Iridex Reports Third Quarter 2024 Financial Results
Iridex reported its third quarter 2024 financial results, showing a total revenue of $11.6 million, a sequential decline of 8% from Q2 2024 and a 10% decline from Q3 2023. The Cyclo G6 product family generated $3.1 million in revenue, a 3% increase from Q3 2023. However, retina product revenue fell to $6.5 million, a 12% sequential decline and an 18% drop year-over-year. The company strengthened its balance sheet with $3.4 million in net proceeds from a convertible note offering. Cash and cash equivalents were approximately $3.9 million as of September 28, 2024.
Iridex expects to achieve EBITDA breakeven in Q4 2024 due to cost-cutting measures. The company also announced new Local Coverage Determinations (LCDs) for Medicare reimbursement, effective November 17, 2024, which could boost the use of its glaucoma products. The company is undergoing a strategic review and is in discussions with multiple parties regarding potential transactions.
Iridex ha riportato i risultati finanziari del terzo trimestre 2024, mostrando un fatturato totale di 11,6 milioni di dollari, un declino sequenziale dell'8% rispetto al Q2 2024 e un calo del 10% rispetto al Q3 2023. La famiglia di prodotti Cyclo G6 ha generato 3,1 milioni di dollari in fatturato, con un incremento del 3% rispetto al Q3 2023. Tuttavia, il fatturato dei prodotti per la retina è sceso a 6,5 milioni di dollari, con un declino sequenziale del 12% e un calo del 18% su base annua. L'azienda ha rafforzato il suo bilancio con 3,4 milioni di dollari in proventi netti da un'offerta di note convertibili. Contanti e equivalenti di cassa ammontavano a circa 3,9 milioni di dollari al 28 settembre 2024.
Iridex prevede di raggiungere il pareggio EBITDA nel Q4 2024 grazie a misure di riduzione dei costi. L'azienda ha anche annunciato nuove Determinizioni di Copertura Locale (LCD) per il rimborso Medicare, in vigore dal 17 novembre 2024, che potrebbero aumentare l'uso dei suoi prodotti per il glaucoma. L'azienda sta effettuando una revisione strategica ed è in discussione con più parti riguardo a potenziali transazioni.
Iridex ha informado sus resultados financieros del tercer trimestre de 2024, mostrando unos ingresos totales de 11,6 millones de dólares, una disminución secuencial del 8% respecto al Q2 2024 y una caída del 10% en comparación con el Q3 2023. La familia de productos Cyclo G6 generó 3,1 millones de dólares en ingresos, un incremento del 3% respecto al Q3 2023. Sin embargo, los ingresos de productos para la retina cayeron a 6,5 millones de dólares, una disminución secuencial del 12% y una caída del 18% en comparación interanual. La empresa fortaleció su balance con 3,4 millones de dólares en ingresos netos de una oferta de notas convertibles. El efectivo y equivalentes de efectivo eran aproximadamente 3,9 millones de dólares al 28 de septiembre de 2024.
Iridex espera alcanzar el punto de equilibrio en EBITDA en el Q4 2024 gracias a medidas de reducción de costos. La empresa también anunció nuevas Determinaciones de Cobertura Local (LCD) para el reembolso de Medicare, que entrarán en vigencia el 17 de noviembre de 2024, lo que podría aumentar el uso de sus productos para el glaucoma. La empresa está llevando a cabo una revisión estratégica y está en conversaciones con múltiples partes sobre posibles transacciones.
Iridex는 2024년 3분기 재무 결과를 발표하며 총 수익이 1,160만 달러에 달했다고 밝혔습니다. 이는 2024년 2분기 대비 8% 감소한 수치이며, 2023년 3분기 대비 10% 감소한 것입니다. Cyclo G6 제품군은 310만 달러의 수익을 올렸으며, 이는 2023년 3분기 대비 3% 증가한 수치입니다. 그러나 망막 제품 수익은 650만 달러로 떨어졌으며, 이는 12%의 순차적 감소와 18%의 연간 감소를 의미합니다. 이 회사는 전환사채 발행을 통해 340만 달러의 순수익으로 재무 상태를 강화했습니다. 2024년 9월 28일 기준 현금 및 현금등가물은 약 390만 달러였습니다.
