[Second Quarter 2025 Financial Overview](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Overview) STAAR Surgical's Q2 2025 saw a significant net sales decline, net loss, and adjusted EBITDA loss, alongside a share repurchase program and news of a pending acquisition [Second Quarter 2025 Key Financial Results](index=1&type=section&id=Second%20Quarter%202025%20Key%20Financial%20Results) STAAR Surgical's Q2 2025 net sales fell 55% to $44.3 million, driven by China inventory adjustments, leading to a $16.8 million net loss and a $14.9 million adjusted EBITDA loss Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :-------------------------------- | :-------- | :-------- | :-------- | | **Net Sales** | $44.3M | $99.0M | $42.6M | | **Net Sales (Excluding China)** | $39.0M | - | - | | **Gross Margin** | 74.0% | 79.2% | 65.8% | | **Net Income (Loss)** | $(16.8)M | $7.4M | $(54.2)M | | **Net Income (Loss) Per Share** | $(0.34) | $0.15 | $(1.10) | | **Adjusted EBITDA (Loss)** | $(14.9)M | $22.5M | $(26.4)M | | **Adjusted EBITDA (Loss) Per Share** | $(0.30) | $0.45 | $(0.53) | - Net sales decreased by **55% year-over-year**, primarily because distributors in the China market opted to utilize existing inventory to meet demand, resulting in minimal purchases this quarter[4](index=4&type=chunk) - Gross margin decreased year-over-year due to lower sales volume, but it increased compared to Q1 2025[5](index=5&type=chunk)[7](index=7&type=chunk) - Total operating expenses decreased year-over-year, benefiting from ongoing cost optimization initiatives, with reductions in general and administrative, selling and marketing, and research and development expenses[6](index=6&type=chunk) - Restructuring, impairment, and related charges of **$5.2 million** were incurred this quarter, primarily for severance related to leadership structure adjustments and cost control plans, as well as impairment of fixed assets and operating leases[8](index=8&type=chunk) [Cash and Investments](index=2&type=section&id=Cash%20and%20Investments) As of June 27, 2025, the company's total cash, cash equivalents, and available-for-sale investments amounted to **$189.9 million**, a decrease from the end of Q1 2025, with no outstanding debt Cash, Cash Equivalents, and Investments | Metric | June 27, 2025 | End of Q1 2025 | | :----------------------- | :-------------- | :--------------- | | Cash, Cash Equivalents, and Investments | $189.9M | $222.8M | | Outstanding Debt | None | None | [Share Repurchase Program](index=2&type=section&id=Share%20Repurchase%20Program) In Q2 2025, the company repurchased approximately **261,000 common shares** for a total cost of **$4.5 million** at an average price of **$17.17 per share**, with **$25.5 million** remaining under the **$30 million** repurchase program as of June 27 Share Repurchase Details | Metric | Details | | :------------------- | :---------------- | | Shares Repurchased (Q2 2025) | Approx. 261,000 shares | | Total Cost (Q2 2025) | Approx. $4.5M | | Average Purchase Price | $17.17/share | | Remaining Authorized Amount | Approx. $25.5M | | Cumulative Repurchases as of August 1 | 376,000 shares | | Cumulative Cost as of August 1 | $6.5M | [Pending Acquisition and Conference Call](index=2&type=section&id=Pending%20Acquisition%20and%20Conference%20Call) STAAR Surgical will not host a Q2 2025 earnings conference call due to its pending acquisition by Alcon Inc - The company canceled its Q2 earnings conference call due to its pending acquisition by Alcon Inc[10](index=10&type=chunk) [Use of Non-GAAP Financial Measures](index=2&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) The company utilizes non-GAAP financial measures, including Adjusted EBITDA and constant currency reporting, to provide a clearer view of core operational performance [Adjusted EBITDA Definition and Rationale](index=2&type=section&id=Adjusted%20EBITDA%20Definition%20and%20Rationale) The company uses Adjusted EBITDA as a non-GAAP financial measure to assess operational performance and core business trends, further excluding stock-based compensation and restructuring, impairment, and related charges from EBITDA, as these expenses do not directly reflect underlying business