Revenue for the first quarter of 2008 was $11.5 million, an 8.7% decreasefrom the $12.6 million reported for the first quarter of 2007. The Company'snet loss was $0.9 million or $0.10 per diluted share for the first quarter of2008 compared with a net loss of $4.9 million or $0.61 per diluted share inthe first quarter of 2007. The prior year financial results do include theAMS/Laserscope aesthetics acquisition, which was completed on January 16,2007.
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Ophthalmology revenues were $7.5 million in the first quarter of 2008compared with $7.2 million in 2007, an increase of 4.8%. Domesticophthalmology revenues increased 10.6% to $4.4 million. Internationalophthalmology revenues decreased 2.4% to $3.1 million. Ophthalmology recurringrevenues, consisting of disposable products and service, represented 55.2% ofour total ophthalmology revenues for the first 3 months in 2008 and 55.5% forthe comparable period in 2007.
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Total aesthetics revenues were $3.9 million in the first quarter of 2008compared with $5.4 million in the comparable period of 2007, a decrease of26.8%. In the first quarter 2008 domestic aesthetics revenues decreased$1.2 million to $1.5 million and international aesthetics revenues decreased$0.3 million to $2.4 million.
Gross profit for the first quarter of 2008 was $4.8 million, compared with$5.2 million for the first quarter of 2007. Gross margins were 41.9% and41.5%, respectively. Operating expenses for the first quarter 2008 were$5.5 million compared with $10.0 million for 2007.
Mr. Theodore A. Boutacoff, President and CEO stated, "Operationally we areprogressing towards financial stability as demonstrated by the substantialreduction in our quarterly operating loss from $4.9 million to $0.9 millionprimarily due to reductions in operating expenses. During the first quarter wemet our obligations with AMS by paying $1.7 million, leaving a balance relatedto the Settlement Agreement of $3.1 million which we plan to fully satisfy bythe end of our third fiscal quarter. In addition, during the first quarter wesuccessfully negotiated a new bank credit facility with Wells Fargo Bank thatreplaced our previously existing credit agreements. The new credit facility isan asset based revolving line that allows the Company to borrow up to$8 million.
"We continue to be encouraged by our improving ophthalmology revenues. Thedecrease in our aesthetics revenues is primarily due to the difficultiesincurred in the U.S. distribution channel during 2007, which are still beingexperienced, coupled with the overall softening of the U.S. aesthetics market.A focus in 2008 is to establish a productive US aesthetics sales channel."
Cash and cash equivalents were $4.0 million as of March 29, 2008 down from$5.8 million in December 29, 2007 (this does not include $3.8 million inrestricted cash). Inventories remained constant at $16.0 million as of March29, 2008 as compared to December 29, 2007. Accounts receivable were$8.4 million as of March 29, 2008, compared to $8.9 million as of December 29,2007.
Conference Call
IRIDEX management will conduct a conference call later today, Tuesday, May13, 2008 at 5:00 p.m. Eastern Time. Interested parties may access the liveconference call via telephone by dialing (800) 240-7305 (U.S.) or(303) 262-2130 (International), or by visiting the Company's website atwww.iridex.com. A telephone replay will be available beginning on Tuesday,May 13, 2008 through Tuesday, May 20, 2008 by dialing (800) 405-2236 (U.S.) or(303) 590-3000 (International) and entering Passcode 11114278#. In addition,later today an archived version of the webcast will be available on theCompany's website at http://www.iridex.com.
About IRIDEX
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