IRIX - Earnings call transcript Q2 2024

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Operator

Good day, and thank you for standing by. At this time, I would like to welcome everyone to IRIDEX Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Thank you.

I would now like to turn the conference over to Trip Taylor, Investor Relations. Please go ahead.

Philip Taylor

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

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

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

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

the I'll call Dave. to that, with turn And over

David Bruce

Good us joining today. afternoon, and thank you all for

quarter our financing. second our I provide recent XXXX review around by updates will our business strategic the on progress, recent including I'll discussing start color our performance. call, On Then and process

Following we call that, questions. on provide second the the open financials, and will for details Fuad quarter will

a company's innovations conditions a systems the laser the specialists, treatment patented history, as used treatment patients the to We've and introduction commitment the eye driving technical XXX-nanometer and through with transscleral for for we've in treatment tissue-sparing XX-plus-year continue be During sight-threatening such laser nonincisional laser, nonincisional the of deep technology glaucoma. improving to for MicroPulse proofs maintained established by clinical our glaucoma retina for provider market. we treatments of laser leading reputation

quarter Now highlights progress made. let's review second and recent business

Second quarter quarter $XX.X results business. glaucoma recovery U.S. the probe capital procedures the of In of equipment representing late we're in first demonstrate XXXX reimbursement of from firmer stabilization environment. of elimination from a U.S., XXXX Medicare in the XXXX. regarding the sales business is million, MicroPulse driving beginning TLT revenue X% recovery in of uncertainty benefit capital glaucoma, growth from to sequential the retina Overall, equipment and our and was for

growing in strength year-over-year. laser the from business our notable a of retina scanning PASCAL double saw We systems segment sale digits

In addition, elongated. cycle some cycles general, equipment remain we purchases, but closed in on extended

market upcoming our launch plus platforms supporting features technology clinical position. expect to XXX IRIDEX IRIDEX differentiated laser XXX to and sustain single-spot continue We our evidence our and of leading new our

strong system ongoing the $X.X by reimbursement Medicare LCDs. sales. uncertainty. but been concerns of have of procedural constraints stability glaucoma second the XX% year internationally. their recovery increased various first orders the growth of was driven family Probe prior by sales representing million, created probes that with to down softness the and awareness In period, driven capital XX,XXX quarter was mainly withdrawals down GX quarter, a compared and GX System reimbursement probe sales. by from Cyclo coverage-limiting then Compared sequential administrators GX slightly revenue $X.X to before XXXX, glaucoma, reimbursement were the impacted U.S. sold in We primarily some Cyclo was in to and revenue the the million increase issuances product purchasing due in

placing encouraged margins. produces improvement driving glaucoma to the into emphasis moderate-stage U.S. see we're patient our base, system sequentially sales, and on already strong drives installed which penetration have utilization, opportunity probe better and While gross in we laser a greater large, we're a

We rate PASCAL from on retina and period. growth X% improvements extended our $X.X was systems macro interest first the exchange equipment revenue resulting growth in strength prior product from environment. segment, of the X% laser purchases, million, in rate cycle scanning sequential In representing and of closings saw year the quarter from and

to Changing will ongoing, you and or IRIDEX and engaged as this this able strategic company specific transactions, is process. to dynamic. are the all but a product not fiscal to Discussions transaction series goal remain know, value unlock year. its transactions our that a benefit share review potential our At remain for in regarding reach we're is stockholders, processes is of to a we various relating time, to pursuing The topics, committed our updates lines actively options a pursuing stockholders. transaction

reductions our assumed in and operational Patrick our responsibility process, holds my now has of To Officer, to support of broader and sales the capital Board the Patrick Operating driving in the process, and asset increased Mercer, promoted cost strategic member Officer alternatives on with execution, role Chief May, focus President. management. positions Executive the both I and Board, review growth strategic Directors management. as prudent in Chief continue

a Earlier and to the a of for additional risk-adjusted to secures of flexible a of process pursue dilution note in benefits strategic transaction at reduced make cost an $X.X low growth this event our with the proceeds issue share the a and with company favorable a second placement $X.X in note this of balance and improves The net price premium. and for optionality further for both for private for million million. and our Lind business operating prepayment sheet senior of convertible conversion Several early Partners we recovery. option the event the capital financing proceeds financing financing company: of runway announced discounted week,

To prudently expenses capital our making progress priority, cash and we continue is managing to improving top a operating our flow. and expect conclude,

have and structured benefit and success stockholders. funded recovery appropriate We achieve to business the provide our runway in company the process to growth IRIDEX our to strategic liquidity with continue

will I to call Fuad. that, With the turn over

Fuad Ahmad

afternoon, Good ended thank second reviewing June everyone, to for joining quarter I us for would Thank XXXX. by you you, the Dave. financial XX, performance begin like today. and our

'XX sequential 'XX representing same the compared from in first of million growth the Total the prior million, in revenue of was of quarter the second X% of roughly fiscal flat and $XX.X $XX.X year. period quarter to

a trend in demonstrate results these mentioned, Dave our recovery businesses. As

first decrease a by to is $X.X sales to capital an versus is recovery in probe the 'XX Total revenue the ongoing $X.X level million second impacted by of This on versus continuing GX increase of the quarter approximately quarter purchase due a driven sales. of Now from the 'XX. softness product $X.X headwinds. Cyclo million, also the million in system This of product primarily family details. in was quarter second

stabilized quarter U.S. sequential Overall, historical a the Cyclo in compared towards driven the in 'XX. strong in was XX,XXX procedure in first reimbursement sales the of by OUS second business sold XX,XXX of second 'XX. glaucoma environment representing GX quarter, compared quarter probe recovery XX% by This increase probes We sold recovered the patterns a to and of to

