Revenue and Sales Growth - Net sales increased by 10% to $88.6 million, driven by growth in all regions: Americas up 14%, EMEA up 12%, and APAC up 9%[1][2] - ICL sales grew by 10% to $89.1 million, with unit growth of 6% compared to the prior year quarter[2][3] - Net sales increased by 10.3% to $88,590,000 in Q3 2024 compared to $80,308,000 in Q3 2023[21] - Global ICL sales increased by 10% to $89.1 million in September 2024 compared to the same period in 2023[24] - APAC region ICL sales grew by 9% to $72.6 million in September 2024, driven by strong performance in China and Japan[24] - Americas ICL sales rose 14% to $6.2 million in September 2024, with the United States contributing $4.8 million[24] - EMEA ICL sales increased 12% to $10.3 million in September 2024, led by growth in Germany and the United Kingdom[24] - China ICL sales grew 7% to $51.7 million in September 2024, accounting for 58% of total APAC sales[24] - Japan ICL sales increased 7% to $10.5 million in September 2024, representing 14% of APAC sales[24] - South Korea ICL sales increased 15% to $5.4 million in September 2024, driven by strong demand in the region[24] - Constant currency sales for September 2024 were $89.4 million, a 10.7% increase compared to the same period in 2023[26][27] - Year-to-date constant currency sales through September 2024 were $267.6 million, up 8.7% compared to the same period in 2023[28] - Global ICL unit growth was 6% in September 2024, with APAC contributing the majority of unit sales[24] Profitability and Margins - Gross margin decreased to 77.3% from 79.2% due to reduced unit production and lower absorption of fixed overhead[4] - Net income rose to $10.0 million or $0.20 per share, up from $4.8 million or $0.10 per share in the prior year quarter, primarily due to a gain on foreign currency transactions[6] - Adjusted EBITDA was $16.2 million or $0.33 per share, compared to $16.5 million or $0.33 per share in the prior year quarter[2] - Gross profit rose by 7.6% to $68,487,000 in Q3 2024 from $63,638,000 in Q3 2023[21] - Operating income decreased by 9.7% to $5,682,000 in Q3 2024 from $6,295,000 in Q3 2023[21] - Net income surged by 107.2% to $9,980,000 in Q3 2024 compared to $4,817,000 in Q3 2023[21] - Net income for 2023 was $21.3 million, a decrease from $39.6 million in 2022[23] - Adjusted EBITDA for 2023 was $56.8 million, compared to $68.7 million in 2022[23] - Adjusted EBITDA as a percentage of revenue was 17.6% in 2023, down from 24.2% in 2022[23] - Net income per share, diluted, was $0.43 in 2023, down from $0.80 in 2022[23] - Adjusted EBITDA per share, diluted, was $1.15 in 2023, compared to $1.39 in 2022[23] Expenses and Costs - Operating expenses increased to $62.8 million, driven by higher general and administrative expenses ($21.7 million) and R&D expenses ($14.5 million)[5] - Research and development expenses increased by 26.4% to $14,497,000 in Q3 2024 from $11,470,000 in Q3 2023[21] - Stock-based compensation increased to $23.5 million in 2023 from $20.3 million in 2022[23] - Depreciation expenses were $13 million in 2023, up from $28 million in 2022[23] - Amortization of intangible assets decreased to $13 million in 2023 from $28 million in 2022[23] Cash Flow and Financial Position - Cash, cash equivalents, and investments available for sale totaled $236.0 million as of September 27, 2024, up from $232.4 million at the end of 2023[7] - Net cash provided by operating activities was $3,816,000 in Q3 2024, a significant improvement from a net cash used of $5,975,000 in Q3 2023[22] - Cash and cash equivalents decreased by $28,773,000 to $164,003,000 at the end of Q3 2024 from $192,776,000 at the beginning of the period[22] - The company repurchased $1,396,000 worth of employee common stock for taxes withheld year-to-date in 2024[22] - Proceeds from vested restricted stock and exercise of stock options totaled $7,354,000 year-to-date in 2024[22] - The effect of exchange rate changes on cash and cash equivalents was a decrease of $230,000 year-to-date in 2024[22] - The company's total assets increased to $537.6 million, up from $488.7 million at the end of 2023, with current assets rising to $397.1 million[20] Outlook and Projections - The company maintained its fiscal year 2024 outlook for net sales of $340 million to $345 million and Adjusted EBITDA of approximately $42 million[8] - EVO ICL sales growth outlook for 2024: Americas at 17% (up from 15%), EMEA at 10% (up from 6%), and APAC at 4% (down from 7%), with China expected to grow at 2% (down from 10%)[9] - The company's outlook for 2024 projects Adjusted EBITDA of $41.8 million[23] Shareholder Information - Weighted average shares outstanding - Diluted was 49,427 in 2023, slightly up from 49,380 in 2022[23]

Shares of Staar Surgical (STAA) have gained 5.4% over the past four weeks to close the last trading session at $33.87, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $48.75 indicates a potential upside of 43.9%. The average comprises eight short-term price targets ranging from a low of $37 to a high of $60, with a standard deviation of $9.32. While the lowest estimate indicates ...

