Core Viewpoint - STAAR Surgical Company is under investigation for potential securities fraud and unlawful business practices following disappointing financial results for Q4 and full year 2024 [1][2]. Financial Performance - For Q4 2024, STAAR reported GAAP earnings per share of -$0.69, missing consensus estimates by $0.55 [2]. - The company's revenue for the quarter was $48.95 million, which fell short of consensus estimates by $28.52 million [2]. - The company attributed its poor performance to "fluctuating demand in China" [2]. Market Reaction - Following the announcement of the financial results, STAAR's stock price dropped by $5.40 per share, or 24.68%, closing at $16.48 per share on February 12, 2025 [3].

Core Viewpoint - The Schall Law Firm is investigating STAAR Surgical Company for potential violations of securities laws following disappointing Q4 2024 earnings, which led to a significant drop in share price [1][2]. Group 1: Investigation Details - The investigation centers on whether STAAR Surgical made false or misleading statements and failed to disclose important information to investors [2]. - The company's Q4 2024 earnings report indicated weak demand in China and a decline in refractive procedures, contributing to the disappointing results [2]. Group 2: Market Reaction - Following the earnings report, STAAR Surgical's shares experienced a decline of 24.68% on February 12, 2025 [2].

Financial Data and Key Metrics Changes - For fiscal 2024, the company reported net sales of approximately $314 million, a decline of 3% compared to $322.4 million in fiscal 2023 [35][39] - The gross margin for fiscal 2024 was down 210 basis points but remained at a solid 76.3% [39] - The company experienced a net loss of $20.2 million in fiscal 2024 compared to net income of $21.3 million in fiscal 2023 [39] Business Line Data and Key Metrics Changes - ICL sales outside of China grew by 17% in the fourth quarter and 13% for fiscal 2024, totaling $152 million [11][22] - ICL sales in China for the fourth quarter were $7.5 million, and for the full year, they were $161 million, down 13% year-over-year [13][39] - In the Americas, ICL sales grew by 22% in the fourth quarter and 15% for the fiscal year [22] - EMEA ICL sales grew by 9% in the fourth quarter and 10% for fiscal 2024 [24] - APAC ICL sales, excluding China, grew by 20% in the fourth quarter and 14% for fiscal 2024 [25] Market Data and Key Metrics Changes - The overall refractive market in the Americas is expected to decline by 5% to 10%, while the company anticipates its US sales to grow around 15% year-over-year [62] - The overall refractive market in China is projected to be down 10% year-over-year at the lower end of the sales outlook and up 10% at the higher end [63][90] Company Strategy and Development Direction - The company plans to manage working capital and implement cost-cutting measures in light of the lower revenue forecast for 2025 [42] - The company aims to lower production output and decrease capital expenditures while continuing to invest in commercial activities that drive demand generation [43] - The launch of EVO Plus in China is anticipated to provide potential revenue upside, although it is not factored into the current guidance [33][105] Management's Comments on Operating Environment and Future Outlook - Management believes that the current challenges in China are transitory and expects consumer confidence to improve in the second half of 2025 [31][49] - The company is optimistic about the rebound in the refractive market, citing historical data showing rapid recovery following improvements in consumer confidence [20][102] - Management emphasized the importance of maintaining strong relationships with distributors and key opinion leaders to navigate the current market challenges [101] Other Important Information - The company ended fiscal 2024 with $230.5 million in cash and cash equivalents, a slight decrease from $232.4 million at the beginning of the year [46] - The company has no debt and expects to fully collect its accounts receivable in the first half of 2025 [46] Q&A Session Summary Question: What drove the significant decline in global units year-over-year? - The decline was primarily related to the $7.5 million in overall revenue in China, which impacted unit sales [56] Question: What assumptions are driving the 2025 guidance, particularly regarding China? - The guidance assumes a slowdown in refractive volumes across all regions, with growth in the second half of the year dependent on government stimulus [57][60] Question: How can investors be assured that inventory issues will be remediated? - Management indicated that the revenue recognition issue was a timing matter and emphasized that they are focused on managing sell-through rather than sell-in [68][81] Question: What is the impact of competition from Eyebright on guidance? - Management clarified that the distributor's actions were not influenced by Eyebright's market entry and expressed confidence in their competitive position [74][75] Question: What is the expected cash burn for the year? - The company anticipates a cash burn of approximately $70 million, which is above the expected operating loss, due to the wide range of revenue projections [125]

Fourth Quarter and Fiscal 2024 Earnings Presentation February 11, 2025 NASDAQ: STAA STAAR Surgical Earnings Call and Webcast Fourth Quarter and Fiscal 2024 Chair of the Board, President and CEO Chief Financial Officer TOM FRINZI PATRICK WILLIAMS Today's Speakers Investor Relations http://investors.staar.com Brian Moore VP, Investor Relations and Corporate Development Connie Johnson Director, Investor Relations and High-Performance Management Niko Liu, CFA Director, Investor Relations and Corporate Developme ...

