8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 8-K CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	November 11, 2021
(Date of Report (date of earliest event reported)
IRIDEX CORPORATION
(Exact name of registrant as specified in its charter)
Delaware			0-27598	77-0210467
(State or other jurisdiction of incorporation or organization)			(Commission File Number)	(I.R.S. Employer Identification Number)
1212 Terra Bella Avenue Mountain View, California 94043
(Address of principal executive offices, including zip code)
		(650) 940-4700
		(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Securities registered pursuant to Section 12(b) of the Act:

Title of Class	Trading Symbol	Name of Exchange on Which Registered
Common Stock, par value $0.01 per share	IRIX	Nasdaq Global Market

Item 2.02.Results of Operations and Financial Condition.

On November 11, 2021, IRIDEX Corporation issued a press release discussing its financial results for its third fiscal quarter of fiscal year 2021, which ended on October 2, 2021.  The press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01.Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Description
99.1	Press Release dated November 11, 2021.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	IRIDEX CORPORATION
By:	/s/ David I. Bruce
	David I. Bruce President and Chief Executive Officer

Date: November 12, 2021

-2-

EX-99.1

Exhibit 99.1

Iridex Announces Third Quarter 2021 Financial Results

Achieved 51% Year-over-Year Revenue Growth and Raises 2021 Revenue Guidance

MOUNTAIN VIEW, Calif., November 11, 2021 -- Iridex Corporation (Nasdaq: IRIX) today reported financial results for the third quarter ended October 2, 2021.

Third Quarter Highlights

• Revenue of $13.3 million, an increase of 51% from the prior year period, and 24% compared to third quarter 2019

o Gross margin of 43.6%, an improvement over 41.5% in the same period last year

o Cash usage of $0.7 million leading to cash at quarter-end of $25.6million

• CycloG6® product family revenue of $3.1 million, an increase of 13% year-over-year

o 13,400Cyclo G6 probes sold, an 18% increase year-over-year

o 42 Cyclo G6 Glaucoma Laser Systems sold, compared to 37 in the prior year period

• Retina product revenue increased 76% year-over-year to $7.8 million

o PASCAL® products acquired from Topcon contributed 24% of retina revenue

• MicroPulse® TLT Clinical Consensus Webinar presented on November 6, featured ten global KOLs highlighting broad patient applicablilty and effective procedure parameters

“Strong third quarter results reflect our renewed focus on sales and marketing activities, including major clinical education programs, contributions from our broader distribution partnerships, and several product enhancements, all of which are designed to raise awareness and drive increased adoption in our retina and glaucoma treatment segments,” said David I. Bruce, President and CEO of Iridex. “Cyclo G6 probe sales year-over-year were strong even in a seasonally weaker quarter for ophthalmologic procedures. Additionally, our retina business continues to perform well, thanks to our restructuring of the US sales team to dedicated retina and glaucoma teams, strong contributions from PASCAL products, and our expanded international distribution network.  Importantly, our increased operating investments were covered by the quarter’s business strength, limiting cash usage to under $1million.”

ThirdQuarter 2021 Financial Results

Revenue for the three months ending October 2, 2021 increased 51% to $13.3 million from $8.8 million during the same period of the prior year. Excluding newly acquired PASCAL products, revenue increased 29% over the third quarter of 2020.

Gross profit for the third quarter of 2021 increased to $5.8 million, a 43.6% gross margin, compared to $3.7 million, a 41.5% gross margin, in the same period last year. The gross margin increase was primarily attributable to the impact of production efficiency initiatives, greater overhead absorption due to higher revenue and continued increase in higher margin probes within the product mix.

Operating expenses for the third quarter of 2021 increased 44% to $7.9 million compared to $5.5 million in the same period of the prior year, mainly due to additional expenses in R&D resulting from absorbing the PASCAL product line and increased activity in Sales & Marketing.

Net loss for the third quarter of 2021 was $2.2 million, compared to a net loss $1.7 million in the same period of the prior year. Net loss on a per share basis was $0.14 in 2021 versus a loss of $0.12 in the third quarter of 2020.

Cash usage in the third quarter was $0.7 million, which resulted in cash of $25.6 million at quarter-end.

Updated Guidance for Full Year 2021

Iridex now expects total revenue for fiscal year 2021 to range from $52 million to $53 million, reflecting growth of 43% - 46% over fiscal year 2020. This compares to the previous range of $50 million to $52 million. Glaucoma Laser System sales are now expected to range from 210 to 225 compared to prior guidance of 250 to 275. Cyclo G6 probe sales expectation of 58,000 to 60,000 remains unchanged.

