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IRIX flips to positive net income on 116% yoy revenue growth. $0.09 earnings per share versus -$.20 for the quarter.
Achieved 116% Year-over-Year Revenue Growth and Record Cyclo G6 Probe Sales
Increases Full Year 2021 Guidance
MOUNTAIN VIEW, Calif., Aug. 12, 2021 (GLOBE NEWSWIRE) -- Iridex Corporation (Nasdaq: IRIX) today reported financial results for the second quarter ended July 3, 2021.
Second Quarter Highlights
Revenue of $13.4 million, highest since 2007, increased 116% from the prior year period, and 29% compared to second quarter 2019
Gross profit of $6.1 million, also a 14-year quarterly high, on gross margin of 45.5%
Cyclo G6® product family revenue of $3.6 million, an increase of 70% year-over-year
Record 16,000 Cyclo G6 probes sold, a 103% year-over-year increase
47 Cyclo G6 Glaucoma Laser Systems sold, compared to 42 in the prior year period
Retina product revenue nearly tripled year-over-year to $7.6 million
28% of revenue from PASCAL® products acquired from Topcon
Cash usage of $1.7 million leading to cash at quarter-end of $26.3 million
Paycheck Protection Program loan forgiveness of $2.5 million contributed to net income of $1.4 million
“Sales records this quarter demonstrate that Iridex is achieving new highs of performance, and we’re proud of the results our team has delivered,” said David I. Bruce, President and CEO of Iridex. “The measures we implemented more than a year ago to secure our business during the pandemic have enabled us to emerge even stronger today. We saw strength in both our glaucoma and retina markets, demonstrating the impact of our investments in sales and marketing, a broader distribution partnership, and product enhancements.”
Second Quarter 2021 Financial Results
Revenue for the three months ended July 3, 2021 increased 116% to $13.4 million from $6.2 million during the same period of the prior year. Excluding newly acquired PASCAL products, revenue increased 81% over the second quarter of 2020.
Gross profit for the second quarter of 2021 increased to $6.1 million, a 45.5% gross margin, compared to $2.4 million, a 38.7% gross margin, in the same period last year. The gross margin increase was primarily attributable to the impact of production efficiency initiatives, greater overhead absorption due to higher revenue and continued increase in higher margin probes within the product mix.
Operating expenses for the second quarter of 2021 increased 40% to $7.2 million compared to $5.2 million in the same period of the prior year, mainly due to additional expenses related to PASCAL operations and higher level of business activities and investments compared to the prior year quarter that was greatly impacted by the pandemic.
The Company recorded a $2.5 million non-operating gain in Other Income, net, in the second quarter of 2021 in connection with the forgiveness by the U.S. Small Business Administration of the total outstanding amount of its Paycheck Protection Program loan.
Net income for the second quarter of 2021 was $1.4 million, compared to a net loss $2.8 million in the same period of the prior year. Net income on a per share basis was $0.09 in 2021 versus a loss of $0.20 in the second quarter of 2020.
Cash usage in the second quarter was $1.7 million, which resulted in cash of $26.3 million at quarter-end.
Updated Guidance for Full Year 2021
Iridex now expects total revenue for fiscal year 2021 to range from $50 million to $52 million, reflecting growth of 38% - 43% over fiscal year 2020. This compares to the previous range of $48 million to $51 million. Cyclo G6 probe sales are expected to increase to 58,000 to 60,000 from prior guidance of 56,000 to 59,000. Glaucoma Laser System sales expectation of 250 to 275 for 2021 remains unchanged.
Webcast and Conference Call Information
Iridex’s management team will host a conference call today beginning at 2:00 p.m. PT / 5:00 p.m. ET. Investors interested in listening to the conference call may do so by dialing (844) 707-0665 for domestic callers or (703) 326-3030 for international callers, using conference ID: 9257308. A live and archived webcast of the event will be available on the “Investors” section of the Company’s website: www.iridex.com.
About Iridex
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 for the treatment of 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 primarily through a network of independent distributors into more than 100 countries. For further information, visit the Iridex 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, including those statements concerning the future momentum, demand and utilization of the Company's products, financial guidance, expected sales volumes and benefits from the Topcon partnership. These statements are not guarantees of future performance and actual results may differ materially from those described in these forward-looking statements as a result of a number of factors. Please see a detailed description of these and other risks contained in our Annual Report on Form 10-K for the fiscal year ended January 2, 2021, 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.
