EXHIBIT 99.1
FOR IMMEDIATE RELEASE Contact:Larry Tannenbaum
Chief Financial Officer
(650) 940-4700
October 21, 2003
Mountain View, California
IRIDEX REPORTS THIRD QUARTER RESULTS
IRIDEX Corporation (NASDAQ/NMS:IRIX) announced that sales for the quarter
ended September 27, 2003 were $8.3 million, a 23% increase compared to sales of
$6.7 million in the corresponding quarter in 2002. The Company reported a net
profit for the third fiscal quarter of $261,000 or $0.04 per diluted share,
compared to a net profit of $206,000 or $0.03 per diluted share for the
comparable quarter in 2002.
Improved profitability from operations was responsible for this quarter's
increase in net income when compared to third quarter last year, as operating
income for the third quarter 2003 rose to $212,000 compared to the operating
loss of $5,000 in the third quarter last year. Based on the Company's year to
date tax exposure, no tax expense was recorded in third quarter 2003, while a
tax benefit of approximately $242,000 was included in the third quarter of 2002
results.
Sales of ophthalmology products during the third quarter of 2003 were $6.9
million, an increase of 27% from the equivalent quarter of 2002. Sales of
dermatology products were $1.4 million, an increase of 5% from the corresponding
quarter in 2002.
"We are very pleased with our overall revenue growth this quarter as
exemplified by solid sales increases in both our ophthalmology and dermatology
product lines," commented Theodore A. Boutacoff, President and CEO. "Our
international sales increased by 36% in the third quarter of 2003 compared to
the third quarter in 2002, resulting from the continued world wide acceptance of
our ophthalmology products combined with strong performances from most of our
international distributors."
"Our return to profitability in the current quarter, increased new product
shipments and continued progress on the asset management front stands out as key
accomplishments this quarter," continued Mr. Boutacoff.
During the first nine months of 2003, the Company generated $3.4 million
in cash, cash equivalents and available for sale securities primarily as a
result of accounts receivables decreasing by $1.8 million and $1.3 million
contributed from lower inventory levels. At the end of third quarter 2003, cash,
cash equivalents and available for sale securities equaled $14.9 million.
IRIDEX management will conduct a conference call today for those
interested at 2:00 p.m. PST/5:00 p.m. EST. The dial-in number is 800-603-0804
US/Canada and 706-643-1370 International. Interested parties may also access the
live conference by visiting the Company's website at www.iridex.com. A telephone
replay will be available beginning on October 21, 2003 at 5:00 p.m. PST, through
October 28, 2003, 9:00 p.m. PST, by dialing (800) 642-1687 and entering
Conference ID # 3439048. An archived version of the webcast will be available
beginning on October 22, 2003 after 3:00 p.m. PST on the Company's website at
www.iridex.com.
About IRIDEX
IRIDEX Corporation is a leading worldwide provider of semiconductor-based
laser systems for the ophthalmology and dermatology markets. IRIDEX products are
sold in the United States through a direct sales force and internationally
through a network of independent distributors into more than 100 countries. For
further information, visit the Company's website at 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. Actual results could differ materially from
those projected in the forward-looking statements based on, among other things,
the actual order and shipment rate during the remainder of the year for the
Company's ophthalmology and dermatology product lines, the rate of introduction
and market acceptance of the Company's new products, the impact of any
continuing weakness and uncertainties related to general economic conditions or
weakness in overall demand in the Company's markets, especially with regard to
the Company's dermatology products which are typically used for elective
procedures that can be deferred. Risks and uncertainties to which the Company
are subject may include, but may not necessarily be limited to, the amount of
orders that the Company receives and ships during the remainder of the year,
dependence on international sales and the Company's network of independent
distributors, the risks associated with bringing new products to market, the
results of clinical trials and competition in our markets. Please see a detailed
description of these risks contained in our Quarterly Reports on Form 10-Q and
Annual Report on Form 10-K for the year ended December 28, 2002 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 Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
September 27, September 28, September 27, September 28,
2003 2002 2003 2002
------------- ------------- ------------- -------------
Sales $ 8,267 $ 6,717 $ 22,928 $ 21,113
Cost of sales 4,678 3,705 12,981 11,895
-------- -------- -------- --------
Gross profit 3,589 3,012 9,947 9,218
-------- -------- -------- --------
Operating expenses:
Research and development 975 919 2,972 3,384
Sales, general and administrative 2,402 2,098 7,430 6,897
-------- -------- -------- --------
Total operating expenses 3,377 3,017 10,402 10,281
-------- -------- -------- --------
Income (loss) from operations 212 (5) (455) (1,063)
Interest and other income, net 49 (31) 154 66
-------- -------- -------- --------
Income (loss) before benefit from income taxes 261 (36) (301) (997)
Benefit from income taxes 0 242 181 549
-------- -------- -------- --------
Net income (loss) $ 261 $ 206 ($ 120) ($ 448)
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Basic net income (loss) per common share $ 0.04 $ 0.03 ($ 0.02) ($ 0.07)
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Diluted net income (loss) per common share $ 0.04 $ 0.03 ($ 0.02) ($ 0.07)
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Shares used in per common share basic calculations 6,933 6,875 6,922 6,858
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Shares used in per common share diluted calculations 7,043 6,938 6,922 6,858
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IRIDEX Corporation
Condensed Consolidated Balance Sheets
(In thousands)
September 27, December 28,
2003 2002
------------- ------------
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 7,800 $ 9,186
Available-for-sale securities 7,142 2,356
Accounts receivable, net 6,225 8,037
Inventories 9,447 10,725
Prepaids and other current assets 930 751
-------- --------
Total current assets 31,544 31,055
Property and equipment, net 662 950
Deferred income taxes 2,267 2,267
-------- --------
Total assets $ 34,473 $ 34,272
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 876 $ 657
Accrued expenses 3,431 3,417
-------- --------
Total liabilities 4,307 4,074
-------- --------
Stockholders' Equity:
Common stock 70 70
Additional paid-in capital 23,723 23,631
Accumulated other comprehensive income (loss) (1) 3
Treasury stock (430) (430)
Retained earnings 6,804 6,924
-------- --------
Total stockholders' equity 30,166 30,198
-------- --------
Total liabilities and stockholders' equity $ 34,473 $ 34,272
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