We period. XX sold XX Cyclo in year XX compared GX the quarter first to the quarter prior and systems in in the

second largely quarter, was the decline conditions year-over-year the ongoing purchase due mentioned, improvement. led previously which capital to although headwinds, As in to slightly sequential the the improved

Our in to and up prior up the the X% compared X% of the year second retina quarter to of first million, segment quarter 'XX period. $X.X revenue was 'XX compared

growth from experienced system internationally both driven compared periods was quarter the in second quarters. by cycles primarily the The prior conversions elongated to and sales strengthening purchase

revenue, services revenue service decreased in other The quarter 'XX. to $X.X compared in and the royalty quarter decline the to second was and Other revenue second reduced revenue. includes million of from other 'XX royalties, expired licensing, $X patent to million legacy certain attributed of which products,

Gross profit 'XX prior period. million quarter million in was to the of for $X.X $X.X the second year compared

'XX. the in of mix gross of to to shift product high-margin Our in due XX.X% in a overall margin royalty quarter XX.X% reduction was a compared gross margin and was decline The revenue. second

Operating compared year. to been company's million process expenses of in million incurred operating related the $X.X the expenses second of quarter in without G&A greater expenses decrease not of would 'XX strategic period the the have $X.X were the million, last was result $X.X initiatives inclusion continuing same decrease and in a in to cost reduction prior of a The year.

of loss million for period $X.X second net $X.X of per per in share $X.XX compared second was or 'XX. was loss a Our the -- to net quarter the or $X.XX million same in share quarter 'XX

and on convertible of announced June improve and our quarter to The net million. The quarter improve used optimize second include working expect cash of as will $X.X flows. liquidity the cash position, working was to offering as manage from XX, totaled cash capital. cash from used usage the position $X.X week. the XX million cash quarter third balance capital note primarily we million the reduction Note than XXXX. will to as was to Therefore, net supply in Now cash that be short-term this June of higher proceeds relationships did and chain and net be not our the additional cash this Cash offering our $X.X in in equivalents that proceeds slightly the be closed variability. our

progress a review have making fiscal future in on we the reaching strengthened In progress costs. unlock transaction value in shareholder to growth We summary, balance operating sheet focused meaningful strategic continue this and by significant year. decreasing making our remain and company's

would questions. and Operator? now call the Dave I to for open like

Operator

from Stifel. have Instructions] of the Tom We comes Stephan a [Operator question line with

Thomas Stephan

Great. okay? you me, Can hear

David Bruce

Yes, Tom.

Thomas Stephan

Wonderful.

we in I severe Dave, is talk infinite GX. on me for question Just it look just on the landscape? to BELKIN. as about to moderate relates the as population. traction, patient view long term, First your is competitive you think, Alcon GX, gaining ahead can bought

we launching U.S. can Then soon. that device GX I'd in hold I think rapidly be I competitive say, this, own term iDose. may its the guess have environment? obviously long growing in

David Bruce

of the its nonincisional treatment that's in procedures a repeatable, Yes. Yes, Tom. own of moderate-stage in be think a patient. aspect to category continue preclude I doesn't for to going that is Thanks unique question, other the

And one X before a you TLT, you pressures out, without Or years these in -- a of treatments that And question procedures? one runway, And opportunities, sequence we incisional nonincisional procedure, cataract a for both to the or seeing to or a or under to MicroPulse start do one some done. and needs the do buy becomes, or more additional of runway rise of and brings be this example, and using something have you is area, extends pressures with done. post to go with control MIGS and as lot key estate? usage X we're example, treatment it, real call start that through space up for are again

So carry we to uniqueness think on. that continues

-- really a SLT-style The It's the BELKIN basically patient. system an in automated is early-stage procedure.

that and out have kind moderate-stage we don't so the They've And to SLT through where or ability gone already. see of as patient run more that competition drops experienced they've of one control in pressures. really multiple

Thomas Stephan

So when the business? just to there believe done what that great that or talk now. it. maybe factors you factors is of on then and believe by question process. to are hurdles, about timing? Dave, I the getting you limiting of I Is the close and for balance you're been year fiscal my hurdles That's the gone then deal prioritizing that have color. the second a X-parter on some that's at end limiting strategic Is said anything just just And the related? informs year. Got you then able review key timing. there, on sheet look a And

David Bruce

Sure. Yes. Yes.

we last end of the announced So year. August

presentations So putting contemplated a and and had that times. occurs out, started those we the process, process reaching banker, hired began in together the

own my opinions. you give I'll

not Earlier year. on this our difficult pretty transaction comment the in one in I micro-cap had occur last a conversations. occur. year, M&A and that have of space that turned we did soon, to this Things we started to year particular. We've was calls improve transaction expected to think a environment

when. the a on that's of and risk of what come kind So giving will prognosis

year. in We are still calendar something this targeting

And process as is until you long announcement. the know,

have people. with You conversations

get announce. processes and you and transition and all agreements diligence of through to kinds go purchase and that's things You to agreements those signature, negotiation a of when

then of it time period discussions things. on take So a can to long execute these across there's And that parties. a of number

same the discussions get trying a year. not to while. realistic it's process. we serious time, about And the we're fiscal of I'm through we're target value-enhancing It the necessarily comfortable stage And where we takes rush at finding keep a At something this think we're reiterating, transactions. to

Operator

time. turn There Bruce, Mr. further over are no back I at David you. this questions the to call

David Bruce

you, to building the call. Thank Thank in all for a on forward and we you solid We've come. look reporting this quarters all. to quarter, Thank operator. you performance joining had and that

Operator

This concludes today's conference call.

now disconnect. may You

IRIDEX (IRIX) 8 Aug 242024 Q2 Earnings call transcript