STAAR Surgical(US:STAA)2023-02-22 04:13Financial Data and Key Metrics Changes - In fiscal 2022, the company reported net sales of $284 million, with a negative impact of $12.9 million from changes in constant currency [7][70] - For Q4 2022, total net sales were $64 million, a 5 million year-over-year increase from $59 million in Q4 2021, driven by a 15% increase in ICL sales [70] - Operating income for fiscal 2022 was $43.8 million, representing 15.4% of net sales, compared to $33.3 million or 14.5% of net sales for fiscal 2021 [83] - Gross profit for Q4 2022 was $49.8 million, or 77.7% of net sales, compared to 76.3% in Q4 2021 [82] Business Line Data and Key Metrics Changes - ICL sales grew 27% year-over-year, with ICL units increasing by 33% [4] - In Q4 2022, ICL unit growth was up 20% year-over-year, with significant growth in the U.S. at 109% [80][105] - The company plans to discontinue its non-core lower-margin cataract IOL business after 2023 [70] Market Data and Key Metrics Changes - In China, ICL unit growth was 18% in Q4 2022, with Japan at 33% and India at 19% [80] - U.S. sales in Q4 2022 were approximately $4.5 million, reflecting a 94% year-over-year increase [107] - Doctor Finder visits in the U.S. increased by approximately 600% year-over-year in Q4 [81] Company Strategy and Development Direction - The company aims to leverage its financial strength to build the U.S. market, focusing on increasing consumer awareness and surgeon confidence in EVO adoption [6] - Plans for 2023 include doubling spending on EVO digital marketing campaigns and increasing sales and clinical personnel [6] - The company is committed to surrounding U.S. surgeons with clinical and sales support to integrate EVO into their practices [105] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the China market, noting that refractive procedures are returning to normal levels [10][68] - The company anticipates a weighted sales calendar in 2023, with expectations for Q1 net sales to be between $65 million and $67 million [7] - Management remains optimistic about the U.S. market potential, citing strong commitments from larger customers and increased surgeon engagement [32][68] Other Important Information - The company generated $35.7 million in cash from operations in fiscal 2022 and ended the year with over $225 million in cash and investments [35] - For fiscal 2023, the company expects R&D expenses to be approximately $11 million each quarter, focusing on post-approval studies and quality [8][103] Q&A Session Summary Question: What is the outlook for the China market? - Management expressed confidence in the China market, noting no travel restrictions and a return to normal refractive procedures [10] Question: Can you elaborate on the U.S. EVO launch and practice development efforts? - The company is increasing its infrastructure and support for U.S. surgeons to enhance EVO adoption [22][105] Question: How significant was the backlog of procedures in China due to COVID? - Management indicated that the backlog is being addressed, with confidence in meeting projections for the year [15][43] Question: What are the expectations regarding FDA proposals for LASIK patient disclaimers? - Management stated that they cannot predict the timing of FDA decisions but emphasized that EVO's clinical trial data has already been approved [44] Question: How is the company addressing price competition in the U.S.? - Management clarified that price is not a factor in their growth strategy and they do not plan to use promotions to spur demand [28][102]