Webcast and Conference Call Information

Iridex’s management team will host a conference call today beginning at 2:00 p.m. PT / 5:00 p.m. ET.  Investors interested in listening to the conference call may do so by dialing (844) 707-0665 for domestic callers or (703) 326-3030 for international callers, using conference ID: 7496524. A live and archived webcast of the event will be available on the “Investors” section of the Company’s website: www.iridex.com.  

About IridexIridex Corporation is a worldwide leader in developing, manufacturing, and marketing innovative and versatile laser-based medical systems, delivery devices and consumable instrumentation for the ophthalmology market. The Company’s proprietary MicroPulse® technology delivers a differentiated treatment that provides safe, effective, and proven treatment for targeted sight-threatening eye conditions. Iridex’s current product line is used for the treatment of glaucoma and diabetic macular edema (DME) and other retinal diseases. Iridex products are sold in the United States through a direct sales force and internationally primarily through a network of independent distributors into more than 100 countries. For further information, visit the Iridex website at www.iridex.com.  

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, including those statements concerning the future momentum, demand and utilization of the Company's products, financial guidance, expected sales volumes and benefits from the Topcon partnership. These statements are not guarantees of future performance and actual results may differ materially from those described in these forward-looking statements as a result of a number of factors. Please see a detailed description of these and other risks contained in our Quarterly Report on Form 10-Q for the second quarter, filed with the Securities and Exchange Commission on August 12, 2021. Forward-looking statements contained in this announcement are made as of this date and will not be updated.

Investor Relations Contact

Leigh Salvo

(415) 937-5404

investors@iridex.com

 

IRIDEX Corporation

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(unaudited)

	Three Months Ended						Nine Months Ended
	October 2,			September 26,			October 2,			September 26,
	2021			2020			2021			2020
Total revenues	$	13,264		$	8,803		$	38,649		$	24,043
Cost of revenues		7,482			5,149			21,820			14,067
Gross profit		5,782			3,654			16,829			9,976
Operating expenses:
Research and development		1,788			869			4,625			2,395
Sales and marketing		3,914			2,959			10,542			8,804
General and administrative		2,237			1,672			6,798			5,060
Total operating expenses		7,939			5,500			21,965			16,259
Loss from operations		(2,157	)		(1,846	)		(5,136	)		(6,283	)
Other income, net		-			135			2,378			153
Loss from operations before provision for income taxes		(2,157	)		(1,711	)		(2,758	)		(6,130	)
Provision for income taxes		8			8			24			20
Net loss	$	(2,165	)	$	(1,719	)	$	(2,782	)	$	(6,150	)
Net loss per share:
Basic	$	(0.14	)	$	(0.12	)	$	(0.18	)	$	(0.44	)
Diluted	$	(0.14	)	$	(0.12	)	$	(0.18	)	$	(0.44	)
Weighted average shares used in computing net loss per share:
Basic		15,824			13,893			15,272			13,824
Diluted		15,824			13,893			15,272			13,824

 

IRIDEX Corporation

Condensed Consolidated Balance Sheets

(In thousands and unaudited)

	October 2,			January 2,
	2021			2021
Assets
Current assets:
Cash and cash equivalents	$	25,568		$	11,626
Accounts receivable, net		8,522			7,289
Inventories		8,791			5,714
Prepaid expenses and other current assets		1,025			730
Total current assets		43,906			25,359
Property and equipment, net		567			449
Intangible assets, net		2,253			68
Goodwill		965			533
Operating lease right-of-use assets, net		2,794			1,428
Other long-term assets		57			132
Total assets	$	50,542		$	27,969
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	3,208		$	1,148
Accrued compensation		2,683			1,965
Accrued expenses		1,551			990
Other current expenses		2,256			816
Current portion of PPP loan		-			1249
Accrued warranty		99			166
Deferred revenue		2,250			938
Operating lease liabilities		920			1,409
Total current liabilities		12,967			8,681
Long-term liabilities:
PPP Loan		-			1,248
Accrued warranty		60			81
Deferred revenue		10,199			289
Operating lease liabilities		1,972			282
Other long-term liabilities		22			22
Total liabilities		25,220			10,603
Stockholders' equity:
Common stock		168			148
Additional paid-in capital		84,851			74,181
Accumulated other comprehensive income (loss)		29			(19	)
Accumulated deficit		(59,726	)		(56,944	)
Total stockholders' equity		25,322			17,366
Total liabilities and stockholders' equity	$	50,542		$	27,969

XML

Document and Entity Information	Nov. 11, 2021
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 11, 2021
Entity Registrant Name	IRIDEX CORPORATION
Entity Central Index Key	0001006045
Entity File Number	0-27598
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	77-0210467
Entity Address, Address Line One	1212 Terra Bella Avenue
Entity Address, City or Town	Mountain View
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94043
City Area Code	650
Local Phone Number	940-4700
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	IRIX
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false