our enhanced commercial team, along with support from a broad base of glaucoma specialists and comprehensive ophthalmologists advocating for the use of our G6 platform to treat the spectrum of the disease. This progress is encouraging and creating additional opportunities to drive installed base growth and increased utilization.”

Third Quarter 2018 Financial Results
Revenue for the three months ended September 29, 2018 of $11.3 million increased from $10.9 million during the same period of the prior year. The increase in revenue was driven by growth from G6 product revenues and relatively flat retina product revenues.

Gross profit for the third quarter of 2018 was $4.6 million, or 40.4% gross margin, compared to $4.4 million, or 40.2% gross margin, in the same period of the prior year. Gross margin was primarily impacted by a favorable shift in product mix and a decrease in manufacturing variances and manufacturing overhead spending, partially offset by an unfavorable geographic mix.

Operating expenses for the third quarter of 2018 were $7.6 million compared to $7.4 million in the same period of the prior year. This increase is attributable to investments to support the Company’s commercial infrastructure, including increased sales and marketing expenses.

Loss from operations for the third quarter of 2018 was $3.1 million, compared to loss from operations of $3.1 million for the same period of the prior year.

Cash and cash equivalents were $23.7 million as of September 29, 2018.

Guidance for Full Year 2018
IRIDEX increased its guidance range for G6 systems and total revenue. The Company now expects G6 system shipments of 430 to 450 and total revenue of $41 million to $42 million.  This compares to previous 2018 guidance of G6 system shipments of 370 to 420 and total revenue of $38 million to $41 million. The Company also raised the lower end of its 2018 G6 probe shipments guidance to a range of 44,000 to 46,000. This compares to previous guidance of 42,000 to 46,000 G6 probes shipments.

Webcast and Conference Call Information
IRIDEX’s management team will host a conference call today beginning at 2:00 p.m. PT / 5:00 p.m. ET.  Investors interested in listening to the conference call may do so by dialing (844) 707-0665 for domestic callers or (703) 326-3030 for international callers, using conference ID: 2098999.  A live and archived webcast of the event will be available on the “Investors” section of the Company’s website at: www.iridex.com.  A telephone replay will also be available beginning Thursday, November 1, 2018 through Friday, November 2, 2018, by dialing (855) 859-2056 for domestic callers or (404) 537-3406 for international callers, using conference ID: 2098999.

About IRIDEX
IRIDEX Corporation 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’s proprietary MicroPulse® technology delivers a differentiated treatment that provides safe, effective, and proven treatment for targeted sight-threatening eye conditions. IRIDEX’s current product line is used for the treatment of glaucoma, diabetic macular edema (DME) and other retinal diseases. IRIDEX products are sold in the United States through a direct sales force and internationally primarily through a network of independent distributors into more than 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 the future demand and order levels for the Company's products, future operating expenses, the adoption and effect of Company products on its results, the markets in which the Company operates, usage and efficacy of the Company's products, the Company’s guidance for fiscal 2018 and future financial results, and the Company's strategic and operational 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 December 30, 2017, and Quarterly Reports on Form 10-Q for subsequent fiscal quarters, each of 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.

Investor Relations Contact
Lynn Pieper Lewis or Leigh Salvo
(415) 937-5404
investors@iridex.com

 
IRIDEX Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
 
  Three Months Ended  Nine Months Ended 
  September 29,  September 30,  September 29,  September 30, 
  2018  2017  2018  2017 
                 
Total revenues $11,320  $10,865  $31,133  $31,350 
Cost of revenues  6,744   6,492   18,367   18,017 
Gross profit  4,576   4,373   12,766   13,333 
                 
Operating expenses:                
Research and development  1,149   1,320   3,154   4,028 
Sales and marketing  4,144   3,769   12,362   10,346 
General and administrative  2,343   2,530   7,209   6,804 
Gain on sale of intellectual property  -   (175)  -   (175)
Total operating expenses  7,636   7,444   22,725   21,003 
                 
Loss from operations  (3,060)  (3,071)  (9,959)  (7,670)
Other (expense) income, net  (8)  (16)  16   (19)
Loss from operations before provision for income taxes  (3,068)  (3,087)  (9,943)  (7,689)
Provision for income taxes   6   9   14   23 
Net loss $(3,074) $(3,096) $(9,957) $(7,712)
                 
Net loss per share:                
  Basic $(0.26) $(0.27) $(0.85) $(0.67)
  Diluted $(0.26) $(0.27) $(0.85) $(0.67)
                 
Weighted average shares used in computing net loss per share                
  Basic  11,925   11,569   11,732   11,544 
  Diluted  11,925   11,569   11,732   11,544 


 
IRIDEX Corporation
Condensed Consolidated Balance Sheets
(In thousands and unaudited)
 
  September 29,  December 30, 
  2018  2017 
Assets        
Current assets:        
Cash and cash equivalents $23,725  $21,707 
Accounts receivable, net  8,430   7,863 
Inventories  8,725   9,381 
Prepaid expenses and other current assets  492   500 
Total current assets  41,372   39,451 
Property and equipment, net  1,312   1,403 
Intangible assets, net  104   116 
Goodwill  533   533 
Other long-term assets  216   143 
Total assets $43,537  $41,646 
         
         
Liabilities and Stockholders' Equity        
Current liabilities:        
Accounts payable $2,552  $1,724 
Accrued compensation  2,284   2,459 
Accrued expenses  2,643   2,153 
Accrued warranty  694   1,536 
Deferred revenue  2,217   2,520 
Total current liabilities  10,390   10,392 
         
Long-term liabilities:        
Accrued warranty  138   199 
Other long-term liabilities  400   533 
Total liabilities  10,928   11,124 
         
Stockholders' equity:        
Common stock  145   126 
Additional paid-in capital  71,283   59,385 
Accumulated other comprehensive income  127   - 
Accumulated deficit  (38,946)  (28,989)
Total stockholders' equity  32,609   30,522 
Total liabilities and stockholders' equity $43,537  $41,646 

Thursday, November 1, 2018 - 16:05