Iridex는 비용 절감 조치 덕분에 2024년 4분기에 EBITDA 손익 분기점에 도달할 것으로 예상하고 있습니다. 이 회사는 또한 2024년 11월 17일부터 발효되는 Medicare 보상을 위한 새로운 지역 보장 결정 (LCD)를 발표했으며, 이는 녹내장 제품의 사용을 증대시킬 수 있습니다. 이 회사는 전략적 검토를 진행 중이며, 잠재적인 거래에 대해 여러 당사자들과 논의 중입니다.
Iridex a annoncé ses résultats financiers pour le troisième trimestre 2024, affichant un chiffre d'affaires total de 11,6 millions de dollars, ce qui représente une baisse séquentielle de 8 % par rapport au T2 2024 et une diminution de 10 % par rapport au T3 2023. La gamme de produits Cyclo G6 a généré un chiffre d'affaires de 3,1 millions de dollars, soit une augmentation de 3 % par rapport au T3 2023. Cependant, le chiffre d'affaires des produits rétiniens a chuté à 6,5 millions de dollars, avec une baisse séquentielle de 12 % et une chute de 18 % d'une année sur l'autre. L'entreprise a renforcé son bilan avec 3,4 millions de dollars de produits nets provenant d'une émission d'obligations convertibles. Les liquidités et équivalents de liquidités s'élevaient à environ 3,9 millions de dollars au 28 septembre 2024.
Iridex s'attend à atteindre le break-even EBITDA au T4 2024 grâce à des mesures de réduction des coûts. L'entreprise a également annoncé de nouvelles Définitions de Couverture Locale (LCD) pour le remboursement Medicare, entrant en vigueur le 17 novembre 2024, ce qui pourrait stimuler l'utilisation de ses produits pour le glaucome. L'entreprise procède à une révision stratégique et est en discussion avec plusieurs parties concernant des transactions potentielles.
Iridex hat seine finanziellen Ergebnisse für das dritte Quartal 2024 bekannt gegeben und einen Gesamtumsatz von 11,6 Millionen US-Dollar berichtet, was einem sequenziellen Rückgang von 8% gegenüber Q2 2024 und einem Rückgang von 10% im Vergleich zu Q3 2023 entspricht. Die Produktfamilie Cyclo G6 erzielte einen Umsatz von 3,1 Millionen US-Dollar, was einem Anstieg von 3% gegenüber Q3 2023 entspricht. Der Umsatz mit Retina-Produkten fiel jedoch auf 6,5 Millionen US-Dollar, was einen sequenziellen Rückgang von 12% und einen Rückgang von 18% im Jahresvergleich darstellt. Das Unternehmen hat seine Bilanz mit einem Nettoerlös von 3,4 Millionen US-Dollar aus einem Angebot von Wandelanleihen gestärkt. Zum 28. September 2024 betrugen die Zahlungsmittel und Zahlungsmitteläquivalente etwa 3,9 Millionen US-Dollar.
Iridex erwartet, im Q4 2024 den EBITDA-Punkt zu erreichen, dank von Kostensenkungsmaßnahmen. Das Unternehmen gab auch neue Lokale Deckungsbestimmungen (LCD) für die Medicare-Erstattung bekannt, die ab dem 17. November 2024 in Kraft treten und die Nutzung seiner Glaukomprodukte steigern könnten. Das Unternehmen führt eine strategische Überprüfung durch und befindet sich in Gesprächen mit mehreren Parteien über potenzielle Transaktionen.
- Cyclo G6 product family revenue increased by 3% from Q3 2023.
- Net proceeds of $3.4 million through convertible note offering.
