Iridex Corp. boasted a 16 percent increase in revenues during the first quarter of 2014, though net income declined in part because of a one-time insurance gain in last year’s first quarter.

Revenues were $10.3 million, compared to $8.9 million last year. Sales of the company’s MicroPulse system for treatment of retinal diseases and glaucoma were behind the first quarter’s revenue growth, said President and CEO Will Moore.

“The demand for MicroPulse is consistent with the demand for value-based medicine solutions on a worldwide basis,” Moore said. “More specifically, in the U.S., as the health care business model shifts away from a fee-for-service model, we believe MicroPulse – with its comparable outcomes at a lower cost to society – should drive revenue growth for the foreseeable future.”

Net income was $487,000 in the first quarter of 2014, down 44 percent from $874,000 in the first quarter of 2013. Iridex cited a roughly $500,000 gain from the demutualization of its insurance carrier in 2013 as the primary cause of the decline. Earnings were up 18 percent over the fourth quarter of 2013.

The company also continued to execute its share repurchase program, buying approximately 40,000 shares at an average price of $8.69. It had approximately $2.2 million remaining available for stock purchases.

Iridex expects revenues of $10.3 million to $10.6 million in the next quarter, representing growth of 12 to 15 percent over last year's second quarter.