Glaukos Corporation Announces Fourth Quarter and Full Year 2017 Financial Results

Published: Feb 28, 2018

SAN CLEMENTE, Calif.--(BUSINESS WIRE)-- Glaukos Corporation (NYSE: GKOS), an ophthalmic medical technology company focused on the development and commercialization of breakthrough products and procedures designed to transform the treatment of glaucoma, today announced financial results for the fourth quarter and full year ended December 31, 2017. Key highlights include:
  • Achieved 26% net sales growth to $41.7 million in the fourth quarter of 2017, compared to $33.2 million in the fourth quarter of 2016.
  • Reported 39% growth in net sales to $159.3 million for 2017, compared to $114.4 million in 2016.
  • Introduced 2018 net sales guidance of $160 million to $165 million.

“Our fourth quarter and full year 2017 results illustrate the continuing demand for our novel iStent technologies, which offer physicians and patients a viable alternative to daily, lifelong use of topical glaucoma medications or invasive surgeries,” said Thomas Burns, Glaukos president and chief executive officer. “As we move into 2018, we remain focused on strengthening our beachhead position in the combination-cataract market segment while advancing our comprehensive pipeline of next-generation surgical devices and sustained pharmaceutical therapies, which we believe will significantly expand our addressable market opportunity and facilitate our evolution into a hybrid ophthalmic medical device and pharmaceutical company.”

Fourth Quarter 2017 Financial Results

Net sales rose 26% in the fourth quarter of 2017 to $41.7 million, compared to $33.2 million in the same period in 2016. The growth reflected unit volume increases worldwide, higher average selling prices and expansion of the company’s direct sales operations into new international markets.

Gross margin for the fourth quarter of 2017 was approximately 89%, compared to approximately 85% in the same period in 2016.

Operating expenses for the fourth quarter of 2017 rose 31% to $36.5 million, compared to $27.9 million in the same period in 2016. The year-over-year increase reflected primarily increasing domestic sales, marketing and administrative personnel and expenses and the company’s ongoing investment in, and expansion of, its global infrastructure by adding international sales operations.

Income from operations in the fourth quarter of 2017 was $0.5 million compared to operating income of $0.5 million in the fourth quarter of 2016. Net income in the fourth quarter of 2017 was $1.0 million, or $0.03 per diluted share, compared to net income of $0.1 million, or $0.00 per diluted share, in the fourth quarter of 2016.

Full Year 2017 Financial Results

Net sales rose 39% in 2017 to $159.3 million, compared to $114.4 million in 2016. The growth reflected unit volume increases worldwide, higher average selling prices and expansion of the company’s direct sales operations into new international markets.

Gross margin for 2017 was approximately 87%, compared to approximately 86% in 2016.

Operating expenses for 2017 rose 49% to $140.5 million, compared to $94.0 million in the same period in 2016. In addition to the $5.3 million acquisition-related in-process R&D charge in 2017, the year-over-year increase reflected primarily increasing domestic sales, marketing and administrative personnel and expenses and the company’s ongoing investment in, and expansion of, its global infrastructure by adding international sales operations.

Loss from operations in 2017 was $2.3 million, which included the in-process R&D charge, compared to operating income of $4.2 million in 2016. Net loss in 2017 was $0.1 million, or $0.00 per diluted share, compared to net income of $4.5 million, or $0.12 per diluted share, in 2016.

2018 Revenue Guidance

The company expects 2018 net sales to be in the range of $160 million to $165 million.

Webcast & Conference Call

The company will host a conference call and simultaneous webcast today at 1:30 p.m. PST (4:30 p.m. EST) to discuss the results and provide additional information about the company’s financial outlook. A link to the webcast is available on the company’s website at http://investors.glaukos.com. To participate in the conference call, please dial 866-393-4306 (U.S.) or 734-385-2616 (international) and enter Conference ID 5292739. A replay of the webcast will be archived on the company’s website following completion of the call.

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