- Cash and cash equivalents totaled $3.9 million.
- New LCDs for Medicare reimbursement could increase the use of glaucoma products.
- Expecting EBITDA breakeven in Q4 2024.
- Total revenue declined by 10% year-over-year.
- Retina product revenue decreased by 18% year-over-year.
- Gross profit decreased to $4.3 million with a 37.3% gross margin, down from $5.6 million and a 43.7% gross margin in Q3 2023.
- Net loss of $1.9 million, or $0.12 per share, compared to $1.8 million, or $0.11 per share, in Q3 2023.
Insights
The Q3 results reveal significant challenges with
Key positives include cost reduction initiatives, expected Q4 EBITDA breakeven and favorable Medicare reimbursement changes. The
The divergent performance between product lines is noteworthy. While Cyclo G6 demonstrates stability with 13,600 probes sold (up from 13,200 YoY), the retina segment's
The regulatory delays affecting international shipments should resolve in Q4, which could help clear the larger-than-normal capital equipment backlog and improve near-term performance.
MOUNTAIN VIEW, Calif., Nov. 12, 2024 (GLOBE NEWSWIRE) -- Iridex Corporation (Nasdaq: IRIX), a worldwide leader providing innovative and versatile laser-based medical systems, delivery devices, and procedure probes for the treatment of glaucoma and retinal diseases, today reported financial results for the third quarter ended September 28, 2024.
Third Quarter 2024 Financial and Recent Highlights
- Expects to achieve EBITDA breakeven in the fourth quarter of 2024 as a result of actions to reduce costs and improve profitability
- Generated total revenue of
$11.6 million , representing a decline of8% sequentially from the second quarter of 2024 and a decline of10% over Q3’23 - Cyclo G6® product family revenue was
$3.1 million , representing growth of3% from the third quarter of 2023- Sold 13,600 Cyclo G6 probes, compared to 13,200 in the prior year period
- Sold 26 Cyclo G6 Glaucoma Laser Systems, compared to 27 in the prior year period
- Retina product revenue was
$6.5 million , representing a sequential decline of12% from the second quarter of 2024 and a decline of18% from the prior year period - Strengthened balance sheet with net proceeds of
$3.4 million through convertible note offering funded August 7, 2024 - Cash and cash equivalents as of September 28, 2024, was approximately
$3.9 million .
Recent Corporate Highlights
- Appointed Patrick Mercer as Chief Executive Officer; previously, Mr. Mercer served as the Company’s Chief Operating Officer and President. In addition, Scott Shuda, who had previously served as Chairman, was appointed Executive Chairman of the Company’s board of directors.
- Company’s strategic review ongoing with multiple parties.
- New Local Coverage Determinations (LCDs) for Medicare Administrative Contractor (MAC) reimbursement taking effect November 17, 2024 position Iridex’s glaucoma products for increased use.
Patrick Mercer, who was elevated from President and Chief Operating Officer to President and Chief Executive Officer on Iridex effective October 1, 2024, commented, “While the third quarter has traditionally been the quarter subject to the most seasonal softness, we were disappointed to see a return to extended sales cycles in our retina business. Glaucoma though was a highlight, being less dependent on capital equipment sales, with a majority of its revenues comprised of single-use consumable probes, the business experienced stable demand and generated growth over the prior year period in an overall challenging quarter. Moreover, we experienced some shipment delays for certain products due to regulatory hurdles in some territories. However, we expect these regulatory issues to be resolved in the fourth quarter and to begin shipments.”
Scott Shuda, Executive Chairman of Iridex, commented on the Company’s strategic review, “I am pleased to report that we have recently achieved meaningful progress and are currently in discussions with multiple parties relating to transaction opportunities. Among other things, the changing reimbursement landscape for glaucoma treatments is bringing favorable attention to Iridex and the value of our efficient and efficacious laser procedures.”
