Iridex reports first quarter 2024 financial result

Iridex Corporation reported financial results for the first quarter ended March 30, 2024, and provided a business update.

“We saw some of the firming we expected during the first quarter, but longer sales cycles continued into the first quarter and we also experienced another round of end-of-quarter capital equipment purchase deferrals. Fortunately, we are seeing additional firming in the second quarter as well as indications that a good portion of the orders that have been queueing up are expected to ship during the second quarter,” said David Bruce, President and CEO of Iridex.

“In the first quarter, solid growth from the sale of Pascal® scanning laser systems and G6 probes internationally was offset by the deferrals and resulting revenue declines of other products. While the period of capital equipment softness has extended longer than we anticipated, Iridex’s position in our markets remains strong based on the differentiated features and clinical evidence supporting Iridex technology,” continued Bruce. “Our refreshed retina portfolio, including new Iridex 532® and 577® single spot laser platforms, is generating customer interest that we expect to convert into revenue in upcoming quarters, plus further recovery driven by stabilized reimbursement for glaucoma procedures should improve G6 probe sales.”

Bruce continued, “Iridex is continuing an active strategic review process and we remain committed to pursuing a transaction or series of transactions that will benefit our stockholders. While the first transaction that we had expected to announce relating to the sale of certain assets will not be going forward, discussions with multiple other parties relating to specific product lines and the entire company are ongoing and will now come to the fore.”

First quarter 2024 financial results
Revenue for the three months ended March 30, 2024 was $11.8 million compared to $13.7 million during the same period of the prior year. Retina product revenue decreased 6% compared to the prior year period to $6.8 million primarily driven primarily by lower medical and surgical system sales, partially offset by higher Pascal system sales. Total product revenue from the Cyclo G6 glaucoma product group was $3.0 million, a decrease of $0.7 million versus the first quarter of 2023, primarily driven by lower system sales, while lower U.S. probe sales were partially offset by a rebound in international probe sales. Other revenue decreased to $2.0 million in the first quarter of 2024 compared to $2.8 million the prior year period, primarily driven by decreased royalties due to the expiration of licensed patents and lower service revenue.

Gross profit for the first quarter of 2024 was $4.5 million or a 37.9% gross margin, a decrease compared to $5.9 million, or a 43.3% gross margin, in the same period of the prior year driven by lower overhead absorption across a reduced revenue base.

Operating expenses of $7.8 million in the first quarter of 2024 decreased compared to $8.3 million due to cost reduction initiatives and partially offset by a $0.4 million increase in legal expenses related to the strategic review process.

Net loss for the first quarter of 2024 was $3.5 million, or $0.21 per share, compared to a net loss of $2.1 million, or $0.13 per share, in the same period of the prior year.

Cash and cash equivalents totaled $5.4 million as of March 30, 2024. Cash use was $1.6 million in the first quarter of 2024.
MB Bureau