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STAAR Surgical Reports Fourth Quarter and Full Year 2012 Financial Results

  STAAR Surgical Reports Fourth Quarter and Full Year 2012 Financial Results

~Total Sales Increased 1% from Q4 2011

~~Visian® ICL™ Sales Increased 25% in Europe and 9% in U.S.

~~Total ICLs decline 2.5% Due to Korean Orders/Rebounded in Q1~

~Total IOL Sales Increase $700,000 or 12% over Q3

~~Key Investments in 2012 Position Company for Renewed Growth in 2013

PR Newswire

MONROVIA, Calif., Feb. 27, 2013

MONROVIA, Calif., Feb. 27, 2013 /PRNewswire/ --STAAR Surgical Company
(NASDAQ: STAA), a leading developer, manufacturer and marketer of minimally
invasive ophthalmic products, today reported revenue for the fourth quarter
ended December 28, 2012 of $16.5 million compared to $16.4 million reported
for the fourth quarter of 2011. The effect of foreign currency exchange
reduced sales by $275,000 during the quarter. The results included sales of
$8.8 million of the Company's Visian® ICL product portfolio and $6.8 million
of its IOL products.

"The Visian ICL continued to gain market share in our key markets during 2012,
though sales decreased 2.5% in the fourth quarter compared with the prior
year," said Barry Caldwell, president and CEO. "Visian ICL unit sales as
compared to Market Scope's newly released annual data on global refractive
procedures confirm that the ICL is gaining share in virtually every key
market. The major reason our ICL revenues declined in the quarter was due to
an adjustment in the normal inventory levels carried at year end by our Korean
distributor. Sales to our Korean distributor decreased 50% as compared to the
fourth quarter a year ago. We are encouraged by the ordering patterns from
our Korean distributor during the first two months of 2013. January was a
record month for sales to end customers and their purchases from us through
February already reflect a 60% increase as compared to the same period of
2012."

"Visian ICL sales in our European markets increased by 25% during the fourth
quarter reflecting the growing acceptance of the new Visian ICL CentraFLOW™
technology," added Mr. Caldwell. "In Spain, where we moved to a direct sales
model at mid-year, sales increased only 24% during the quarter. In the past
under the distributor sales model, inventory would be purchased for January
sales. This does not occur in the direct sales model. As we would expect,
ICL sales in Spain during the first eight weeks of this year have more than
doubled and our sales have already exceeded the sales level of the entire
first quarter of 2012. In the U.S., ICL sales increased by 9% reflecting
encouraging patterns which developed during the second half of the year. We
have gained marketshare during 2012 while others have disclosed a decrease in
the number of LASIK procedures during the same period. In China, sales
increased 13% reflecting the continuing downward pressure on refractive
procedures from the negative LASIK publicity earlier in the year. Japan sales
were up 45% as compared to the fourth quarter of 2011 and our annual ICL unit
volume doubled while Market Scope reported refractive procedures declined 22%
for the year.

"Total IOL sales during the quarter were slightly ahead of the fourth quarter
of 2011, but up 12% on a sequential basis. Our preloaded acrylic IOL sales
were up nearly $900,000 from the year ago period reflecting the contributions
of the recently launched KS-SP. We continue to experience supply constraints
from a third party supplier on the KS-SP and had a backorder position of
nearly $500,000 at the end of the quarter. This backorder position has
doubled during the first two months of this year and could be a limiting
factor to our IOL sales for the entire year," said Mr. Caldwell.

Gross margin for the quarter was 67.8%, down from 69.8% in the fourth quarter
of 2011. These results reflect the sales mix of ICL product sales, KS-SP IOL
sales, which carry a lower gross margin outside of Japan, and a $300,000
increase in Other Product sales during the fourth quarter. Operating costs
for the fourth quarter were $12.4 million, up 15% from the prior year period
reflecting a 24% increase of investment spending in sales and marketing and a
13% increased investment in R&D.

Income taxes were $466,000 during the fourth quarter of 2012 compared to
$370,000 during the fourth quarter of 2011 and $219,000 during the third
quarter of 2012. Some intercompany charges from the previous quarter
decreased which resulted in lower expenses and higher income in jurisdictions
in which the company pays tax.