New LCDs Reshaping Glaucoma Reimbursement Landscape
The future potential for Iridex’s MicroPulse® and Continuous Wave laser therapies for glaucoma received a noted boost during the third quarter with the publication of the updated Local Coverage Determinations (LCDs) for Medicare Administrative Contractor (MAC) reimbursement relating to Micro-Invasive Glaucoma Surgery (MIGS).
“Last year, we reported on how Iridex’s glaucoma products had inexplicably become caught up in an earlier LCD, subsequently withdrawn, that was widely interpreted as seeking to limit and likely reduce MIGS procedures,” said Mr. Mercer. “This year, we are pleased to report that Iridex’s glaucoma products are unaffected by a replacement LCD, which again places limitations on reimbursement for MIGS procedures. The final LCD, which goes into effect on November 17, 2024, indicates that MIGS is not considered a first-line treatment for mild to moderate glaucoma, and simultaneous performance of multiple MIGS procedures is not permitted.”
“This new reimbursement paradigm has the potential to increase physician adoption of Iridex's glaucoma products,” Mr. Mercer continued. “Our strategy has focused on promoting the use of Iridex technology as a post-combination MIGS procedure. The new LCD opens the door to engaging with physicians to reassess applications for our technology and discuss its potential earlier in the treatment pathway. Particularly, we will encourage clinicians to explore the opportunity to perform cataract surgery in combination with MicroPulse Transscleral Laser Therapy (MPTLT). We believe this represents a compelling treatment option that emphasizes the synergistic benefits of MicroPulse TLT to offer significant clinical advantages, particularly for patients seeking to achieve low intraocular pressure (IOP).”
Actions to Reduce Costs and Improve Profitability
In the fourth quarter of 2024, Iridex implemented a series of additional operating improvements and cost-cutting measures designed to improve its financial performance and increase its balance sheet and working capital efficiency. These initiatives include significant cost reductions across all departments, renegotiating supplier contracts to free up capital, and reducing inventory levels. Additionally, Iridex will engage with global contract manufacturing partners to improve gross margins through increased outsourcing. As a result of these initiatives, Iridex expects to achieve EBITDA breakeven in the fourth quarter of 2024.
Third Quarter 2024 Financial Results
Revenue for the three months ended September 28, 2024, was
Gross profit for the third quarter of 2024 was
Operating expenses of
The net loss for the third quarter of 2024 was
Cash and cash equivalents totaled
Webcast and Conference Call Information
Iridex’s management team will hold a conference call today at 2:00 p.m. PT / 5:00 p.m. ET. Investors interested in listening to the conference call may dial +1-888-596-4144 for domestic callers or +1-646-968-2525 for international callers, using conference ID: 3650755. A live and recorded webcast on the “Event Calendar” page of the “Investors” section of the Company’s website at www.iridex.com.
About Iridex Corporation
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.
MicroPulse® is a registered trademark of Iridex Corporation, Inc. in the United States, Europe and other jurisdictions. © 2024 Iridex Corporation. All rights reserved.
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 clinical expectations and commercial trends, market adoption and expansion, value-maximizing transactions, demand for and utilization of the Company's products and results and expected sales volumes. The Company can provide no assurance that it will complete any value-maximizing transactions on behalf of its stockholders. 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 Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 14, 2024. Forward-looking statements contained in this announcement are made as of this date and will not be updated.
