STAAR Surgical(US:STAA)2020-02-27 04:07Financial Data and Key Metrics Changes - STAAR reported net sales of $38.9 million in Q4 2019, a 25% increase from $31.2 million in the prior year [21] - Gross profit margin for Q4 was 74.1%, up 40 basis points from 73.7% in the prior-year quarter [22] - Net income for Q4 was $6.4 million or approximately $0.14 per diluted share, compared to $1.1 million or $0.02 per diluted share in the year-ago quarter [25][26] - Cash, cash equivalents, and restricted cash totaled $120 million at January 3, 2020, compared to $104 million at the end of the previous year [27] Business Line Data and Key Metrics Changes - ICL sales represented 86% of total company sales for both Q4 and the fiscal year of 2019, with ICL unit growth of 27% [21][22] - ICL unit growth in Q4 was driven by significant increases in Japan (95%), China (43%), Germany (29%), Spain (20%), India (16%), and the US (10%) compared to the prior-year period [9] Market Data and Key Metrics Changes - The company experienced a fourfold increase in visits to its ICL website Doc Finder, with over 1 million visits in 2019, indicating strong marketing effectiveness [10] - Approximately half of STAAR's customers in China remained closed due to the coronavirus, but engagement with healthcare professionals through online training was high [12] Company Strategy and Development Direction - STAAR plans to increase marketing investment and creativity in 2020, focusing on building awareness around the EVO ICL family of lenses [19] - The company anticipates a phased rollout of its EVO EDOF lens for presbyopia by the end of Q2 2020, targeting early presbyopes aged 45 to 55 [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the current pause in procedures due to the coronavirus is a short-term deferment rather than a loss of sales [13] - The company expects a potential $5 million to $7 million delay in sales orders for Q1 but is maintaining its full-year sales forecast for 2020 [14] Other Important Information - STAAR has initiated a search for a new CFO as Deborah Andrews plans to retire in 2020 after transitioning to a new CFO [20] - The company has no supply chain or manufacturing risk in China or other Asian geographies [13] Q&A Session Summary Question: Impact of coronavirus on sales - Management indicated that they expect to recapture delayed sales as customers are eager to resume procedures once clinics reopen [34] Question: Approval timing for clinical trials - Management provided details on the phased rollout plan for the EVO lens and the expected timeline for data preparation for FDA submission [36][45] Question: Capacity to meet demand post-coronavirus - Management confirmed that they are well-prepared to meet demand as procedures are rescheduled [58] Question: Training surgeons before EVO approval - Management clarified that no commercial training can occur until the EVO lens is approved in the US [59] Question: Strategic cooperation agreements and sales delays - Management reassured that flexibility exists in meeting annual commitments despite the sales delays [64]