performance and can be highly variable - EBITDA is calculated by adding back net interest income/expense, income tax provision, depreciation, and amortization to net income[13](index=13&type=chunk) - Adjusted EBITDA further excludes stock-based compensation expense and restructuring, impairment, and related charges to provide a more consistent analysis of core business operating performance[13](index=13&type=chunk)[14](index=14&type=chunk) - Stock-based compensation expense is excluded as it is a non-cash expense, and its amount may not directly relate to the underlying performance of the business and can fluctuate significantly based on timing, size, and nature of awards[13](index=13&type=chunk)[14](index=14&type=chunk) - Restructuring, impairment, and related charges are excluded because they do not represent the company's underlying operating expense profile and are expected to be completed within a finite period, with amounts that can fluctuate significantly[14](index=14&type=chunk) [Constant Currency Reporting](index=3&type=section&id=Constant%20Currency%20Reporting) The company uses constant currency reporting for certain financial information to exclude the impact of foreign exchange fluctuations, enabling more accurate period-over-period performance comparisons, given its significant international operations and the potential for exchange rate volatility to materially affect USD-reported results - Constant currency reporting aims to exclude the impact of foreign exchange fluctuations for more accurate period-over-period performance comparisons[15](index=15&type=chunk) - The company conducts significant business outside the U.S., with sales revenue and expenses primarily denominated in U.S. Dollars, Swiss Francs, Japanese Yen, and Euros, where exchange rate fluctuations can materially impact results[15](index=15&type=chunk) [About STAAR Surgical](index=3&type=section&id=About%20STAAR%20Surgical) STAAR Surgical is a global leader in phakic intraocular lenses, specializing in ophthalmic surgery for 30 years, designing, developing, manufacturing, and marketing the advanced EVO ICL™ product line, with over 3 million ICLs sold in more than 75 countries worldwide - STAAR Surgical is a global leader in phakic intraocular lenses, providing vision correction solutions[17](index=17&type=chunk) - The company has focused on ophthalmic surgery since 1982, designing, developing, manufacturing, and marketing advanced implantable Collamer® lenses (ICLs) for **30 years**[17](index=17&type=chunk) - The EVO ICL™ product line offers safe, long-term vision correction without removing corneal tissue or the natural crystalline lens, with over **3 million ICLs** sold in more than **75 countries** worldwide[17](index=17&type=chunk) [Investor Information and Forward-Looking Statements](index=4&type=section&id=Investor%20Information%20and%20Forward-Looking%20Statements) This section outlines investor communication channels and provides a disclaimer regarding forward-looking statements, highlighting inherent risks and uncertainties [Investor Relations](index=4&type=section&id=Investor%20Relations) The company discloses important non-public information and fulfills Regulation FD disclosure obligations via its investor relations website (investors.staar.com), encouraging investors to monitor the site for the latest updates - The company uses its investor relations website (investors.staar.com) as a means of disclosing material non-public information and complying with its Regulation FD obligations[18](index=18&type=chunk) [Forward-Looking Statements Disclaimer](index=4&type=section&id=Forward-Looking%20Statements%20Disclaimer) This press release contains forward-looking statements involving known and unknown risks, uncertainties, and other important factors that could cause actual results to differ materially, including but not limited to growth capabilities, reliance on international distributors, China's economic slowdown, global economic conditions, supply chain disruptions, exchange rate fluctuations, and risks related to the pending acquisition by Alcon Inc - Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause actual results to differ materially from