The net loss for the fourth quarter of 2012, calculated in accordance with
GAAP, was $1,414,000, or $0.04 on a per share basis, compared with net income
of $109,000, or breakeven on a per diluted share basis, in the fourth quarter
of 2011. Adjusted net income (excluding manufacturing consolidation expenses,
distribution transition expenses in Spain, gain (loss) on foreign currency
transactions, fair value adjustment of warrants, and stock-based compensation
expense) for the quarter ended December 28, 2012 was $495,000, or $0.01 per
share versus adjusted net income for the year ago quarter of $1.5 million, or
$0.04 per diluted share. Cash and cash equivalents at December 28, 2012
totaled $21.7 million, which includes $3.5 million drawn down as required
under the terms of the Company's revised line of credit with Mizuho Bank at a
reduced annual interest rate of 1.5%.

"Our team is very excited about how we are positioned for renewed growth in
2013 and though only two months into the new year we are off to a very solid
start," summarized Mr. Caldwell. "Sales in 2012 did not increase at the rate
we expected, but a lot of progress has been made in the business and the
Visian ICL continues to gain market share despite downward pressure globally
refractive procedures. During the past few months, members of our Board of
Directors and senior management have purchased STAAR shares on the open market
due to our belief that we are well positioned to generate returns for our
shareholders. We have made significant investments in our future including:

  oThe addition of 19 new sales and marketing positions during the past 15
    months to help drive revenue growth. This includes our investment in
    moving to a direct distribution model in Spain and expanded marketing of
    the Visian ICL through social media.
  oIncreased spending in Research and Development by 10% over 2011 levels
    should help speed additional new technologies to the market.
  oWe expect our efforts during 2012 should produce regulatory approval of
    the ICL CentraFLOW technology in Korea and India during the first half of
    2013.
  oWe expect a full marketing launch of the Visian ICL V5 for Europe at the
    ESCRS meeting during early October.
  oContinued acceptance of the KS-SP IOL and nanoFLEX Toric IOL in key
    markets.
  oThis year will mark the final year of the Project Comet efforts which will
    yield benefits in gross margin expansion and lower tax expense."

Recent Visian Implantable Collamer® Lens (ICL) Highlights

  oICL sales represented 53.2% of total sales, as compared to 54.8% of sales
    in Q4 2011.
  oVisian ICL with CentraFLOW™ technology was a key driver to the 25% growth
    in the European markets during the fourth quarter of 2012. There have been
    nearly 14,000 implants of the Visian ICL with the CentraFLOW technology
    and it is performing very well.
  oOther key markets which saw significant growth during the fourth quarter
    included Spain, Germany, Italy, and the UK.
  oIn the U.S. ICL sales grew 9% with increases seen in both the civilian and
    military sectors. Promotional activities including some of the initial
    benefits from our social media marketing were additional drivers of ICL
    market share gains.

Recent Intraocular Lens (IOL) Highlights

  oFourth quarter IOL sales were flat at $6.8 million compared to the fourth
    quarter of 2011. Sequentially, fourth quarter IOL sales increased 12%, or
    $734,000, from the third quarter of 2012.
  oPreloaded Acrylic sales were up nearly $900,000 from Q4 2011. The Company
    ended the year with high backorders on preloaded acrylic due to supply
    constraints from a third party supplier.
  oIOL gross margins declined primarily due to the increase of the lower
    margin preloaded acrylic IOL sales in Europe and China.

Project Comet Update

  oSuccessfully completed validation of V4, V4b and V4c ICLs, initiated
    manufacturing and shipped the first U.S. manufactured Visian ICL to
    customers on January 24, 2013.
  oObtained regulatory approval for U.S. manufactured ICLs in Europe, Japan,
    Korea and China representing approximately 70% of ICL unit volume.
  oSuccessfully completed requirements and transferred to the U.S. cartridge
    manufacturing and final inspection, assembly, and pouching for Preloaded
    Silicone IOLs. All non-sterile IOLs for Japan are now manufactured and
    shipped from the U.S.
  oReceived commitments from several key employees from Japan and Switzerland
    to relocate either temporarily or permanently to the U.S.

