IRIDEX Announces 2018 Second Quarter Results and Raises Full Year 2018 Guidance
Source: Nasdaq GlobeNewswire / 02 Aug 2018 16:05:18 America/New_York
MOUNTAIN VIEW, Calif., Aug. 02, 2018 (GLOBE NEWSWIRE) -- IRIDEX Corporation (Nasdaq: IRIX) today reported financial results for the second quarter and six months ended June 30, 2018.
Second Quarter Highlights
- Cyclo G6™ product revenue increased approximately 58% year-over-year
- Shipped 11,500 G6 probes
- Shipped 125 G6 laser systems
- Approval of Cyclo G6 laser system in South Korea
- Total revenue of $10.3 million
“I’m pleased with the strong Cyclo G6 momentum we saw in the second quarter. With a growing body of clinical evidence and support from global key opinion leaders, our priority remains to further drive utilization and expand the installed base worldwide,” said William M. Moore, President and CEO. “The safety, efficacy, and versatility that MicroPulse therapy offers patients is creating traction with doctors as the next generation treatment for glaucoma. We look forward to continuing to execute on this trajectory.”
Second Quarter 2018 Financial Results
Revenue for the three months ended June 30, 2018 increased 3% to $10.3 million from $10.0 million during the same period of the prior year. The increase in revenue was primarily due to growth from G6 product revenues, partially offset by a decrease in retina product revenues.
Gross profit for the second quarter of 2018 was $4.3 million, or 41.4% gross margin, compared to $4.5 million, or 44.9% gross margin, in the same period of the prior year. Gross margin was primarily impacted by unfavorable geographic mix, partially offset by the benefit of higher margin G6 revenues and a decrease in manufacturing overhead spending.
Operating expenses for the second quarter of 2018 were $7.6 million compared to $7.2 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 second quarter of 2018 was $3.3 million, compared to loss from operations of $2.7 million for the same period of the prior year.
Cash and cash equivalents were $16.0 million as of June 30, 2018.
Guidance for Full Year 2018
IRIDEX increased its guidance range for G6 probes and G6 systems. The Company now expects G6 probe shipments of 42,000 to 46,000 and G6 system shipments of 370 to 420. This compares to previous 2018 guidance of G6 probe shipments of 40,000 to 45,000 and G6 system shipments of 350 to 400. The Company also raised the lower end of its 2018 total revenue guidance to a range of $38 million to $41 million. This compares to prior 2018 total revenue guidance of $37 million to $41 million.
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: 5656348. 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, August 2, 2018 through Friday, August 3, 2018, by dialing (855) 859-2056 for domestic callers or (404) 537-3406 for international callers, using conference ID: 5656348.
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
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, 2018 2017 2018 2017 Total revenues $ 10,304 $ 10,002 $ 19,813 $ 20,485 Cost of revenues 6,036 5,507 11,623 11,525 Gross profit 4,268 4,495 8,190 8,960 Operating expenses: Research and development 901 1,369 2,005 2,708 Sales and marketing 4,168 3,654 8,218 6,577 General and administrative 2,481 2,213 4,866 4,274 Total operating expenses 7,550 7,236 15,089 13,559 Loss from operations (3,282 ) (2,741 ) (6,899 ) (4,599 ) Other income (expense), net 6 (1 ) 24 (3 ) Loss from operations before provision for income taxes (3,276 ) (2,742 ) (6,875 ) (4,602 ) Provision for income taxes 4 8 8 14 Net loss $ (3,280 ) $ (2,750 ) $ (6,883 ) $ (4,616 ) Net loss per share: Basic $ (0.28 ) $ (0.24 ) $ (0.59 ) $ (0.40 ) Diluted $ (0.28 ) $ (0.24 ) $ (0.59 ) $ (0.40 ) Weighted average shares used in computing net loss per share Basic 11,644 11,546 11,636 11,532 Diluted 11,644 11,546 11,636 11,532
Condensed Consolidated Balance Sheets
(In thousands and unaudited)
June 30, December 30, 2018 2017 Assets Current assets: Cash and cash equivalents $ 16,045 $ 21,707 Accounts receivable, net 7,142 7,863 Inventories 9,093 9,381 Prepaid expenses and other current assets 653 500 Total current assets 32,933 39,451 Property and equipment, net 1,396 1,403 Intangible assets, net 108 116 Goodwill 533 533 Other long-term assets 173 143 Total assets $ 35,143 $ 41,646 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 2,243 $ 1,724 Accrued compensation 2,392 2,459 Accrued expenses 2,322 2,153 Accrued warranty 762 1,536 Deferred revenue 2,316 2,520 Total current liabilities 10,035 10,392 Long-term liabilities: Accrued warranty 164 199 Other long-term liabilities 511 533 Total liabilities 10,710 11,124 Stockholders' equity: Common stock 126 126 Additional paid-in capital 60,138 59,385 Accumulated other comprehensive income 41 - Accumulated deficit (35,872 ) (28,989 ) Total stockholders' equity 24,433 30,522 Total liabilities and stockholders' equity $ 35,143 $ 41,646