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 quarter. 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 Moore. 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 www.iridex.com. 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 www.iridex.com. About IRIDEX 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 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, 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. TABLES FOLLOW IRIDEX Corporation Condensed Statements of Operations (In thousands, except per share data) (unaudited) 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 tax 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: Basic 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 Diluted 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 Basic Diluted 10,431 10,071 10,104 8,935 IRIDEX Corporation Condensed Balance Sheets (In thousands) (unaudited) December 28, December 29, 2013 2012 Assets 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 operations 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 SOURCE IRIDEX Corporation Website: http://www.iridex.com Contact: Company, Jim Mackaness, Chief Financial Officer & Chief Operating Officer, 650-940-4700; or Investor, Rene Caron, Allen & Caron, 949-474-4300, Rene@allencaron.com
IRIDEX Reports 2013 Fourth Quarter Results
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