Group 1 - STAAR Surgical reported Q4 revenue of $49 million, a decrease of 36% year over year, significantly below management's guidance of $77 million [1] - Global revenue excluding China increased by 17% year over year, indicating strong performance in markets outside of China [1]

Financial Performance - Net sales for fiscal year 2024 were $313.9 million, a decrease from $322.4 million in the prior year, primarily due to weak performance in China[11]. - ICL sales for fiscal year 2024 totaled $312.5 million, down from $319.4 million in the previous year, with ICL sales excluding China increasing by 13% to $151.6 million[11]. - Fourth quarter net sales were $49.0 million, significantly lower than $76.3 million in the prior year quarter, driven by a decline in China revenue[6]. - ICL sales in the fourth quarter were $46.9 million, compared to $74.6 million in the prior year quarter, with ICL sales excluding China up 17% to $39.5 million[4]. - The company reported a net loss of $(20.2) million for fiscal year 2024, compared to net income of $21.3 million in the prior year, resulting in a net loss per share of $(0.41)[13]. - The company reported a net loss of $34,228,000 for the three months ended December 27, 2024, compared to a net income of $7,756,000 for the same period in 2023[32]. - Net income for Q4 2023 was $7,756, a decrease from $21,347 in Q4 2022, resulting in a net loss of $34,228 for Q1 2024[33]. Gross Margin and Expenses - Gross margin for fiscal year 2024 was 76.3%, down from 78.4% in the previous year, and gross profit margin for the fourth quarter was 64.7%, compared to 79.6% in the prior year quarter[12][7]. - Gross profit margin decreased to 64.7% in Q4 2024 from 79.6% in Q4 2023, reflecting a gross profit of $31,648,000 compared to $60,725,000[32]. - Research and development expenses increased by 10.8% to $12,042,000 in Q4 2024, compared to $10,866,000 in Q4 2023[32]. - Selling, general and administrative expenses increased to $59,558,000 in Q4 2024, representing 121.7% of net sales, compared to $50,320,000 in Q4 2023[32]. Cash Flow and Assets - Cash, cash equivalents, and investments available for sale at the end of fiscal year 2024 totaled $230.5 million, slightly down from $232.4 million at the end of the previous year[14]. - Cash and cash equivalents decreased to $144,159,000 as of December 27, 2024, from $183,038,000 as of December 29, 2023[31]. - The company’s total assets increased to $509,524,000 as of December 27, 2024, compared to $488,692,000 as of December 29, 2023[31]. - Cash provided by operating activities for Q4 2023 was $31,969, compared to $642 in Q1 2024, indicating a significant decline[33]. - The company’s cash flows from investing activities showed a net usage of $(19,495) in Q4 2023, contrasting with a net inflow of $22,402 in Q1 2024[33]. Future Projections - For fiscal year 2025, the company expects ICL sales excluding China to be approximately $165 million to $175 million, representing 9% to 15% growth[16]. - China ICL sales are projected to be less than $5 million in the first half of 2025, with a potential rebound to $75 million to $125 million in the second half[16]. - The company anticipates an adjusted EBITDA loss of approximately $(30) million per quarter in the first half of 2025, followed by a gain of $5 million to $22.5 million per quarter in the second half[16]. - The company’s outlook for Q1 2024 includes a projected net income loss of $(63,000) to $(78,000)[34]. Sales Growth by Region - Global ICL sales reached $319,427,000 in 2023, reflecting an 18% growth compared to 2022[35]. - Americas sales increased to $22,233,000 in 2023, with a growth rate of 11% year-over-year[35]. - EMEA sales grew to $39,318,000 in 2023, marking a 7% increase from the previous year[35]. - APAC sales surged to $257,876,000 in 2023, showing a 21% growth compared to 2022[35]. - China sales amounted to $185,404,000 in 2023, with a growth rate of 25%[35]. - ICL sales excluding China totaled $134,023,000 in 2023, reflecting a 10% increase year-over-year[35]. - The company reported a global ICL sales growth of 27% in 2022, followed by an 18% growth in 2023[35]. - The Americas region experienced a significant sales growth of 43% in 2022, which decreased to 11% in 2023[35]. - The company anticipates a continued focus on market expansion and new product development in the upcoming fiscal year[35]. Liabilities and Stock Information - Total liabilities increased to $112,189,000 as of December 27, 2024, from $102,738,000 as of December 29, 2023[31]. - The weighted average shares outstanding for basic shares increased to 49,266,000 in Q4 2024 from 48,815,000 in Q4 2023[32]. - The company reported a stock-based compensation expense of $27,210 for the year ended 2023, up from $23,516 in 2022[33]. - The company experienced a loss on disposal of property and equipment amounting to $1,694 for the year ended 2023[33]. - The provision for sales returns and bad debts was $(1,661) in Q4 2023, compared to $(1,262) in Q4 2022[33]. - The company’s depreciation expense for Q4 2023 was $1,368, with a total of $6,891 for the year[34].

