IRIDEX Reports Fourth Quarter & Yearly Results
MOUNTAIN VIEW, Calif.--(BW HealthWire)--Feb. 10, 1997-- Iridex Corp today announced that sales for the fourth quarter ended Dec. 31, 1996 increased 97% to $4.826 million from $2.455 million for the corresponding quarter in the 1995 year.
For the year ended Dec. 31, 1996, sales increased 40% to $12.364 million from $8.801 million in 1995. Net income for the quarter ended Dec. 31, 1996 was $.356 million or $0.05 per share compared to $.377 million or $0.08 per share for the year earlier period when 43% fewer shares were outstanding.
For the year ended Dec. 31, 1996 net income was $1.005 million or $0.16 per share compared to $1.000 million or $0.22 per share for the year ended Dec. 31, 1995 when 40% fewer shares were outstanding. Gross margins were adversely affected by a combination of product mix and higher than expected labor and materials costs related to the introduction of the company's new visible laser, the OcuLight GL
Operating expenses for the fourth quarter were also above plan primarily due to higher than planned sales and marketing expenses related to the OcuLight GL introduction as well as increased general and administrative expenses primarily due to costs related to the company's initial public offering and the establishment of a reserve for normal returns.
In addition, product development expenses reflect earlier than planned expenses relating to the development of a new product that is expected to be introduced in 1997.
Theodore A. Boutacoff, president and chief executive officer, commented, "The fourth quarter was a big accomplishment for IRIDEX. We began shipping our new product, the OcuLight GL, at a rate which almost doubled our sales volume from a year ago. The OcuLight GL is the world's smallest and most portable green laser photocoagulator used to treat eye disease.
"While during the fourth quarter of 1995 the supply difficulties with respect to diodes for the OcuLight GL improved from the third quarter, the delay in deliveries resulted in costly manufacturing inefficiencies. Though we continue to work closely with the supplier to resolve this issue, we are experiencing delivery delays and expect them to continue for a few more months.
"These delays are likely to continue to negatively impact cost of sales and possibly revenues during the first quarter of 1997. Fortunately, demand from physicians for the OcuLight GL continues to be strong and our fourth quarter order backlog increased from the third quarter."
IRIDEX is the leading worldwide provider of semiconductor-based photocoagulator systems used to treat eye disease, including the three leading causes of irreversible blindness: aged-related macular degeneration (AMD), diabetic retinopathy, and glaucoma. IRIDEX develops, manufactures and markets products used by ophthalmologists in hospitals, private clinics and offices and major research centers in 64 countries.
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Acts of 1934. Actual results could differ materially from those projected in the forward-looking statements regarding the introduction of the OcuLight GL and increased backlog as a result of risk factors, which include the ability to obtain certain components on a timely basis and the ability to gain market acceptance of the OcuLight GL. |