Staar Surgical (STAA) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. Individual invest ...

Investment Thesis - STAAR Surgical's EVO lens is the leading product in the corrective eye surgery market, with a growing market share due to its superiority over existing procedures [2] - The company is achieving solid growth and strong profitability despite macroeconomic challenges, with a healthy balance sheet of $23.5 million in cash and no debt [2] - Anticipated 21% growth in each of the next two years, leading to revenue and FCF of $500 million and $70 million respectively for 2026 [2] - Price target of $46 implies substantial upside potential, offering an attractive risk-reward profile for investors [2] Financial Highlights and Growth Outlook - Global ICL sales grew 7% year-over-year in Q2, with strong growth in the Americas (14%) and EMEA (10%) [4] - US market sales grew 25% year-over-year to $5.5 million, with potential annual sales of $140 million if market share increases to 20% [4] - Growth in the US is expected to accelerate to above 30% over the next two years [4] - Full-year guidance raised by $5 million due to strong Q2 performance [4] China Market Performance - China sales represent a significant portion of overall revenue, with year-over-year growth of close to 6% in H1 2024 [5] - Management expects a 10% increase in sales for the full year, with growth accelerating in the second half of 2024 [5] - Growth is driven by the addition of a second distributor and Chinese government stimulus programs [5] - Mid-teens growth exiting Q4 is expected to be sustained through 2025 and 2026 [5] Ongoing Investments and Margins - Gross margins are rising towards 80%, but operating expenses have increased, capping adjusted EBITDA margins at close to 12% [6] - Sales and Marketing expenses have decreased, while R&D and G&A expenses have significantly increased [6] - Expense growth is expected to moderate over the next two years, with adjusted EBITDA margins approaching 20% by 2026 [6] Valuation and Future Targets - Revenue growth of 21% expected in both 2025 and 2026, reaching $500 million in 2026 [7] - Adjusted EBITDA expected to be approximately $95 million, translating to FCF of close to $70 million after deducting capex [7] - Current enterprise value of $1.33 billion, with shares valued at an EV/2026 FCF multiple of 19 [7] - If valued in line with peers, a 30x multiple on FCF would imply an enterprise value of $2.1 billion and a share price of $46, representing 44% upside [7] Conclusion - STAAR's EVO lens is a leading product in the corrective eye surgery market, with strong growth prospects and an attractive valuation [10] - The company's growth trajectory and market position make it a compelling investment opportunity with significant upside potential [10]

Did you analyze how Staar Surgical (STAA) fared in its international operations for the quarter ending June 2024? Given the widespread global presence of this maker of implantable lenses, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities. The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has becom ...

