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Exhibit 99.1
FOR IMMEDIATE RELEASE Contact: Robert Kamenski
Chief Financial Officer
(650) 940-4700
December 6, 2000
Mountain View, California
IRIDEX EXPECTS LOWER THAN ANTICIPATED
FOURTH QUARTER RESULTS
UPDATED GUIDANCE GIVEN FOR 2001
IRIDEX Corporation (NASDAQ/NMS:IRIX) announced that it expects sales for
the fourth fiscal quarter ending December 30, 2000 will be in the range of $8.0
to $8.3 million, $1.6 to $2.0 million less than the amount previously expected
for the quarter. Earnings per share for the fourth quarter of 2000 is expected
to be between $0.04 and $0.05 per share, $0.06 to $0.09 less than the number
previously expected for the quarter. While these expected results are short of
expectations for the quarter, IRIDEX expects to report a record year for 2000
with revenue of approximately $33.5 million. Earnings per share for 2000 is
expected to be between $0.31 and $0.32, an increase of between 29% and 33%
compared to 1999.
The revenue shortfall in the fourth quarter of 2000 is primarily due to a
delay in initial customer shipments of its new Apex 800 hair removal system. The
company now expects initial customer shipments of the Apex to occur in the first
quarter of 2001. The purpose of the delay is to enhance the product's
competitiveness in the market. Secondarily, the company believes that the lack
of clarity in reimbursement in the U.S. for certain Age-related Macular
Degeneration (AMD) procedures is delaying order placement for company products
used to perform the procedures. While it is expected that these reimbursement
issues will be resolved in 2001, revenues for 2001, particularly in the first
half of the year, are likely to be lower than previously expected.
IRIDEX management will conduct a conference call today for those interested
at 3:00 p.m. PST/6:00 p.m. EST. The dial-in number is 800-230-1059. A recording
of this call will be available for replay for five days beginning at 6:30 p.m.
PST/ 8:30 p.m. EST. The number for the replay is 800-475-6701 and the access
code is 556688.
IRIDEX's Commitment to Ophthalmology and AMD
IRIDEX continues to focus efforts on product and clinical procedure
development that can help doctors treat the leading causes of blindness and
preserve vision. The three leading causes of irreversible blindness are
glaucoma, diabetic retinopathy and age-related macular degeneration (AMD).
IRIDEX products and related applications successfully treat all three of these
diseases. The largest opportunity in ophthalmology is AMD, the leading cause of
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blindness in the western world. Over the past eight years, IRIDEX has
contributed to the development of five treatment protocols for AMD, a disease
which affects about 50 million people worldwide. Two of these protocols are
directed at treating the dry form of AMD, while three protocols are directed at
treating the wet form. One wet approach uses a novel PDT agent in collaboration
with Miravant Medical Technologies and Pharmacia Corporation. Therefore, unlike
most companies who are developing a single approach to treat a specific stage of
AMD, IRIDEX is developing and putting into practice a number of applications to
treat AMD at the earliest stage where maximum vision is preserved.
About IRIDEX
IRIDEX Corporation is the leading worldwide provider of semiconductor-based
laser systems used to treat eye diseases for ophthalmology and skin lesions for
dermatology. IRIDEX products are sold in the United States through a direct
sales force and internationally through 58 independent distributors into 74
countries. The Company markets its products using three brand names: IRIS
Medical to the ophthalmology market, IRIDERM to the dermatology market, and
Light Solutions to the research market. IRIDEX was recognized as one of the
fastest growing 100 public companies in Silicon Valley by The Business Journal
in their 1999 listing. For further information, visit the Company's website at
www.iridex.com.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act
of 1934 such as those regarding sales and earnings estimates and the company's
future performance, the timing of initial shipments of the Apex 800, sales
impact of reimbursement issues, the earnings impact of sales estimates and the
timing and resolution of the reimbursement issue. Actual results could differ
materially from those projected in the forward-looking statements. Risks and
uncertainties to which the Company is subject may include, but may not
necessarily be limited to, the amount of orders that the Company receives and
ships during the quarter, any accounting adjustments made as a result of the
year end audit, any delay in the final development or manufacture of the Apex
800, market acceptance of the company's products including the Apex 800, the
speed at which the Health Care Financing Administration (HCFA) and local
carriers are willing to address AMD reimbursement issues and their internal
policies regarding the matter, risks associated with bringing new products to
market, competition in our markets, dependence on international sales, risks
associated with manufacturing our products, and dependence on key manufacturers
and suppliers.
