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Apr 03, 2020
STAAR Surgical Q1 2020 Earnings Report
STAAR Surgical's financial results for Q1 2020 were reported, showing an increase in net sales and ICL sales, but a decrease in gross margin and net income compared to the prior year quarter.
Key Takeaways
STAAR Surgical reported net sales of $35.2 million, an 8% increase compared to the prior year quarter. ICL sales increased by 6% and units by 9%. Gross margin decreased to 70.4% from 74.2% in the prior year, and the company experienced a net loss of approximately breakeven per share, compared to a net income of $0.03 per share in the prior year quarter. Cash and cash equivalents ended the quarter at $110.9 million.
Net sales increased by 8% to $35.2 million compared to the prior year quarter.
ICL sales grew by 6% with a 9% increase in units compared to the prior year quarter.
Gross margin decreased to 70.4% compared to 74.2% in the prior year quarter.
Net loss was approximately breakeven per share, compared to a net income of $0.03 per share in the prior year quarter.
Forward Guidance
STAAR Surgical anticipates that Q2 will be negatively impacted by markets reopening in late May and June. However, the company expects to resume double-digit growth in Q3 and Q4, assuming no further forced closures or challenging COVID-19 scenarios.
Positive Outlook
- Large Asian markets are growing well now.
- Company expects to resume double-digit growth outlook originally targeted in Q3 and Q4.
- Strong desire to resume refractive surgery quickly once elective procedures are allowed.
- Highest ICL sales and unit growth experienced in the last five years for January.
- Major markets which remained open continued trend into the middle of March.
Challenges Ahead
- Significant winding down or pause of implants in COVID-19 hotspots.
- Q2 will be negatively impacted by the markets that are just returning to re-open their clinics and practices in late May into June.
- COVID-19 impact on revenue of approximately $4.0 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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