STAAR Surgical(STAA)2024-10-30 20:03Revenue 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]