Slide 1: Q1 2012 Results Investor Presentation
Q1 2012 RESULTS Investor Presentation May 2, 2012
Slide 2: Safe Harbor
SAFE HARBOR All statements in this presentation that are not statements of historical fact are forward - looking statements, including any projections of earnings, revenue , sales, profit margins, cash or other financial items, any statements of the plans, strategies, and objectives of management fo
Slide 3: Agenda
AGENDA Q1 Revenue Results Barry G. Caldwell 2012 Key Metric Review Chief Executive Officer Financial Review Deborah Andrews Project Comet Update Chief Financial Officer Recent Meetings Barry G. Caldwell Technology/New Product Updates Chief Executive Officer Upcoming Investor Events Q&A Session Your
Slide 4: 2012 Q1 Revenues
2012 Q1 REVENUES Q1 2012 Q1 2011 Improvement ICL Sales $ 8,605 $ 6,897 +$1,708/+25% IOL Sales $ 6,358 $ 7,120 ($762)/ - 11% Core Product Sales $14,963 $14,017 +$946/+7% Other $ 546 $ 832 ($286)/ - 34% Total Sales $15,509 $14,849 +$660/+4.4% ®
Slide 5: 2011 Key Metric Report Card
2011 KEY METRIC REPORT CARD INCREASED 3 OF 4 METRICS MID - YEAR Q1 Q2 Q3 Q4 2011 Double Digit Revenue Growth Grow ICL Sales by 25% , 30% Continuous Expansion of GM %, End year at 66% , 66.5% Profitable in 3 of 4 all 4 quarters and for the full year ®
Slide 6: 2012 Key Metric Report Card
2012 KEY METRIC REPORT CARD Q1 Q2 Q3 Q4 2012 Increase revenues by 15% Exceed 2011 Visian ICL sales growth of 32% Continuous expansion of GM % to achieve 71% for the full year Profitable each quarter and full year Successfully implement Comet without disruption of product supply ®
Slide 7: Visian ICL Revenue Gains
VISIAN ICL REVENUE GAINS INCREASE OF 25% IN Q1 2012 AND 32% IN 2011 0 1 2 3 4 5 6 7 8 9 10 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Milli ons $ ®
Slide 8: APAC and Top Targeted Markets 2012 Q1 Results
APAC AND TOP 11 TARGETED MARKETS 2012 Q1 RESULTS APAC Top 11 Q1 2011 Q1 2012 +50% +30% ®
Slide 9: Key ICL Asia Pacific Markets 2012 Q1 Results
KEY ICL ASIA PACIFIC MARKETS 2012 Q1 RESULTS Japan India China Korea Q1 2011 Q1 2012 +93% +47% +110% +37% ®
Slide 10: EMEA and NA ICL Q1 Results
EMEA AND NA ICL Q1 RESULTS EMEA growth was at 2% (unusually low rate) During March 2011 we introduced the V4b and stocking distributors ordered the new ranges. WOC held in February reduced refractive procedures overall particularly in Mideast. Meeting not held in 2011. Two fairly large orders held a
Slide 11: Q1 2012 IOL Results
Q1 2012 IOL RESULTS IOL sales declined 11% or $762k during the quarter. During Q1/11 we sold IOL inventory to new distributor, this accounts for half of the total decline. IOL sales in Japan declined 7% or $221k. Very aggressive competitive pricing during the quarter. Japan IOL sales have increased
Slide 12: Overall Q1 Start to 2012
OVERALL Q1 START TO 2012 25% ICL growth rate is healthy start. Q1 2011 was only 18% when we posted a 32% for the year. S lower start with our IOL sales, but with new products and the comparatives for the remainder of year we see growth returning. We reiterate our confidence in achieving our 2012 Key
Slide 13: Financial Review / Manufacturing Consolidation Update
Deborah Andrews Chief Financial Officer FINANCIAL REVIEW MANUFACTURING CONSOLIDATION UPDATE ®
Slide 14: 2012 Q1 GAAP Results Comparison to Q1 2011
