Iridex Stock Gains After Posting Highest Sales Since 2007

Iridex Corporation IRIX reported Q2 revenue of $13.4 million, the highest since 2007, +116% Y/Y, beating the consensus of $11.61 million.
Cyclo G6 product family generated sales of $3.6 million, +70% Y/Y on 16,000 probes sold, up 103% Y/Y.
Iridex sold 47 Cyclo G6 Glaucoma Laser Systems, compared to 42 a year ago.
Retina product revenue nearly tripled to $7.6 million, with 28% from PASCAL products acquired from Topcon.
Gross margin expanded from 38.7% to 45.5%, primarily attributable to the impact of production efficiency initiatives, greater overhead absorption, and increase in higher-margin probes.
The Company reported Q2 EPS of $0.09, a turnaround from EPS loss of $(0.20), ahead of Wall Street estimate of $(0.20).
Iridex ended Q2 with a cash balance of $26.3 million.
FY21 Guidance: Iridex forecasts FY21 revenue of $50 million - $52 million, +38% - 43% Y/Y. Earlier sales guidance was $48 million - $51 million.
Cyclo G6 probe sales are expected to increase to 58,000 - 60,000 from prior guidance of 56,000 - 59,000.
Glaucoma Laser System sales expectation remains unchanged at 250 - 275.
Price Action: IRIX shares are up 8.33% at $7.15 during the market session on the last check Friday.

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