STAAR Surgical Reports Continued Momentum During Third Quarter

        STAAR Surgical Reports Continued Momentum During Third Quarter

~Total Sales of $17.1 Million Increased 8% from Q3 2012 / 14% Increase in
Constant Currency

~~Visian® ICL™ Sales Grew 18%; Visian ICL with CentraFLOW™ Technology Driving
Growth

~Revised Revenue Growth Metric of 13% to 14% is at Upper End of Range

GAAP Net Income of $0.01 per share; Non-GAAP Net Income of $0.04 per share

Cash Position Increases to $23.4 Million

PR Newswire

MONROVIA, Calif., Oct. 30, 2013

MONROVIA, Calif., Oct. 30, 2013 /PRNewswire/ -- STAAR Surgical Company
(NASDAQ: STAA), a leading developer, manufacturer and marketer of minimally
invasive ophthalmic products, today reported revenue for the third quarter
ended September 27, 2013 of $17.1 million, which represented 8% growth
compared to $15.9 million reported for the third quarter of 2012. The results
included sales of $10.7 million of the Company's Visian ICL product portfolio
and $5.3 million of its IOL products. Low margin Other Product sales increased
to $1.1 million, a 51% increase over the prior year and 73% in constant
currency. The effect of foreign currency exchange during the third quarter
versus the same quarter in the prior year reduced total sales by $1.0
million. On a constant currency basis, revenues grew 14% during the third
quarter of 2013 compared to the third quarter of 2012.

"Visian ICL sales continued to show strong growth during the quarter while
LASIK continues to be under downward pressure," said Barry Caldwell, President
and CEO. "ICLs with CentraFLOW technology continue to be the key growth
driver for us in markets where it is available. Key markets with CentraFLOW
like Europe and the Middle East grew 42% and 39% respectively. In Europe,
Spain grew 23% year over year, reflecting the first quarter with a true direct
to direct distribution model comparison. We are still in the early days of
adoption of the technology in Korea, India and Argentina. Approximately 33,000
Visian ICLs with CentraFLOW have been successfully implanted since the
introduction of the technology. The CentraFLOW technology makes the procedure
more convenient and cost effective for both the surgeon and the patient. As a
result of the momentum generated in the marketplace by our rapid cadence of
new product developments, the Visian ICL continues to gain market share in the
global refractive surgical market.

"The recent ESCRS meeting in Amsterdam was an exceptionally successful and
productive event for STAAR. During the week there were 111 presentations on
our Visian ICL technology, with the Visian ICL Experts Meeting prior to ESCRS
drawing 160 surgeons for the two day symposium. Throughout the week, we
maintained a strong presence, with the largest and most active booth in the
Company's history and an evening ICL Symposium on the Visian ICL technology
that drew over 200 attendees. We also introduced the Visian ICL Preloaded
System, which includes an enhanced optic design with the CentraFLOW
technology," added Caldwell. "This technology is designed to reduce the
procedure time, increase the useful optical zone for patients with larger
pupils, as well as make the delivery of the ICL even more consistent. We
expect to gain CE Mark approval in Q4 and begin a full launch of
commercialization during the first quarter of next year. As we continue the
rapid cadence of new products utilizing our ICL platform, the focus within our
Research and Development group turns to the V6 ICL. This product will both
expand into a new market segment of presbyopia correction as well as make the
ICL more competitive to LASIK in the myopic age group nearing their 40's."

Gross profit margin for the quarter was 70.5% compared to 70.4 % in the third
quarter of 2012. The manufacturing of the preloaded silicone IOL in the U.S.
now has a higher cost structure in Japan due to the weaker value of the yen as
compared to 2012 which negatively impacts gross margin dollars. Increased IOL
injector sales sold at low margins to the Company's KS-IOL lens supplier
negatively impacted gross margin as well. Combined these two factors
negatively impacted gross margin percent for the quarter by 270 basis points.
Without the impact of these factors, gross margins would have been 73.2%. As
long as the value of the yen compared to the dollar is weak, the Company's
gross margin expansion will continue to be negatively impacted.