expectations[19](index=19&type=chunk) - Key risks include: growth and profitability, reliance on international distributors, China's economic slowdown, global economic conditions, supply chain disruptions, foreign exchange fluctuations, international trade disputes, tax rate changes, use of key manufacturing facilities, competition, product liability claims, environmental liability, data security, acquisition of new technologies, climate change, product adoption, R&D investments, government regulatory compliance, regulatory discretion, product recalls or failures, and risks related to the pending acquisition by Alcon Inc[19](index=19&type=chunk) - The company undertakes no obligation to update or revise any forward-looking statements, except as required by applicable law[20](index=20&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated balance sheets, statements of operations, and cash flows, reflecting its financial position and performance [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of June 27, 2025, the company's total assets were **$437.8 million**, a decrease from **$509.5 million** on December 27, 2024, with corresponding reductions in total liabilities and total stockholders' equity Consolidated Balance Sheets Summary (in Thousands of USD) | Metric | June 27, 2025 | December 27, 2024 | | :-------------------------- | :-------------- | :--------------- | | **Assets:** | | | | Cash and Cash Equivalents | $167,131 | $144,159 | | Available-for-Sale Investments | $22,752 | $86,335 | | Accounts Receivable, Net | $34,440 | $77,897 | | Inventories, Net | $53,107 | $43,305 | | Total Current Assets | $292,792 | $367,940 | | Property, Plant and Equipment, Net | $74,417 | $84,889 | | Total Assets | $437,781 | $509,524 | | **Liabilities and Stockholders' Equity:** | | | | Total Current Liabilities | $59,228 | $70,306 | | Total Liabilities | $101,208 | $112,189 | | Total Stockholders' Equity | $336,573 | $397,335 | | Total Liabilities and Stockholders' Equity | $437,781 | $509,524 | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) In Q2 2025, the company reported **$44.3 million** in net sales, **$32.8 million** in gross profit, an operating loss of **$30.0 million**, a net loss of **$16.8 million**, and a diluted loss per share of **$0.34**, reflecting significant year-over-year declines in both sales and profitability Consolidated Statements of Operations Summary (in Thousands of USD, except per share data) | Metric | Q2 2025 | Q2 2024 | Y-o-Y Change (%) | | :-------------------------- | :-------------- | :-------------- | :------------ | | Net Sales | $44,320 | $99,005 | (55.2)% | | Cost of Sales | $11,521 | $20,593 | 44.1% | | Gross Profit | $32,799 | $78,412 | (58.2)% | | Selling, General and Administrative Expenses | $57,515 | $66,514 | 13.5% | | Restructuring, Impairment and Related Charges | $5,248 | $0 | 0.0% | | Total Operating Expenses | $62,763 | $66,514 | 5.6% | | Operating Income (Loss) | $(29,964) | $11,898 | (351.8)% | | Other Income (Expense), Net | $4,049 | $(1,564) | 358.9% | | Income (Loss) Before Income Taxes | $(25,915) | $10,334 | (350.8)% | | Income Tax Provision (Benefit) | $(9,103) | $2,955 | 408.1% | | Net Income (Loss) | $(16,812) | $7,379 | (327.8)% | | Diluted Net Income (Loss) Per Share | $(0.34) | $0.15 | - | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In Q2 2025, cash outflow from operating activities was **$27.2 million**, cash inflow from investing activities was **$25.1 million**, and cash outflow from financing activities was **$4.5 million**, with cash and cash equivalents totaling **$167.1 million** at period-end Consolidated Statements of Cash Flows Summary (in Thousands of USD) | Cash Flow Type | Q2 2025 | Q2 2024 | | :----------------------- | :-------------- | :-------------- | | Net Cash from Operating Activities | $(27,249) | $(10,413) | | Net Cash from Investing Activities | $25,120 | $(20,668) | | Net Cash from Financing Activities | $(4,540) | $163 | | Effect of Exchange Rate Changes | $686 | $(330) | | Net Increase (Decrease) in Cash and Cash Equivalents | $(5,983) | $(31,248) | | Cash and Cash Equivalents at End of Period | $167,131 | $192,776 | [Supplementary Financial