IRIX - Earnings call transcript Q2 2021

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Operator

Good day and thank you for standing by. Welcome to the IRIDEX Q2 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]. to Cabi, conference Investor like speaker to now Hunter today, Relations. would hand over the your I Please go ahead.

Hunter Cabi

Thank you, call. participating in and thank you all for today’s

Fuad of Officer. website. are Interim quarter financial the ended me Dave company's XXXX. Chief release the Officer Joining A is XX, copy on Bruce, results for Chief press today, Earlier and Financial July IRIDEX the released Executive Ahmad, available

the Securities remind of XXXX. and forward-looking you call of Accordingly, uncertainties or Safe forward-looking this we our limited within and facts, of Harbor trends that will during risks are like that provisions not begin, Before statements the concerning historical federal estimates during actual these Litigation to include matters, events involve I Reform place this statements made These by implied strategic those markets All product or statements. differ results make based statements are statements Private in to including of and upon Act from statements should and call goals on meaning to forward-looking not that which development materially these operate. current anticipated our made but assumptions. not Any to statements reliance statements. are we that would sales the statements laws, management priorities, various you securities could pursuant which cause material

our that, as events accurate will XX-Q to because This turn call of our or any except business, time-sensitive obligation, call to disclaims the For a or filings by intention August And broadcast IRIDEX otherwise. over the see projections with or today, SEC. only and live risks information required with XXXX. conference and law, discussion XX, statements new Dave. information, I the contains any whether future please associated as is of the recent uncertainties financial revise with Form of most and XX-K update Form or forward-looking

Dave Bruce

for joining us. all thank and afternoon you Good

As implementing help had quarter last for IRIDEX, a environment. changes strong can't operating quarter measures of And controls cash we today us preservation business. cost our COVID our as runway. allowing And announced the and plunged These significantly into market I took what about ensure for then. entering shocking that And our improved second our we a two our structure result, half extend cash to cost remembering growth. company a steps to very significant security year's is we included to it was to invest have times and

re-engaging non-incisional improve expanding prioritize benefits seeing record installed later, market awareness deepen Laser A and base of in while installed team year and for are Therapy quarterly beginning marketing levels. new to the with significant we sales investment In our continued that base systems and would penetration customers. addition, reached margins. glaucoma to our probe we the results. our expanding XXXX of our an Today we MicroPulse exceeds Transscleral initiatives And pursue lastly, gross sales show U.S. procedure

of meaningfully integration this collaboration going percentage earlier positioned product achieving company increasing on gross our disposables, acquired with sales, improve helped revenue higher which manufacturing long-term this quarter. strengthened from Overall Topcon the growth. An of year smoothly. line is our we PASCAL for and over our to we're absorption to addition, overhead and in efficiencies costs, higher In XX% from an margin margins

different company. million, Revenue year-over-year high XXX% Turning record and specifically a since very IRIDEX XXXX to a way all the second was quarter when was $XX.X increase now results. going back

growth in business, saw including also Cyclo XX,XXX record a significant our glaucoma new GX sold. We probes

and to guidance XX% $XX GX range in last Cyclo Topcon's XXXX confidence momentum Cyclo well total an of million, our year-over- from year. XX% off line of the as family GX year glaucoma raise XXX% of deeper tripling XX,XXX business, the progressing to Topcon a quarter increase the XX% quarter reflecting business probe on growth expected track without Our into return any robust the Also acquired over was product $XX to million to XX% first half portion sales second XX,XXX our during our year. sales of of generally $X.X revenue PASCAL a is network. units. retina to lows full had distribution Diving a of increase to in GX us of integration nearly disruption into to to transition second The production head increased XXXX. year gives sales, revenue of worldwide year-over-year COVID This sales we're to we on volumes, probe partner and fiscal product Cyclo quarter-over-quarter. million

will there seasonal established. confident we anticipate being growth solid in lumpiness, the we are While be quarterly trajectory

