STAAR Surgical(STAA) - 2025 Q1 - Quarterly Results

Financial Performance - Net sales for Q1 2025 were $42.6 million, down 45% year-over-year, primarily due to a planned reduction of channel inventory in China[4] - Net sales excluding China were $42.2 million, reflecting a 9% year-over-year growth across all key markets[4] - The company reported a net loss of $(54.2) million or $(1.10) per share, compared to a net loss of $(3.3) million or $(0.07) per share in the prior year[12] - Adjusted EBITDA loss was $(26.4) million or $(0.53) per share, compared to earnings of $5.3 million or $0.11 per share in the prior year[4] - Net sales for the quarter ended March 28, 2025, were $42,589,000, a decrease of 44.9% compared to $77,356,000 for the same quarter in 2024[30] - The company reported a net loss of $54,211,000 for the quarter, compared to a net loss of $3,339,000 in the same quarter last year, reflecting a significant increase in losses[31] - The company experienced a significant decline in global sales growth of 3% in 2024, with a forecasted further decline of 45% in Q1 2025[34] Cost and Inventory Management - Gross margin decreased to 65.8% from 78.9% year-over-year, attributed to reduced production volumes and higher manufacturing costs[4] - The company is on track to reduce excess distributor inventory in China to contracted levels by the end of Q2 2025[3] - Cost control measures are expected to reduce the annualized SG&A run rate to approximately $225 million by the end of fiscal 2025, down from $252.2 million in fiscal 2024[9] - The company incurred restructuring, impairment, and related charges of $22,664,000 during the quarter[30] - The restructuring charges for Q3 2024 amounted to $22,664,000, reflecting ongoing adjustments in operational strategy[32] Cash and Assets - Cash, cash equivalents, and investments totaled $222.8 million as of March 28, 2025, down from $230.5 million at the end of Q4 2024[13] - Total current assets decreased to $326,498,000 as of March 28, 2025, from $367,940,000 as of December 27, 2024[29] - Total liabilities decreased to $107,392,000 as of March 28, 2025, down from $112,189,000 as of December 27, 2024[29] - Cash and cash equivalents increased to $173,114,000 at the end of the quarter, compared to $144,159,000 at the beginning of the period[31] Research and Development - Research and development expenses were $13,663,000, accounting for 32.1% of net sales, compared to 17.3% in the prior year[30] Market Expansion and Strategy - The company received regulatory approvals for EVO/EVO+ ICL in Taiwan and Brazil, expanding its market reach[9] - The company is withdrawing its previous financial outlook due to global economic uncertainty and evolving tariff policies[15] - The company plans to expand its market presence in the APAC region, despite recent sales declines, focusing on strategic investments and new product launches[34] - Constant currency sales for Q1 2025 are projected to decline by 44.9%, indicating potential challenges in maintaining revenue growth in the upcoming quarters[36] Currency and Foreign Transactions - The company experienced a gain of $1,418,000 on foreign currency transactions, a significant improvement compared to a loss of $2,297,000 in the prior year[30]