IRIDEX Corp (IRIX) (Q1 2024) Earnings Call Transcript Highlights: Navigating Challenges with ...

GuruFocus Research
4 min read

In This Article:

  • Total Revenue: $11.8 million for Q1 2024, down $1.9 million from the previous year.

  • Cyclo G6 Revenue: $3.0 million, down from $3.7 million in Q1 2023.

  • Retina Product Revenue: $6.8 million, a decrease of 6% year-over-year.

  • Other Revenue: $2.0 million, down from $2.8 million in Q1 2023.

  • Gross Profit: $4.5 million, with a gross margin of 37.9%.

  • Operating Expenses: $7.8 million, a decrease from $8.3 million in Q1 2023.

  • Net Loss: $3.5 million or $0.25 per share, compared to a net loss of $2.1 million or $0.13 per share in Q1 2023.

  • Cash and Cash Equivalents: $5.4 million as of March 30, 2024.

  • Net Cash Reduction: $1.6 million in Q1 2024.

Release Date: May 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • IRIDEX Corp (NASDAQ:IRIX) is actively engaged in a strategic review process, aiming to pursue transactions that benefit stockholders.

  • The company maintains a global leadership position in the ophthalmic laser treatment market, with a strong installed base and market share.

  • IRIDEX Corp (NASDAQ:IRIX) has launched new products such as the Pascal laser scanning platform and new single spot platform, refreshing its retina portfolio.

  • The company has driven adoption of its MicroPulse transscleral laser therapy (MPTLT) for glaucoma, expanding its market presence to over 2,000 laser consoles and delivering over 250,000 single-use probes.

  • IRIDEX Corp (NASDAQ:IRIX) is seeing signs of market recovery, with firming system orders and a supply chain capable of fulfilling these orders.

Negative Points

  • The initial transaction discussed in the last earnings call regarding the sale of certain assets will not be going forward, impacting potential strategic moves.

  • Total revenue for Q1 2024 was down $1.9 million from the prior year, primarily due to loss of royalty revenue and continued softness in capital equipment purchases.

  • There is ongoing uncertainty in Medicare reimbursement, affecting the glaucoma procedures and system sales.

  • The company reported a net loss of $3.5 million in Q1 2024, which increased from a net loss of $2.1 million in the same period the previous year.

  • IRIDEX Corp (NASDAQ:IRIX) is experiencing longer sales cycles and end-of-quarter capital equipment purchase deferrals, impacting revenue.

Q & A Highlights

Q: Can you elaborate on what happened with the asset sale that is now off the table and how should we think about this in the context of other future potential transactions? A: David Bruce, President and CEO of IRIDEX, explained that the terms were converging toward an agreement, but ultimately, the parties did not agree on the terms to complete the transaction. He emphasized that this has not changed the company's focus on uncovering strategic value and that discussions with other parties are ongoing.

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