MOUNTAIN VIEW, Calif., Jan. 22, 2013 /PRNewswire/ -- IRIDEX Corporation (Nasdaq: IRIX) reported preliminary revenues of approximately $9.2 million and $33.8 million for the fourth quarter and full year 2012, respectively. Revenues in the fourth quarter exceeded the high end of the Company's prior guidance and were driven by a healthy uptick in sales of laser systems. Management had projected revenues to be between $8.4 million and $8.7 million in the 2012 fourth quarter.
CEO William M. Moore said, "We were very pleased to see strong sales growth in the fourth quarter of 2012 driven by increased demand for our laser systems, especially the IQ532 system with MicroPulse™ technology, which has been the central focus of recent marketing campaigns. While it is too early to call the strong growth in the period a trend, the sales organization has seen a positive response to a sharpened commercial message as well as the continued positive clinical data and accelerated adoption of MicroPulse technology."
The stronger than anticipated sales of laser systems also shifted the overall product mix toward capital equipment rather than higher margin consumable products. As a result, IRIDEX anticipates gross margins for the 2012 fourth quarter below the guidance range of 49% to 51%.
Moore continued, "During the fourth quarter, we also maintained excellent operating expense management and believe we will be close to guidance of $4.0 million for the period."
During the fourth quarter, the Company announced the FDA 510(k) and Conformité Européenne (CE) clearances of its TxCell™ Scanning Laser Delivery System and began shipping orders. The TxCell product saves significant time in a variety of laser photocoagulation procedures, including those using MicroPulse. The Company also entered into a license agreement with QUANTEL Medical that gives QUANTEL access to IRIDEX' MicroPulse technology, a further step towards making Fovea-friendly therapies using MicroPulse a new standard of care.
The Company also completed a tender offer in which it purchased 487,500 shares of its common stock at a purchase price of $4.10 per share during the fourth quarter. Total shares outstanding following the share buyback are estimated to be 8.5 million. Mr. Moore commented, "We were pleased with the success of the tender offer. It is one of the ways that we can achieve our goal of delivering shareholder value. We intend to continue to assess this option going forward and have $1 million in funds approved under our stock repurchase program yet to be utilized."
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 a direct sales force 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 IRIDEX 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 Company's anticipated operating and financial results for the fiscal year 2012 fourth quarter and year end, the effectiveness and market acceptance of the TxCell Scanning Laser Delivery System and MicroPulse laser therapy, IRIDEX' marketing and sales efforts, and the Company's future share repurchase plans. 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 31, 2011, and our Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2012, June 30, 2012, and September 29, 2012, each of which was 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 has not filed the Form 10-K for the 2012 fiscal year. As a result, all financial results described in this press release should be considered preliminary, and are subject to change to reflect any necessary corrections or adjustments, or changes in accounting estimates, that are identified prior to the time the Company is in a position to complete these filings.
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