Financial Data and Key Metrics Changes - Total revenue for Q1 2024 was $11.8 million, down $1.9 million from the prior year period, primarily due to loss of royalty revenue and continued softness in capital equipment purchases [34][38] - Gross profit for Q1 2024 was $4.5 million, compared to $5.9 million in the prior year, with a gross margin of 37.9%, down from 43.3% [21][22] - The net loss for Q1 2024 was $3.5 million or $0.25 per share, compared to a net loss of $2.1 million or $0.13 per share for the same period in 2023 [22] Business Line Data and Key Metrics Changes - In the glaucoma segment, Cyclo G6 revenue was $3.0 million, down from $3.7 million in Q1 2023, with 13,300 G6 probes sold, representing a 4% sequential growth from Q4 2023 [6][9] - Retina product revenue was $6.8 million, a decrease of 6% compared to Q1 2023, driven by lower medical and surgical system sales, partially offset by higher PASCAL system revenue [7][20] Market Data and Key Metrics Changes - The company experienced longer sales cycles and capital equipment purchase deferrals, impacting overall revenue [5][34] - There was a noted softness in U.S. probe sales, with concerns over potential reimbursement changes affecting new system purchases [32][41] Company Strategy and Development Direction - The company is focused on executing business line growth strategies to drive adoption of both retina and glaucoma technologies, with a refreshed product portfolio generating customer interest [14][15] - IRIDEX is actively engaged in a strategic review process, exploring potential transactions to unlock value for stockholders [29][13] Management Comments on Operating Environment and Future Outlook - Management acknowledged ongoing market headwinds but expressed confidence in the company's strong market position and the potential for revenue recovery driven by stabilized reimbursement for glaucoma procedures [15][17] - There are expectations for continued improvement in environmental factors affecting the business, with indications of firming orders in the second quarter [31][17] Other Important Information - Operating expenses in Q1 2024 were $7.8 million, down from $8.3 million in the same period last year, due to planned cost reduction initiatives [37] - Cash and cash equivalents totaled $5.4 million as of March 30, 2024, with a net cash reduction of $1.6 million in the quarter [38] Q&A Session Summary Question: Inquiry about future potential transactions and M&A appetite - Management confirmed that discussions with other parties are ongoing following the termination of a previous asset sale process, focusing on uncovering strategic value [24] Question: Clarification on G6 probe utilization and international strength - Management noted strength in international sales of G6 probes, with a stabilization in U.S. probe sales, but acknowledged lingering concerns over reimbursement affecting new adoption [25][27] Question: Outlook for 2024 revenue guidance - Management indicated that while they are not providing specific revenue guidance, there is an expectation of recovery and growth if current trends continue [43][45] Question: Cash balance and accounts payable outlook - Management expects cash burn to be materially lower in 2024 compared to 2023, with a typical cash usage of $1.5 million to $2 million per quarter [48][49]
IRIDEX (IRIX) - 2024 Q1 - Earnings Call Transcript