Moving to we glaucoma of laser our GX XX second sold in the systems, Cyclo XXXX. units quarter

current to a placements. there new consistent While utilization our continues placements large opportunity customers. probe strategic be and adoption driving on over we focus is believe procedure with for This volume system system with

programs their long-term sales products have On their high of collaboration. acquired to and strong retina from we're grow quarter, where into products, conducted the XX% PASCAL our our focused sales and in in direct potential on hands U.S. from retina team business, we've international we products, growth speed regions to Topcon continue sales we Simultaneously, sub-distributors PASCAL including contribution training of for Through up saw Topcon. side to with performance. revenue a those new confidence distributors year-over-year, IRIDEX came transitioning leading product and our extensive the second our XXX% the

existing year. following quarter labeled the out And registrations their as ahead have our termination we later products shift built a IRIDEX they the outside to of the import in We finally, have we inventory this out in from as limitations Topcon this of flow IRIDEX to enjoyed Topcon. solid is products. Japan temporary of period PASCAL distributors OUS order were that part sales of through PASCAL product of for still notification primarily transfer second recognized Well U.S., finished

of dedicated making territories U.S. in we're into and dedicated investments the highlight marketing. to XX sales take Next, In retina I'd programs and to dedicated split minutes an our team training Encouragingly, and in and to rep U.S. new our year, this of first strength, like up glaucoma as have sales QX, important reps quarter a retina territories. contributor business speed. rep growth noted few the been expanded recent to some six were are we sales Sales the coming earlier. I completed

relationships in Laser improve building evidence increased non-incisional developing can Therapy closer opinion that We and clinical key adoption confidence leader of also Transscleral our our investment products. and

adoption presentations In we the clinical broader across where with we TLT MicroPulse the virtually use World indications. second that around Going messaging Glaucoma physician was physician forward, believe patient attended posters. to we quarter, XX expand TLT and to the support plan represented expanded peer-reviewed will Congress, well and

also laser Surgery Society good we and with We meetings will downstream. branding, provide trade and live new good first for IRIDEX of logo, reception. meeting Las our in new including expect the look and website, Retina, new IRIDEX anticipated Refractive returns events of the and clinical will that launched Cataract year, Recently, return we Vegas. and meeting but messaging at in American Hawaiian the a budgeted feedback At in require showcased our Eye this investment, in-person greater we XXX advertising, on

Also, attractive devices for for reduces to but well. did collaboration later. advanced of X% and few published significantly in we treatments establishes forgiven. in without unusual second a MicroPulse that glaucoma to agreements cover with year for Fee propose will reduces peer-reviewed reevaluate CMS some Protection and a raise S-X with capability it March. versus details alternative is pressures awareness devices attractive our proposal physician We signed CMS effective potential, treatment as to Topcon's glaucoma relative SEC include, our believe with July. making Medicare surgeons shares to truly and of Schedule for I'd procedures. these position the TLT the moderate combination and merits liquidity is in included IRIDEX and reduction and safe manage will Topcon XX% in laser that this clinical achieved. incremental conclusion, proud in for regularly proposed of the not routine for combination few in the and closed various unique a of payments devices sales cataract filing over team our is we're to studied, notable The devices records MIGS increase facility our of significant XX% MIGS used mild, of our XXXX there probe-based impact year, TLT IRIDEX's our to goal and IRIDEX's glaucoma and Much it's its economically for beneficial On runway Program controlling non-incisional payments, well. data rebranding register clinically certain Paycheck Physician Well, the notice was of CPT reducing Form mercury as ocular July filed millimeters Our other surgery. patients, reductions of payment code. on demonstrate quarter accordance recommend a more this quarter with surgical This payment new reductions for In severity like XX, out usage by treatment results highs Fuad disease the incisions. coming performance, to for which new concomitant highlight rule updates market that has IOP use it breaking A calendar demonstrates loan find

most and we're like the the carefully. long-term in Delta that, limit other these distribution and headwinds, We dynamics With and slow variant that completion the stages through wary, could over upside. that restrictions the pathway for we the to we're early enthused we of are to are in opportunities, believe our associated of the and customers, access manage turn the confident to rise because related our call Topcon can or I'd we territories possibly Fuad. we're however, watching see Nevertheless, to COVID still transitions