Financial Data and Key Metrics - Record net sales of $99 million in Q2 2024, with constant currency net sales reaching $100.4 million, up 9% YoY [5][12] - Gross profit for Q2 2024 was $78.4 million, or 79.2% of net sales, compared to $70.7 million (76.6%) in the prior year quarter [12] - GAAP net income for Q2 2024 was $7.4 million, or $0.15 earnings per diluted share, compared to $6.1 million ($0.12) in the prior year quarter [16] - Adjusted EBITDA for Q2 2024 was $22.5 million, or $0.45 per diluted share, compared to $18.3 million ($0.37) in the prior year quarter [16] - Full-year 2024 net sales outlook raised to $340 million - $345 million, with adjusted EBITDA expected to be approximately $42 million [6][17] Business Line Performance - ICL sales increased by 7% YoY, contributing $6.3 million to the $6.7 million total net sales increase in Q2 2024 [11] - The average diopter of EVO ICL sold globally in H1 2024 was minus 8.2 diopters, 0.5 diopter lower than fiscal 2023, indicating a shift toward lower levels of vision correction [10] - The mix of lenses sold at minus eight diopters and below increased three points to 35% in H1 2024, expanding the total addressable market [11] Regional Performance - Americas region sales grew 14% YoY, with US sales up 25% YoY and 10% sequentially, driven by the Highway 93 initiative [8] - EMEA region sales grew 10% YoY, driven by the Middle East, European distributor markets, and Spain [8] - APAC region sales grew 6% YoY and 37% sequentially, with China on track to achieve 10% annual sales growth, reaching over $200 million in 2024 [9] - Japan sales grew 14% YoY despite currency headwinds, with unit sales significantly higher [10] - South Korea sales grew 20% YoY, with the first ICL-only clinic opening earlier in 2024 [10] Company Strategy and Industry Competition - The company is focusing on three main areas to accelerate EVO ICL adoption: surgeon education, broadening the EVO market opportunity, and driving innovation in technical and product areas [6][7] - EVO ICL lens technology continues to outpace the growth of laser vision correction procedures globally, including LASIK, PRK, and SMILE [10] - The company is working on harmonizing label indications globally and advancing AI-based protocols to guide measurement and size selection [24] Management Commentary on Operating Environment and Future Outlook - Management remains optimistic about growth in China, despite macroeconomic headwinds, and expects to achieve 10% annual sales growth in the region [9][29] - The US market is showing strong momentum, with the company expecting to reach 20% market share, equating to $140 million in annual sales [22] - The company is raising its fiscal 2024 outlook, reflecting confidence in its growth trajectory and market position [6][17] Other Important Information - The company plans to open a new EVO ICL Experience Center at its Lake Forest headquarters, serving as a hub for surgeon and ophthalmic practice education [23] - A new US-based head-to-head study versus laser vision correction procedures is in the final stages of development, expected to further demonstrate EVO's advantages [24] Q&A Session Summary Question: China's growth outlook and consumer health - Management feels positive about China's performance, with minimal impact from competition, anticorruption, or PPP issues, and expects continued growth despite economic headwinds [29] Question: Growth acceleration in 2025 and M&A strategy - The company is not providing specific 2025 guidance but remains confident in its Vision 2026 target of 15%-20% CAGR, with growth initiatives expected to drive adoption globally [31][32] - Management is focused on execution and growth, dismissing M&A rumors as speculative [33] Question: US market traction and guidance - The US market is showing strong sequential growth, with Highway 93 accounts growing 29% YoY, compared to 19% for non-Highway 93 accounts [36] - Management expects the US business to accelerate further in 2025, with initiatives like the Stella Ordering System and STAAR University driving adoption [36] Question: Aier's pricing strategy and M&A impact in China - Aier's pricing adjustments for SMILE have not significantly impacted EVO ICL sales, with the company maintaining a strong relationship and growth trajectory with Aier [38][39] - Aier's recent M&A activity is not expected to have a significant crossover impact on STAAR's volumes or pricing [41] Question: China's second distributor contribution and stimulus impact - The integration of the second distributor, HTDK, has been smooth, with both distributors contributing positively to the business [46] - Potential stimulus measures by the Chinese government could positively impact the business in H2 2024 and beyond [45] Question: US Highway 93 growth drivers - Growth in Highway 93 accounts is driven by increased surgeon confidence, marketing focus at the practice level, and pricing adjustments closer to laser vision correction levels [53] Question: Clinical data and marketing impact - The company is in the early stages of leveraging clinical data to drive global sales, with initiatives aimed at accelerating adoption and improving surgeon confidence [55] Question: US fast lane accounts and strategic alliances - The company has signed nine new agreements in the US in 2024, with a target list of 15, and is seeing increased interest from other accounts due to the halo effect [57][58]

Second Quarter 2024 Earnings Presentation August 7, 2024 NASDAQ: STAA Second Quarter 2024 STAAR Surgical Earnings Webcast 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 +1 626.303.7902 x3023 > bmoore@staar.com Connie Johnson Director, Investor Relations and High-Performance Management Niko Liu, CFA Director, Investor Relations and Corporate ...

Staar Surgical (STAA) came out with quarterly earnings of $0.33 per share, beating the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.40 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 32%. A quarter ago, it was expected that this maker of implantable lenses would post earnings of $0.05 per share when it actually produced earnings of $0.06, delivering a surprise of 20%. Over the last four quarter ...

