STAAR Surgical(US:STAA)2020-11-05 01:53Financial Data and Key Metrics Changes - Total net sales for Q3 2020 were $47.1 million, up 21% compared to $39.1 million in Q3 2019, and up 34% sequentially from Q2 2020 [22] - Gross profit for Q3 2020 was $34.9 million, representing 74.1% of net sales, compared to 74.4% in the prior year quarter [23] - Operating income in Q3 2020 was $4.9 million, or 10.4% of net sales, compared to $3.3 million, or 8.5% of net sales in the year-ago quarter [28] - Net income for Q3 was $4 million, or $0.08 per diluted share, compared to $2.4 million, or $0.05 per share in the prior year [28] - Cash and cash equivalents as of October 2, 2020, totaled $128.3 million, up $12 million from $116.3 million at the end of Q2 2020 [29] Business Line Data and Key Metrics Changes - ICL sales represented 88% of total company net sales for Q3 2020, consistent with recent trends [23] - Research and development expenses increased to $8.8 million in Q3 2020 from $6.2 million in the year-ago quarter, primarily due to increased clinical expenses [27] Market Data and Key Metrics Changes - ICL unit growth in Q3 was 25% globally, with standout markets including China (up 33%), Japan (up 67%), and South Korea (up 21%) [10][11] - Excluding India and the Middle East, global ICL unit growth would have been 32% [11] Company Strategy and Development Direction - The company aims to increase global market share from 10% to 20%-30% in the foreseeable future [21] - The launch of the EVO Viva presbyopia correcting lens in Europe is part of the company's strategy to expand its product offerings [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for EVO lenses, reflecting pre-COVID levels, and reiterated the outlook for Q4 2020 with expected net sales of approximately $43 million [21] - The company is monitoring COVID-19 developments and their potential impact on business operations [12] Other Important Information - The company has made progress on two new products for the U.S. and European markets, with plans for FDA submission in the first half of 2021 [17] - The EVO website saw a 250% increase in unique visitors year-to-date through Q3 2020 [16] Q&A Session Summary Question: Pricing and Demand in China - Management confirmed that pricing in China improved, with a strong quarter for average selling prices globally [34] - The majority of demand observed is new demand rather than deferred procedures [37] Question: Refractive Restart Program - The program has helped surgeons attract patients by offering one lens free of charge for bilateral implant patients, resulting in a 70% sequential increase in units [46] Question: Market Share in Japan - Japan has seen significant growth, with the company achieving over 30% market share, and plans to continue working with key opinion leaders [53] Question: Fourth Quarter Expectations - Management expects double-digit growth in Q4, but will be cautious due to potential COVID-19 impacts [71]