Data](index=9&type=section&id=Supplementary%20Financial%20Data) This section provides additional financial details, including a reconciliation of GAAP net income to non-GAAP Adjusted EBITDA and a breakdown of sales by geographic region [Reconciliation of Net Income to Adjusted EBITDA](index=9&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) The company provides a reconciliation of GAAP net income to non-GAAP Adjusted EBITDA, detailing adjustments for income taxes, other income/expense, depreciation, restructuring/impairment charges, and stock-based compensation expense Reconciliation of Net Income to Adjusted EBITDA (in Thousands of USD) | Metric | Q2 2025 | Q2 2024 | | :-------------------------- | :-------------- | :-------------- | | Net Income (Loss) | $(16,812) | $7,379 | | Income Tax Provision (Benefit) | $(9,103) | $2,955 | | Other Income (Expense), Net | $(4,049) | $1,564 | | Depreciation | $1,975 | $1,522 | | Restructuring, Impairment and Related Charges | $5,248 | $0 | | Stock-Based Compensation Expense | $7,802 | $9,042 | | **Adjusted EBITDA** | **$(14,939)** | **$22,480** | | Adjusted EBITDA as % of Sales | (33.7)% | 22.7% | | Diluted Adjusted EBITDA Per Share | $(0.30) | $0.45 | [Sales by Geography and Country](index=10&type=section&id=Sales%20by%20Geography%20and%20Country) In Q2 2025, global sales decreased by **55% year-over-year**, primarily due to a significant decline in Asia Pacific sales, especially China; while Americas and EMEA regions both achieved double-digit growth, China sales fell **92% year-over-year**, and global sales excluding China grew **10%** Sales and Growth by Region (in Thousands of USD) | Region | Q2 2025 Sales | Q2 2024 Sales | Y-o-Y Growth Rate | | :----- | :------------------- | :------------------- | :--------- | | Americas | $7,307 | $6,656 | 10% | | EMEA | $11,436 | $10,316 | 11% | | Asia Pacific | $25,577 | $82,033 | (69)% | | **Global Sales** | **$44,320** | **$99,005** | **(55)%** | | **Global ICL Unit Growth** | - | - | (63)% | Sales and Growth by Key Country (in Thousands of USD) | Country | Q2 2025 Sales | Q2 2024 Sales | Y-o-Y Growth Rate | | :------- | :------------------- | :------------------- | :--------- | | China | $5,299 | $63,519 | (92)% | | Japan | $10,915 | $9,887 | 10% | | South Korea | $4,293 | $3,924 | 9% | | United States | $5,635 | $5,399 | 4% | - Global sales (excluding China) reached **$39.021 million** in Q2 2025, representing a **10% year-over-year increase**[31](index=31&type=chunk) [Reconciliation of Constant Currency Sales](index=11&type=section&id=Reconciliation%20of%20Constant%20Currency%20Sales) The company provides a reconciliation of total sales at reported and constant currency rates, illustrating the negative impact of foreign exchange fluctuations, which reduced Q2 2025 sales by **$1.2 million** Constant Currency Sales Reconciliation (in Thousands of USD) | Metric | Q2 2025 (Reported) | FX Impact | Q2 2025 (Constant Currency) | Q2 2024 | | :---------- | :-------------------- | :--------- | :-------------------------- | :-------------- | | Total Sales | $44,320 | $(1,199) | $43,121 | $99,005 | | Y-o-Y Change (%) | (55.2)% | - | (56.4)% | - | - Foreign exchange rate changes had a negative impact of **$1.199 million** on total sales in Q2 2025[32](index=32&type=chunk)

Core Viewpoint - Johnson Fistel, PLLP has initiated an investigation into potential breaches of fiduciary duties by the board members of STAAR Surgical Company regarding the proposed sale to Alcon, which may undervalue the company’s shares [1][2]. Company Overview - STAAR Surgical has entered into a definitive merger agreement with Alcon, where shareholders will receive $28.00 in cash per share [5]. - The merger consideration is significantly lower than STAAR Surgical's 52-week high of $41.00 per share, despite positive projections for the company's sales and revenue growth from Wall Street analysts [5]. Legal Context - Johnson Fistel, PLLP is a recognized shareholder rights law firm that represents both individual and institutional investors in derivative and class action lawsuits [2][3]. - The firm has a history of recovering substantial amounts for clients, having secured approximately $90.7 million in previous cases [3].