Sales Performance - Net sales for the three months ended June 28, 2024, increased by 7% to $99.4 million compared to $93.1 million for the same period in 2023, primarily driven by increased ICL sales of $6.3 million [60]. - Net sales for the six months ended June 28, 2024, increased by 6% to $176.4 million compared to $165.8 million for the same period in 2023, with ICL sales contributing an increase of $12.8 million [61]. - Total ICL sales for the three months ended June 28, 2024, increased by 7% with a unit increase of 3%, while the Americas region sales increased by 14% [61]. - The EMEA region sales for the three months ended June 28, 2024, increased by 10% with unit growth of 17%, primarily due to sales increases in distributor markets [61]. - Changes in foreign currency unfavorably impacted net sales by $1.4 million for the three months ended June 28, 2024, and by $2.3 million for the six months ended June 28, 2024 [61]. Profitability - Gross profit for the three months ended June 28, 2024, increased by 10.9% to $78.4 million, with a gross profit margin of 79.2% compared to 76.6% for the same period in 2023 [64]. - The gross profit margin for the six months ended June 28, 2024, increased to 79.1% compared to 77.4% for the same period in 2023 [64]. Expenses - General and administrative expenses for the three months ended June 28, 2024 increased by 30.6% to $23,641, compared to $18,097 for the same period in 2023 [65]. - Selling and marketing expenses for the three months ended June 28, 2024 decreased by 10.7% to $28,819, compared to $32,277 for the same period in 2023 [66]. - Research and development expenses for the three months ended June 28, 2024 increased by 19.6% to $14,054, compared to $11,755 for the same period in 2023 [67]. - Other net expenses for the three months ended June 28, 2024 were $(1,564), compared to $(105) for the same period in 2023, primarily due to higher foreign exchange losses [68][69]. Taxation - Income tax provision for the three months ended June 28, 2024 was $2,955, representing a 21.7% increase from $2,428 for the same period in 2023 [70]. - The effective tax rate for the six months ended June 28, 2024 was 50.3%, compared to 33.6% for the same period in 2023 [70]. Cash Flow - Cash and cash equivalents as of June 28, 2024 were $192,776, an increase of $9,738 from $183,038 as of December 29, 2023 [72]. - Net cash provided by operating activities for the six months ended June 28, 2024 was $11,267, compared to $(11,400) for the same period in 2023 [73]. - Net cash used in investing activities for the six months ended June 28, 2024 was $(4,481), compared to $20,105 for the same period in 2023 [74]. - Net cash provided by financing activities for the six months ended June 28, 2024 was $4,219, compared to $(59) for the same period in 2023 [75]. Strategic Focus - The company plans to focus on growing its ICL business and has ceased manufacturing cataract IOLs, with no plans to sell them in 2024 [63]. - The company employs a commercialization strategy aimed at sustainable profitable growth, focusing on expanding into new markets and increasing awareness of ICL procedures [55].

Financial Data and Key Metrics Changes - For Q1 2024, the company reported net sales of $77.4 million, exceeding expectations, compared to $73.5 million in the prior year quarter [78][103] - The net loss for Q1 2024 was $3.3 million or $0.07 loss per share, compared to net income of $2.7 million or $0.05 income per share in the prior year quarter [64] - Adjusted EBITDA for Q1 2024 was $5.3 million or $0.11 per share, down from $10 million or $0.20 per share in the prior year quarter [65][68] Business Line Data and Key Metrics Changes - ICL sales increased by 9% in the Asia Pacific region, with 10% growth specifically in China [101] - The U.S. achieved record quarterly ICL sales of $5 million, representing a 21% sequential sales growth [80] - The EMEA region saw 11% sales growth, driven by the Middle East and European distributor markets [85] Market Data and Key Metrics Changes - The company anticipates net sales of approximately $95 million for Q2 2024, reflecting above-market growth rates globally [69] - In China, the market was relatively flat to down in Q1, but the company continues to gain market share, with a 10% growth expectation [20][21] - The overall market for laser vision correction was down 19% in Q1, while EVO ICL grew by 15% year-over-year [54] Company Strategy and Development Direction - The company is focusing on the Highway 93 initiative, which is yielding positive results and is expected to be applied globally [6][42] - A second distributor has been added in China to enhance efficiency and market penetration, particularly in Tier 3 and Tier 4 cities [26][111] - The company aims to increase surgeon confidence and expand its market share through strategic investments and partnerships [88][120] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macroeconomic environment, noting a choppy economic landscape in China but positive signs of recovery [56][57] - The company is committed to maintaining a strong presence in China, with plans to increase the workforce from 80 to over 100 employees [25][102] - Management highlighted the importance of surgeon confidence and the positive impact of recent clinical data on the adoption of EVO ICL [97][100] Other Important Information - The company has reached a record level of cash on its balance sheet, totaling $252.1 million at the end of Q1 2024 [58] - Total operating expenses for Q1 2024 were $63.3 million, up from $54.8 million in the prior year quarter [91] - The company is investing in new hires and initiatives to drive future growth and market expansion [87][112] Q&A Session Summary Question: Can you provide insights on the U.S. initiatives and their performance? - Management noted that the U.S. results exceeded expectations, with a focus on the Highway 93 initiative and new partnerships driving growth [51][62] Question: What are the expectations for growth in China and the impact of stimulus? - Management indicated that stimulus measures are being well received, and they expect growth in the second half of the year [16][27] Question: How is the company addressing competition in the market? - Management acknowledged the presence of competition but expressed confidence in their strategies and market position [14][125] Question: Can you elaborate on the performance of Highway 93 accounts? - Management reported strong performance from Highway 93 accounts, with a significant increase in ICL procedures [130] Question: What are the expectations for gross margin and operating expenses? - Management expects gross margin to remain around 80% of net sales and operating expenses to be consistent with prior periods [90][112]