EXHIBIT 99.1
FOR IMMEDIATE RELEASE Contact: Larry Tannenbaum
Chief Financial Officer
(650) 940-4700
May 4, 2004
Mountain View, California
IRIDEX REPORTS FIRST QUARTER RESULTS
- Wet AMD clinical study results likely in Q4 2004
- Strong international ophthalmology revenues
- "Cash" increases to nearly $17 million
IRIDEX Corporation (NASDAQ/NMS:IRIX) announced that sales for the quarter
ended April 3, 2004 were $7.4 million, an increase of 2% compared to the
corresponding quarter in 2003. The Company reported a net loss for the first
fiscal quarter of $17,000 or $0.00 per diluted share, compared to a net loss of
$82,000 or $0.01 per diluted share for the corresponding quarter in 2003.
Based on strong increases in international sales, ophthalmology product
sales during Q1 2004 increased to $6.2 million, a 9% improvement from the
equivalent quarter in 2003. Since international sales are denominated in US
dollars, foreign currency fluctuations had no material impact on sales growth.
Sales of dermatology products were $1.2 million, a decrease of 24%, or $353,000,
from the corresponding quarter in 2003. The quarter over quarter decreases in
dermatology sales were primarily due to decreased domestic sales, which in part
resulted from some turnover within our dermatology sales organization.
Theodore A. Boutacoff, President and CEO commented, "As we expected, the
Company basically broke even in the first quarter of 2004. Since the first half
of the year is traditionally weaker in revenue than the second half of the year,
we are pleased to continue the favorable growth trend as compared to the first
quarters of 2002 and 2003."
"Following a meeting of the Data, Safety and Monitoring Committee (DSMC),
the Executive Committee of the multi-centered randomized TTT4CNV clinical study
reported that there are still no safety concerns associated with the study and
that the one to two year follow-up data continues to be submitted in a timely
manner. We believe that results of the TTT4CNV study for wet AMD will likely be
released during the fourth quarter of this year, which is earlier than we
recently predicted," continued Mr. Boutacoff.
During Q1 2004, Miravant Medical Technologies (OTCBB:MRVT) announced its
NDA/PMA submission to the FDA for their photodynamic therapy treatment (PDT) for
wet AMD. "As Miravant's exclusive provider of PDT lasers for ophthalmology, we
could be in a position to raise our revenue and profitability expectations for
the year if Miravant's fast track submission to the FDA is approved by October
of this year," said Mr. Boutacoff.
At the end of Q1 2004, the Company reported an ending balance of $16.9
million in cash, cash equivalents and available for sale securities, an increase
of $623,000 from 2003 year end and more than a two fold increase over the ending
balance in the first quarter of 2002. This Q1 2004 increase was due in part to
decreases of $723,000 in accounts receivables and a $251,000 reduction in
inventories. Inventories have now decreased for eight consecutive quarters.
IRIDEX management will conduct a conference call today at 2:00 p.m.
PST/5:00 p.m. EST. Interested parties may access the live conference call via
telephone by dialing (800) 603-0804 US/Canada or (706) 643-1370 International or
visiting the Company's website at www.iridex.com. A telephone replay will be
available beginning on May 4 at 8:00 p.m. PST, through May 11, 2004 by dialing
(800) 642-1687 US/Canada or (706) 645-9291 International and entering Conference
ID # 6986019. In addition, an archived version of the webcast will be available
beginning on May 5, 2004 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, relating to the Company's growth prospects,
revenues, gross margins and profitability, as well as the growing reimbursement
trend for AMD, results of studies related to our products and developments in
the businesses of users of our products. Actual results could differ materially
from those projected in the forward-looking statements based on, among other
things, the actual order and shipment rate for the Company's ophthalmology and
dermatology product lines, the rate of introduction and market acceptance of the
Company's products, the financial consequences of states not reimbursing for all
of the Company's AMD procedures, 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, and the Company's ability to continue to reduce its costs and
improve its operating efficiencies. 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, 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 fiscal
year ended January 3, 2004 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)
<Table>
<Caption>
Three Months Ended
April 3, March 29,
2004 2003
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Sales $ 7,392 $ 7,226
Cost of sales 4,177 3,988
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Gross profit 3,215 3,238
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Operating expenses:
Research and development 1,107 950
Sales, general and administrative 2,193 2,464
------- -------
Total operating expenses 3,300 3,414
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Loss from operations (85) (176)
Interest and other income, net 60 54
------- -------
Loss before benefit from income taxes (25) (122)
Benefit from income taxes 8 40
------- -------
Net loss $ (17) $ (82)
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Net loss per common share - basic and diluted $ (0.00) $ (0.01)
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Shares used in computing net loss per common share-basic
and diluted 7,076 6,913
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</Table>
IRIDEX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
April 3, January 3,
2004 2004
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(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 9,477 $ 10,541
Available-for-sale securities 7,438 5,751
Accounts receivable, net 5,825 6,548
Inventories 8,470 8,721
Prepaids and other current assets 1,374 934
Current deferred income taxes 972 972
-------- --------
Total current assets 33,556 33,467
Property and equipment, net 796 850
Deferred income taxes 1,522 1,522
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Total assets $ 35,874 $ 35,839
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 708 $ 1,029
Accrued expenses 3,005 3,380
Deferred revenue 645 596
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Total liabilities 4,358 5,005
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Stockholders' Equity:
Common stock 73 70
Additional paid-in capital 24,603 23,900
Accumulated other comprehensive loss (8) (1)
Treasury stock (430) (430)
Retained earnings 7,278 7,295
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Total stockholders' equity 31,516 30,834
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Total liabilities and stockholders' equity $ 35,874 $ 35,839
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