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Iridex (IRIX) Beats on Q4 Earnings, Revenues Increase Y/Y

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Iridex IRIX reported fourth-quarter 2020 loss of 1 cent per share that beat the Zacks Consensus Estimate by 90.9% and was narrower than the year-ago quarter’s loss of 11 cents.

Revenues of $12.3 million increased 4.6% year over year. The figure also beat the consensus mark by 0.4%.

Quarter Details

In fourth-quarter 2020, Iridex Sold 13,500 Cyclo G6 probes, unchanged year over year. U.S. sales of Cyclo G6 probes increased by 8%.

Iridex sold 57 Cyclo G6 Glaucoma Laser Systems, compared with 107 in the year-ago quarter.

IRIDEX Corporation Price, Consensus and EPS Surprise

IRIDEX Corporation Price, Consensus and EPS Surprise
IRIDEX Corporation Price, Consensus and EPS Surprise

IRIDEX Corporation price-consensus-eps-surprise-chart | IRIDEX Corporation Quote

Moreover, Retina-related product revenues grew nearly 11% year over year.

In the quarter under review, gross profit increased 15.1% year over year to $5.6 million. Gross margin expanded 410 basis points (bps) to 45.4%.

GAAP research & development expenses as percentage of revenues increased 50 bps on a year-over-year basis to 7.2%.

GAAP sales & marketing expenses as percentage of revenues decreased 430 bps to 27.9%. Moreover, GAAP general & administrative expenses as percentage of revenues decreased 340 bps to 12.7%.

Total operating expenses decreased 9% year over year to $5.9 million.

Operating loss of $0.3 million was narrower than the year-ago quarter’s loss of $1.6 million.

Balance Sheet

As of Jan 2, 2021, Iridex had cash and cash equivalents of $11.6 million.

Strategic Collaboration

Iridex entered into a partnership with Topcon. Markedly, Topcon purchased distribution rights in certain Asia Pacific and EMEA markets. Moreover, Topcon purchased approximately 10% of Iridex equity.

Additionally, Iridex purchased the PASCAL product line.

Zacks Rank & Stocks to Consider

Currently, Iridex carries a Zacks Rank #4 (Sell).

Amkor Technology AMKR, Apple AAPL and Arrow Electronics ARW are better-ranked stocks in the broader computer and technology sector. While Amkor sports a Zacks Rank #1 (Strong Buy), both Apple and Arrow Electronics carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Amkor Technology is likely to report its quarterly results on Apr 26. Both Apple and Arrow are likely to report the same on Apr 29.

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