Operating expenses for the third quarter of 2013 were $11.9 million, up 5%
from the $11.3 million prior year period reflecting $490,000 in charges
associated with the Company's manufacturing consolidation project. General
and Administrative expenses in the third quarter were $4.1 million, a 20%
increase over the third quarter of 2012. This increase was due mainly to an
increased accrual as compared to Q3 2012 for the performance based employee
bonus plan and incremental cost associated with the expanded facility in
Monrovia. These costs totaled approximately $560,000 additional expense
compared to the third quarter of 2012. Sales and Marketing expenses were $5.5
million, essentially flat to the same quarter in the prior year. The costs of
increased headcount were offset by decreased trade show expenses due to the
timing of the ESCRS meeting which fell in the fourth quarter this year as
compared to in the third quarter of 2012. Research and Development expenses
were $1.7 million, a 6% increase over Q3 2012 of $1.6 million. This increase
was driven by investments in R&D related new product development and increased
regulatory cost associated with key product approvals. The cost of the
manufacturing consolidation project which is recorded as Other Expense was
$238,000 lower than the third quarter of 2012. The effect of foreign currency
exchange on overall operating expenses provided a positive impact of
$624,000.

"During the quarter we began to see the first tax advantages from the
manufacturing consolidation project as the Company recorded an income tax
benefit of $433,000," added Steve Brown, Chief Financial Officer. "Since we
are no longer manufacturing in Japan we are able to release the valuation
allowance against its tax assets." Income taxes provided an overall net
benefit of $25,000 during the third quarter of 2013 compared to a $219,000 tax
provision during the third quarter of 2012. Excluding the tax benefit from
the Japan restructuring the effective tax rate for the quarter was
approximately 82%.

GAAP net income for the third quarter of 2013 was $525,000, or $0.01 on a per
diluted share basis, compared with net loss of $90,000, or $0.00 on a per
diluted share basis, in the third quarter of 2012. Adjusted net income
(excluding manufacturing consolidation expenses, Spain distribution transition
costs, gain (loss) on foreign currency transactions, fair value adjustment of
warrants, and stock-based compensation expense) for the quarter ended
September 27, 2013 was $1.7 million or $0.04 per diluted share versus adjusted
net income for the year ago quarter of $1.7 million or $0.05 per diluted
share. The reconciliation between GAAP and non-GAAP financial matters is
provided with financial tables included with this release.

Cash and cash equivalents on September 27, 2013 reached a record high of $23.4
million, compared to $19.7 million at the end of the second quarter of 2013
and $21.7 million at the end of fiscal 2012. Cash generation from operations
during the quarter was $3.1 million, which includes the use of $0.5 million
for the manufacturing consolidation project. The Company also used $1.0
million for the purchase of property and equipment and generated $1.8 million
in proceeds from stock option exercises.

Recent Visian Implantable Collamer® Lens (ICL) Highlights

  oICL sales represented 62.7% of total sales, compared to 57.4% of sales in
    Q3 2012. The overall percent was positively impacted by the decline in
    U.S. dollars of IOL revenue.
  oICL sales increased 18% to $10.7 million from $9.1 million in Q3 2012
    reflecting a 15% increase in unit sales and a 2% increase in price.
  oIn the over 60 markets where the Toric ICL (TICL) is available it
    represented 49% of the total ICL revenue and 40% of the units. TICL sales
    grew 26% during the quarter globally while the ICL grew 12%.
  oICL revenue and unit growth in 10 of the 11 key markets identified at the
    beginning of the year while LASIK continues to be under downward pressure
    globally.
  oKey regulatory approval of CentraFLOW technology was received in India
    during the quarter.

Regional ICL Updates

Europe, Middle East, Africa (EMEA)

  oVisian ICL revenues grew by 40% while units increased 30% and price
    increased 8% driven by the premium on the CentraFLOW technology and 35%
    unit growth in TICL.
  oEurope increased 42% in revenue due to gains from the CentraFLOW
    technology, and new sales personnel hired in 2012.

       oSpain grew 23%. This was the first quarter with a true direct to
         direct distribution model comparison, as the Company transitioned
         from a distributor sales model at the end of second quarter 2012.
         Unit volume in Spain grew by 18% during the quarter.
       oStrong growth was also generated in Germany +154%, France +81%, and
         Italy +53%.

  oThe Middle East, where the Visian ICL with CentraFLOW was introduced
    earlier this year, grew 39% in revenues.
  oLatin America grew 30% in revenue. Approval of the ICL with CentraFLOW in
    Argentina allowed the first orders to be placed late in the quarter.

