MOUNTAIN VIEW, Calif., Jan. 24, 2013 — Iridex Corp.’s revenues in the fourth quarter of 2012 were stronger than expected, driven by a healthy uptick in laser system sales.
The laser-based medical systems company reported preliminary revenue of approximately $9.2 million and $33.8 million for the fourth quarter and full year 2012, respectively. Management had projected Q4 revenues to be between $8.4 million and $8.7 million.
“We were very pleased to see … increased demand for our laser systems, especially the IQ532 system with MicroPulse technology, which has been the central focus of recent marketing campaigns,” said CEO William M. Moore. “While it is too early to call the strong growth in the period a trend, the sales organization has seen a positive response to a sharpened commercial message, as well as the continued positive clinical data and accelerated adoption of the MicroPulse technology.”
The stronger-than-anticipated laser system sales also shifted the overall product mix toward capital equipment, rather than higher-margin consumable products. As a result, Iridex anticipates gross margins for the fourth quarter 2012 to be below the guidance range of 49 to 51 percent.
Operating expense management remained on target and will be close to the projected $4 million for the period, Moore said.
During the fourth quarter, Iridex announced the FDA 510(k) and Conformité Européenne clearances of its TxCell scanning laser delivery system for photocoagulation procedures and began shipping orders. The company also entered into a license agreement with Quantel Medical that gave Quantel access to its MicroPulse technology.
Iridex also completed a buyback of 487,500 shares of its common stock at $4.10 per share during the fourth quarter. It estimates that there are about 8.5 million total shares still outstanding.
“We were pleased with the success of the tender offer,” Moore said. “We intend to continue to assess this option going forward and have $1 million in funds approved under our stock repurchase program yet to be utilized.”
For more information, visit: www.iridex.com