Iridex reports loss

Iridex announced a net loss of $745,000 for the third quarter of 2012, compared to a profit of $349,000 in the same period last year. Ophthalmology revenues in the third quarter were $7.9 million, compared to $8.3 million in the prior year period.

Gross margin for the third quarter improved to 49.6 percent, compared to 48.3 percent in the prior year period and up from 48.7 percent in the second quarter. Operating expenses, excluding one-time severance expenses of $0.7 million, were $3.8 million in the third quarter compared to $3.7 million in the prior year period and $4.5 million in the second quarter.

"Iridex implemented a number of important strategic and operational realignments during the third quarter," interim CEO William Moore said. "This included a management change at the end of August and the subsequent elimination or reassignment of several senior executive positions. These personnel changes have been accompanied by an assessment of the company's revenue and spending plans in order to give priority to investments that have the potential to deliver significant near term shareholder return via either new revenues or improved efficiencies.  The combination of changes was designed to improve performance and accountability at all levels of the organization."

In February Iridex sold its aesthetics business unit for $5.1 million. The California-based medical device specialist also recently launched a new non-invasive, in-office glaucoma procedure based on its proprietary MicroPulse technology called MicroPulse Laser Trabeculoplasty.