Asia Pacific (APAC)

  oAPAC grew 10% in revenue while units increased 10% and price was flat.
  oChina ICL revenues increased 22% while units increased 19%. The Company
    believes that the impact on Visian ICL sales by the negative press on
    LASIK one year ago may now be subsiding.
  oKorea grew 13% as the distributor prepared for the first sales of the
    Visian ICL with CentraFLOW technology which was approved in late June with
    the official launch at the end of July.
  oICL sales in Japan declined 5% in yen during the quarter. According to key
    customers the market is seeing significant declines in LASIK procedures.
  oIndia grew 18% in revenue, with very little impact by the approval of
    Visian ICL CentraFLOW since it was late in the quarter.

North America (NA)

  oNA increased revenues by 9% while units increased 10% with a 1% decline in
    unit price.
  oSales in the U.S. grew 7% while units grew 9% in a market with continuing
    evidence that LASIK procedures are declining or flat at best.

Recent Intraocular Lens (IOL) Highlights

  oThird quarter IOL sales were $5.3 million, a 12% decrease from $6 million
    during the third quarter of 2012. The negative impact of foreign exchange
    was $809,000. Without the impact of foreign exchange, global IOL revenue
    would have increased 1% year over year.
  oIOL gross margin declined from 60% in the third quarter of 2012 to 54% in
    the current quarter. This was driven primarily by the negative impact of
    foreign exchange rates on revenues from Japan and China. IOLs represented
    31% of total sales in the third quarter of 2013, compared to 38% of total
    sales in the same period of the prior year.
  oThe Company ended the quarter with approximately $800,000 in backorders
    from European customers due to the lack of supply from a third party
    vendor.
  oIOL sales in Japan represented 52% of global IOL revenues. In U.S.
    dollars, this reflects a decrease of 11% compared to the prior year and a
    15% increase in constant currency. During the quarter there was a 6%
    increase in units as compared to the third quarter of 2012.
  oShipments to China were again halted for KS-IOLs which resulted in a 60%
    reduction in sales or $500,000 less than Q3 2012. China represented only
    6% of total IOL sales during the quarter compared to 14% of the total in
    Q3 2012.
  oIOL sales in European region increased by 52% despite the continued
    backorders while sales in the U.S. declined by 11%.
  oKS-IOL line continues to generate strong demand though the Company's
    supply of the lenses from a third party vendor remained below expectations
    during the quarter. The Company expects to receive increased units during
    the fourth quarter as well as in 2014.

Project Comet Update

During the quarter the Company continued to make progress toward completing
the manufacturing consolidation project by mid-2014. At the end of the second
quarter the Company had approximately 7,500 ICLs in finished goods inventory.
At the end of the third quarter the Company has approximately 11,400 ICLs in
inventory held in both Europe and the U.S. This represents a 50% increase of
ICLs in finished goods inventory during the quarter while shipping 15% more
units from stock compared to the third quarter of 2012. This inventory build
is consistent with management's plan to assure adequate supply and quality of
product throughout this consolidation project. Manufacturing yields of the
ICL in the U.S. continue to increase. 

Nine Month YTD Results

For the nine month period ended September 27, 2013, sales increased to $53.3
million versus $47.3 million during the first nine months of 2012, a 13%
increase in U.S. dollars and 18% increase in constant currency. Gross profit
increased by 13% as gross margin percentage reached 70.1%. Gross margin
percentage was negatively impacted by the value of the yen and increased
injector sales by 260 basis points. The nine month gross margin would have
been 72.7% if not for these two factors. Operating expenses increased $2.3
million or 6.9% and were positively impacted by the effect of currency
exchange by $1,447,000. Key investment spending included of $2.0 million for
the manufacturing consolidation project during the nine month period,
approximately $731,000 for the facility improvements in the expanded U.S.
facility and $442,000 for the transition to a direct distribution model in
Spain. Income taxes increased $109,000 and the new medical device tax was
$149,000. Net Income on a GAAP basis was $1.3 million or $0.03 per diluted
share as compared to a loss of $0.3 million or $0.01 per diluted share during
the first nine months of 2012. The non-GAAP adjusted net income increased to
$6.7 million or $0.17 per diluted share basis compared to $4.3 million or
$0.12 per diluted share basis during the first nine months of 2012. For the
first nine months of 2013, the Company generated $3.4 million in cash from
operating activities, compared with $3.7 million during the first nine months
of 2012.

