IRIDEX (US:IRIX)2024-08-10 20:23Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was $12.6 million, reflecting a sequential growth of 7% from Q1 2024 and approximately flat compared to $12.9 million in Q2 2023 [5][12] - Gross profit for Q2 2024 was $5.1 million, with a gross margin of 40.7%, down from 41.7% in Q2 2023 [14] - Operating expenses decreased to $7.8 million in Q2 2024 from $8.3 million in the same period last year [15] - Net loss for Q2 2024 was $2.7 million or $0.16 per share, compared to a net loss of $2.8 million or $0.17 per share in Q2 2023 [15] Business Line Data and Key Metrics Changes - Revenue from the Cyclo G6 product family was $3.3 million in Q2 2024, an increase of $0.4 million from Q1 2024 but a decrease of $0.3 million from Q2 2023 [12][14] - The retina segment generated $7.3 million in revenue for Q2 2024, up 8% from Q1 2024 and up 6% from the prior year [14] - The company sold 15,100 Cyclo G6 probes in Q2 2024, a sequential increase of 14% compared to Q1 2024, but slightly down from 15,500 sold in Q2 2023 [13] Market Data and Key Metrics Changes - The U.S. market for MicroPulse TLT procedures is stabilizing due to the elimination of uncertainty regarding Medicare reimbursement [5] - International sales in the retina segment showed strength, contributing to the overall revenue growth [14] Company Strategy and Development Direction - The company is engaged in a strategic review process to pursue transactions that will benefit stockholders, with a goal to reach a transaction within the fiscal year [8][10] - The promotion of the Chief Operating Officer to President aims to enhance operational execution and cost management [9] Management's Comments on Operating Environment and Future Outlook - Management noted that the M&A environment has improved compared to the previous year, and they are serious about finding value-enhancing transactions [20] - The company is focused on improving operating cash flow and managing capital prudently to support growth recovery [10][16] Other Important Information - Cash and cash equivalents totaled $4.1 million as of June 29, 2024, with a net cash reduction of $1.3 million during the quarter [16] - A private placement financing of a senior convertible note was announced, providing net proceeds of $3.4 million to improve the balance sheet [10] Q&A Session Summary Question: Competitive landscape for G6 - Management believes the unique nonincisional treatment of G6 will continue to hold its own in the moderate-stage patient market despite increasing competition [17][18] Question: Strategic review process hurdles and timing - Management acknowledged that the M&A environment was challenging last year but is optimistic about completing a transaction by the end of the fiscal year [20]