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 ...

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 ...