Conference Call

STAAR will host a conference call and video webcast today at 4:30 p.m. Eastern
/ 1:30 p.m. Pacific to discuss third quarter results and recent corporate
developments. The dial-in number for the conference call is 866-202-0886 for
domestic participants and 617-213-8841 for international participants, both
using the passcode 83227474. The Company will also be using slides to
illustrate its third 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 888-286-8010 for domestic
callers and 617-801-6888 for international callers, both using passcode
25998756. 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.

The Company conducts a significant part of its activities outside the U.S. It
receives sales revenue and pays expenses principally in U.S. dollars, Swiss
francs, Japanese yen and Euros. The exchange rates between dollars and
non-U.S. currencies can fluctuate greatly and can have a significant effect on
our results when reported in U.S. dollars. When preparing its financial
statements in conformance with GAAP, the Company translates foreign currency
sales and expenses denominated in Japanese yen to dollars at the weighted
average of exchange rates in effect during the period. As a result, the
Company's reported performance may be significantly affected by currency
fluctuations. In order to compare the Company's performance from period to
period without the effect of currency, the Company will apply the same average
exchange rate applicable in the prior period, or the "constant currency" rate
to sales or expenses in the current period as well. Because changes in
currency are outside of the control of the Company and its managers,
management finds this non-GAAP measure useful in determining the long term
progress of its initiatives and determining whether its managers are achieving
their performance goals. The Company believes that the non-GAAP
constant-currency sales results measures provided in this press release are
similarly useful to investors to give insight on long term trends in the
Company's performance without the external effect of changes in relative
currency values. The table below shows sales results calculated in accordance
with GAAP, the effect of currency, and the resulting non-GAAP measure
expressed in constant currency.

"Adjusted Net Income" excludes the following items that are included in "Net
Income" 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 by the middle of 2014 and the Spain
distribution transition expenses were completed at 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 the Financial Accounting Standards Board's Accounting
Standards Codification (ASC) 718. 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 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 375,000 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; Aliso Viejo, CA;
and Monrovia, CA. For more information, please visit the Company's website at
www.staar.com.

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,
effective tax rate or any other financial items; the plans, strategies, and
objectives of management for future operations or prospects for achieving such
plans; statements regarding new products, including but not limited to,
expectations for success of new products in the U.S. or international markets
or government approval of new products; future economic conditions or size of
market opportunities; expected IOL backorder position; expected costs of
Monrovia facility expansion; expected costs and savings from business
consolidation plans and the timetable for those plans; statements of belief,
including as to achieving 2013 growth plans or metrics; expected regulatory
activities and approvals, product launches, and any statements of assumptions
underlying any of the foregoing. Important additional factors that could
cause actual results to differ materially from those indicated by such
forward-looking statements are set forth in the company's Annual Report on
Form 10-K for the year ended December 28, 2012, under the caption "Risk
Factors," which is on file with the Securities and Exchange Commission and
available in the "Investor Information" section of the company's website under
the heading "SEC Filings."

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 procedure 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
         Doug Sherk, 415-652-9100  Janine McCargo
         Leigh Salvo, 415-568-9348 646-688-0425 