Investor Relations Contact
Leigh Salvo
(415) 937-5404
investors@iridex.com
IRIDEX Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
Three Months Ended
Six Months Ended
July 3,
June 27,
July 3,
June 27,
2021
2020
2021
2020
Total revenues
$
13,426
$
6,219
$
25,385
$
15,240
Cost of revenues
7,318
3,813
14,338
8,918
Gross profit
6,108
2,406
11,047
6,322
Operating expenses:
Research and development
1,672
807
2,837
1,526
Sales and marketing
3,646
2,693
6,628
5,845
General and administrative
1,928
1,690
4,561
3,388
Total operating expenses
7,246
5,190
14,026
10,759
Loss from operations
(1,138
)
(2,784
)
(2,979
)
(4,437
)
Other income, net
2,539
9
2,378
18
Income (loss) from operations before provision for income taxes
1,401
(2,775
)
(601
)
(4,419
)
Provision for income taxes
8
5
16
12
Net income (loss)
$
1,393
$
(2,780
)
$
(617
)
$
(4,431
)
Net income (loss) per share:
Basic
$
0.09
$
(0.20
)
$
(0.04
)
$
(0.32
)
Diluted
$
0.09
$
(0.20
)
$
(0.04
)
$
(0.32
)
Weighted average shares used in computing net income (loss) per share:
Basic
15,647
13,792
14,996
13,789
Diluted
16,307
13,792
14,996
13,789
IRIDEX Corporation
Condensed Consolidated Balance Sheets
(In thousands and unaudited)
July 3,
January 2,
2021
2021
Assets
Current assets:
Cash and cash equivalents
$
26,259
$
11,626
Accounts receivable, net
8,599
7,289
Inventories
7,962
5,714
Prepaid expenses and other current assets
911
730
Total current assets
43,731
25,359
Property and equipment, net
646
449
Intangible assets, net
2,301
68
Goodwill
965
533
Operating lease right-of-use assets, net
2,821
1,428
Other long-term assets
56
132
Total assets
$
50,520
$
27,969
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
2,249
$
1,148
Accrued compensation
2,068
1,965
Accrued expenses
1,454
990
Other current expenses
2,193
816
Current portion of PPP loan
-
1,249
Accrued warranty
99
166
Deferred revenue
2,005
938
Operating lease liabilities
854
1,409
Total current liabilities
10,922
8,681
Long-term liabilities:
PPP Loan
-
1,248
Accrued warranty
81
81
Deferred revenue
10,479
289
Operating lease liabilities
2,136
282
Other long-term liabilities
22
22
Total liabilities
23,640
10,603
Stockholders' equity:
Common stock
167
148
Additional paid-in capital
84,265
74,181
Accumulated other comprehensive income (loss)
9
(19
)
Accumulated deficit
(57,561
)
(56,944
)
Total stockholders' equity
26,880
17,366
Total liabilities and stockholders' equity
$
50,520
$
27,969
Thanks for the insight
Does that mean they were behind on their corporate filings before the reinstatement? Because they've been giving updates on their business.
FTDL great results. If you look at Amazon people give them 4.5 on almost all their products. They make products people like.
https://www.amazon.com/s?k=firstime&ref=nb_sb_noss
TRCK, I got some a couple months ago at $1.35, thanks KiK. The quarter looked great.
PROM, I also dumped for a loss a year or so after they went dark.
I was finding it difficult to come up with picks I was excited about also.
OBCI 68% revenue increase
I'm guessing the bottom line will look pretty good this quarter.
https://finance.yahoo.com/news/ocean-bio-chem-inc-reports-130000368.html
VTSI - I also added. I like the quarterly results. The sector seems likely to have tailwinds. I don't think they would raise the amount of money they did without an opportunity ahead of them. And I like the backlog. The new buyers are in at $6 as hweb said.
MACE New palm stun device seems interesting. Should provide some growth.
https://finance.yahoo.com/news/mace-r-releases-stunning-product-130000562.html
Looks like they have a unique form factor compared to the existing devices on the market. Could make it less likely to get knocked out of your hand.
https://www.mace.com/products/palm-stun-device
https://www.amazon.com/s?k=stun+device&ref=nb_sb_noss_2
APT. Well, this blows up my thesis. I had expected N-95 mask demand to remain high for another year as everything I read seemed to suggest that, yet the company is telling us they expect it to be materially weaker already.
