IRIX stock rose 18% in after-hours trading on January 11, 2021, after the company release preliminary financial results.
IRIDEX Corporation (Nasdaq: IRIX) provided preliminary unaudited operational and financial results for the fourth quarter and full-year ended January 2, 2021. Iridex sees Q4 revenue of $12.2M to $12.4M, and the consensus estimate was $9.61M.
Fourth Quarter 2020
- Total revenue expected to be $12.2 million to $12.4 million, versus $11.8 million in the fourth quarter of 2019
- Cash and cash equivalents of approximately $11.6 million as of January 2, 2021, representing a net cash burn of $0.3 million in the fourth quarter, and $1.0 million for the full year 2020
- Sold 13,500 Cyclo G6® probes in the fourth quarter of 2020, slightly above the prior-year quarter
- U.S. sales of Cyclo G6 probes increased by 8% compared to the prior-year fourth quarter and set a new quarterly record, despite the continuing impacts of COVID-19 restrictions
- Sold 56 Cyclo G6 Glaucoma Laser Systems in the fourth quarter, compared to 105 in the prior-year quarter, reflecting COVID-19 impact on capital equipment purchases outside the US, and the Company’s shift to focusing on glaucoma procedure volumes rather than systems placements
Full Year 2020
- Total revenue expected to be $36.2 million to $36.4 million, approximately 16% below fiscal year 2019 revenue of $43.4 million.
- Sold 45,800 Cyclo G6 probes, compared to 51,500 in the prior year, reflecting the significant midyear impact of COVID 19 on ophthalmic procedure volume
- Sold 173 Cyclo G6 Glaucoma Laser Systems compared to 350 in the prior year reflecting a shift in sales focus towards probe adoption and the impacts of COVID-19 on capital purchase volumes worldwide.
“As with many other companies, our business was impacted by COVID-19 during 2020, but our strong recovery and improving momentum is evident from the fourth quarter results,” said David I. Bruce, President and CEO of IRIDEX. “Total revenue and Cyclo G6 probe sales exceeded the pre-pandemic levels from the prior year quarter. This was achieved simultaneously with highly focused expense management, resulting in net cash burn of only $1.0 million for the entire year.”
Bruce continued, “Product improvements contributed to the strength of our business in both Glaucoma and Retina segments. Release of an improved MicroPulse P3 probe in late 2019 helped drive increased adoption in 2020, leading to quarterly records for Cyclo G6 probes sales in both the third and fourth quarters. Strength in Retina product sales reflected our improved competitive position thanks to several product enhancements released in 2020, including the introduction of the LIO Plus, a Laser Indirect Ophthalmoscope (LIO). Our momentum is expected to continue in the new year, including the launch of a new 810 wavelength laser, the first in a family of new lasers offering substantial savings in manufacturing costs and gross margin improvement,” concluded Bruce.
These preliminary results are based on management’s initial analysis of operations for the quarter and year ended January 2, 2021. They are subject to completing the Company’s year-end financial reporting processes, further internal review, an audit by the Company’s external auditors.
IRIDEX Corporation is a worldwide leader in developing, manufacturing, and marketing innovative and versatile laser-based medical systems, delivery devices, and consumable instrumentation for the ophthalmology market. The Company’s proprietary MicroPulse® technology delivers a differentiated treatment that provides safe, effective, and proven treatment for targeted sight-threatening eye conditions. IRIDEX’s current product line is used to treat glaucoma and diabetic macular edema (DME), and other retinal diseases. 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 IRIDEX website at www.iridex.com.