STAAR Surgical(US:STAA)2021-11-04 01:18Financial Data and Key Metrics Changes - Total net sales for Q3 2021 were $58.4 million, up 24% compared to $47.1 million in Q3 2020, exceeding the previous outlook of $57 million to $58 million [25][26] - Gross profit for Q3 2021 was $45.3 million, or 77.6% of net sales, compared to 74.1% in Q3 2020 [28] - Net income in Q3 2021 was $6 million, or $0.12 per diluted share, compared to $3.9 million, or $0.08 per share in Q3 2020 [35][36] Business Line Data and Key Metrics Changes - ICL sales represented 93% of total company net sales for Q3 2021, with other products accounting for 7% [27] - Global ICL sales growth was up 31% year-over-year, with expectations for Q4 to exceed 40% growth [26][24] Market Data and Key Metrics Changes - ICL unit growth by geography included: Japan up 44%, South Korea up 21%, India up 338%, Germany up 25%, European distributor markets up 22%, Middle East and North Africa up 242%, and the U.S. up 66% compared to the prior year quarter [16] - China remains the largest market, with distributor inventory levels drawn down to historically low levels to meet demand [11] Company Strategy and Development Direction - The company is raising its full-year fiscal 2021 net sales outlook to a range of $230 million to $231 million, representing over 40% year-over-year growth [24] - Strategic imperatives include increasing marketing investments in key U.S. cities and expanding engagement with surgeons [19][21] - The company plans to open an ICL Experience Center in California in the first half of 2022 to enhance surgeon training and marketing education [23] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming temporary supply chain challenges and anticipates catching up on backlog in Q4 and Q1 2022 [50][54] - The company remains optimistic about achieving a compound annual growth rate of over 25% from 2020 to 2022, despite the impact of COVID-19 [24][68] Other Important Information - Cash and cash equivalents as of October 1, 2021, totaled $196.2 million, up from $152.5 million at the end of Q4 2020 [37] - The company plans to participate in several upcoming investor events, including the Canaccord Genuity Virtual MedTech & Diagnostics Forum [38] Q&A Session Summary Question: Regarding the backlog of 20,000 lenses - Management confirmed that the majority of the backlog is related to China and estimated that it could represent at least $65 million in revenue for the quarter if shipped [42] Question: Timing for distributor restocking - Management indicated that replenishment of inventory in China is already underway and they are prepared for the next big season starting in January [45] Question: Supply chain issues and their impact - Management clarified that the supply chain issues were not exclusive to China but were managed effectively to meet critical demand [88] Question: Expectations for U.S. market penetration post-launch - Management aims to achieve at least 20% market share in the U.S. within two to three years post-approval [95] Question: Growth driven by refractive market versus conversions - Management stated that the refractive market grows in the mid-single digits, while the company is growing at least 25% plus, indicating market share gains [82]