TRCK now at $2.00. Congrats KiK
APT I have a high degree of confidence that the next earnings report is going to good and I expect the progress will be good. I wanted to sell some puts when it was around 16.50, but it moved up quickly. I think it could move into the 20s on earnings. I still have some put sells orders in place.
DTEA has been spiking. I exited.
APT - With the completion of the their phase 2 expansion I would expect them to make $1 per quarter share in earnings. Slap a pe of 10 and it should be at a conservative $40. Maybe the market will get excited and give them a pe of 15. I don't think the demand for N95 masks will moderate for a few years.
APT should easily be in the $20s just based on their current run rate which is rapidly expanding. I think once the 10k results come out in about a month they will be rerated higher.
ZYXI filing for a sepsis monitoring patent. I think that this could be a large new market.
Zynex Announces Filing of Patent for Sepsis Monitor
ENGLEWOOD, Colo., Jan. 14, 2021 /PRNewswire/ -- Zynex, Inc. (NASDAQ: ZYXI), an innovative medical technology company specializing in the manufacture and sale of non-invasive medical devices for pain management, stroke rehabilitation, cardiac monitoring and neurological diagnostics, today reported it has filed for a provisional patent for a noninvasive sepsis monitor.
Zynex
Thomas Sandgaard, CEO of Zynex said: "Sepsis is one of the biggest problems in hospitals today. In the U.S. alone, over 1.7 million adults will develop sepsis annually with nearly 270,000 deaths as a result. Conventional patient monitors give insufficient advance warning of deteriorating patient health or the onset of potentially serious physiological conditions resulting from sepsis. A sepsis monitor that noninvasively measures patient condition and provides caregivers with an advanced warning or prediction of the onset of sepsis would be beneficial. A sepsis monitor may also be configured to provide or facilitate automatic intervention or treatment of sepsis and conditions resulting from sepsis. This sepsis monitor is capable of detecting potential sepsis in patients earlier than traditional methods, which has the potential to save lives. I believe the sepsis monitor will be a great complement to our CM-1500 Blood Volume Monitor, non-invasive detection of fluid balance in hospital settings."
Sepsis is a life-threatening medical condition characterized by the body-wide inflammatory response or reaction that presents in response to infection. The inflammatory response triggered by the immune reaction can cause body-wide tissue damage, even to areas not local to the original infection. Bacterial infections are the most common cause of sepsis, but sepsis can also be caused by fungal, parasitic, or viral infections. As an ineffectively treated infection progresses, toxins from the infection may circulate in the blood stream, causing damage to other organs (such as the brain, heart, lungs, kidneys, liver, etc.) and tissues. As the damage progresses, septic shock and a fatal decline in blood pressure may occur; patients with additional medical conditions and risk factors have increased likelihood of death.
Sepsis treatment spans multiple days to weeks, often in an intensive care environment and is detected through blood cultures, blood-gas analysis, kidney and other organ functional tests, platelet and white blood cell counts, additional imaging, urine testing, cerebrospinal fluid tests, etc.
The signs and symptoms of sepsis often may be subtle. The low survival rate of patients with severe sepsis indicates that current sepsis identification strategies, tools, and methods may be lacking.
IVFH superduper investor is talking it up on Twitter
I sold
https://mobile.twitter.com/search?q=%24ivfh&src=typed_query
Ya, I also am down bigley on my purchases. I like what the company is doing. They're making their sales and development process scalable, providing alot of value and an easy entrypoint for new users with easy upsells as the user gets more traffic. So as long as they can return profitability and aren't lying to us I think they will do well.
SEAC has already traded at around 10x average volume midday. Congrats to any buyers
PDEX Anyone have insight into the big drop in PDEX today on high volume? They recently registered a shelf offering. Could they be raising money for an acquisition? Are those shelf offerings usable immediately after registration?
ZYXI - I own a small portion right now, I had sold all of it on the run-up into the $20s, then I repurchased a small bit around $15. If they continue to execute and grow I think they will be in great position but COVID has slowed them down.