STAAR Surgical Company
Condensed Consolidated Balance Sheets
(in 000's)
Unaudited
                                           September 27,      December 28,
ASSETS                                     2013               2012
Current assets:
Cash and cash equivalents                  $     23,351  $    21,675
Accounts receivable trade, net             9,467              8,543
Inventories, net                           11,880             11,673
Prepaids, deposits, and other current      2,703              2,183
assets
Deferred income taxes                      483                —
 Total current assets                    47,884             44,074
Property, plant, and equipment, net        6,512              5,439
Intangible assets, net                     1,567              2,142
Goodwill                                   1,786              1,786
Deferred income taxes                      732                187
Other assets                               1,056              1,131
 Total assets                            $     59,537  $    54,759
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Line of credit                             $      5,050  $     5,850
Accounts payable                           4,536              5,129
Deferred income taxes                      439                439
Obligations under capital leases          393                829
Other current liabilities                  6,052              5,702
 Total current liabilities               16,470             17,949
Obligations under capital leases          211                488
Deferred income taxes                      1,690              885
Asset retirement obligations               374                707
Pension liability                          2,971              2,988
 Total liabilities                       21,716             23,017
Stockholders' equity:
Common stock                               370                364
Additional paid-in capital                 168,056            162,251
Accumulated other comprehensive income     574                1,580
Accumulated deficit                        (131,179)          (132,453)
 Total stockholders' equity              37,821             31,742
 Total liabilities and stockholders'     $     59,537  $    54,759
equity



STAAR Surgical Company
Condensed Consolidated Statements of Operations
(In 000's except for per share data)
Unaudited
                Three Months Ended                                   Nine Months Ended
                % of   September  % of   September  Fav (Unfav)      % of   September  % of   September  Fav (Unfav)
                       27,               28,                                27,               28,
                Sales  2013       Sales  2012       Amount  %        Sales  2013       Sales  2012       Amount   %
Net sales       100.0% $      100.0% $      $       7.8%     100.0% $      100.0% $      $ 5,955  12.6%
                       17,106           15,866    1,240                   53,271           47,316
Cost of sales   29.5%  5,047      29.6%  4,690      (357)   -7.6%    29.9%  15,939     30.0%  14,194     (1,745)  -12.3%
Gross profit    70.5%  12,059     70.4%  11,176     883     7.9%     70.1%  37,332     70.0%  33,122     4,210    12.7%
Selling,
general and
administrative
expenses:
 General and   24.2%  4,140      21.7%  3,450      (690)   -20.0%   22.5%  12,021     23.1%  10,942     (1,079)  -9.9%
administrative
 Marketing     32.3%  5,527      34.7%  5,507      (20)    -0.4%    30.9%  16,471     32.8%  15,536     (935)    -6.0%
and selling
 Research and  9.8%   1,684      10.0%  1,582      (102)   -6.4%    8.9%   4,736      9.8%   4,640      (96)     -2.1%
development
 Medical       0.3%   45         0.0%   -          (45)    -100.0%  0.3%   149        0.0%   -          (149)    -100.0%
device tax
 Selling,
general, and    66.6%  11,396     66.4%  10,539     (857)   -8.1%    62.6%  33,377     65.7%  31,118     (2,259)  -7.3%
administrative
expenses
 Other
general and     2.9%   490        4.6%   728        238     32.7%    3.8%   2,004      4.2%   1,980      (24)     -1.2%
administrative
expenses
 Total
selling,
general and     69.5%  11,886     71.0%  11,267     (619)   -5.5%    66.4%  35,381     69.9%  33,098     (2,283)  -6.9%
administrative
expenses
Operating       1.0%   173        -0.6%  (91)       264     —        3.7%   1,951      0.1%   24         1,927    8029.2%
income (loss)
Other income
(expense):
 Interest      0.1%   9          0.0%   7          2       28.6%    0.0%   23         0.0%   14         9        64.3%
income
 Interest      -0.2%  (38)       -0.4%  (65)       27      41.5%    -0.3%  (134)      -0.5%  (227)      93       41.0%
expense
 Gain (loss)
on foreign      1.3%   226        1.2%   191        35      18.3%    -0.1%  (38)       0.0%   9          (47)     —
currency
transactions
 Other         0.8%   130        0.5%   87         43      49.4%    0.7%   360        1.3%   610        (250)    -41.0%
income, net
 Total
other income,   1.9%   327        1.4%   220        107     48.6%    0.3%   211        0.8%   406        (195)    -48.0%
net
Income before
provision       2.9%   500        0.8%   129        371     287.6%   4.0%   2,162      0.9%   430        1,732    402.8%
(benefit) for
income taxes
Provision
(benefit) for   -0.1%  (25)       1.4%   219        244     —        1.7%   888        1.6%   779        (109)    -14.0%
income taxes
Net income             $             $      $                      $             $    
(loss)         3.0%     525   -0.6%          615     —        2.3%    1,274    -0.7%    (349)  $ 1,623  —
                                         (90)
Net income             $             $                              $             $    
(loss) per               0.01           (0.00)                            0.03           (0.01)
share - basic
Net income
(loss) per             $             $                              $             $    
share -                  0.01           (0.00)                            0.03           (0.01)
diluted
Weighted
average shares         36,750            36,292                             36,552            36,206
outstanding -
basic
Weighted
average shares         39,284            36,292                             38,482            36,206
outstanding -
diluted



