IRIDEX Reports 2013 Fourth Quarter Results

                  IRIDEX Reports 2013 Fourth Quarter Results

Record Revenue of $10.6 Million in Quarter

PR Newswire

MOUNTAIN VIEW, Calif., Feb. 27, 2014

MOUNTAIN VIEW, Calif., Feb. 27, 2014 /PRNewswire/ --IRIDEX Corporation
(Nasdaq: IRIX) today reported financial results for the fourth quarter ended
December 28, 2013.

  oRevenues were $10.6 million in the fourth quarter of 2013, up 15% from
    $9.2 million in the prior year comparable period and up sequentially from
    $9.5 million in the third quarter of 2013.
  oGross margin for the fourth quarter of 2013 was 48.6%, up from 47.0% in
    the prior year period and down from 49.6% reported in the 2013 third
  oFor the fourth quarter of 2013, operating income was $0.6 million compared
    with an operating income of $0.3 million for the fourth quarter of 2012.
  oNet income from continuing operations was $0.4 million, or $0.04 per
    diluted share, for the fourth quarter of 2013, compared to a net income
    from continuing operations of $0.3 million, or $0.03 per diluted share, in
    the fourth quarter of 2012.
  oGuidance for first quarter of 2014: The Company expects to achieve revenue
    between $9.8 million and $10.1 million, representing growth of between 9%
    and 13% over the prior year period. Gross margin is anticipated to come in
    between 48% and 50%, operating expenses between $4.3 million and $4.5
    million, and the Company anticipates generating operating income.

President and CEO Will Moore said, "We saw strong sales in the fourth quarter,
exceeding our revenue guidance. The trend of stronger system sales continued
in the quarter as buying patterns trend up in the US, Micropulse™ adoption
steadily improves, our recently launched TxCell™ pattern scanning delivery
device has been met with strong demand and we continue to be successful in
international tenders."

"After finishing 2013 on a very strong note, we think 2014 will show these
trends continuing and you will see us focus on bringing our Glaucoma product
offerings to the forefront. We see the glaucoma market as one that we can
penetrate using both MicroPulse technology for MLT procedures to drive system
sales and we are developing a family of consumable products that can further
improve patient outcomes. These steps will further enhance the IRIDEX brand
and business model and consequently increase shareholder value," continued

Revenues for 2013 were $38.3 million, up 13% from $33.9 million in 2012.
Operating income for 2013 was $2.6 million, up $3.5 million from an operating
loss of $0.9 million in 2012. Net income from continuing operations for 2013
was $2.2 million compared to a loss from continuing operations of $0.2 million
for 2012, or earnings of $0.22 per diluted share compared to a loss of $0.02
per share on a diluted basis.

During the fourth quarter 2013, the Company continued to execute its share
repurchase program buying approximately 38,000 shares at an average price of
$6.03. The original $3.0 million repurchase plan approved in February 2013 was
for one year. Today the Board approved extending the plan for an additional
year and $2.6 million remains available for stock repurchases.

Conference Call
IRIDEX management will conduct a conference call later today, Thursday,
February 27, 2014 at 5:00 p.m. Eastern Time. Interested parties may access
the live conference call via telephone by dialing (888) 549-7880 (U.S.) or
(480) 629-9770 (International) and quoting Conference ID 4669674, or by
visiting the Company's website at A telephone replay will be
available beginning on Thursday, February 27, 2014 through Friday, March 7,
2014 by dialing (800) 406-7325 (U.S.) or (303) 590-3030 (International) and
entering Access Code 4669674. In addition, later today an archived version of
the webcast will be available on the Company's website at

IRIDEX Corporation was founded in 1989 and 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. We maintain a deep commitment to the success of our
customers, with comprehensive technical, clinical, and service support
programs. IRIDEX is dedicated to a standard of excellence, offering superior
technology for superior results. IRIDEX products are sold in the United States
through both direct and independent sales forces and internationally through a
combination of a direct sales force and a network of approximately 70
independent distributors into over 100 countries. For further information,
visit the Company's website at

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, relating to the size and growth of markets
in which the Company operates, US and international buying patterns, the
success of the Company's marketing and sales efforts and operational
execution, the adoption of MicroPulse laser therapy, TxCell pattern scanning
and the Company's other products, anticipated new product releases and the
Company's guidance concerning fiscal 2014 first quarter financial results,
including anticipated ranges of revenue, revenue growth rates, operating
expenses and gross margin rates, and operating income. 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
29, 2012 and Quarterly Reports on Form 10-Q for the fiscal quarters ended
March 30, 2013, June 29, 2013 and September 28, 2013, which were 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.


