IRIDEX Reports Strong Growth and Profits in 2010 Fourth Quarter

IRIDEX Corporation IRIX today reported that growing demand for new products and consumables drove sales and improved financial results for the fourth quarter ended January 1, 2011. Diluted earnings increased 62% to $0.8 million or $0.08 per share, up from $0.5 million or $0.05 per diluted share reported in the fourth quarter 2009. Total sales increased to $12.2 million in the 2010 fourth quarter, up 6% from the $11.6 million in the prior year period. Gross margin was 48.2%, up from 45.6% in the prior year period. Operating expenses were $4.7 million comparing favorably on a percentage basis from both prior year and prior quarter periods as expenses remained well controlled. $1.9 million in cash generated for the quarter. Management reaffirmed its goal of growth from existing ophthalmology business lines being at least 10 percent for 2011, with any growth from acquisitions additive to that rate. Guidance for first quarter of fiscal year 2011: normal Q1 seasonality should result in revenue between $10.6 million and $10.9 million, gross margins between 46% and 49% and operating expenses between $4.5 million and $4.7 million.