Full Year 2012 Financial Highlights

  oTotal net sales in 2012 increased 2% to $63.8 million from $62.8 million
    in 2011. Foreign currency changes unfavorably impacted net sales by
    $62,000 in 2012 and favorably impacted net sales by $1.7 million in 2011.
  oVisian ICL sales totaled $35.1 million, 9.4% above sales of $32.1 million
    reported in 2011.
  oIOL sales totaled $26 million, compared to sales of $27.5 million in 2011.
  oGross margin increased to 69.4% of revenue from 67.5% for 2011
    representing an increase of 190 bps. The increase was largely attributable
    to a higher mix of ICL sales, 55% as compared to 51.1%, and improved cost
    of goods.
  oTotal operating expenses were $45.5 million, a 15% increase over 2011
    expenses of $39.6 million. Manufacturing consolidation expenses totaled
    $2.6 million during the year. Operating expenses, before manufacturing
    consolidation expenses, were $42.9 million, an 11% increase over 2011.
    Expenses associated with the transfer of sales to a direct model in Spain
    added approximately $1.1 million in expenses that will be completed at the
    end of the first quarter. Foreign currency changes did not materially
    impact operating expenses for the year.
  oCalculated in accordance with GAAP, the net loss totaled $1.8 million in
    2012, or $0.05 per diluted share, compared with net income of $1.3
    million, or $0.04 per diluted share in 2011.
  oAdjusted net income (which excludes manufacturing consolidation expenses,
    distribution transition expenses in Spain, gain or loss on foreign
    currency transactions, fair value adjustment of warrants and non-cash
    share-based compensation expense) was $4.8 million or $0.13 per diluted
    share in 2012, compared to adjusted net income of $4.4 million or $0.12
    per diluted share in 2011.
  oThe Company generated $3.2 million in cash from operations in 2012
    compared with $5.3 million in cash in 2011. The Company used $350,000 in
    cash for the expansion of existing facilities in Monrovia, California and
    $2.2 million in cash for manufacturing consolidation expenses.

2013 Metrics

Looking ahead, the Company offered the following key metrics that management
will focus on achieving during 2013 and upon which it will report and update
each quarter:

  oTotal revenue growth in the range of eight to 10%. The first quarter
    should start at the lower range and increase throughout the year.
  oGross margin expansion by a minimum of 250 bps for the year.
  oProfitable on a GAAP basis each quarter.
  oMake continuous quarterly progress towards the full implementation of
    manufacturing consolidation from Japan and Switzerland facilities by the
    end of 2013.

Conference Call

The Company will host a conference call and video webcast today, February 27,
2013 at 4:30 p.m. Eastern / 1:30 p.m. Pacific to discuss the Company's fourth
quarter 2012 financial results and recent corporate developments. The dial-in
number for the conference call is 877-941-0844 for domestic participants and
480-629-9692 for international participants.

The Company will also be using slides to illustrate its fourth quarter results
and operational progress. The slides and live webcast of the call can be
accessed from the investor relations section of the STAAR website at
www.staar.com.

A taped replay of the conference call will also be available beginning
approximately one hour after the call's conclusion and will be available for
seven days. This replay can be accessed by dialing 800-406-7325 for domestic
callers and 303-590-3030 for international callers, both using passcode
4592160#. An archived webcast will also be available at www.staar.com.

Use of Non-GAAP Financial Measures

This press release includes supplemental non-GAAP financial information, which
STAAR believes investors will find helpful in understanding its operating
performance. "Adjusted Net Income" excludes the following items that are
included in "Net Income (Loss)" as calculated in accordance with U.S.
generally accepted accounting principles ("GAAP"): manufacturing
consolidation expenses, Spain distribution transition expenses, gain or loss
on foreign currency transactions, the fair value adjustment of outstanding
warrants issued in 2007, and stock-based compensation expenses.

