STAAR Surgical(US:STAA)2021-08-05 02:57Financial Data and Key Metrics Changes - Total net sales for Q2 2021 were $62.4 million, up 77% compared to $35.2 million in Q2 2020, and up 23% sequentially from Q1 2021 [26][34] - Gross profit for Q2 2021 was $49.2 million, representing 78.9% of net sales, compared to 69.4% in Q2 2020 [28] - Operating income in Q2 2021 was $10.7 million, or 17.2% of net sales, compared to an operating loss of $600,000 in Q2 2020 [33] - Net income for Q2 2021 was $8.6 million, or $0.17 per diluted share, compared to a net loss of $1.2 million in Q2 2020 [34] Business Line Data and Key Metrics Changes - Global ICL unit growth for Q2 2021 was up 79% year-over-year, driving net sales growth [11] - ICL sales represented 95% of total company net sales for Q2 2021, with other products making up 5% [27] - The year-over-year increase in net sales for Q2 2021 was primarily due to global ICL sales growth, which was up 93% [26] Market Data and Key Metrics Changes - In China, ICL unit growth was up 65%, while Japan saw a 95% increase, and South Korea experienced a 57% rise [11] - The U.S. market reported a 255% increase in ICL sales year-over-year [11] - The Middle East and North Africa saw a staggering 378% growth in ICL sales [11] Company Strategy and Development Direction - The company is focusing on premium lens-based business and greater revenue per procedure, anticipating a shift from laser vision correction to ICL [18] - STAAR is increasing its net sales outlook for the full year fiscal 2021 to a range of $227 million to $230 million, up from a previous outlook of $215 million to $217 million [24] - The company is preparing for broader commercialization of the EVO lens and continues to work on regulatory pathways for marketing approval outside of Europe [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth opportunities, citing a third-party research firm naming STAAR the fastest-growing company in ophthalmology [22] - The company remains mindful of ongoing COVID-19 challenges but is optimistic about continued demand for EVO lenses [23] - Management highlighted the importance of in-person trade shows and conferences for advancing commercialization strategies [20] Other Important Information - Cash and cash equivalents as of July 2, 2021, totaled $173.1 million, up from $152.5 million at the end of Q4 2020 [36] - The company plans to participate in several investor conferences in the coming weeks [37] Q&A Session Summary Question: Comments on the dynamics between laser vision correction and ICL in China and Europe - Management noted that ICL is gaining ground among moderate myopia patients, with studies supporting higher patient satisfaction compared to laser vision correction [42] Question: Expectations for revenue building for the U.S. launch of EVO - Management indicated strong enthusiasm from surgeons for the EVO lens and expects significant market share growth similar to past experiences in China [51][53] Question: Plans for training U.S. surgeons for EVO - Management confirmed that training materials and certification requirements are ready, and they do not foresee training as a limiting factor [92] Question: Impact of COVID variants on business in China and Japan - Management reported limited disruptions in China due to COVID, while Japan experienced a slight decrease in lens implants during the Olympics, but expects a return to normal [64] Question: Future of current Visian ICL lenses post-EVO approval - Management stated that current Visian ICL lenses will continue to be sold alongside EVO due to the advantages of the new lens [68]