STAAR Surgical(US:STAA)2024-02-27 11:04Financial Performance - For the fiscal year ended December 29, 2023, STAAR Surgical Company reported worldwide revenue of $322.4 million, with 99% generated from sales of implantable Collamer lenses (ICLs) [229]. - Net sales for 2023 increased by 13% from 2022, driven by an increase in ICL sales of $49.7 million, despite a decrease in other product sales of $11.7 million [233]. - Total ICL sales for 2023 increased by 18% from 2022, with unit growth of 19%, primarily driven by the APAC region, which grew by 21% [235]. - Gross profit for 2023 was $252.7 million, representing a 13.1% increase from 2022, while the gross profit margin slightly decreased to 78.4% [240]. - Other income (expense), net for 2023 was $5,599,000, a significant increase from $1,750,000 in 2022, primarily due to increased interest income [249]. - Provision for income taxes in 2023 was $12,349,000, up from $5,887,000 in 2022, with an effective tax rate of 36.6% [252]. Expenses - General and administrative expenses for 2023 increased by 32.1% from 2022, totaling $72.3 million, primarily due to increased salary-related expenses and one-time employee benefits in Japan [242]. - Selling and marketing expenses for 2023 increased by 21.4% to $107,834,000 from $88,856,000 in 2022, representing 33.4% of sales [244]. - Research and development expenses for 2023 rose by 23.4% to $44,401,000 from $35,983,000 in 2022, accounting for 13.8% of sales [246]. Cash Flow and Assets - Cash and cash equivalents increased to $183,038,000 in 2023 from $86,480,000 in 2022, while total current assets rose to $365,269,000 [255]. - Net cash provided by operating activities in 2023 was $14,594,000, down from $35,715,000 in 2022 [258]. - Accounts receivable, net increased to $94,700,000 in 2023 from $62,400,000 in 2022, with Days' Sales Outstanding (DSO) rising to 113 days [261]. - Inventories, net rose to $35,100,000 in 2023 from $24,200,000 in 2022, with Days' Inventory on Hand (DOH) increasing to 142 days [262]. Strategic Plans - The company plans to increase strategic collaborations with leading refractive surgeons in the U.S. and invest in enhanced systems for faster ordering and fulfillment in 2024 [230]. - STAAR Surgical Company intends to focus on product innovation, particularly new lens delivery devices and next-generation lens technologies in 2024 [230]. - The company plans to continue investing in new products and expanding its market presence, supported by its current liquidity and capital resources [254]. Market and Currency Risks - Approximately 95% of total sales during 2023 were generated from activities outside the U.S., exposing the company to foreign currency exchange risks [274]. - The strengthening of the U.S. dollar negatively affected consolidated sales and gross profit, particularly impacting sales in China, which accounted for 58% of consolidated net sales during fiscal 2023 [275]. - The company does not actively hedge against currency rate fluctuations, which may lead to transaction gains or losses reported in total other income [274]. - The company does not currently hedge transactions to offset changes in foreign currency, relying on management's judgment regarding risks and opportunities [273]. Inventory and Taxation - The company provides allowances for sales returns based on an expected loss model, considering historical returns and current trends [265]. - Stock-based compensation expense is measured using the Black-Scholes pricing model, with adjustments made based on performance conditions and probability assessments [266]. - The company evaluates deferred tax assets based on historical results and projected future taxable income, considering various tax-planning strategies [267]. - Estimated inventory allowances are provided for excess and obsolete inventory, with regular reviews based on market conditions and product demand forecasts [268]. - Management believes inflation has not significantly impacted net sales and revenues over the past three years [271]. - The company regularly reassesses the adequacy of inventory provisions based on demand forecasts and market conditions [268].