We believe that "Adjusted Net Income" is useful to investors in gauging the
outcome of the key drivers of our business performance: our ability to
increase sales revenue and our ability to increase profit margin by improving
the mix of high value products while reducing the costs over which we have
control.

We have excluded manufacturing consolidation and Spain distribution transition
expenses because these are non-recurring expenses and their inclusion may mask
underlying trends in our business performance. Expenses associated with the
Company's plans to consolidate its manufacturing operations to the U.S. are
largely expected to be completed at the end of 2013 and the Spain distribution
transition expenses will be completed before the end of the first quarter of
2013.

We have excluded gains and losses on foreign currency transactions and the
fair value adjustment of warrants because of the significant fluctuations that
can result from period to period as a result of market driven factors.

Stock-based compensation expenses consist of expenses for stock options and
restricted stock under Statement of Financial Accounting Standards ("SFAS")
No.123R. In calculating Adjusted Net Income STAAR excludes these expenses
and the fair value adjustment of outstanding warrants because they are
non-cash expenses and because of the complexity and considerable judgment
involved in calculating their values. In addition, these expenses tend to be
driven by fluctuations in the price of our stock and not by the same factors
that generally affect our other business expenses.

We have provided below a detailed reconciliation table, which is useful to
investors in providing the context to understand our Adjusted Net Income and
how it differs from Net Income (Loss) calculated in accordance with GAAP.

About STAAR Surgical

STAAR, which has been dedicated solely to ophthalmic surgery for over 25
years, designs, develops, manufactures and markets implantable lenses for the
eye and delivery systems therefor. All of these lenses are foldable, which
permits the surgeon to insert them through a small incision. STAAR's lens
used in refractive surgery as an alternative to LASIK is called an Implantable
Collamer® Lens or "ICL." A lens used to replace the natural lens after
cataract surgery is called an intraocular lens or "IOL." Over 300,000 Visian
ICLs have been implanted to date; to learn more about the ICL go to:
www.visianinfo.com. STAAR has approximately 300 full time employees and
markets lenses in over 60 countries. Headquartered in Monrovia, CA, it
manufactures in the following locations: Nidau, Switzerland; Ichikawa City,
Japan; Aliso Viejo, CA; and Monrovia, CA. For more information, please visit
the Company's website at www.staar.com or call 626-303-7902.

Collamer® is the registered trademark for STAAR's proprietary biocompatible
collagen copolymer lens material.

Safe Harbor

All statements in this press release that are not statements of historical
fact are forward-looking statements, including statements about any of the
following: any projections of earnings, revenue, sales, profit margins, cash
or any other financial items; the plans, strategies, and objectives of
management for future operations or prospects for achieving such plans;
metrics for 2013; statements regarding new products, including but not limited
to, expectations for success of the new ICL, KS-SP and nanoFLEX Toric IOL
products in the U.S. or international markets or government approval of new
products; future economic conditions or size of market opportunities; expected
savings from business consolidation plans and the timetable for those plans;
statements of belief; and any statements of assumptions underlying any of the
foregoing.

These statements are based on expectations and assumptions as of the date of
this press release and are subject to numerous risks and uncertainties, which
could cause actual results to differ materially from those described in the
forward-looking statements. The risks and uncertainties include the following:
our limited capital resources and limited access to financing; the negative
effect of unstable global economic conditions on sales of products, especially
products such as the ICL used in non-reimbursed elective procedures; the
challenge of managing our foreign subsidiaries; backlog as we prepare for our
manufacturing facility consolidation; the risk of unfavorable changes in
currency exchange rate; the discretion of regulatory agencies to approve or
reject new products, or to require additional actions before approval;
unexpected costs or delays that could reduce or eliminate the expected
benefits of our consolidation plans; the risk that research and development
efforts will not be successful or may be delayed in delivering for launch; the
purchasing patterns of our distributors carrying inventory in the market; the
willingness of surgeons and patients to adopt a new product and procedure;
patterns of Visian ICL use that have typically limited our penetration of the
refractive surgery market, and a general decline in the demand for refractive
surgery particularly in the U.S. and the Asia Pacific region, which STAAR
believes has resulted from both concerns about the safety and effectiveness of
laser procedures and current economic conditions. The Visian Toric ICL and
the Visian ICL with CentraFLOW are not yet approved for sale in the United
States.