IRIDEX Corporation

Condensed Statements of Operations
(In thousands, except per share data)
                                Three Months Ended          Year Ended
                                December 28,  December 29,  December  December
                                                            28,       29,
                                2013          2012          2013      2012
Total revenues                  $10,598       $9,228        $38,273   $33,859
Cost of revenues                5,448         4,890         19,686    17,513
Gross profit                    5,150         4,338         18,587    16,346
Operating expenses:
Research and development        881           1,091         3,684     4,385
Sales and marketing             2,380         2,034         7,720     7,895
General and administrative      1,333         908           5,023     4,926
Proceeds from demutualization   0             0             (473)     0
of insurance carrier
Total operating expenses        4,594         4,033         15,954    17,206
Income (loss) from operations   556           305           2,633     (860)
Legal settlement                0             0             0         800
Other expense, net              (171)         (18)          (371)     (210)
Income (loss) from continuing
operations before Provision for 385           287           2,262     (270)
(benefit from) income taxes
Provision for (benefit from)    (27)          34            31        (100)
income taxes
Income (loss) from continuing   412           253           2,231     (170)
operations, net of tax
Income (loss) from discontinued 0             149           0         (264)
operations, net of tax
Gain (loss) on sale of
discontinued operations, net of 0             (160)         0         1,872
Income (loss) from discontinued 0             (11)          0         1,608
operations, net of tax
Net income                      $412          $242          $2,231    $1,438
Net income (loss) per share:
Continuing operations           $0.04         $0.03         $0.24     $(0.02)
Discontinued operations         0.00          0.00          0.00      0.18
 Net income                  $0.04         $0.03         $0.24     $0.16
Continuing operations           $0.04         $0.03         $0.22     $(0.02)
Discontinued operations         0.00          (0.01)        0.00      0.18
 Net income                  $0.04         $0.02         $0.22     $0.16
Weighted average shares used in
computing net income (loss) per
share                           9,848         8,820         9,245     8,935

 Diluted                     10,431        10,071        10,104    8,935

IRIDEX Corporation

Condensed Balance Sheets

(In thousands)

                                            December 28,      December 29,
                                            2013              2012
Current Assets:
 Cash and cash equivalents               $     13,444  $     11,901
 Accounts receivable, net                7,345             5,480
 Inventories                             10,605            8,035
 Prepaid and other current assets        576               1,129
 Current assets of discontinued           0                 510
 Total current assets               31,970            27,055
 Property and equipment, net             543               483
 Intangible assets, net                  328               554
 Goodwill                                533               533
 Other long-term assets                  303               287
Total assets                                $    33,677   $    28,912
Liabilities and Stockholders' Equity
Current Liabilities:
 Accounts payable                        $     2,278   $     2,105
 Accrued compensation                    1,891             1,563
 Accrued expenses                        1,592             1,242
 Accrued warranty                        468               453
 Deferred revenue                        1,133             1,004
 Total current liabilities          7,362             6,367
Long-Term Liabilities:
 Other long-term liabilities             461               640
Total liabilities                           7,823             7,007
Stockholders' Equity:
 Convertible preferred stock             0                 5
 Common stock                            104               94
 Additional paid-in capital              40,671            38,958
 Accumulated deficit                     (14,921)          (17,152)
 Total stockholders' equity         25,854            21,905
Total liabilities and stockholders' equity  $    33,677   $    28,912


Contact: Company, Jim Mackaness, Chief Financial Officer & Chief Operating
Officer, 650-940-4700; or Investor, Rene Caron, Allen & Caron, 949-474-4300,
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