Core Viewpoint - The law firm Wohl & Fruchter LLP is investigating the fairness of the proposed sale of STAAR Surgical Company to Alcon, Inc. for $28.00 per share, which is significantly lower than STAAR's 52-week high of $41.00 per share, indicating a potentially opportunistic acquisition by Alcon [1][3]. Group 1 - The sale price of $28.00 per share is well below STAAR's 52-week high of $41.00, raising concerns about the fairness of the transaction [1][3]. - Investor sentiment is negative, with at least two investors expressing disappointment over the sale price on SeekingAlpha, citing the future potential of STAAR's implantable lenses for vision correction [2][3]. - Wohl & Fruchter LLP is investigating whether the STAAR Board of Directors acted in the best interests of shareholders and if all material information regarding the transaction was disclosed [4]. Group 2 - One investor criticized the urgency of the sale, suggesting that STAAR's future potential is worth significantly more than the proposed sale price, estimating it to be around ten billion [4]. - Another investor remarked that if the sale goes through, Alcon would have secured an exceptionally favorable deal [4].

Core Viewpoint - The Ademi Firm is investigating STAAR for potential breaches of fiduciary duty and other legal violations related to its transaction with Alcon Inc, which involves a cash offer of $28 per share, valuing the deal at approximately $1.5 billion in equity value [1][2][3] Group 1: Transaction Details - Shareholders of STAAR will receive $28 per share in cash, leading to a total transaction value of around $1.5 billion [2] - STAAR insiders are set to receive significant benefits as part of the change of control arrangements [2] Group 2: Investigation Focus - The transaction agreement imposes a significant penalty on STAAR if it accepts a competing bid, which may limit competing transactions unreasonably [3] - The investigation is centered on the conduct of the STAAR board of directors and whether they are fulfilling their fiduciary duties to all shareholders [3]

Summary of the Conference Call on the Refractive Market Industry Overview - The refractive market, valued at $1.8 billion, includes equipment and consumables for surgical procedures treating myopia (nearsightedness) [2][13] - Key players in this market include Carl Zeiss, Alcon, Johnson & Johnson, and STAAR Surgical, with refractive surgery representing 20-25% of Zeiss' total revenues and a significant share of EBITA due to high margins [2][13] Market Dynamics - The market is expected to grow at a high mid-single-digit CAGR through 2029, driven by increasing myopia prevalence and a shift towards higher-priced procedures [3][21] - By 2050, approximately 50% of the global population is projected to have myopia, up from 35% today, with high myopia increasing from 5.5% to 10% [3][21] - China is the largest market, accounting for over half of global procedures, while the U.S. and Europe each represent around 15% [4][26] Competitive Landscape - The refractive market is characterized as an oligopoly, with the top four players controlling about 90% of the market [5][13] - Zeiss holds a monopoly on lenticule extraction procedures in the U.S. and China, while STAAR is dominant in phakic lenses [5][36] - Brand awareness and familiarity with procedures significantly influence patient choices, especially in China, where myopia is culturally viewed as a disease [4][31] Company-Specific Insights Carl Zeiss - Carl Zeiss Meditec is the leading player in the refractive market with an estimated market share of 32% [36] - The company’s refractive business constitutes about 22% of total revenues, with a gross margin of approximately 80% [2][35] - Recent challenges include a 30% cut in EBIT guidance due to a weak market in 2023/24, but the stock has rebounded by 30% from its January 2025 low [2][13] Alcon - Alcon generates about 3% of its revenues from refractive surgery, having entered the market through acquisitions [41][42] - The company has introduced advanced technologies like WaveLight Plus for personalized LASIK treatment [42] Johnson & Johnson - Johnson & Johnson's refractive business generates approximately $300 million, less than 1% of total revenues [44][45] - The company has developed the iLASIK technology suite and is expanding its offerings with the ELITA femtosecond laser [45] STAAR Surgical - STAAR focuses exclusively on implantable lenses for myopia treatment, with nearly 100% of its revenue derived from this segment [49][50] - The company has sold over three million ICLs worldwide, highlighting its strong market position [51] Bausch & Lomb - Bausch & Lomb's refractive sales are estimated to be less than 1% of total sales, with a focus on cataract and refractive surgery [54][55] Investment Implications - Carl Zeiss and Alcon are rated as Outperform with price targets of €74.00 and CHF 91.20, respectively [7][13] - Johnson & Johnson is rated as Market-Perform with a price target of $159.00 [7] Key Risks and Considerations - The emergence of local competitors in China poses a risk, although brand loyalty and awareness may mitigate this threat [4][26] - The U.S. market has seen sluggish growth due to negative perceptions around LASIK and a decline in procedure volumes [4][26] Conclusion - The refractive market is poised for growth driven by increasing myopia rates and a shift towards advanced surgical procedures, with key players like Carl Zeiss and Alcon leading the charge. However, challenges remain, particularly in the U.S. market and from local competition in China.

