MONROVIA, Calif., Aug. 2, 2011 /PRNewswire/ -- STAAR Surgical Company (NASDAQ: STAA), a leading developer, manufacturer and marketer of minimally invasive ophthalmic products, today reported strong financial results for the second quarter ended July 1, 2011. Revenue for the quarter grew by 19% or $2.6 million over the second quarter of 2010 to $16.3 million, fueled by a 51% mix of Visian ICL sales. Sales of Visian ICLs increased 41%, setting another quarterly record with $8.3 million in sales. The increasingly higher mix of Visian ICLs pushed gross margin up 320 basis points from second quarter of 2010 to 66.8%. Net income totaled $862,000, or $0.02 per share, compared with a net loss of $1.6 million, or $0.05 per share, in the second quarter of 2010. This represents a $2.5 million net income improvement over prior year. It also marks the first time the Company has reported consecutive quarters of profitability since 1999. Cash, cash equivalents and restricted cash at July 1, 2011 increased to $13.1 million from $10.4 million at the end of the first quarter as the Company generated $2.4 million in cash from operations.
"We continued to benefit from sound execution of our strategy to focus on the growth of ICL and IOL core products," said Barry G. Caldwell, President and CEO. "Our global sales momentum increased during the second quarter, resulting in strong and steady growth in revenue from our Visian ICL and premium IOL product lines, a 13 year high in gross profit margin, increasing net income and solid cash generation. Revenues from the Visian ICL grew 41% and, at $8.3 million, established a new quarterly record that exceeded the previous high by 20%. The roll-out of the Visian ICL V4b in Europe and other select countries has gone well, and we are now poised for full launch of the V4c during September. .05)$
.05Net Income (loss) per share-diluted$
.05Weighted average shares outstanding - basic35,44334,79035,31634,770Weighted average shares outstanding - diluted36,43934,79036,38934,770STAAR Surgical CompanyCondensed Consolidated Statements of Cash Flows(in 000's)Six Months EndedJuly 1,July 220112010Cash flows from operating activities: Net income$
,902 Adjustments to reconcile net income to net cash provided by (used in) operating activities:Income from discontinued operations-(4,166)Depreciation of property and equipment598821Amortization of intangibles394399Amortization of discount-236Deferred income taxes118-Loss on early extinguishment of note payable-267Fair value adjustment of warrant(182)137Loss (gain) on disposal of property and equipment(14)2Stock-based compensation expense807649Change in net pension liability62157Other(32)112 Changes in working capital:Accounts receivable2631,040Inventories779777Prepaids, deposits and other current assets23272Accounts payable(273)(1,731)Other current liabilities(793)(5,338)Net cash used in operating activities of discontinued operations-(635)Net cash provided by (used in) operating activities2,911(5,099)Cash flows from investing activities:Proceeds from sale of subsidiary, net of transaction costs -11,824Release of restricted cash-7,337Acquisition of property and equipment(207)(202)Deposit to restricted escrow account-(136)Proceeds from sale of property and equipment26-Net change in other assets475Net cash used in investing activities of discontinued operations-(50)Net cash provided by (used in) investing activities(134)18,778Cash flows from financing activities:Repayment of notes payable-(5,000)Redemption of Series A preferred stock-(6,800)Repayment of capital lease obligations(228)(495)Proceeds from exercise of stock options1,216140Net cash used in financing activities of discontinued operations-(50)Net cash provided by (used in) financing activities988(12,205)Effect of exchange rate changes on cash and cash equivalents(141)92Increase in cash and cash equivalents3,6241,566Cash and cash equivalents, at beginning of the period9,3766,330Cash and cash equivalents, at end of the period$
7,896STAAR Surgical CompanyGlobal Sales(in 000's)Three Months EndedYear EndedJuly 1,July 2%July 1,July 2%Geographic Sales20112010Change20112010ChangeUnited States
8,19418.9% Total International Sales
27,41713.5%Product Sales Core productsICLs
13,8832.3% Total core products
25,60714.8% Non-core productsOther
27,41713.5% 0;In our top 10 targeted markets the Visian ICL grew by 48% with six of ten markets growing more than 48%."
"The gross profit margin in the quarter of 66.8% represents a 320 basis point improvement over the second quarter last year and reflects a stronger mix toward higher margin ICL and IOL sales," continued Mr. Caldwell. "I want to thank our employees at STAAR as we challenged them with some stretch objectives and they have responded with a terrific quarter and first half of 2011. With $13.1 million of cash at the end of the quarter combined with generating cash from operations, we feel very comfortable we can fund current growth plans from our operating cash flow."
"With the regulatory approvals received during the first half of the year and positive momentum, we are poised for continued strong growth during the second half of 2011. We are on track with our plans to launch four new products in the second half of the year in countries where we have received approvals. The new Visian ICL with the CentraFLOW™ proprietary technology is currently in limited marketing release and will be fully launched to the European markets at the ESCRS meeting in September. The CentraFLOW technology utilizes the KS-AquaPORT™ to restore the natural flow within the eye. This allows for the elimination of a step which typically requires an additional procedure and visit to the surgeon's office. We believe this will have a significant impact on surgeon use and adoption of the Visian ICL."
"Our successful execution has bolstered our confidence in the outlook, and as a result we are raising three of four key metric targets for fiscal 2011. We continue to expect double-digit growth in revenue, but have increased our target for ICL sales growth from 25% to 30%. We expect continued expansion of our gross margin and now anticipate it will reach 66.5% for the full year. Finally, we believe that we will be profitable in all four quarters of the year, up from our previously stated goal of three," Mr. Caldwell concluded.