CONTACT:  Investors  Media
               EVC Group      EVC Group
               Jenifer Kirtland, 415-568-9349 Amy Phillips, 412-327-9499
               Leigh Salvo, 415-568-9348
               Douglas Sherk, 415-652-9100

STAAR Surgical Company
Condensed Consolidated Balance Sheets
(in 000's)
                                            December 28,      December 30,
                                            2012              2011
ASSETS
Current assets:
Cash and cash equivalents                   $    21,675   $    16,582
Restricted cash                            -                 129
Accounts receivable trade, net              8,543             9,089
Inventories, net                            11,673            10,933
Prepaids, deposits, and other current       2,183             1,921
assets
 Total current assets                     44,074            38,654
Property, plant, and equipment, net         5,439             4,222
Intangible assets, net                      2,142             2,989
Goodwill                                    1,786             1,786
Deferred income taxes                       187               152
Other assets                                1,131             1,203
 Total assets                             $    54,759   $    49,006
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Line of credit                              $     5,850  $     2,580
Accounts payable                            5,129             4,261
Deferred income taxes                       439               472
Obligations under capital leases           829               597
Other current liabilities                   5,702             6,106
 Total current liabilities                17,949            14,016
Obligations under capital leases           488               1,124
Deferred income taxes                       885               708
Pension liability                           2,988             2,760
Asset retirement obligations                707               577
Other long-term liabilities                 -                 363
 Total liabilities                        23,017            19,548
Stockholders' equity:
Common stock                                364               361
Additional paid-in capital                  162,251           157,382
Accumulated other comprehensive income      1,580             2,405
Accumulated deficit                         (132,453)         (130,690)
 Total stockholders' equity               31,742            29,458
 Total liabilities and stockholders'      $    54,759   $    49,006
equity

STAAR Surgical Company
Condensed Consolidated Statements of Operations
(In 000's except for per share data)
                Three Months Ended                                    Year Ended
                % of   December  % of   December  Change              % of   December  % of   December  Change
                       28,              30,                                  28,              30,
                Sales  2012      Sales  2011      Amount    %         Sales  2012      Sales  2011      Amount    %
                       $             $      $                       $             $      $  
Net sales       100.0%          100.0%  16,381   85      0.5%      100.0%          100.0%  62,765  1,018     1.6%
                       16,466                                               63,783
Cost of sales   32.2%  5,298     30.2%  4,952     (346)     7.0%      30.6%  19,492    32.5%  20,396    904       -4.4%
Gross profit    67.8%  11,168    69.8%  11,429    (261)     -2.3%     69.4%  44,291    67.5%  42,369    1,922     4.5%
Selling,
general and
administrative
expenses:
 General and   25.5%  4,207     24.1%  3,946     261       6.6%      23.7%  15,150    23.8%  14,932    218       1.5%
administrative
 Marketing     34.9%  5,744     28.3%  4,628     1,116     24.1%     33.4%  21,281    28.2%  17,726    3,555     20.1%
and selling
 Research and  11.0%  1,804     9.7%   1,590     214       13.5%     10.1%  6,444     9.3%   5,868     576       9.8%
development
 Selling,
general, and    71.4%  11,755    62.0%  10,164    1,591     15.7%     67.2%  42,875    61.4%  38,526    4,349     11.3%
administrative
expenses
 Other
general and     4.0%   656       3.6%   597       59        9.9%      4.1%   2,636     1.7%   1,060     1,576     148.7%
administrative
expenses
 Total
selling,
general and     75.4%  12,411    65.7%  10,761    1,650     15.3%     71.4%  45,511    63.1%  39,586    5,925     15.0%
administrative
expenses
Operating       -7.5%  (1,243)   4.1%   668       (1,911)   -286.1%   -1.9%  (1,220)   4.4%   2,783     (4,003)   -143.8%
(loss) income
Other income
(expense):
 Interest      0.3%   45        0.0%   7         38        542.9%    0.1%   59        0.1%   32        27        84.4%
income
 Interest      -0.4%  (64)      -0.5%  (83)      19        -22.9%    -0.5%  (291)     -0.8%  (523)     232       -44.4%
expense
 (Loss) Gain
on foreign      0.6%   102       -0.5%  (81)      183       -225.9%   0.2%   111       0.1%   86        25        29.1%
currency
transactions
 Other income  1.3%   212       -0.2%  (32)      244       -762.5%   1.3%   822       0.5%   326       496       152.1%
(expense), net
 Total
other income    1.8%   295       -1.2%  (189)     484       -256.1%   1.1%   701       -0.1%  (79)      780       -987.3%
(expense), net
Income (loss)
before          -5.8%  (948)     2.9%   479       (1,427)   -297.9%   -0.8%  (519)     4.3%   2,704     (3,223)   -119.2%
provision for
income taxes
Provision for   2.8%   466       2.3%   370       96        25.9%     2.0%   1,244     2.2%   1,356     (112)     -8.3%
income taxes
Net income             $             $      $                         $             $      $ 
(loss)          -8.6%          0.7%          (1,523)  -1397.2%  -2.8%          2.1%           (3,111)  -230.8%
                       (1,414)          109                                 (1,763)          1,348
Net (loss)             $             $                                 $             $   
Income per                                                                             
share-basic            (0.04)           0.00                                 (0.05)           0.04
Net (loss)             $             $                                 $             $   
Income per                                                                             
share-diluted          (0.04)           0.00                                 (0.05)           0.04
Weighted
average shares         36,394           35,818                               36,253           35,434
outstanding -
basic
Weighted
average shares         36,394           37,913                               36,253           36,878
outstanding -
diluted