STAAR Surgical Company (STAA) FY Conference Summary Company Overview - STAAR Surgical is a 43-year-old company recognized as a global leader in ophthalmic surgery, offering a superior solution to LASIK with its EVO ICL lens technology [3][4] - The company operates in 75 countries, holding a significant refractive market share, particularly in Japan where it has a 70% share due to negative perceptions of LASIK [5][6] Core Points and Arguments - **Product Advantages**: The EVO ICL lens is reversible, provides UV protection, does not induce dry eye, and preserves corneal tissue, leading to rapid recovery and better contrast vision [4][12][14] - **Market Position**: STAAR holds approximately 12% of the global refractive market share, with significant opportunities for growth, especially in China and India [6][20] - **Growth Drivers**: The company anticipates growth driven by macroeconomic improvements and increased patient comfort with surgical options as word-of-mouth spreads [6][10][30] - **Financial Performance**: In FY 2024, STAAR reported revenues of $313.9 million, a 3% decline from FY 2023, primarily due to challenges in the Chinese market [10][34] - **Margins**: Gross margins decreased from 78.5% to 65.8% due to reduced production volume and increased reserves for obsolete inventory [35] Challenges and Strategic Focus - **Market Challenges**: The company faces headwinds from patient reluctance to pursue surgical options, particularly in the U.S., where fear of surgery is a significant barrier [6][27] - **China Market Concerns**: There are investor concerns regarding inventory levels and tariff issues in China, but the company believes these are transitory and manageable [21][41] - **Operational Restructuring**: STAAR is undergoing a restructuring to reduce SG&A expenses to a $225 million run rate, which is expected to improve financial health [36][42] Future Outlook - **Market Potential**: The myopia epidemic is expected to grow, with projections indicating that 50% of the global population may be affected by 2050, presenting a substantial market opportunity for STAAR [45] - **Long-term Confidence**: The company is optimistic about returning to historical earnings and cash flow generation as macroeconomic conditions improve [46][51] - **Strategic Shift**: There is a focus on expanding the market beyond current surgical candidates to include those using glasses and contacts, aiming to increase overall market penetration [55] Additional Insights - **Regulatory Wins**: Recent approvals in China for new product variations are seen as positive developments that could enhance market presence [17][22] - **Sales Growth**: Despite challenges, the company achieved a 9% year-over-year growth in markets outside of China, indicating resilience and potential for recovery [38] This summary encapsulates the key points discussed during the STAAR Surgical conference, highlighting the company's strengths, challenges, and strategic direction moving forward.