Shares of STAAR Surgical Company (NASDAQ: STAA ) performed poorly last year, mainly owing to weak consumer demand in its largest market, China. Sales of its EVO lenses as an alternative to LASIK surgery have remained strongAn individual investor primarily focused on undercovered companies, with more than 50 companies on my watchlist. My areas include technology, software, electronics and the energy transition. I have been investing my personal capital for over 7 years in a broad range of companies globally. ...

Financial Data and Key Metrics Changes - Total net sales for Q3 2024 increased 10% to $88.6 million, up from $80.3 million in the prior year quarter, primarily due to a $8 million or 10% increase in ICL sales [23][29] - Gross profit was $68.5 million or 77.3% of net sales, compared to $63.6 million or 79.2% of net sales in the prior year, with the decrease in gross margin attributed to reduced unit production [24] - GAAP net income for Q3 2024 was $10 million or $0.20 earnings per diluted share, up from $4.8 million or $0.10 earnings per diluted share in the prior year quarter [29] Business Line Data and Key Metrics Changes - ICL sales increased by 10% year-over-year, contributing significantly to the overall sales growth [23] - Operating expenses for Q3 2024 increased 10% to $62.8 million, reflecting a shift in the timing of some expenditures expected to occur in Q4 2024 [25] - Research and development expense was $14.5 million for Q3 2024, up from $11.5 million in the prior year quarter, primarily due to purchases of in-process R&D related to external AI tools [28] Market Data and Key Metrics Changes - In the Americas, sales growth was 14% in Q3 2024, with U.S. sales growing 16% year-over-year despite the U.S. refractive market being down 18% [17][18] - EMEA region generated 12% sales growth, driven primarily by the Middle East and European distributor markets [19] - APAC region, the largest market for refractive procedures, saw sales growth of 9%, with China sales up 7% [20] Company Strategy and Development Direction - The company is maintaining its financial outlook for fiscal year 2024, anticipating net sales of approximately $340 million to $345 million [11] - The grand opening of the new EVO ICL Experience Center aims to enhance training and education for surgeons, thereby increasing ICL adoption [12][14] - The company is focused on building surgeon confidence in measurement and lens size selection, which is expected to expand the total addressable market [38] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic environment in China has softened but remains optimistic about the potential impact of recent fiscal policy changes and stimulus [36] - The company is confident in its long-term growth prospects, emphasizing the growing healthcare issue of myopia and the unique advantages of its polymer material [37][38] - Management believes that the current market dynamics are transitory and that STAAR is well-positioned to weather these challenges [36] Other Important Information - The company incurred a $1.6 million non-cash write-off related to its former EVO Experience Center [27] - Cash, cash equivalents, and investments available for sale were $236 million at the end of Q3 2024, providing significant flexibility for capital allocation [30] Q&A Session Summary Question: 2025 growth outlook - Management stated it is premature to comment on 2025 outlook but expressed confidence in the company's ability to outpace the market [42] Question: Trends in China - Management noted that sales tapered off in the second half of the high season but remains optimistic about the impact of government stimulus [44][45] Question: U.S. market penetration - Management highlighted that despite a challenging U.S. refractive market, the company grew 16% and is well-positioned for sustainable growth [50] Question: Competitive landscape in China - Management acknowledged competition but believes their product advantages will maintain a premium position in the market [68]

Staar Surgical (STAA) came out with quarterly earnings of $0.41 per share, beating the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.30 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 115.79%. A quarter ago, it was expected that this maker of implantable lenses would post earnings of $0.25 per share when it actually produced earnings of $0.33, delivering a surprise of 32%.Over the last four quart ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 27, 2024 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 0-11634 STAAR Surgical Company (Exact Name of Registrant as Specified in its Charter) Delaware 95-3797439 (State or Other Jurisdiction of Incorporation or Organ ...