STAAR Surgical Company
Condensed Consolidated Statements of Cash Flows
(in 000's)
Unaudited
                                          Nine Months Ended
                                          September 27,      September 28,
                                          2013               2012
Cash flows from operating activities:
 Net income (loss)                     $      1,274  $      
                                                             (349)
 Adjustments to reconcile net income
(loss) to net cash provided by operating
activities:
       Depreciation of property and       1,325              989
       equipment
       Amortization of intangibles        334                525
       Deferred income taxes              (220)              114
       Fair value adjustment of warrant   (27)               (217)
       Loss on disposal of property and   172                47
       equipment
       Stock-based compensation expense   2,924              2,317
       Change in net pension liability    124                187
       Accretion of asset retirement      9                  -
       obligation
       Other                              157                40
 Changes in working capital:
       Accounts receivable               (1,423)            910
       Inventories                        (707)              (734)
       Prepaids, deposits and other       (614)              85
       current assets
       Accounts payable                   (389)              (444)
       Other current liabilities          489                236
        Net cash provided by         3,428              3,706
       operating activities
Cash flows from investing activities:
       Acquisition of property and        (2,984)            (1,161)
       equipment
       Release of restricted cash         -                  129
        Net cash used in investing   (2,984)            (1,032)
       activities
Cash flows from financing activities:
       Repayment of capital lease         (675)              (619)
       obligations
       Proceeds from exercise of stock    2,723              1,102
       options
        Net cash provided by         2,048              483
       financing activities
Effect of exchange rate changes on cash   (816)              14
and cash equivalents
Increase in cash and cash equivalents     1,676              3,171
Cash and cash equivalents, at beginning   21,675             16,582
of the period
Cash and cash equivalents, at end of the  $     23,351  $     19,753
period



STAAR Surgical Company
Global Sales
(in 000's)
Unaudited
              Three Months Ended                          Nine Months Ended
                     September        September  %               September        September  %
                     27,              28,        Change          27,              28,        Change
Geographic           2013             2012       Fav             2013             2012       Fav
Sales                                            (Unfav)                                     (Unfav)
United States 17.5%  $     19.1%  $      -1.5%    17.6%  $     19.9%  $      -0.4%
                      2,993          3,038                    9,388          9,428
Japan         23.6%  4,040     26.7%  4,237      -4.6%    25.2%  13,427    25.8%  12,187     10.2%
China         13.3%  2,275     15.4%  2,444      -6.9%    12.3%  6,575     14.1%  6,691      -1.7%
Korea         11.6%  1,982     11.1%  1,755      12.9%    11.0%  5,851     11.4%  5,379      8.8%
Spain         5.9%   1,012     5.1%   808        25.2%    6.5%   3,466     3.9%   1,850      87.4%
Other         28.1%  4,804     22.6%  3,584      34.0%    27.3%  14,564    24.9%  11,781     23.6%
 Total
International 82.5%  14,113    80.9%  12,828     10.0%    82.4%  43,883    80.1%  37,888     15.8%
Sales
 Total     100.0% $     100.0% $      7.8%     100.0% $     100.0% $      12.6%
Sales                17,106          15,866                    53,271          47,316
Product Sales
 Core
products
 ICLs      62.7%  $     57.4%  $      17.7%    61.2%  $     55.6%  $      23.9%
                     10,725           9,111                   32,616          26,321
 IOLs      31.1%  5,322     38.1%  6,052      -12.1%   32.9%  17,533    40.5%  19,185     -8.6%
 Total core  93.8%  16,047    95.6%  15,163     5.8%     94.1%  50,149    96.2%  45,506     10.2%
products
 Non-core
products
 Other     6.2%   1,059     4.4%   703        50.6%    5.9%   3,122     3.8%   1,810      72.5%
 Total     100.0% $     100.0% $      7.8%     100.0% $     100.0% $      12.6%
Sales                17,106          15,866                    53,271          47,316