Summary of Star Surgical Conference Call Company Overview - **Company**: Star Surgical - **Industry**: Medical Devices, specifically focusing on Intraocular Collamer Lens (ICL) technology Key Points Share Buyback Program - Star Surgical announced a $30 million share repurchase program, which was not included in previous cash guidance [2][4] - Management believes the current stock valuation is not reflective of the company's potential, prompting the buyback decision [4][5] - The board has only authorized this single repurchase, indicating it may not become a regular part of the capital allocation strategy [6][7] Inventory and Revenue Expectations in China - The company expects to reach contractual inventory levels with Chinese distributors by June [11] - Anticipated revenue of $27.5 million from one distributor is expected in Q3, with no changes to this expectation [13] - Revenue guidance for Q2 is cautious, with expectations of minimal revenue but a gradual ramp-up anticipated [15][16] - The company is managing inventory closely with distributors to align with actual demand [18][19] Market Trends in China - Demand for ICLs in China appears to be stabilizing, with Q1 showing flat to slightly up procedural volumes compared to the previous year [22][23] - The company is optimistic about long-term growth in China, despite some softness in Q2 [24][37] - The company is not affected by military refractive demands, which are not part of their business model [26][27] Competition and Product Differentiation - Star Surgical faces competition from Ibrite's FakeCIC IOL, but the company believes its unique collagen-based material offers a significant advantage [39][40] - The market for ICLs is large, with over 1 billion people still using glasses or contacts, indicating room for growth despite competition [47] - The company is focused on understanding pricing strategies of competitors and how they will affect market dynamics [44][45] Financial Guidance and Market Outlook - Star Surgical withdrew its 2025 revenue guidance due to uncertainties, including tariff risks and macroeconomic concerns [50][51] - The management team is committed to transparency and aims to provide clearer insights into market opportunities and risks [49][52] - Long-term growth expectations remain positive, with a focus on disciplined capital allocation and market share growth [61][62] Research and Development Opportunities - The company is exploring the use of its collagen material in other therapeutic areas, particularly within ophthalmology [57][58] - R&D spending is significant, but the company aims to focus on projects that can yield meaningful results in a timely manner [58] U.S. Market Strategy - The U.S. market remains critical for Star Surgical, with a current market share in the low to mid-single digits for EVO [60][61] - The company achieved over 50% market share in Japan, indicating potential for growth in the U.S. when market conditions align [62] Additional Insights - The management acknowledges past challenges in meeting revenue expectations and aims to set more realistic future guidance [61][62] - The company is prepared for the upcoming high season in China with adequate inventory positioned for demand [34][35]

Group 1 - STAAR Surgical's shares have sharply rebounded after a selloff following Q1 earnings [1] - Management has indicated an improved demand outlook in China, although growth outside of China was only 9% in Q1 [1] Group 2 - The investment thesis focuses on identifying undercovered companies, particularly in technology, software, electronics, and energy transition sectors [1] - The analysis aims to uncover asymmetric investment opportunities to achieve market-beating returns [1]

Core Insights - Staar Surgical reported a revenue of $42.59 million for the quarter ended March 2025, which is a 45% decrease compared to the same period last year [1] - The earnings per share (EPS) for the quarter was -$0.52, a decline from $0.06 in the year-ago quarter, but it exceeded the consensus EPS estimate of -$0.59 by 11.86% [1] - The revenue surpassed the Zacks Consensus Estimate of $40.34 million by 5.57% [1] Financial Performance - The stock of Staar Surgical has returned +23.5% over the past month, outperforming the Zacks S&P 500 composite's +10.6% change [3] - The company currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3] Geographic Sales Breakdown - In the United States, net geographic sales were $5.46 million, slightly below the average estimate of $5.82 million, representing a year-over-year increase of +10.6% [4] - In Japan, net geographic sales reached $11.39 million, exceeding the average estimate of $10.54 million, with a year-over-year change of +8.9% [4] - In China, net geographic sales were only $0.39 million, significantly lower than the estimated $1.15 million, marking a drastic year-over-year decline of -99% [4]

Company Performance - Staar Surgical reported a quarterly loss of $0.52 per share, which was better than the Zacks Consensus Estimate of a loss of $0.59, and compared to earnings of $0.06 per share a year ago, indicating an earnings surprise of 11.86% [1] - The company posted revenues of $42.59 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.57%, but down from $77.36 million in the same quarter last year [2] - Over the last four quarters, Staar Surgical has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Performance - Staar Surgical shares have declined approximately 23.3% since the beginning of the year, while the S&P 500 has decreased by 4.7% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.59 on revenues of $41.03 million, and for the current fiscal year, it is -$0.81 on revenues of $260.45 million [7] Industry Outlook - The Medical - Dental Supplies industry, to which Staar Surgical belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - The Cooper Companies, another player in the same industry, is expected to report quarterly earnings of $0.93 per share, reflecting a year-over-year change of +9.4%, with revenues anticipated to be $995.5 million, up 5.6% from the previous year [9][10]