Financial Data and Key Metrics - Total revenue for Q3 2024 was $11.6 million, a 10% decline compared to $12.9 million in Q3 2023 [17] - Gross profit in Q3 2024 was $4.3 million, down from $5.6 million in Q3 2023, with gross margin declining to 37.3% from 43.7% [20] - Operating expenses decreased by $1.1 million to $6.2 million in Q3 2024 compared to $7.3 million in Q3 2023 [21] - Net loss in Q3 2024 was $1.9 million or $0.12 per share, compared to a net loss of $1.8 million or $0.11 per share in Q3 2023 [22] - Cash and cash equivalents totaled $3.9 million as of September 28, 2024, including $3.4 million from a convertible note offering [23] Business Line Data and Key Metrics - Cyclo G6 product family revenue was $3.1 million in Q3 2024, a 3% increase compared to Q3 2023 [17] - 13,600 Cyclo G6 probes were sold in Q3 2024, a 10% sequential decline from Q2 2024 [18] - Retina segment revenue was $6.5 million in Q3 2024, down 18% compared to Q3 2023 [19] - Other revenue, including royalties and services, was $2 million in Q3 2024, up from $1.9 million in Q3 2023 [19] Market Data and Key Metrics - The company experienced shipment delays in certain regions due to regulatory hurdles, which are expected to be resolved in Q4 2024 [12] - The glaucoma products family showed increasing momentum, with aggregate glaucoma probe and console sales up compared to the prior year [13] Company Strategy and Industry Competition - The company is actively discussing potential transactions with multiple entities, with an announcement possible before the end of 2024 [7] - Cost-cutting measures are being implemented to align expenses with operating cash flows, aiming for EBITDA breakeven or better in Q4 2024 [8][29] - The company is accelerating engagement with global contract manufacturing partners to improve gross margins through increased outsourcing [29] - The revised LCD reimbursement change for glaucoma, effective November 17, 2024, is expected to increase physician adoption of IRIDEX glaucoma products [31][32] Management Commentary on Operating Environment and Future Outlook - The company expects Q4 2024 to be EBITDA positive, driven by seasonal strength and cost optimization efforts [8][24] - Management believes the new LCD reimbursement landscape will significantly benefit IRIDEX by restricting MIGS device usage and increasing adoption of IRIDEX glaucoma products [32] - The company is focusing on competitive advantages and high-return opportunities as it reduces aggressive spending [30] Other Important Information - The company introduced the new I-5 laser platform at the American Academy of Ophthalmology meeting, generating promising leads [14] - The strategic review process has been accelerated, with strong interest expressed by third parties in IRIDEX's global brand and products [7] Q&A Session - No Q&A session was conducted during the call [5][34]
IRIDEX (IRIX) - 2024 Q3 - Earnings Call Transcript