Financial Performance & Outlook - FY24 GAAP Net Sales were $313.9 million[16], a 13% increase excluding China ICL sales[16] - China ICL sales decreased by 13% in FY24[23], and significantly dropped by 82% in Q4'24[23], reaching $7.5 million[16] - ICL Sales Ex China grew by 13% in FY24, reaching $151.6 million[16] - The company anticipates FY25 ICL Sales Ex China to be in the range of $165 million to $175 million, representing a 9% to 15% year-over-year increase[33] - The company projects China ICL Sales for FY25 to be between $75 million and $125 million[33] - The company anticipates an Adjusted EBITDA loss of approximately $50 million to $15 million for FY25[48] Regional Performance - Americas ICL sales increased by 15% in FY24[16], with Q4'24 showing a 22% increase[27] - EMEA ICL sales grew by 10% in FY24[16], and APAC Ex China ICL sales increased by 14%[16] - US ICL sales increased by 19% in FY24[29] Challenges & Strategies - Weak consumer confidence and macroeconomic headwinds in China significantly impacted ICL sales[14, 19] - The company estimates an approximate 15% decline in overall refractive procedure volume in China for FY24[24] - The company expects performance to rebound in the second half of 2025 as government stimulus takes hold[24]

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].

Core Insights - STAAR Surgical Company (NASDAQ: STAA) experienced poor stock performance last year primarily due to weak consumer demand in its largest market, China [1] - Despite the challenges in the Chinese market, sales of STAAR's EVO lenses, which serve as an alternative to LASIK surgery, have remained strong [1] Company Analysis - The company is focused on the ophthalmic surgical market, particularly in providing innovative lens solutions [1] - The performance of the company's products indicates resilience in certain segments despite broader market challenges [1] Market Context - The overall market for surgical alternatives, such as EVO lenses, continues to show potential for growth, suggesting opportunities for STAAR in expanding its market presence [1]

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 ...

Financial Performance - Net sales for the three months ended September 27, 2024 increased by 10% to $88.6 million compared to $80.3 million for the same period in 2023, primarily due to increased ICL sales of $8.0 million[66]. - Net sales for the nine months ended September 27, 2024 increased by 8% to $265.6 million compared to $244.8 million for the same period in 2023, primarily due to increased ICL sales of $20.8 million[67]. - Gross profit for the three months ended September 27, 2024 increased by 7.6% to $68.5 million, while the gross profit margin decreased to 77.3% from 79.2% in the same period of 2023[71]. - Operating income for the three months ended September 27, 2024 was 6.4% of net sales, down from 7.8% in the same period of 2023[64]. - Other income, net for the three months ended September 27, 2024 was $7,477,000, significantly up from $451,000 in the same period of 2023, indicating a change greater than +100%[76]. Sales and Market Trends - Total ICL sales for the three months ended September 27, 2024 increased by 10% with a unit increase of 6%, driven by sales growth in the Americas region, which saw a 14% increase[68]. - Total ICL sales for the nine months ended September 27, 2024 increased by 9% with a unit increase of 4%, with the EMEA region showing an 11% increase[69]. - Other product sales decreased by 33% for the three months ended September 27, 2024, primarily due to the phase-out of cataract IOL sales[70]. Expenses and Taxation - General and administrative expenses for the three months ended September 27, 2024 increased by 12.6% to $21,685,000 compared to $19,266,000 in the same period of 2023[72]. - Selling and marketing expenses for the three months ended September 27, 2024 were $26,623,000, a slight increase of 0.1% from $26,607,000 in the same period of 2023[74]. - Research and development expenses for the three months ended September 27, 2024 rose by 26.4% to $14,497,000 from $11,470,000 in the same period of 2023[75]. - The provision for income taxes for the three months ended September 27, 2024 was 3.6% of income before taxes, compared to 2.4% in the same period of 2023[64]. - The income tax provision for the three months ended September 27, 2024 was $3,179,000, a 64.8% increase from $1,929,000 in the same period of 2023[77]. - The effective tax rate for the three months ended September 27, 2024 was 24.2%, down from 28.6% in the same period of 2023[77]. Cash Flow and Investments - Cash and cash equivalents as of September 27, 2024 were $164,003,000, down from $183,038,000 as of December 29, 2023, reflecting a decrease of $19,035,000[80]. - Net cash provided by operating activities for the nine months ended September 27, 2024 was $15,083,000, compared to a net cash used of $17,375,000 in the same period of 2023[82]. - Net cash used in investing activities for the nine months ended September 27, 2024 was $39,722,000, compared to net cash provided of $51,945,000 in the same period of 2023[83]. - Net cash provided by financing activities for the nine months ended September 27, 2024 was $5,834,000, down from $7,048,000 in the same period of 2023[84]. 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[70]. - The company aims to expand its ICL product line into new geographic markets while driving awareness and providing surgeon training and support[60].

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 ...