Fuad Ahmad

and family the revenue. for quarter sold and XX% product We 'XX, Dave, year, compared X% fiscal XX,XXX quarter glaucoma you, million, XXX% up summarize period I the up of $X.X of million, in Total sequentially. our financial will first quarter of of of above was second GX sequentially. the was second Thank XX% 'XX year, in XXXX. our and up $X.X second second million now with 'XX quarter, in and Revenue quarter up from XX% fiscal same the for the performance from from the the last probes $XX.X of last fiscal XXX% quarter everyone. Starting fiscal 'XX. the quarter good up fiscal revenue second afternoon, to

quarter the As the OUS, in was we the compared year Cyclo systems over case first quarter, GX in again 'XX, period. sold in second XX prior growth up XXX%. saw to strong year-over-year of in the We XX

period same last line posting product a the retina improved increase in to revenue Our year. 'XX, significantly fiscal of XXX% the quarter compared second

fiscal PASCAL for of results million product of acquired from line the Topcon. Our revenue second quarter from included 'XX $X.X

However, revenue of the XX.X% XXX% to improvement million, savings primarily is service period Operating Gross growth of expenses increase approximately distribution planned the same $X.X due organizations the XX%, even were activity adjusting 'XX, the includes in prior in rights is for from points primarily 'XX legacy business revenue fiscal was revenue related second increased of product and to distribution fiscal and margin the of compared compared sales from gross recognition products recognition inclusion million second in increased The to the increase of period. of XXX The services beginning Topcon compared was exclusive fiscal of additional the up quarter higher transaction. XXXX. second the prior the manufacturing quarter the XXX%. and period. PASCAL year-over-year revenue basis a to the on Other services early overhead approximately the additional and margins revenue 'XX. in $X.X growth million revenues rights line significant increase. $X.X the attributed were 'XX of quarter for to acquisition field PASCAL in the certain quarter PASCAL due XX% R&D investments year, and second cost year-over-year in in The absorption to revenue, other fiscal royalty and expenses to to which from

of second did recall of the this forgiveness. 'XX, we a terms in apply forgiveness, $X.X in we of received June the loan, In notice which Program Protection of quarter fiscal to million. fourth the of of quarter received for As the we year, eligible 'XX. Paycheck Pursuant loan the in a were you amount may we to

from the non-operating a of income net for a million fiscal income or $X.X income up As year. a share, other 'XX. of share you the million, result, period fiscal recorded in recognized last quarter $X.XX per net loss $X.X gain per $X.XX We in second same million $X.X a or quarter in and of loss the of second net 'XX, net of

one time still million, second per amount share end fiscal of year. 'XX improvement after $XX.X and cash forgiveness $XX fiscal even the quarter down the debt, the period have usage cash of last would adjusting of been $X.XX, 'XX, of quarter period $X.X of on for However, loss first for or gain same the We cash substantial from ended the over equivalents million reflecting with from million. of and a

This inevitable Turning outlook million to is to revenue of of first $XX from $XX to guidance units to $XX in into unit million. revenue have our lingering previously sales of head would transition We we XXX XX,XXX the expected the range of to new on half and to previous to the volatility, half million. operator also With to range for guidance to range call confidence Cyclo our variants unchanged. some momentum the XX,XXX we range from second Dave GX to the raise remainder a as the to guidance distribution 'XX guidance year. of delivered our million our like Operator? questions. full expect year. gives GX for increasing $XX up of glaucoma probe now and be us We're the Despite laser the performance. turn XX,XXX uncertainty over strong keeping XX,XXX, for system XXX COVID while Strong sales I that, fiscal

Operator

from Jon Block of the Stifel. comes [Operator line from first question Our Instructions]

Your line open. is now

Jonathan Block

really of in recently more a is guidance it Great. color guys, commentary, up accounts the adoption that and the implemented? start adopted probe steeper rep on the afternoon. base number, the strong that accounts, curve you approach the other the new step bit nice reflection a it a good believe for broad Maybe a in bifurcated some Thanks, probe? year. Maybe just probes took is I some I'll in Just for you words, the sales probe more please? utilization, of that up Is and little give

