Slide 1: Q2 2012 Results Investor Presentation
Q2 2012 RESULTS Investor Presentation August 1, 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 Q2 Revenue Results Barry G. Caldwell 2012 Key Metric Review Chief Executive Officer Financial Review Deborah Andrews Project Comet Update Chief Financial Officer Growth Drivers Barry G. Caldwell Second Half Expectations Chief Executive Officer Q&A Session Your Questions ® Also present on the
Slide 4: 2012 Q2 Revenues Comparison to Q2 2011
2012 Q2 REVENUES COMPARISON TO Q2 2011 ($000’S) Q2 2012 Q2 2011 Improvement ICL Sales $ 8,606 $ 8,293 +$ 313 /+4% IOL Sales $ 6,774 $ 7,076 ($302)/ - 4% Core Product Sales $15,380 $15,369 +$11/Flat Other $ 562 $ 900 ($338)/ - 38% Total Sales $15,942 $16,269 ($327)/ - 2% ®
Slide 5: Visian ICL Revenue Gains Increase of 13% YTD
VISIAN ICL REVENUE GAINS INCREASE OF 13% YTD 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 Q212 Milli ons $ ®
Slide 6: China ICL YoY Revenue Growth Rate
CHINA ICL YOY REVENUE GROWTH RATE 0% 20% 40% 60% 80% 100% 120% 140% 160% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Average 95% Growth Rate YOY since Q1 2010 % ICL Growth 2010 2011 2012
Slide 7: China Media Impact on Refractive Surgery
CHINA MEDIA IMPACT ON REFRACTIVE SURGERY LASIK pioneer advocates education, caution The China Post 3/5/2012 The warning on the FDA's official website states that for some groups of people side effects of LASIK surgery are certain , and a patient should evaluate the risks and the benefits of LASIK su
Slide 8: Key ICL Growth Markets 2012 Q2 Results
KEY ICL GROWTH MARKETS 2012 Q2 RESULTS Q2 2011 Q2 2012 Flat - 14% +74% +83% ® +22% +5% +28% +111% - 28%
Slide 9: EMEA and NA ICL Q2 Results
EMEA AND NA ICL Q2 RESULTS EMEA growth was at 5% (19% growth excluding Spain) Overall ICL sales in Europe increased by 3%, but excluding Spain impact the growth rate for Europe was 28%. We are starting to see the impact of new Sales Directors brought on late last year in Latin America and Italy. 56
Slide 10: 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 11: Financial Review: Manufacturing Consolidation Update
Deborah Andrews Chief Financial Officer FINANCIAL REVIEW MANUFACTURING CONSOLIDATION UPDATE ®
Slide 12: 2012 Q2 GAAP Results Comparison to Q2 2011
2012 Q2 GAAP RESULTS COMPARISON TO Q2 2011 ($000’S) Q2 2012 Q2 2011 Improvement Revenue $15,942 $16,269 ($327)/ - 2.0% Gross Profit Dollars $11,045 $ 10,861 +$184/+1.7% Gross Profit Margin 69.3% 66.8% +250 bps Operating Exps ex Comet $10,512 $ 9,498 +$1,014/+10.7% Operating Expenses $11,209 $ 9,691
Slide 13: 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 Q2 2012 GM% IOL Mix ICL Mix Gross margins have expanded from 49.0% to 69.3%. Q2 Mix: ICLs at 54.0% and IOLs at 42.5%. ®
Slide 14: Reconciliation of Non-GAAP Measure
RECONCILIATION OF NON - GAAP MEASURE Measure Q2 2012 Q2 2011 GAAP net income (loss) ($ 491) $ 861 Mfg consolidation expenses $ 697 $ 193 Foreign currency impact $ 249 ($ 72) Adjustment of warrant value ($ 222) ($ 79) Stock - based compensation expense $ 794 $ 452 Adjusted net income $1,027 $1,355 Ad
Slide 15: Cash
CASH YTD Q2 2012 Q2 2011 Net income (Loss) ($ 259) $1,161 Non - cash $ 2,571 $ 1,751 Working capital ($ 1,084) ($ 1) Cash provided by operations $ 1,228 $2,911 Cash used in investing activities ($ 704) ($ 134) Cash provided by financing activities $ 512 $ 988 Exchange ($ 74) ($ 141) Increase in cash
Slide 16: Project Comet Update: Manufacturing Consolidation
PROJECT COMET UPDATE MANUFACTURING CONSOLIDATION Expenses for the quarter were $697k, $1.3M YTD. Total expense for the year approximately $ 2.3M . The shipping of silicone Preloaded IOLs to Japan from U.S. begins this week. All Silicone Preloaded IOLs for Japan to ship from the U.S. beginning in Oct
Slide 17: STAAR View of 2014 Results
STAAR VIEW OF 2014 RESULTS ® Revenue Over $100M Gross Margin %/$ At or near 80% / $80M Operating Expenses Hog wild to $50M Earning before Tax $30M Tax 10% or $3M Net Income $27M
Slide 18: Expectations for Second Half: Q3 Key Drivers
Barry G. Caldwell Chief Executive Officer EXPECTATIONS FOR SECOND HALF Q3 KEY DRIVERS ®
Slide 19: Second Half Expectations
SECOND HALF EXPECTATIONS Grow total revenues by Solid Double Digits Results in high single digit growth for the year Grow ICL revenues by 25% A ssumes little rebound in China Nearly 20% growth for the year Expect to achieve other 3 key metrics: 71% gross margin for the year Profitability Q3, Q4 and
Slide 20: 2012 Key Metric Report Card
2012 KEY METRIC REPORT CARD Q1 Q2 Q3 Q4 2012 Increase revenues by 15%/ Solid double digit growth 2 nd H &high single digit for year Visian ICL sales growth of 32%/ 25% growth 2 nd H & nearly 20% for year Continuous expansion of GM % to achieve 71% for the full year Profitable each quarter and full y
Slide 21: Q3 Growth Drivers
Q3 GROWTH DRIVERS North American Visian Excellence Group (NAVEG) August 18 and 19 th in Salt Lake City About 70 surgeons registered ICL User’s Meeting, September 6 and 7 th (Milano) Over 100 surgeons registered European Society of Cataract and Refractive Surgeons Meeting, September 8 th to 12 th (Mi
Slide 22: New Hires During the First Half
NEW HIRES DURING THE FIRST HALF 14 OF PLANNED 16 NOW HIRED EMEA Sales in Italy, Latin America, Western Europe Consumer Awareness Position in Middle East Add two more in Spain by September 1 APAC Consumer awareness marketing in China and India Consumer awareness in Japan (hired, begins August) Still
Slide 23: Consumer Awareness Activities
CONSUMER AWARENESS ACTIVITIES Online Marketing Objectives ICL Awareness ICL Adoption ICL Evangelism Online Advertising Acquire traffic and interested patients New ICL website www.visianinfo.com Direct interest to ICL surgeons Practice development ICL in office displays Staff online training ®
Slide 24: ICLs to Rap with Black Eyed Peas
ICLS TO RAP WITH BLACK EYED PEAS Allen Pindea Lindo, Jr., better know as apl.de.ap recently had Visian ICLs implanted Link to Good Morning America program from July 26 th where his procedure was highlighted: http ://abcnews.go.com/blogs/entertainment/2012/07/ black - eyed - peas - apl - de - ap - ge
Slide 25: Thank You! Your Questions Please
THANK YOU! YOUR QUESTIONS PLEASE ®