2012 Q1 GAAP RESULTS COMPARISON TO Q1 2011 ($000’S) Q1 2012 Q1 2011 Improvement Revenue $15,509 $14,849 +$660/+4.4% Gross Profit Dollars $10,902 $ 9,629 +$1,273/+13% Gross Profit Margin 70.3% 64.8% +550 bps Operating Exps ex Comet $10,069 $ 9,288 +$781/+8% Operating Expenses $10,624 $ 9,421 +$1,203/
Slide 15: Expanding Gross Margins with ICL Product Mix Gains
EXPANDING GROSS MARGINS WITH ICL PRODUCT MIX GAINS 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 2007 2008 2009 2010 2011 Q1 2012 GM% IOL Mix ICL Mix Gross margins have expanded from 49% to 70.3%. Q1 Mix: ICLs at 55.5% and IOLs at 41%. ®
Slide 16: Reconciliation of Non-GAAP Measure
RECONCILIATION OF NON - GAAP MEASURE Measure Q1 2012 Q1 2011 GAAP net income $ 232 $ 300 Mfg consolidation expenses $ 555 $ 133 Gain foreign currency ($ 67) ($ 372) Adjustment of warrant value $ 14 ($ 103) Stock - based compensation expense $ 687 $ 355 Adjusted net income $1,421 $ 313 Adjusted incom
Slide 17: Cash
CASH Q1 2012 Q1 2011 Net income $ 232 $ 300 Non - cash $ 1,362 $ 765 Working capital ($ 2,031) ($ 515) Cash (used in) provided by operations ($ 437 ) $ 550 Cash (used in) provided by investing activities ($ 158) $ 30 Cash provided by financing activities $ 642 $ 475 Exchange ($ 184) ($ 219) (Decreas
Slide 18: Project Comet Update: Manufacturing Consolidation
PROJECT COMET UPDATE MANUFACTURING CONSOLIDATION Q1 2012 Expenses Expenses for the quarter were $555k. Total expense for the year $2M to $2.5M. Progress during the quarter. Project teams with detailed schedules for each move Received the regulatory approval three months earlier than expected to ship
Slide 19: Recent Conference Successes, Technology Updates, Upcoming Investor Events
Barry G. Caldwell Chief Executive Officer RECENT CONFERENCE SUCCESSES TECHNOLOGY UPDATES UPCOMING INVESTOR EVENTS ®
Slide 20: Q1 Key Ophthalmic Conferences
Q1 KEY OPHTHALMIC CONFERENCES Significantly increased presence at major meetings World Ophthalmology Conference in Abu Dhabi First Mideast ICL Experts Meeting Revolutions in Refractive Surgery Symposium 16 presentations on Visian ICL American Society of Cataract & Refractive Surgeons Welcome recepti
Slide 21: Q1 Technology Updates
Q1 TECHNOLOGY UPDATES ® Inventions completed during the quarter allowing Collamer lens to be sterilized in preloaded system. Key feature on the Visian V5 ICL Key surgeons evaluated during ASCRS meeting with very good feedback Believe same system can be used to preload nanoFLEX IOLs
Slide 22: Q1 Technology Updates: nanoFLEX Toric IOL
Q1 TECHNOLOGY UPDATES nanoFLEX Toric IOL We had planned to start implanting this new IOL during Q1 - it is now planned for Q2 This will allow us to open more markets in Europe to the nanoFLEX IOL as well KS - SP Single Piece Preloaded Acrylic IOL This is an important IOL for Japan and Europe We were
Slide 23: 2012 Key Metrics
2012 KEY METRICS Increase revenues by 15%. Exceed 2011 ICL growth rate of 32%. Continuous expansion of gross margin and achieve 71% for the full year. Profitable each quarter and the full year. Successfully implement mfg. consolidation without disruption to customer service levels and quality ®
Slide 24: Upcoming Investor Events
UPCOMING INVESTOR EVENTS Deutsche Bank Healthcare Conference May 8th Boston Annual Shareholders Meeting May 14 th Monrovia, California 13 th Annual B. Riley Investor Conference May 23 rd Santa Monica, California Benchmark One on One Conference May 31 st Milwaukee Jefferies Global Healthcare Conferen
Slide 25: Thank You! Your Questions Please
THANK YOU! YOUR QUESTIONS PLEASE ®