Exhibit 99.1
FOR IMMEDIATE RELEASE Contact: Robert Kamenski
Chief Financial Officer
(650) 940-4700
April 22, 2003
Mountain View, California
IRIDEX REPORTS FIRST QUARTER RESULTS
IRIDEX Corporation (NASDAQ/NMS:IRIX) announced that sales for the quarter
ended March 29, 2003 were $7.2 million, an increase of 4% compared to the
corresponding quarter in 2002. The Company reported a net loss for the first
fiscal quarter of $82,000 or $0.01 per diluted share, compared to a net loss of
$207,000 or $0.03 per diluted share for the corresponding quarter in 2002.
Sales of ophthalmology products during the first quarter of 2003 were $5.7
million, an increase of 13% from the equivalent quarter of 2002. Sales of
aesthetics products were $1.5 million, a decrease of 20% from the corresponding
quarter in 2002. The decrease in aesthetics product sales was primarily due to
weak market conditions in the international aesthetics market.
The Company generated $1.8 million in cash, cash equivalents and available
for sale securities during the first quarter of 2003. The increase was due
primarily to a decrease of $1.7 million in accounts receivable balances during
the quarter. In addition, inventory continued to decrease by $109,000 during the
quarter. Asset management continues to be a high priority within the Company.
Theodore A. Boutacoff, President and CEO commented, "Q1 was a challenging
quarter, particularly with regard to the continuing difficult economic
environment, the war in Iraq, and the outbreak of SARS in Asia. I am pleased we
were able to accomplish as much as we did. New products introduced in the fourth
quarter of 2002, including the BriteLight(TM) Illuminating EndoProbe and
Millennium Endolase(TM) module, contributed to our growth. The BriteLight is a
disposable product, which provides unsurpassed brightness in a combination
illumination and endolaser photocoagulation probe for ophthalmology procedures
performed in the operating room. The Millennium Endolase module is incorporated
as a component of the Bausch & Lomb Millennium(TM) Microsurgical System, which
offers a fully integrated platform designed to offer vitreo-retinal surgeons a
fully integrated system for the operating room environment."
"I am enthusiastic about our continued success in improving our asset
position with the generation of $1.8 million in cash, cash equivalents and
marketable securities during the quarter," continued Mr. Boutacoff. "This is a
result of our concerted effort to improve asset management. Over the past four
quarters, we have generated $5 million in cash, cash equivalents and marketable
securities. We believe our improved cash position will give us the flexibility
to respond decisively when the economic climate turns more favorable."
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 888-237-9887. A
recording of this call will be available for replay beginning at 5:30 p.m. PST/
8:30 p.m. EST, through April 29, 2003, 12:00 midnight PST. The number for the
replay is 800-475-6701 and the access code is 682215.
IRIDEX Corporation is a leading worldwide provider of semiconductor-based
laser systems for the ophthalmology and aesthetics markets. IRIDEX products are
sold in the United States through a direct sales force and internationally
through 66 independent distributors into 107 countries. For further
information, visit the Company's website at www.iridex.com.
Safe Harbor Statement
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This announcement contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act
of 1934, as amended. The foregoing statements regarding anticipated sales of
new and existing products, ability to respond to more favorable economic
conditions, improvements from continued asset management efforts and expected
improvements to the Company's balance sheet for the fiscal year 2003, are
preliminary and forward looking. 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 year for the Company's products,
including the BriteLight Illuminating EndoProbe and the Company's Millennium
Endolase module to Bausch & Lomb, the rate of market acceptance of the Company's
new products, the impact of any continuing economic downturn on sales, including
sales of our aesthetics products which are typically used for elective
procedures that can be deferred, and the difficulty forecasting anticipated
revenues due to continuing weakness and uncertainties related to general
economic conditions and overall weakness and demand in the Company's markets,
especially the aesthetics market. 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 quarter, inability to
further reduce costs, maintain or increase gross margins, the speed at which the
Center for Medicare and Medicaid Services (CMS) and local carriers are willing
to address AMD reimbursement issues and their internal policies regarding the
matter, the results of clinical trials, competition in our markets and
dependence on international sales. Please see a detailed description of these
risks contained in our 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.
BriteLight is a trademark of IRIDEX Corporation.
Millennium Endolase and Millennium are trademarks of Bausch & Lomb Incorporated.