Iridex Corporation reported financial results for the third quarter ended October 2, 2021.
Achieved 51% Year-over-Year Revenue Growth and Raises 2021 Revenue Guidance
MOUNTAIN VIEW, Calif., Nov. 11, 2021 (GLOBE NEWSWIRE) -- Iridex Corporation (Nasdaq: IRIX) today reported financial results for the third quarter ended October 2, 2021.
Third Quarter Highlights
- Revenue of $13.3 million, an increase of 51% from the prior year period, and 24% compared to third quarter 2019
- Gross margin of 43.6%, an improvement over 41.5% in the same period last year
- Cash usage of $0.7 million leading to cash at quarter-end of $25.6 million
- Cyclo G6® product family revenue of $3.1 million, an increase of 13% year-over-year
- 13,400 Cyclo G6 probes sold, an 18% increase year-over-year
- 42 Cyclo G6 Glaucoma Laser Systems sold, compared to 37 in the prior year period
- Retina product revenue increased 76% year-over-year to $7.8 million
- PASCAL® products acquired from Topcon contributed 24% of retina revenue
- MicroPulse® TLT Clinical Consensus Webinar presented on November 6, featured ten global KOLs highlighting broad patient applicablilty and effective procedure parameters
“Strong third quarter results reflect our renewed focus on sales and marketing activities, including major clinical education programs, contributions from our broader distribution partnerships, and several product enhancements, all of which are designed to raise awareness and drive increased adoption in our retina and glaucoma treatment segments,” said David I. Bruce, President and CEO of Iridex. “Cyclo G6 probe sales year-over-year were strong even in a seasonally weaker quarter for ophthalmologic procedures. Additionally, our retina business continues to perform well, thanks to our restructuring of the US sales team to dedicated retina and glaucoma teams, strong contributions from PASCAL products, and our expanded international distribution network. Importantly, our increased operating investments were covered by the quarter’s business strength, limiting cash usage to under $1 million.”
ThirdQuarter 2021 Financial Results
Revenue for the three months ending October 2, 2021 increased 51% to $13.3 million from $8.8 million during the same period of the prior year. Excluding newly acquired PASCAL products, revenue increased 29% over the third quarter of 2020.
Gross profit for the third quarter of 2021 increased to $5.8 million, a 43.6% gross margin, compared to $3.7 million, a 41.5% gross margin, in the same period last year. The gross margin increase was primarily attributable to the impact of production efficiency initiatives, greater overhead absorption due to higher revenue and continued increase in higher margin probes within the product mix.
Operating expenses for the third quarter of 2021 increased 44% to $7.9 million compared to $5.5 million in the same period of the prior year, mainly due to additional expenses in R&D resulting from absorbing the PASCAL product line and increased activity in Sales & Marketing.
Net loss for the third quarter of 2021 was $2.2 million, compared to a net loss $1.7 million in the same period of the prior year. Net loss on a per share basis was $0.14 in 2021 versus a loss of $0.12 in the third quarter of 2020.
Cash usage in the third quarter was $0.7 million, which resulted in cash of $25.6 million at quarter-end.
Updated Guidance for Full Year 2021
Iridex now expects total revenue for fiscal year 2021 to range from $52 million to $53 million, reflecting growth of 43% - 46% over fiscal year 2020. This compares to the previous range of $50 million to $52 million. Glaucoma Laser System sales are now expected to range from 210 to 225 compared to prior guidance of 250 to 275. Cyclo G6 probe sales expectation of 58,000 to 60,000 remains unchanged.
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: 7496524. A live and archived webcast of the event will be available on the “Investors” section of the Company’s website: www.iridex.com.
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 and 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 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 momentum, demand and utilization of the Company’s products, financial guidance, expected sales volumes and benefits from the Topcon partnership. 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 Quarterly Report on Form 10-Q for the second quarter, filed with the Securities and Exchange Commission on August 12, 2021. Forward-looking statements contained in this announcement are made as of this date and will not be updated.
