Staar Surgical Co (STAA, Financial), a leading developer, manufacturer, and marketer of the EVO family of Implantable Collamer® Lenses (ICL) for myopia, astigmatism, and presbyopia, released its financial results for the third quarter ended September 29, 2023, on November 1, 2023. The company reported a 6% year-over-year increase in net sales, reaching $80.3 million. This includes a $0.8 million sales reduction related to other products.
Financial Performance
ICL sales for the quarter were $81.1 million, up 13% Y/Y, while ICL units were up 14% Y/Y. Gross margin stood at 79.2%, slightly down from 79.5% in the prior year quarter. Net income was $0.10 per share, down from $0.21 per share in the prior year quarter. The company's cash, cash equivalents, and investments available for sale ended the quarter at $201.7 million.
Company's Commentary
“Third quarter sales reflect our leadership in lens-based refractive surgery and progress advancing our strategic priorities,” said Tom Frinzi, President and CEO of STAAR Surgical. “Our global ICL sales growth of 13% in the third quarter significantly outperformed industry procedure growth, which was negative in many markets around the world with the exception of China."
Financial Overview
Net sales for the third quarter of 2023 were $80.3 million, up 6% compared to $76.1 million reported in the prior year quarter. The sales increase was driven by ICL sales growth of 13% and ICL unit growth of 14%, both as compared to the prior year period. Other Product sales for the third quarter of 2023 were ($0.8) million compared to $4.1 million in the prior year quarter.
Operating Expenses
Operating expenses for the third quarter of 2023 were $57.3 million compared to the prior year quarter of $46.8 million. General and administrative expenses were $19.3 million compared to the prior year quarter of $14.0 million. The increase in general and administrative expenses was due to increased compensation related expenses, outside services, and facilities costs.
Net Income
Net income for the third quarter of 2023 was $4.8 million or $0.10 per diluted share compared with net income of $10.3 million or $0.21 per diluted share for the prior year quarter. The year-over-year decrease in net income is attributable to higher operating expenses partially offset by higher gross profit and other income (expense).
Cash Position
Cash, cash equivalents, and investments available for sale at September 29, 2023, totaled $201.7 million, compared to $225.5 million at the end of the fourth quarter of 2022.
Explore the complete 8-K earnings release (here) from Staar Surgical Co for further details.