Investor Relations Contact
Philip Taylor
Gilmartin Group
investors@iridex.com
| IRIDEX Corporation | |||||||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||||||
| (In thousands, except per share data) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | ||||||||||||
| Total revenues | $ | 11,581 | $ | 12,850 | $ | 35,973 | $ | 39,411 | |||||||
| Cost of revenues | 7,258 | 7,229 | 22,057 | 22,489 | |||||||||||
| Gross profit | 4,323 | 5,621 | 13,916 | 16,922 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research and development | 1,299 | 1,541 | 4,336 | 5,135 | |||||||||||
| Sales and marketing | 2,646 | 3,823 | 9,879 | 12,370 | |||||||||||
| General and administrative | 2,248 | 1,945 | 7,501 | 6,343 | |||||||||||
| Total operating expenses | 6,193 | 7,309 | 21,716 | 23,848 | |||||||||||
| Loss from operations | (1,870 | ) | (1,688 | ) | (7,800 | ) | (6,926 | ) | |||||||
| Other income (expense), net | (46 | ) | (58 | ) | (202 | ) | 346 | ||||||||
| Loss from operations before provision for income taxes | (1,916 | ) | (1,746 | ) | (8,002 | ) | (6,580 | ) | |||||||
| Provision for income taxes | 17 | 8 | 74 | 30 | |||||||||||
| Net loss | $ | (1,933 | ) | $ | (1,754 | ) | $ | (8,076 | ) | $ | (6,610 | ) | |||
| Net loss per share: | |||||||||||||||
| Basic | $ | (0.12 | ) | $ | (0.11 | ) | $ | (0.49 | ) | $ | (0.41 | ) | |||
| Diluted | $ | (0.12 | ) | $ | (0.11 | ) | $ | (0.49 | ) | $ | (0.41 | ) | |||
| Weighted average shares used in computing net loss per common share: | |||||||||||||||
| Basic | 16,581 | 16,231 | 16,374 | 16,089 | |||||||||||
| Diluted | 16,581 | 16,231 | 16,374 | 16,089 | |||||||||||
| IRIDEX Corporation | |||||||
| Condensed Consolidated Balance Sheets | |||||||
| (In thousands) | |||||||
| September 28, 2024 | December 30, 2023 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 3,860 | $ | 7,034 | |||
| Accounts receivable, net | 7,780 | 9,654 | |||||
| Inventories | 10,942 | 9,906 | |||||
| Prepaid expenses and other current assets | 1,755 | 856 | |||||
| Total current assets | 24,337 | 27,450 | |||||
| Property and equipment, net | 157 | 351 | |||||
| Intangible assets, net | 1,391 | 1,642 | |||||
| Goodwill | 965 | 965 | |||||
| Operating lease right-of-use assets, net | 2,034 | 2,632 | |||||
| Other long-term assets | 1,270 | 1,396 | |||||
| Total assets | $ | 30,154 | $ | 34,436 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 6,780 | $ | 4,727 | |||
| Accrued compensation | 1,842 | 1,619 | |||||
| Accrued expenses | 1,007 | 1,996 | |||||
| Convertible note payable, current | 1,314 | — | |||||
| Other current liabilities | 1,579 | 1,233 | |||||
| Deferred revenue, current | 2,335 | 2,404 | |||||
| Operating lease liabilities, current | 995 | 995 | |||||
| Total current liabilities | 15,852 | 12,974 | |||||
| Long-term liabilities: | |||||||
| Deferred revenue | 8,759 | 10,025 | |||||
| Operating lease liabilities | 1,155 | 1,751 | |||||
| Convertible note payable | 1,444 | — | |||||
| Other long-term liabilities | 321 | 164 | |||||
| Total liabilities | 27,531 | 24,914 | |||||
| Stockholders’ equity: | |||||||
| Common stock | 174 | 172 | |||||
| Additional paid-in capital | 89,565 | 88,444 | |||||
| Accumulated other comprehensive income (loss) | 2 | (52 | ) | ||||
| Accumulated deficit | (87,118 | ) | (79,042 | ) | |||
| Total stockholders’ equity | 2,623 | 9,522 | |||||
| Total liabilities and stockholders’ equity | $ | 30,154 | $ | 34,436 | |||
FAQ
What were Iridex's third quarter 2024 revenues?
How did the Cyclo G6 product family perform in Q3 2024?
What was the performance of Iridex's retina product revenue in Q3 2024?
What is Iridex's financial outlook for the fourth quarter of 2024?
What impact will the new LCDs have on Iridex's glaucoma products?