STAAR Surgical Company
Condensed Consolidated Statements of Cash Flows
(in 000's)
                                           Year Ended
                                           December 28,       December 30,
                                           2012               2011
Cash flows from operating activities:
 Net income (loss)                       $     (1,763)  $     1,348
 Adjustments to reconcile net income
(loss) to net cash provided by operating
activities:
      Depreciation of property and         1,309              1,469
      equipment
      Amortization of intangibles          652                797
      Deferred income taxes                143                367
      Fair value adjustment of warrant     (335)              117
      Loss on disposal of property and     131                13
      equipment
      Stock-based compensation expense     3,208              1,914
      Change in net pension liability      205                257
      Asset retirement obligation          16                 -
      Other                                77                 (320)
 Changes in working capital:
      Accounts receivable trade, net       224                (435)
      Inventories                          (1,020)            (85)
      Prepaids, deposits and other         (298)              (145)
      current assets
      Accounts payable                     1,014              480
      Other current liabilities            (346)              (431)
       Net cash provided by           3,217              5,346
      operating activities
Cash flows from investing activities:
      Acquisition of property and          (2,311)            (962)
      equipment
      Decrease in restricted cash,         129                -
      including reinvested interest
      Proceeds from sale of property and   -                  26
      equipment
      Net change in other assets           (4)                47
       Net cash used in investing     (2,186)            (889)
      activities
Cash flows from financing activities:
      Borrowings under line of credit      3,510              -
      Repayment of capital lease lines of  (701)              (575)
      credit
      Proceeds from exercise of stock      1,514              3,343
      options
       Net cash provided by           4,323              2,768
      financing activities
Effect of exchange rate changes on cash    (261)              (19)
and cash equivalents
Increase in cash and cash equivalents      5,093              7,206
Cash and cash equivalents, at beginning    16,582             9,376
of the period
Cash and cash equivalents, at end of the   $    21,675    $    16,582
period