Recent Visian Implantable Collamer® Lens (ICL) Highlights
Recent Intraocular Lens (IOL) Highlights
Second Quarter Financial Highlights
Six Months Financial Highlights
Conference CallThe Company will host a conference call and webcast today, August 2, 2011 at 4:30 p.m. Eastern / 1:30 p.m. Pacific to discuss the Company's second quarter financial results, and recent corporate developments. The dial-in number for the conference call is 877-941-6009 for domestic participants and 480-629-9645 for international participants.
A taped replay of the conference call will also be available beginning approximately one hour after the call's conclusion and will be available for seven days. This replay can be accessed by dialing 800-406-7325 for domestic callers and 303-590-3030 for international callers, both using passcode 4455501#. To access the live webcast of the call, go to STAAR's website at www.staar.com. An archived webcast will also be available at www.staar.com.
About STAAR SurgicalSTAAR, which has been dedicated solely to ophthalmic surgery for over 25 years, designs, develops, manufactures and markets implantable lenses for the eye. All of these lenses are foldable, which permits the surgeon to insert them through a small incision. STAAR's lens used in refractive surgery as an alternative to LASIK is called an Implantable Collamer® Lens or "ICL." A lens used to replace the natural lens after cataract surgery is called an intraocular lens or "IOL." Over 225,000 Visian ICLs have been implanted to date; to learn more about the ICL go to: www.visianinfo.com. STAAR has approximately 300 full time employees and markets lenses in approximately 50 countries. Headquartered in Monrovia, CA, it manufactures in the following locations: Nidau, Switzerland; Ichikawa City, Japan; Aliso Viejo, CA; and Monrovia, CA. For more information, please visit the Company's website at www.staar.com or call 626-303-7902.
Collamer® is the registered trademark for STAAR's proprietary biocompatible collagen copolymer lens material.
Safe HarborAll statements in this press release that are not statements of historical fact are forward-looking statements, including statements about any of the following: projections of earnings, revenue, sales, profit margins, cash or any other financial items; the plans, strategies, and objectives of management for future operations or prospects for achieving such plans; prospects for increased sales as a result of CE Mark approval of new ICL and IOL designs or other approvals; statements of belief; and any statements of assumptions underlying any of the foregoing.
These statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. The risks and uncertainties include the following: our limited capital resources and limited access to financing; the negative effect of the global recession on sales of products, especially products such as the ICL used in non-reimbursed elective procedures; the unknown long-term effect of recent disasters in Japan on business there, the challenge of managing our foreign subsidiaries; backlog as we ramp up production to meet rapidly growing demand for our products; the risk of unfavorable changes in currency exchange rate; the willingness of surgeons and patients to adopt a new product and procedure; patterns of Visian ICL use that have typically limited our penetration of the refractive surgery market, and a general decline in the demand for refractive surgery particularly in the U.S., which STAAR believes has resulted from both concerns about the safety and effectiveness of laser procedures and current economic conditions.CONTACT:
EVC GroupJenifer Kirtland, 415-568-9349
Christopher Gale, 646-201-5431Douglas Sherk, 415-652-9100(Tables to follow)
STAAR Surgical CompanyCondensed Consolidated Balance Sheets(in 000's)July 1,December 31,20112010ASSETSCurrent assets:Cash and cash equivalents$ 13,000$
9,376Restricted cash 145133Accounts receivable trade, net8,0158,219Inventories, net9,86110,543Prepaids, deposits, and other current assets1,7541,715 Total current assets32,77529,986Property, plant, and equipment, net3,4193,732Intangible assets, net3,2963,672Goodwill1,7861,786Deferred income taxes202202Other assets1,1661,207 Total assets$ 42,644$
40,585LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Line of credit$
2,460Accounts payable3,4523,717Deferred income taxes326326Obligations under capital leases 393431Other current liabilities5,7376,513 Total current liabilities12,38813,447Obligations under capital leases 1,3411,403Deferred income taxes606488Other long-term liabilities2,7612,820Total liabilities17,09618,158Stockholders' equity:Common stock355351Additional paid-in capital154,108152,014Accumulated other comprehensive income1,9622,100Accumulated deficit(130,877)(132,038) Total stockholders' equity25,54822,427Total liabilities and stockholders' equity$ 42,644$
40,585STAAR Surgical CompanyCondensed Consolidated Statements of Operations(In 000's except for per share data)Three Months EndedSix Months Ended% ofJuly 1,% ofJuly 2Change% ofJuly 1,% ofJuly 2ChangeSales2011Sales2010Amount%Sales2011Sales2010Amount%Net sales100.0%
3,70113.5%Cost of sales33.2%
17,5082,98217.0%Selling, general and administrative expenses: General and administrative25.2%
6,65797114.6% Marketing and selling25.8%
7,9656948.7% Research and development8.6%
2,909(84)-2.9% Other general and administrative expenses0.0%
700(700)-Total selling, general and administrative expenses59.6%
18,2318814.8%Operating income (loss)7.2%
(723)2,101-Other income (expense): Interest income0.0%
14428.6% Interest expense-0.9%
(630)324-51.4% Gain (loss) on foreign currency transactions0.4%
(439)883- Loss on early extinguishment of note payable0.0%
(267)2670.0% Other income (expense), net1.5%
(12)411-Other income (expense), net1.0%
(1,334)1,889-Income (loss) before provision (benefit) for income taxes8.2%
(2,057)3,990-Provision (benefit) for income taxes2.9%
207565272.9%Income (loss) from continuing operations5.3%
(2,264)3,425-Income from discontinued operations, net of income taxes0.0%
4,166(4,166)-Net income (loss)5.3%
(741)-39.0%Net Income (loss) per share from continuing operations - basic$
(0.07)Net Income (loss) per share from continuing operations - diluted$
(0.07)Income per share from discontinued operations basic and diluted$
.12Net Income (loss) per share-basic$
|SOURCE STAAR Surgical Company|
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