STAAR Surgical(US:STAA)2025-05-07 20:11Financial Performance - For the three months ended March 28, 2025, net sales were $42.6 million, a decrease of 45% compared to $77.4 million for the same period in 2024, primarily due to decreased sales in China[67]. - Net sales of implantable Collamer® lenses (ICLs) were $41.5 million, down 46.2% from $77.2 million in the prior year[74]. - Gross profit decreased by 54.1% to $28.0 million, with a gross margin of 65.8%, down from 78.9% in the previous year, attributed to higher manufacturing costs and increased inventory reserves[77]. - General and administrative expenses increased by 5.3% to $24.5 million, representing 57.4% of net sales, up from 30.0% in the prior year[78]. - Selling and marketing expenses decreased by 7.8% to $24.6 million, accounting for 57.8% of net sales, compared to 34.5% in the previous year[79]. - Research and development expenses increased by 2.1% to $13.7 million, representing 32.1% of net sales, up from 17.3% in the prior year[80]. - Restructuring, impairment, and related charges amounted to $22.7 million, representing 53.2% of net sales, a significant increase from 0.0% in the previous year[81]. Regional Sales Performance - Sales in the APAC region decreased by 61%, with ICL unit sales down 62%, primarily due to reduced sales in China[75]. - The EMEA region saw a 10% increase in sales, with ICL unit growth of 10%, driven by distributor and direct market sales growth[75]. - The Americas region experienced a 9% increase in sales, with ICL unit growth of 3%, mainly due to sales growth in the U.S. and Latin America[75]. Costs and Expenses - In Q1 2025, the company incurred costs of $9.447 million related to severance and workforce reduction, and recognized impairment expenses totaling $12.217 million on various assets[82]. - Other income, net for the three months ended March 28, 2025, was $2.915 million, representing a 70% increase compared to the same period in 2024, primarily due to higher foreign exchange gains[83][84]. - The effective tax rate for Q1 2025 was 0.5%, a significant change from (51.0)% in Q1 2024, influenced by income tax expenses in foreign jurisdictions[86]. Cash Flow and Assets - Cash and cash equivalents increased by $28.955 million from December 27, 2024, totaling $173.114 million as of March 28, 2025[88]. - The company reported a net cash used in operating activities of $5.734 million for Q1 2025, compared to a net cash provided of $21.680 million in Q1 2024[89]. - Net cash provided by investing activities was $35.351 million in Q1 2025, up from $16.187 million in Q1 2024, driven by proceeds from the maturity of investments[90]. - Net cash used by financing activities was $0.948 million in Q1 2025, a decrease from $4.056 million provided in Q1 2024[91]. - Current assets decreased by $41.442 million from December 27, 2024, totaling $326.498 million as of March 28, 2025[88]. Strategic Initiatives - The company is actively pursuing subleasing opportunities for two leased properties, indicating a strategy to optimize asset utilization[82]. - Future capital requirements will depend on growth rates in net sales and the timing of new product introductions, highlighting the company's focus on strategic growth initiatives[88].