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STAAR Surgical Reports 10% Second Quarter Revenue Growth
Date:7/31/2014

fourth quarter.  The Preloaded ICL eliminates multiple steps in the loading and delivery process which many surgeons believe is the most challenging aspect of the procedure.  In addition the Preloaded System should reduce the learning curve to the procedure and the overall ICL procedure time.  We believe this ICL enhancement will be very important for both our experienced ICL implanters as well as those surgeons wanting to add the ICL to their current refractive offerings.  Global ICL revenue growth was 8% in the quarter and procedure growth was 5%.  We continue to gain market share globally as LASIK procedures remain under downward pressure."

"IOL revenue increased by 10% during the quarter driven by a 17% increase in unit sales.  This growth was driven by the expansion of our KS-IOL products in the European and Japanese markets.  IOL revenue increased by 117% in Europe while units basically doubled.  Increased supply of the KS-IOL products allowed us to rebuild consignment accounts in Japan to where they were a year ago.  This allowed our KS-IOL products to generate 28% growth in Japan during the quarter and 83% growth the final eight weeks of the quarter.  We now feel more confident about our supply levels for the rest of the year, which should help to drive additional growth during the second half of the year focused in our higher margin markets," continued Mr. Caldwell.

Gross profit margin for the quarter was 68.2% compared to 69.5% in the second quarter of 2013.  Three key factors drove a 450 basis point negative impact on the gross margin during the quarter; two of which should improve and one remain negative during the second half.
The increased geographical sales mix of KS-IOL products had a negative impact of approximately 230 basis points.  This should improve with the increasing growth rate of KS-IOL sales within our higher margin markets.  Secondly, the increase of lower
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SOURCE STAAR Surgical Company
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