IRIDEX (US:IRIX)2025-05-13 22:02Financial Data and Key Metrics Changes - Total revenues for Q1 2025 were $11,900,000, a slight increase from $11,800,000 in Q1 2024 [17] - Adjusted EBITDA for Q1 2025 was $400,000, an improvement of $2,900,000 compared to an adjusted EBITDA loss of $2,500,000 in Q1 2024 [9][20] - Net loss for Q1 2025 was $1,700,000 or $0.10 per share, compared to a net loss of $3,500,000 or $0.21 per share in the same period last year [20] Business Line Data and Key Metrics Changes - Revenue from the Cyclo G6 glaucoma product family increased by 8% year over year to $3,200,000, driven by higher probe sales [19] - Retina product revenue decreased by 3% to $6,600,000, primarily due to lower PASCAL system sales, partially offset by higher medical and surgical retina system sales [17][18] - Surgical retina sales exceeded expectations, with notable increases in TX product sales, marking the highest volume since Q3 2023 [12] Market Data and Key Metrics Changes - EMEA remains the most stable revenue generator with strong growth potential in the glaucoma segment [14] - In Asia, regulatory approvals for the IRIDEX PASCAL system are driving strong capital equipment sales, particularly in India and Japan [14] - Latin America is stabilizing with clear growth momentum following the approval of IRIDEX PASCAL systems in key markets [14] Company Strategy and Development Direction - The company is focused on innovation and long-term value creation in partnership with Novel Inspiration, aiming to leverage its global customer base and improve operations [15] - Future strategies include optimizing gross margins and exploring partnerships, distribution agreements, or small acquisitions to expand the product portfolio [16] - The company aims to achieve cash flow breakeven and positive adjusted EBITDA results in 2025, contingent on current conditions [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's improved financial condition and operational efficiency, highlighting the positive trajectory towards profitability [6][23] - The company anticipates minimal direct exposure to new tariff policies due to its manufacturing and sourcing primarily within the United States [22] - Management emphasized the importance of maintaining financial discipline and continuing to reduce costs while driving revenue growth [28] Other Important Information - A strategic investment of $10,000,000 from Novel Inspiration was made in March 2025, strengthening the company's balance sheet [7][21] - The company has implemented significant cost reduction measures, resulting in a decrease in operating expenses from $7,800,000 in Q1 2024 to $5,300,000 in Q1 2025 [20] Q&A Session Summary Question: Impact of tariffs on the company - The company expects minimal direct exposure to recent tariff policies as most products are sourced and manufactured in the U.S., providing a pricing and supply chain advantage [24][25] Question: Product extension discussions with Novel - The company is exploring opportunities to expand its product portfolio through distribution agreements, partnerships, or small acquisitions, supported by Novel [26][27] Question: Change in cash burn and achieving cash flow breakeven - Management confirmed that the company is on track to end cash burn, with a significant reduction in operating expenses and a plan to achieve positive adjusted EBITDA and cash flow breakeven this year [28][29]