STAAR Surgical Company
Reconciliation of Non-GAAP Financial Measure
(in 000's)
Unaudited                 Three Months Ended         Nine Months Ended
                          September 27, September    September   September 28,
                                        28,          27,
                          2013          2012         2013        2012
Net income (loss) - (as   $       $       $      $      
reported)                 525            (90)     1,274       (349)
Less:
 Manufacturing           490           728          2,004       $     
consolidation expenses                                           1,980
 Spain distribution      -             397          442         $      
transition cost                                                  569
 Foreign currency        (226)         (191)        38          $      
impact                                                             (9)
 Fair value adjustment   -             (10)         (27)        $      
of warrants                                                      (217)
 Stock-based             905           838          2,924       $     
compensation expense                                             2,317
Net income - (adjusted)   $        $       $      $     
                          1,694         1,672        6,655       4,291
Net income (loss) per     $       $       $      $     
share, basic - (as        0.01          (0.00)       0.03      (0.01)
reported)
 Manufacturing           $       $       $      $      
consolidation expenses    0.01           0.02        0.05      0.05
 Spain distribution      $       $       $      $      
transition cost              -       0.01        0.01      0.02
 Foreign currency        $        $       $      $     
impact                    (0.01)       (0.01)       0.00      (0.00)
 Fair value adjustment   $       $       $      $     
of warrants                  -      (0.00)      (0.00)     (0.01)
 Stock-based             $       $       $      $      
compensation expense      0.02           0.02        0.08      0.06
Net income per share,     $       $       $      $      
basic - (adjusted)        0.05           0.05        0.18      0.12
Net income (loss) per     $       $       $      $     
share, diluted - (as      0.01          (0.00)       0.03      (0.01)
reported)
 Manufacturing           $       $       $      $      
consolidation expenses    0.01           0.02        0.05      0.05
 Spain distribution      $       $       $      $      
transition cost              -       0.01        0.01      0.02
 Foreign currency        $        $       $      $     
impact                    (0.01)       (0.01)       0.00      (0.00)
 Fair value adjustment   $       $       $      $     
of warrants                  -      (0.00)      (0.00)     (0.01)
 Stock-based             $       $       $      $      
compensation expense      0.02           0.02        0.08      0.06
Net income per share,     $       $       $      $      
diluted - (adjusted)      0.04           0.05        0.17      0.12
Weighted average shares   36,750        36,292       36,552      36,206
outstanding - Basic
Weighted average shares   39,284        36,292       38,482      36,206
outstanding - Diluted
Note: Net income per share (adjusted), basic and diluted, may
not add up due to rounding



STAAR Surgical Company
Reconciliation of Non-GAAP Financial Measure
Constant Currency Sales
(in 000's)
Unaudited
        Three Months Ended
        GAAP
        Sales
        September Effect    Constant  September  As Reported    Constant
        27,       of                    28,                         Currency
        2013      Currency Currency  2012       $      %       $      %
                                                    Change Change  Change Change
ICL   $     $      $  10,762  $      $     18%      $     18%
        10,725   37                      9,111    1,614            1,651
IOL   5,322     809        6,131       6,052      (730)   -12%     79      1%
Other 1,059     155        1,214       703        356     51%      511     73%
Total  $     $        $  18,107  $      $     8%       $     14%
Sales  17,106   1,001                  15,866    1,240            2,241
        Nine Months Ended
        GAAP
        Sales
        September Effect    Constant  September  As Reported    Constant
        27,       of                    28,                         Currency
        2013      Currency Currency  2012       $      %       $      %
                                                    Change Change  Change Change
ICL   $     $       $  32,726  $      $     24%      $     24%
        32,616   110                    26,321    6,295            6,405
IOL   17,533    2,249      19,782      19,185     (1,652) -9%      597     3%
Other 3,122     364        3,486       1,810      1,312   72%      1,676   93%
Total  $     $        $  55,994  $      $     13%      $     18%
Sales  53,271   2,723                  47,316    5,955            8,678

SOURCE STAAR Surgical Company

Website: http://www.staar.com
 
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