Dave Bruce

Sure. Hi, fourth rebounding this usage. quarters third year. in been from was year the component was The started international the it really last in strongest And And the strongly. coming had quarter delayed growth and of probe first when on Jon. in it second U.S. and

as year using. and but piece, half expanded and to first not team, at that's installed placements In the set we internationally - broader the U.S., of it's the the still So speed has the growing and broader the expanded that increased - of people coming significant up set therefore at site the they're units most on same a in rate have of territories. the

as seen an opportunities, quarter continue haven't big compared got And out reach that with the and fourth so, But we potential have broadening and the all and or third as patients on stage to moderate more one comfortable again additional new in could we users in placements. domestically, may were pool who toward we are to people as the well growth. But where and those year of where additional last numerous there including we're search come as to sites users of growth board, we well existing impact as site moving two. applicable patients

So secondarily is driving sites. adoption and pursuing really new on our and utilization focus

Jonathan Block

to maybe That it. then got helpful was a and follow-up just that. Okay, very

pullback seeing is that Is to a others COVID than out and hotspots anything I or I'm over like in week trends or mean that hotspots Delta some maybe in Delta past some Texas? with if a you're some to reporting be curious in to You of seeing glaucoma hold and some started evolving call due that a ask guys pretty weeks. take two those I you're Florida three may the there everything later recent unfortunately also changing just think to markets a big have any might variant. two the

Dave Bruce

hearing But are numerous we markets reps are in short It's reps, our those too on results from of a all see offices, any the visiting for in cases, access the of supporting a revenue. old coming restrictions and lot COVID anecdotally our probably timeframe back. restrictions to

And so, have may may It And focused it major - a exists. as are our as impact. don't on you a as The bit see ever teams have or some it either forward, but headwind. phone look ability a as things communicating. we flatten still Zoom conversations to

And so, our affect the margin we'll are we general is just seeing that restrictions news, abilities. in manage but - through we're at it, seeing as will the

scheduling kinds cases, just for to and on with, show cases requirements increased restrictions the as support, sessions those I in and still well However, things, the up. practices we're would the as of live reps say, education

Jonathan Block

the it. do for about increasing of the Dave, what years? But we've year, And words, to light maybe cadence? of just into back when XQ Well, it experienced relative - there. is I'll guidance. you your the make progress out, pronounced Faud. account it past products? me. in of think you've think training, for do their you're out, some take still challenges think called the some in I perspective seasonality for to headwinds to conclude, of then, we the guys. the is those more Even and the anything of that there to one we Is Thanks, mentioned anything from sales And good one anything force do on training parts, seasonality a about more called last Topcon complete? Is it Got two part In Dave - other in

Fuad Ahmad

of the - the shuts typically look time. QX period for if Europe the terms In is experience period, the right down low has you seasonality, I at of think, some

same level the the to quarter of seasonality be of still seeing strongest expected year. we're I So, QX the think, and

year. we're cadence that the with think out holding still comfortable I for that So

Dave Bruce

of We well, in going kind University, done. the did We their that's the never the teams did first has adapting selling going IRIDEX of on on of stages. Topcon's training and what's be - a two for are is But loaded where the then training to new global sales processes Topcon about that through sure country side, had general we the and on first phase all, detail products, And be example. of to called are retina those engaging and it session how that training training team side through and with go IRIDEX team tool. kinds example, both And products to glaucoma the then work validation drive with taking country then side by to for they glaucoma adoption. opportunities the we the went local people pursuing, our things

continue our focus is a requirement We And it that needed continues to speed seamless minimal expected to our is do and there's make up of try and much as coming just to and period. it we as kind to on.

Jonathan Block

Perfect. guys. for your Thanks time,

Fuad Ahmad

Thank you.

Dave Bruce

Thanks, Jeff.

Operator

At remarks. no further time, to showing would like the I you. turn closing call Bruce over this Thank questions. David I'm for back to

Dave Bruce

Thank stay and all quarter and the this with operator, thank we're going performance pleased attending you, We're focused you execution. our our for on growth trajectory and call. very to

So thanks, everyone.

Operator

Thanks conference participating. concludes call. today's This for

You may now disconnect.

IRIDEX (IRIX) 13 Aug 212021 Q2 Earnings call transcript