Slide 1: Q4 and Full Year 2011 Results
Q4 AND FULL YEAR 2011 RESULTS Investor Presentation March 6, 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, profit margin, cash or other financial items, any statements of the plans, strategies, and objectives of management for future
Slide 3: Agenda
AGENDA Key O verview & Metric Review Barry G. Caldwell Chief Executive Officer Financial Review Deborah Andrews Chief Financial Officer Keys to 2012 Success Barry G. Caldwell 2012 Key Metrics Chief Executive Officer Q&A Session Your Questions ®
Slide 4: Strong Sales, Margin Expansion and Profitability
STRONG SALES, MARGIN EXPANSION AND PROFITABILITY Visian ICL sales grew by 37% Q4/32% 2011 Strong double digit sales growth of 14% for Q4/ 14% for 2011 Continued gross margin expansion by 510 bps in Q4/370 bps in 2011 Profitable in all 4 quarters/first profitable year in 12 years Six new products lau
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: Financial Review
Deborah Andrews Chief Financial Officer FINANCIAL REVIEW ®
Slide 7: Expanding Gross Margins with ICL Product Mix Gains
EXPANDING GROSS MARGINS WITH ICL PRODUCT MIX GAINS Gross margins have expanded from 49% to 69.8%. Q4 Mix: ICLs at 55% and IOLs at 41%. 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 2007 2008 2009 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 GM% IOL Mix ICL Mix ®
Slide 8: Project Comet Expenses Manufacturing Consolidation
PROJECT COMET EXPENSES MANUFACTURING CONSOLIDATION Q4 2011 Approximately $600,000 Advanced some expenses and will continue to do so if the opportunity arises Full year Approximately $1.1 million Anticipated 2012 Comet spending $2M - $2.5M ®
Slide 9: Income Tax Provisions
INCOME TAX PROVISIONS Q4 $370k 77% rate as compared to IBIT Full year $1.4 million 50% rate as compared to IBIT Over 3X paid in full year 2010 Projected tax rate for 2012 is 40% to 45% ®
Slide 10: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON - GAAP MEASURES Measure Q4/11 Q4/10 2011 2010 Net income (GAAP) $ 109 $ (691) $ 1,348 $ 53 Mfg consolidation expenses $ 597 -- $ 1,060 -- Gain (loss) foreign currency $ 81 $ 94 $ (86) $ 87 Adjustment of warrant value $ 146 $ 27 $ 118 $ 143 Stock - based compensation expense $ 5
Slide 11: Evidence of Quality of Our Earnings
EVIDENCE OF QUALITY OF OUR EARNINGS $9.7 million swing in cash generated from operations during 2011 $5.4 million positive swing in operating income during 2011 2011 2010 Cash Generation $5.3M $(4.4M) 2011 2010 Operating Income $2.8M $(2.6M) ®
Slide 12: Keys to 2012 Success: 2012 Key Operating Metrics
Barry G. Caldwell Chief Executive Officer KEYS TO 2012 SUCCESS 2012 KEY OPERATING METRICS ®
Slide 13: Product Mix Evolution
PRODUCT MIX EVOLUTION 2010 Actual 2011 Actual ICLs IOLs Other 2012 Estimate 44.2 % 51.1% 59.9% 50.1% 43.9% 36.6% ®
Slide 14: Geographical Distribution of Sales
GEOGRAPHICAL DISTRIBUTION OF SALES 2010 Actual 28% 2011 Actual APAC EMEA NA 22.9% 2012 Estimate 21.5% 50.7 % 55.3% 56% 21.1% 21.7% 23.5% ®
Slide 15: 2011 IOL Mix and Gross Margin Improvement
2011 IOL MIX 200 BPS GROSS MARGIN IMPROVEMENT PL-Silicone PL-Acrylic Collamer Silicone Toric 55% 17% 16% 7% 5% ®
Slide 16: Three New IOL Launches in Process During 2012
THREE NEW IOL LAUNCHES IN PROCESS DURING 2012 IOLs nanoFLEX IOL Q3 2011 to Europe nanoFLEX Toric IOL Q1/Q2 2012 to Europe KS - SP Single Piece Preloaded Acrylic Q2 2012 to Europe and Japan ®
Slide 17: Visian ICL Revenue Gains
VISIAN ICL REVENUE GAINS INCREASE OF 37% IN Q4 AND 32% IN 2011 Milli ons $ 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 ®
Slide 18: 2011 Visian ICL Growing Market Shares
2011 VISIAN ICL GROWING MARKET SHARES Market 2011 Proc. Proc. ∆ ICL U ∆ TICL V4c China * 1,003,000 +11% +84% Yes 2012/13 U.S. * 763,000 +6% (1%) 2012 2013 Japan * 325,000 (13%) +167% Yes 2014 Latin Am * 219,000 +3% +8% Yes 2012 Spain * 155,000 +5% +5% Yes Yes India * 141,000 +4% +36% Yes 2012/13 S.
Slide 19: Key ICL Asia Pacific Markets 2011 Results
KEY ICL ASIA PACIFIC MARKETS 2011 RESULTS Japan India China Korea 2010 2011 ® +158% +42% +94% +34%
Slide 20: Key ICL European Markets 2011 Results
KEY ICL EUROPEAN MARKETS 2011 RESULTS Germany Latin Am Middle East Spain 2010 2011 +78% +26% +50% +11%
Slide 21: Three New ICL Market Launches in Process During 2012
THREE NEW ICL MARKET LAUNCHES IN PROCESS DURING 2012 ICLs V4b and V4c ICL Q3 2010 and Q4 2011 to Europe Additional approvals 2012 V4 ICL Q4 2011 to Brazil V4 TICL Q4 2011 to Japan ®
Slide 22: 2012 Planned ICL Investments
2012 PLANNED ICL INVESTMENTS SALES AND MARKETING HEADCOUNT ADDITIONS (16) Global Sales (+13) China 2 in Japan India Latin America √ Mideast √ Italy √ 2 in Spain 4 in U.S. √ Global Marketing (+3) 2 in Social Media 1 in Clinical Marketing in APAC ®
Slide 23: 2012 Key Metrics
2012 KEY METRICS Increase revenues by 15 %. Exceed the 2011 Visian ICL revenue growth rate of 32%. Continuous expansion of gross margins to achieve 71% for the full year. Profitable each quarter and for the full year. Accomplish manufacturing consolidation with no disruption to customer supply requi
Slide 24: Coverage & Investor Trip Updates
COVERAGE & INVESTOR TRIP UPDATES New coverage initiations last week Canaccord Genuity Jason Mills Northland Capital Bruce Jackson Upcoming investor trips Benchmark Non - Deal Roadshow March 14 th New York City March 15 th Boston Stephens West Coast Conference March 22 nd San Francisco ®
Slide 25: Thank You! Your Questions Please
THANK YOU! YOUR QUESTIONS PLEASE ®