Glaukos Corporation Announces First Quarter 2021 Financial Results
Glaukos Corporation (GKOS) reported a 23% increase in net sales for Q1 2021, reaching $68.0 million, compared to $55.3 million in Q1 2020. Key segments included $53.7 million from glaucoma and $14.3 million from corneal health. The gross margin was approximately 76%, significantly up from 41% in the prior year. Operating expenses declined by 17% to $63.1 million, leading to a reduced net loss of $16.5 million or ($0.36) per share. The company projects Q2 2021 revenues between $70 million and $72 million.
- Net sales increased 23% to $68.0 million in Q1 2021.
- Gross margin improved to approximately 76%, up from 41% in Q1 2020.
- Operating expenses reduced by 17% to $63.1 million.
- Net loss decreased to $16.5 million compared to $54.1 million in the same period last year.
- Expecting Q2 2021 revenue between $70 million and $72 million.
- Loss from operations was $11.8 million.
- Non-GAAP net loss was $9.5 million, indicating ongoing financial challenges.
Glaukos Corporation (NYSE: GKOS), an ophthalmic medical technology and pharmaceutical company focused on novel therapies for the treatment of glaucoma, corneal disorders and retinal diseases, today announced financial results for the first quarter ended March 31, 2021. Key highlights include:
-
Net sales growth of
23% to$68.0 million in Q1 2021, compared to$55.3 million in Q1 2020. -
Glaucoma net sales of
$53.7 million and Corneal Health net sales of$14.3 million in Q1 2021. -
Gross margin of approximately
76% and non-GAAP gross margin of approximately84% in Q1 2021. -
Operating expenses of
$63.1 million and non-GAAP operating expenses of$61.8 million in Q1 2021.
“Our strong start to the year reflects our teams’ unwavering commitment to advance our key strategic priorities and execute our plans,” said Thomas Burns, Glaukos president and chief executive officer. “While we recognize uncertainties associated with COVID-19 may persist, I am encouraged by the continued recovery trends and believe our business prospects remain robust as we advance our mission to transform the treatment of chronic eye diseases for the benefit of patients worldwide.”
First Quarter 2021 Financial Results
Net sales increased
Gross margin for the first quarter of 2021 was approximately
Selling, general and administrative (SG&A) expenses for the first quarter of 2021 declined
Research and development (R&D) expenses for the first quarter of 2021 declined
Loss from operations in the first quarter of 2021 was
Net loss in the first quarter of 2021 was
The company ended the first quarter of 2021 with approximately
Second Quarter 2021 Revenue Guidance
The company expects the second quarter of 2021 net sales to be in the range of
Webcast & Conference Call
The company will host a conference call and simultaneous webcast today at 1:30 p.m. PDT (4:30 p.m. EDT) to discuss the results and provide additional information about the company’s financial outlook. A link to the webcast is available on the company’s website at http://investors.glaukos.com. To participate in the conference call, please dial 833-231-8262 (U.S.) or 647-689-4107 (international) and enter Conference ID 1191891. A replay of the webcast will be archived on the company’s website following completion of the call.
About Glaukos
Glaukos (www.glaukos.com) is an ophthalmic medical technology and pharmaceutical company focused on novel therapies for the treatment of glaucoma, corneal disorders and retinal diseases. The company pioneered Micro-Invasive Glaucoma Surgery, or MIGS, to revolutionize the traditional glaucoma treatment and management paradigm. Glaukos launched the iStent®, its first MIGS device, in the United States in 2012, its next-generation iStent inject® device in the United States in 2018 and most recently, its iStent inject W device in the United States in 2020. In corneal health, Glaukos’ proprietary suite of single-use, bio-activated pharmaceuticals are designed to strengthen, stabilize and reshape the cornea through a process called corneal collagen cross-linking to treat corneal ectatic disorders and correct refractive conditions. Glaukos is leveraging its platform technology to build a comprehensive and proprietary portfolio of micro-scale surgical and pharmaceutical therapies in glaucoma, corneal health and retinal disease.