Investor Relations Contact
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 | |||||||||||||||
| October 2, | September 26, | October 2, | September 26, | |||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Total revenues | $ | 13,264 | $ | 8,803 | $ | 38,649 | $ | 24,043 | ||||||||
| Cost of revenues | 7,482 | 5,149 | 21,820 | 14,067 | ||||||||||||
| Gross profit | 5,782 | 3,654 | 16,829 | 9,976 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 1,788 | 869 | 4,625 | 2,395 | ||||||||||||
| Sales and marketing | 3,914 | 2,959 | 10,542 | 8,804 | ||||||||||||
| General and administrative | 2,237 | 1,672 | 6,798 | 5,060 | ||||||||||||
| Total operating expenses | 7,939 | 5,500 | 21,965 | 16,259 | ||||||||||||
| Loss from operations | (2,157 | ) | (1,846 | ) | (5,136 | ) | (6,283 | ) | ||||||||
| Other income, net | - | 135 | 2,378 | 153 | ||||||||||||
| Loss from operations before provision for income taxes | (2,157 | ) | (1,711 | ) | (2,758 | ) | (6,130 | ) | ||||||||
| Provision for income taxes | 8 | 8 | 24 | 20 | ||||||||||||
| Net loss | $ | (2,165 | ) | $ | (1,719 | ) | $ | (2,782 | ) | $ | (6,150 | ) | ||||
| Net loss per share: | ||||||||||||||||
| Basic | $ | (0.14 | ) | $ | (0.12 | ) | $ | (0.18 | ) | $ | (0.44 | ) | ||||
| Diluted | $ | (0.14 | ) | $ | (0.12 | ) | $ | (0.18 | ) | $ | (0.44 | ) | ||||
| Weighted average shares used in computing net loss per share: | ||||||||||||||||
| Basic | 15,824 | 13,893 | 15,272 | 13,824 | ||||||||||||
| Diluted | 15,824 | 13,893 | 15,272 | 13,824 | ||||||||||||
IRIDEX Corporation
Condensed Consolidated Balance Sheets
(In thousands and unaudited)
| October 2, | January 2, | |||||||
| 2021 | 2021 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 25,568 | $ | 11,626 | ||||
| Accounts receivable, net | 8,522 | 7,289 | ||||||
| Inventories | 8,791 | 5,714 | ||||||
| Prepaid expenses and other current assets | 1,025 | 730 | ||||||
| Total current assets | 43,906 | 25,359 | ||||||
| Property and equipment, net | 567 | 449 | ||||||
| Intangible assets, net | 2,253 | 68 | ||||||
| Goodwill | 965 | 533 | ||||||
| Operating lease right-of-use assets, net | 2,794 | 1,428 | ||||||
| Other long-term assets | 57 | 132 | ||||||
| Total assets | $ | 50,542 | $ | 27,969 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,208 | $ | 1,148 | ||||
| Accrued compensation | 2,683 | 1,965 | ||||||
| Accrued expenses | 1,551 | 990 | ||||||
| Other current expenses | 2,256 | 816 | ||||||
| Current portion of PPP loan | - | 1249 | ||||||
| Accrued warranty | 99 | 166 | ||||||
| Deferred revenue | 2,250 | 938 | ||||||
| Operating lease liabilities | 920 | 1,409 | ||||||
| Total current liabilities | 12,967 | 8,681 | ||||||
| Long-term liabilities: | ||||||||
| PPP Loan | - | 1,248 | ||||||
| Accrued warranty | 60 | 81 | ||||||
| Deferred revenue | 10,199 | 289 | ||||||
| Operating lease liabilities | 1,972 | 282 | ||||||
| Other long-term liabilities | 22 | 22 | ||||||
| Total liabilities | 25,220 | 10,603 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock | 168 | 148 | ||||||
| Additional paid-in capital | 84,851 | 74,181 | ||||||
| Accumulated other comprehensive income (loss) | 29 | (19 | ) | |||||
| Accumulated deficit | (59,726 | ) | (56,944 | ) | ||||
| Total stockholders’ equity | 25,322 | 17,366 | ||||||
| Total liabilities and stockholders’ equity | $ | 50,542 | $ | 27,969 | ||||