STAAR Surgical Company
Global Sales
(in 000's)
              Three Months Ended                       Year Ended
                     December        December  %              December        December  %
                     28,             30,                      28,             30,
Geographic           2012            2011      Change         2012            2011      Change
Sales
United States 18.2%  $     20.8%  $       -11.9%  19.5%  $     22.1%  $        -10.3%
                      2,999        3,403                   12,427         13,852
Japan         27.4%  4,505    23.9%  3,918     15.0%   26.2%  16,692   25.0%  15,690    6.4%
Korea         8.1%   1,334    16.4%  2,680     -50.2%  10.5%  6,713    13.0%  8,142     -17.6%
China         10.4%  1,714    9.3%   1,522     12.6%   13.2%  8,406    10.1%  6,354     32.3%
Other         35.9%  5,914    29.7%  4,858     21.7%   30.6%  19,545   29.8%  18,727    4.4%
 Total
International 81.8%  13,467   79.2%  12,978    3.8%    80.5%  51,356   77.9%  48,913    5.0%
Sales
 Total     100.0% $     100.0% $       0.5%    100.0% $     100.0% $        1.6%
Sales                16,466         16,381                   63,783         62,765
Product Sales
 Core
products
 ICLs      53.2%  $     54.8%  $       -2.5%   55.0%  $     51.1%  $        9.4%
                      8,758        8,981                   35,080         32,072
 IOLs      41.2%  6,786    41.4%  6,780     0.1%    40.7%  25,971   43.9%  27,547    -5.7%
 Total core  94.4%  15,544   96.2%  15,761    -1.4%   95.7%  61,051   95.0%  59,619    2.4%
products
 Non-core
products
 Other     5.6%   922      3.8%   620       48.7%   4.3%   2,732    5.0%   3,146     -13.2%
 Total     100.0% $     100.0% $       0.5%    100.0% $     100.0% $        1.6%
Sales                16,466         16,381                   63,783         62,765

STAAR Surgical Company
Reconciliation of Non-GAAP Financial Measure
                        Three Months Ended           Year Ended
                        December 28,  December 30,   December 28, December 30,
                        2012          2011           2012         2011
Net income (loss) -     $         $        $        $    
(as reported)           (1,414)       109           (1,763)      1,348
Less:
 Manufacturing         $       $        $        $    
consolidation expenses  656          597           2,636       1,060
 Spain distribution    $       $        $        $     
transition cost         582             -        1,151          -
 Foreign currency      $        $        $       $     
impact                  (102)         81          (111)        (86)
 Fair value            $        $        $       $     
adjustment of warrants  (118)        146           (335)        117
 Stock-based           $       $        $        $    
compensation expense    891           584           3,208       1,914
Net income -            $       $         $        $    
(adjusted)              495           1,517          4,786       4,353
Net income (loss) per   $        $         $       $     
share, basic - (as      (0.04)        0.00          (0.05)       0.04
reported)
 Manufacturing         $       $         $       $     
consolidation expenses  0.02          0.02           0.07       0.03
 Spain distribution    $       $        $       $     
transition cost         0.02            -          0.03          -
 Foreign currency      $        $         $       $     
impact                  (0.00)        0.00          (0.00)       (0.00)
 Fair value            $        $         $       $     
adjustment of warrants  (0.00)        0.00          (0.01)       0.00
 Stock-based           $        $         $       $     
compensation expense    0.02         0.02          0.09        0.05
Net income per share,   $        $         $       $     
basic - (adjusted)      0.01         0.04          0.13        0.12
Net income (loss) per   $        $         $       $     
share, diluted - (as    (0.04)        0.00          (0.05)       0.04
reported)
 Manufacturing         $       $         $       $     
consolidation expenses  0.02          0.02           0.07       0.03
 Spain distribution    $       $        $       $     
transition cost         0.02            -          0.03          -
 Foreign currency      $        $         $       $     
impact                  (0.00)        0.00          (0.00)       (0.00)
 Fair value            $        $         $       $     
adjustment of warrants  (0.00)        0.00          (0.01)       0.00
 Stock-based           $        $         $       $     
compensation expense    0.02         0.02           0.09       0.05
Net income per share,   $        $         $       $     
diluted - (adjusted)    0.01         0.04          0.13        0.12
Weighted average
shares outstanding -    36,394        35,818         36,253       35,434
Basic
Weighted average
shares outstanding -    36,394        37,913         36,253       36,878
Diluted

Note: Net income (loss) per share (adjusted), basic and diluted, may not add
up due to rounding





SOURCE STAAR Surgical Company

Website: http://www.staar.com