Forward-Looking Statements
This communication contains “forward-looking statements” within the meaning of federal securities laws. All statements other than statements of historical facts included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. These statements are based on management’s current expectations, assumptions, estimates and beliefs. Although we believe that we have a reasonable basis for forward-looking statements contained herein, we caution you that they are based on current expectations about future events affecting us and are subject to risks, uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control, that may cause our actual results to differ materially from those expressed or implied by forward-looking statements in this press release. These potential risks and uncertainties that could cause actual results to differ materially from those described in forward-looking statements include, without limitation, uncertainties regarding the duration and severity of the COVID-19 pandemic and its impact on our business or the economy generally; our ability to continue to generate sales of our commercialized products and develop and commercialize additional products; our dependence on a limited number of third-party suppliers, some of which are single-source, for components of our products; the occurrence of a crippling accident, natural disaster, or other disruption at our primary facility, which may materially affect our manufacturing capacity and operations; securing or maintaining adequate coverage or reimbursement by third-party payors for procedures using the iStent, the iStent inject, the iStent inject W, our corneal cross-linking products or other products in development; our ability to properly train, and gain acceptance and trust from ophthalmic surgeons in the use of our products; our ability to compete effectively in the medical device industry and against current and future competitors (including MIGS competitors); our compliance with federal, state and foreign laws and regulations for the approval and sale and marketing of our products and of our manufacturing processes; the lengthy and expensive clinical trial process and the uncertainty of timing and outcomes from any particular clinical trial or regulatory approval processes; the risk of recalls or serious safety issues with our products and the uncertainty of patient outcomes; our ability to protect, and the expense and time-consuming nature of protecting our intellectual property against third parties and competitors and the impact of any claims against us for infringement or misappropriation of third party intellectual property rights and any related litigation; and our ability to service our indebtedness. These and other known risks, uncertainties and factors are described in detail under the caption “Risk Factors” and elsewhere in our filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for 2020, which was filed with the SEC on March 1, 2021, and will also be included in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, which we expect to file on or before May 10, 2021. Our filings with the Securities and Exchange Commission are available in the Investor Section of our website at www.glaukos.com or at www.sec.gov. In addition, information about the risks and benefits of our products is available on our website at www.glaukos.com. All forward-looking statements included in this press release are expressly qualified in their entirety by the foregoing cautionary statements. You are cautioned not to place undue reliance on the forward-looking statements in this press release, which speak only as of the date hereof. We do not undertake any obligation to update, amend or clarify these forward-looking statements whether as a result of new information, future events or otherwise, except as may be required under applicable securities law.
Statement Regarding Use of Non-GAAP Financial Measures
To supplement the consolidated financial results prepared in accordance with Generally Accepted Accounting Principles ("GAAP"), the Company uses certain non-GAAP historical financial measures. Management makes adjustments to the GAAP measures for items (both charges and gains) that (a) do not reflect the core operational activities of the Company, (b) are commonly adjusted within the Company's industry to enhance comparability of the Company's financial results with those of its peer group, or (c) are inconsistent in amount or frequency between periods (albeit such items are monitored and controlled with equal diligence relative to core operations). The Company uses the term "Non-GAAP" to exclude intellectual property litigation income and expenses, amortization of intangible assets, fair value adjustments to contingent consideration liabilities arising from acquisitions, costs and expenses associated with acquisitions and integration, costs associated with enterprise system upgrades, certain inventory write-off charges, in-process R&D charges, amortization of debt discount and associated issuance costs related to the company’s convertible senior debt offering, significant discrete income and other tax adjustments related to transactions as well as changes in estimated acquisition-date tax effects associated with business combinations, and the impact from implementation of tax law changes and settlements. See “GAAP to Non-GAAP Reconciliations” for a reconciliation of each non-GAAP measure presented to the comparable GAAP financial measure.
