EXHIBIT 99.1
For Immediate Release Contact: | Larry Tannenbaum Chief Financial Officer (650) 940-4700 |
April 29, 2005
Mountain View, California
IRIDEX Reports First Quarter Results
IRIDEX (NASDAQ/NMS:IRIX) announced sales for the first quarter ended April 2, 2005 of $8.1 million, an increase of 10% from $7.4 million reported in the first quarter of 2004. The sales increase in the first quarter was driven by the strong market acceptance of the Company’s new dermatology dual laser system, VariLite, both in the U.S. and in international markets. The net gain/loss for the first quarters of 2005 and 2004 were approximately breakeven with $0.00 per share reported in both quarters.
Sales by Product and Geography
Domestic sales grew 19 percent to $4.9 million compared with $4.2 million in the first quarter of 2004. International sales totaled $3.2 million, approximately equal to the international sales achieved during the corresponding quarter of 2004. Since international sales are denominated in US dollars, foreign currency fluctuations had no material impact on sales growth.
“Our first quarter sales growth was primarily the result of the market’s strong and positive response to the Company’s new dermatology dual wavelength laser system, the VariLite,” said Theodore A. Boutacoff, President and Chief Executive Officer. “In addition to strong domestic demand for VariLite, international sales for this system have been trending up as well. Doctors value the VariLite’s flexibility which offers both 532 nm and 940 nm wavelengths in one convenient package so dermatologists and plastic surgeons can quickly and effectively target smaller superficial blood vessels as well as deeper, larger vessels with the same handpiece.”
Additional Financial Results
The balance sheet remains strong with cash, cash equivalents, and available for sale securities totaling $16.6 million, inventory turns of approximately 2 and days sales outstanding at 78 days. Cash declined as compared with January 1, 2005 primarily due to a $900,000 non-recurring payment for previously accrued state sales taxes, associated with previous sales that the Company decided not to recover from its customers, and a $600,000 increase in inventories related to the new product introductions.
“We remain confident in our ability to increase overall 2005 Company revenues by approximately 7% over 2004 revenues,” Mr. Boutacoff added. “We believe that if sales growth continues, and the newly introduced products continue to meet average selling price expectations, gross margin and profitability should also continue to trend upward during 2005,” he concluded.
TTT4CNV Clinical Trial Update
Leadership Transition Plan
“I believe that now is an excellent time to transition the leadership of the Company. During the implementation of our transition plan, we will be aggressively pursuing our growth opportunities. After the search for my replacement is concluded, and a new CEO is on board, I look forward to working with the successful candidate as Chairman of the Board and plan to be actively involved in evaluating strategic alternatives both domestically and abroad.”
Conference Call
2005 by dialing (888) 286-8010 US or (617) 801-6888 International and entering code 71482886. In addition, an archived version of the webcast will be available later today on the Company’s website atwww.iridex.com.
About IRIDEX
Safe Harbor Statement
IRIDEX Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
Three Months Ended | ||||||||
April 2, | April 3, | |||||||
2005 | 2004 | |||||||
Sales | $ | 8,145 | $ | 7,392 | ||||
Cost of sales | 4,467 | 4,177 | ||||||
Gross profit | 3,678 | 3,215 | ||||||
Operating expenses: | ||||||||
Research and development | 1,039 | 1,107 | ||||||
Sales, general and administrative | 2,797 | 2,193 | ||||||
Total operating expenses | 3,836 | 3,300 | ||||||
Loss from operations | (158 | ) | (85 | ) | ||||
Interest and other income, net | 126 | 60 | ||||||
Loss before benefit from income taxes | (32 | ) | (25 | ) | ||||
Benefit from income taxes | 12 | 8 | ||||||
Net loss | $ | (20 | ) | $ | (17 | ) | ||
Net loss per common share — basic and diluted | $ | (0.00 | ) | $ | (0.00 | ) | ||
Shares used in computing net loss per common share-basic and diluted | 7,317 | 7,076 | ||||||
IRIDEX Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(unaudited)
April 2, | January 1, | |||||||
2005 | 2005 | |||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 6,202 | $ | 10,381 | ||||
Available-for-sale securities | 8,907 | 3,323 | ||||||
Accounts receivable, net | 6,848 | 7,404 | ||||||
Inventories | 9,511 | 8,922 | ||||||
Prepaids and other current assets | 1,078 | 814 | ||||||
Current deferred income taxes | 1,808 | 1,808 | ||||||
Total current assets | 34,354 | 32,652 | ||||||
Long term portion of available-for-sale securities | 1,535 | 4,324 | ||||||
Property and equipment, net | 854 | 852 | ||||||
Deferred income taxes | 1,265 | 1,265 | ||||||
Total assets | $ | 38,008 | $ | 39,093 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 1,179 | $ | 1,233 | ||||
Accrued expenses | 4,058 | 5,167 | ||||||
Deferred revenue | 962 | 910 | ||||||
Total liabilities | 6,199 | 7,310 | ||||||
Stockholders’ Equity: | ||||||||
Common stock | 74 | 74 | ||||||
Additional paid-in capital | 25,352 | 25,281 | ||||||
Accumulated other comprehensive loss | (60 | ) | (35 | ) | ||||
Treasury stock | (430 | ) | (430 | ) | ||||
Retained earnings | 6,873 | 6,893 | ||||||
Total stockholders’ equity | 31,809 | 31,783 | ||||||
Total liabilities and stockholders’ equity | $ | 38,008 | $ | 39,093 | ||||