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IRIDEX Reports Fourth Quarter and Full Year 2007 Financial Results
Date:4/10/2008

06, an increase of 4.9%. Domestic sales contributed 58.1% of total ophthalmology revenues while international contributed 41.9%. Total domestic revenues were $18.8 million in 2007, an increase of 3.3% from 2006. Total international ophthalmology revenues were $13.6 million for the fiscal year 2007, an increase of 7.3% compared to 2006.

Ophthalmology recurring revenues, consisting of disposable products and service, which represented 48.6% of our total ophthalmology revenues in 2007, were up 13.7% from $13.8 million in 2006 to $15.7 million in 2007.

"Our ophthalmology franchise is a healthy and growing business," continued Mr. Boutacoff. "Our margins remain strong with approximately half of revenues being generated from recurring revenues. The therapeutic ophthalmology market, in which we participate, is also less influenced by recessionary pressures than those medical markets which are based upon primarily elective or private pay procedures."

Aesthetics

Total aesthetics revenues were $5.2 million in the fourth quarter of 2007 compared with $1.4 million in the comparable period of 2006, primarily because of the AMS/Laserscope acquisition. In the fourth quarter 2007 domestic aesthetics revenues increased $1.4 million to $2.3 million and international aesthetics revenues increased $2.5 million to $2.9 million.

Full year 2007 aesthetics revenues were $23.2 million compared with $5.1 million in 2006, primarily the result of the AMS/Laserscope aesthetics acquisition. Domestic aesthetics revenues were $11.1 million for the full year 2007, an increase of $7.5 million from 2006. International aesthetics revenues were $12.0 million for the full year 2007, an increase of $10.6 million compared to 2006.

"The AMS/Laserscope aesthetics acquisition has been challenging and our results have not matched our original expectations," continued Mr. Boutacoff. "This has culminated in a review of the value of goodwill and intangible assets created
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SOURCE IRIDEX Corporation
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