GLAUKOS CORPORATION |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
(unaudited) |
||||||||
(in thousands, except per share amounts) |
||||||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
Three Months Ended |
||||||
|
|
March 31, |
||||||
|
|
|
|
|
||||
|
|
2021 |
|
2020 |
||||
| Net sales | $ |
67,968 |
|
$ |
55,336 |
|
||
| Cost of sales |
|
16,633 |
|
|
32,529 |
|
||
| Gross profit |
|
51,335 |
|
|
22,807 |
|
||
| Operating expenses: | ||||||||
| Selling, general and administrative |
|
41,921 |
|
|
50,546 |
|
||
| Research and development |
|
21,219 |
|
|
24,873 |
|
||
| Total operating expenses |
|
63,140 |
|
|
75,419 |
|
||
| Loss from operations |
|
(11,805 |
) |
|
(52,612 |
) |
||
| Non-operating (expense) income: | ||||||||
| Interest income |
|
383 |
|
|
696 |
|
||
| Interest expense |
|
(3,229 |
) |
|
(881 |
) |
||
| Other expense, net |
|
(1,539 |
) |
|
(1,711 |
) |
||
| Total non-operating expense |
|
(4,385 |
) |
|
(1,896 |
) |
||
| Loss before taxes |
|
(16,190 |
) |
|
(54,508 |
) |
||
| Income tax provision (benefit) |
|
279 |
|
|
(450 |
) |
||
| Net loss | $ |
(16,469 |
) |
$ |
(54,058 |
) |
||
| Basic and diluted net loss per share | $ |
(0.36 |
) |
$ |
(1.24 |
) |
||
| Weighted average shares used to compute basic and diluted net loss per share |
|
45,709 |
|
|
43,766 |
|
||
GLAUKOS CORPORATION |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(in thousands, except par values) |
||||||||
|
|
|
|
|
||||
|
|
March 31, |
|
December 31, |
||||
|
|
2021 |
|
2020 |
||||
(unaudited) |
||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ |
96,625 |
|
$ |
96,596 |
|
||
| Short-term investments |
|
310,755 |
|
|
307,772 |
|
||
| Accounts receivable, net |
|
36,694 |
|
|
36,059 |
|
||
| Inventory, net |
|
15,271 |
|
|
15,809 |
|
||
| Prepaid expenses and other current assets |
|
14,954 |
|
|
13,206 |
|
||
| Total current assets |
|
474,299 |
|
|
469,442 |
|
||
| Restricted cash |
|
9,416 |
|
|
9,566 |
|
||
| Property and equipment, net |
|
43,314 |
|
|
24,008 |
|
||
| Operating lease right-of-use asset |
|
19,720 |
|
|
20,009 |
|
||
| Finance lease right-of-use asset |
|
50,838 |
|
|
51,443 |
|
||
| Intangible assets, net |
|
351,465 |
|
|
357,693 |
|
||
| Goodwill |
|
66,134 |
|
|
66,134 |
|
||
| Deposits and other assets |
|
7,591 |
|
|
7,207 |
|
||
| Total assets | $ |
1,022,777 |
|
$ |
1,005,502 |
|
||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ |
8,624 |
|
$ |
4,371 |
|
||
| Accrued liabilities |
|
47,944 |
|
|
45,331 |
|
||
| Convertible senior notes |
|
278,996 |
|
|
- |
|
||
| Total current liabilities |
|
335,564 |
|
|
49,702 |
|
||
| Convertible senior notes |
|
- |
|
|
189,416 |
|
||
| Operating lease liability |
|
20,450 |
|
|
20,704 |
|
||
| Finance lease liability |
|
61,068 |
|
|
60,690 |
|
||
| Deferred tax liability, net |
|
8,323 |
|
|
10,512 |
|
||
| Other liabilities |
|
7,598 |
|
|
7,029 |
|
||
| Total liabilities |
|
433,003 |
|
|
338,053 |
|
||
| Stockholders' equity: | ||||||||
| Preferred stock, |
|
- |
|
|
- |
|
||
| Common stock, | ||||||||
FAQ
What were Glaukos Corporation's Q1 2021 financial results?
What is Glaukos Corporation's revenue guidance for Q2 2021?
How much did Glaukos' operating expenses decrease in Q1 2021?
What was Glaukos Corporation's net loss in Q1 2021?
What are the key segments contributing to Glaukos' sales?