69% revenue growth 96% order growth 9/30/2020 ending quarter
77% revenue growth 76% order growth 6/30/2020 ending quarter
66% revenue growth 126% order growth 3/31/2020 ending quarter
Order growth (the leading indicator) took a step back in the 6/30 ending quarter, then started moving again. That caused revenue growth to slow again. With COVID it has been harder for salespeople to get access to doctors in order to sell. However, it has also made it easy to hire people, so they have been hiring salespeople at an accelerated pace. Revenues I think will continue to trend upward caused by all the new salespeople hired and because order growth has already turned back up. However, these salespeople are all dedicated and on a partial salary, so that is depressing the bottom the bottom line. So I think revenues will move up and bottom line will remain depressed for another few quarters, but at some point the bottom line will catch up. In a couple years I think they will have huge profits, but I'm not sure when the bottom line starts to turn up again.
Some people think they are hiring all these people to cover up declining growth or declining demand. They also added a catalog of other generic products to sell, and some people think that was out of desperation. I don't see those things.
They have a blood volume monitor that is ready to go, but they are building a separate sales team for that. My impression is that will take a long time to develop and won't give them profits in the near term, but only drive costs.
Congratulations KiK! I think your repeated wins show you are the best stock picker.
CVLB 9.32 (+23.44%) - another scam having a nice day today. Up from the 5's 4 days ago.
Which drug company stocks to short on this news?
$16.9M of that loss this quarter is in stock options. They haven't had money and have been diluting to fund growth. But their revenue is on a subscription basis. I believe their sales and marketing can go away and they will still have the recurring revenue. They have 2 new telemedicine offerings in the works. They are rapidly introducing new brands. They know how to advertise, they have a telemedicine platform they purchased. The COVID pandemic has increase their business. They are a growth story. I own just a small amount because they aren't profitable, and the lottery ticket, somewhat sketchy feel. But, I think they could stop advertising or reduce it and they would be profitable because of the subscription nature of their revenues. I think investors on the Nasdaq have an appetite for these type of companies. We'll see how it goes.
CVLB Revenue up 252%
They say they expect to be on the Nasdaq in a 1-2 weeks.
https://seekingalpha.com/pr/18087877-conversion-labs-q3-2020-revenue-up-252-to-record-11_0-million
SMDM had a positive conference call.
Here are some notes:
140% of last year sell through - Target?
Struggling to fulfill due to lack of inventory due to demand
Walmart weekend of Thanksgiving, part of November week 1 program. 170% increase from last year
Walmart said they ordered 70,000 pieces less than they should have, demand has continued and said they will not make that mistake next year
Sam's club
continued success
5 products versus last year 3 products
Summer progam sellthrough of 93%
Main item has had a double in sales so far
High-end pedestal has been steady
Costco carries only one product, exceeding number
$199 retail versus $169 last year, no drop in sales
True wifi product
Drop ship numbers up over 300%
Influencers on Tik-Tok promoting items and selling direct through carpool karaoke website
Margins have been great on that
Good inventory position
Sold end-of-life product at full margins
Net of Walmart annual event 32-33% margins
Doing well in Australia, but international is slow
No drop-off in carpool karaoke sales
Should get the ~$400K PPP loan forgiven and reported as income
SMDM .32 in with a .06 quarter. Revs up 15%.
Income up 300%.
Other income of .9M for insurance claim versus 2.4M total income.
https://finance.yahoo.com/news/singing-machine-announces-300-increase-120000473.html
Glad I picked up some on the dip this week.
PGNT net income doubled on a little lower revenue.
LEAT 7.35 (+9%) in with .27 earnings. Revenue up 18%. Net income up 22%.
https://finance.yahoo.com/news/leatt-corp-announces-third-quarter-130000249.html
ORGO Just announced a public offering.
https://finance.yahoo.com/news/organogenesis-holdings-inc-announces-proposed-224000475.html
SMLR (66.40 +6.41 (+10.69%)) Increased revenue 68% yoy. Selling at half the revenue growth rate. 2 new products in the works.
https://finance.yahoo.com/news/semler-reports-record-third-quarter-130300969.html
I prefer more information over less. But their backlog numbers may be conservative anyway.
APT (14.90) reports .58 cents for the quarter
No news on the phase 2 line yet, but still including it in projections. Won't be reporting interquarter backlogs anymore for competitive reasons.
https://www.otcmarkets.com/filing/html?id=14481871&guid=UCdeUpqtI2Ah3th