MOUNTAIN VIEW, Calif. - Iridex Corporation (NASDAQ: IRIX), known for its laser-based medical systems for eye treatment, has released its preliminary unaudited financial results for the fourth quarter and full year that ended on December 28, 2024. The company, currently valued at $27.17 million in market capitalization, announced that its fourth-quarter revenue is expected to be between $12.6 million and $12.7 million, which is a slight increase from $12.5 million in the same quarter of the previous year. According to InvestingPro data, the company maintains a gross profit margin of 38.82%.
Despite the overall annual revenue dipping to an anticipated range of $48.6 million to $48.7 million from $51.9 million in 2023, Iridex sold 47 Cyclo G6® Glaucoma Laser Systems in the fourth quarter, up from 35 in the same period last year. However, the total number of Cyclo G6® probes sold in 2024 remained steady at 54,800, compared to 55,200 in the prior year. InvestingPro analysis indicates the stock appears undervalued based on its Fair Value model, despite facing profitability challenges with a -$0.68 earnings per share over the last twelve months.
President and CEO Patrick Mercer (NASDAQ:MERC) expressed pride in the sales team for matching the previous year's fourth-quarter performance, especially after a headcount reduction aimed at driving the company towards profitability. He stated, "We remained steadfast in our commitment to achieving positive EBITDA results in Q4 2024 laying the foundation for prioritizing profitability in 2025." Mercer also mentioned that the company is in ongoing discussions with multiple parties concerning potential transactions, as part of a strategic review process to maximize shareholder value. InvestingPro subscribers can access detailed financial health metrics and 7 additional ProTips that provide crucial insights into the company's strategic position and future prospects.
The preliminary results are based on initial management analysis and are subject to completion of the company's year-end financial reporting processes, internal review, potential adjustments, and external audit.
Iridex is recognized for its MicroPulse® technology, which is used in treatments for glaucoma, diabetic macular edema, and other retinal diseases. The company's products are distributed in the United States through direct sales and internationally via independent distributors in over 100 countries.
The information in this article is based on a press release statement. The final financial figures will be confirmed following the completion of Iridex's financial reporting and auditing procedures.
In other recent news, IRIDEX Corporation has reported significant changes in its executive leadership and board committees. A notable development was the termination of Dave Bruce, the former CEO, who also resigned from the Board. In his stead, Patrick Mercer has assumed the CEO position and has had his compensation terms revised. Additionally, Kenneth E. Ludlum has been appointed to the Compensation Committee of the Board.
In terms of financial performance, IRIDEX recently reported a 7% increase in Q2 2024 revenue, reaching $12.6 million. This growth was primarily driven by the company's retina business and an increase in probe sales in the glaucoma market. Another key development is the company's private placement financing deal with Lind Partners, which resulted in $3.4 million in net proceeds.
In other updates, IRIDEX has filed a resale registration statement with the Securities and Exchange Commission, setting the stage for potential future issuance and resale of shares related to a senior convertible promissory note and incentive shares. The company's strategic review process, aimed at strengthening the balance sheet and reducing operating costs, is ongoing. These are the recent developments in the company.
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