STAAR Surgical(US:STAA)2022-08-11 01:34Financial Data and Key Metrics Changes - Total net sales for Q2 2022 were $81.1 million, representing a 30% year-over-year increase from $62.4 million in Q2 2021 and a 28% increase sequentially from Q1 2022 [29] - ICL sales accounted for 96% of total company net sales, similar to the previous year [30] - Gross profit for Q2 2022 was $63.9 million, or 78.8% of net sales, compared to 78.9% in Q2 2021 [33] - Net income for Q2 2022 was $13 million, or $0.26 per diluted share, compared to $8.6 million, or $0.17 per diluted share in Q2 2021 [41] Business Line Data and Key Metrics Changes - Global ICL unit growth was up 42% year-over-year, with significant growth in various regions: China (up 45%), the U.S. (up 36%), Japan (up 41%), India (up 181%), and Asia Pacific distributor markets (up 66%) [15] - The company reaffirmed its fiscal 2022 net sales outlook of approximately $295 million, despite currency headwinds [26] Market Data and Key Metrics Changes - The U.S. market showed strong adoption of the EVO family of lenses, with over 400 surgeons trained and certified, aiming for at least 600 by year-end [22] - In China, the company reported a strong busy season for EVO procedures, with effective management of COVID-19 related challenges [17] Company Strategy and Development Direction - The company is focusing on expanding its EVO lens offerings and enhancing brand awareness through partnerships with influencers, such as Joe Jonas [12][20] - Plans to showcase the EVO family of lenses at major industry events, including the European Society of Cataract and Refractive Surgeons Congress [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about navigating current COVID-19 challenges and meeting anticipated demand levels [17] - The company expects to continue seeing robust ICL unit growth and has adjusted its outlook for the second half of the year to account for currency impacts [32] Other Important Information - The company received its five-year MDR Certification from the European Notified Body, DEKRA, highlighting its commitment to quality [13] - The company plans to participate in several investor conferences and events in the coming weeks [45] Q&A Session Summary Question: Impact of influencer partnerships on sales trajectory - Management indicated that launching with a major influencer typically results in increased interest and a significant bump in sales, with expectations for a strong campaign rollout in the U.S. [48] Question: Long-term market share growth in China - Management confirmed a commitment to expanding distribution and partnerships in China, with a focus on both large and smaller clinics [50] Question: U.S. revenue impacts from inventory reserves - Management clarified that the reserve taken on the old Visian product did not impact revenue but was reflected in the cost of goods [56] Question: Surgeons' training and adoption rates - Management noted that the training of surgeons is progressing well, with expectations for continued growth in adoption rates for EVO lenses [82] Question: Pricing and ASPs in different markets - Management acknowledged that ASPs are expected to increase as the U.S. market grows, despite lower ASPs in China due to competitive pricing [75] Question: Gross margin expectations amid inflation - Management indicated that operational efficiencies are helping to maintain gross margins despite inflationary pressures [89]