LAKE FOREST, Calif.—STAAR Surgical Company (NASDAQ: STAA), a leading developer, manufacturer and marketer of the EVO family of Implantable Collamer Lenses (EVO ICL) for myopia, astigmatism and presbyopia, yesterday reported its financial results for the second quarter ended June 28, 2024. Overall, STAAR Surgical saw record quarterly net sales and raised its fiscal 2024 net sales and adjusted EBITDA outlook. “STAAR Surgical reported record net sales for the second quarter of 2024, including milestone sales over $100 million on a constant currency basis," said Tom Frinzi, president and CEO of STAAR Surgical.

"We are committed to enhancing surgeon confidence and practice implementation, growing the category and seizing market share throughout the business cycle. For our surgeon customers globally, our EVO ICL technology is increasingly instrumental in enhancing their offerings, market competitiveness and practice economics. As a result, our commercial momentum is accelerating—as evidenced by these latest financial results, which are due to execution against our vital few strategic priorities," Frinzi said.

“For the second quarter, our ICL growth exceeded the market in all key geographies," he continued. "U.S. sales were $5.5 million, up 25 percent year over year and 10 percent sequentially. In APAC, we generated 6 percent sales growth, including 3 percent growth in China. Rounding out our global performance, EMEA was also strong with sales growth of 10 percent in the second quarter. STAAR is truly disrupting the refractive industry to benefit our surgeon customers, their patients and our shareholders.

"We are moving down the diopter curve and as a result are beginning to realize our near-term goal of becoming the choice for surgeons and their patients -6D of myopia and above. Given our momentum and the opportunity before us, we are raising our outlook for net sales, now to be in the range of $340 million to $345 million and adjusted EBITDA to be approximately $42 million for fiscal 2024,” Frinzi said.

In the second quarter of 2024, STAAR Surgical’s net sales were $99.0 million, up 7 percent compared to $92.3 million reported in the same period last year. The sales increase in the second quarter was driven by ICL sales growth of $6.3 million, up 7 percent, and unit growth of 3 percent as compared with the prior year period. Other Product sales were up $0.4 million as compared with the prior year period.

Gross profit margin for the second quarter of 2024 was 79.2 percent of net sales compared with the prior year quarter of 76.6 percent of net sales. According to the company, gross margin in the second quarter was favorably impacted primarily due to changes in reserves related to cataract IOLs in the prior year quarter. The company exited its cataract IOL business in fiscal 2023.

STAAR Surgical also reported that operating expenses for the second quarter of 2024 were $66.5 million compared with the prior year quarter of $62.1 million. General and administrative expenses were $23.6 million compared with the prior year quarter of $18.1 million. The increase in general and administrative expenses was attributed to increased compensation-related expenses, facilities costs and outside services, according to the company. Selling and marketing expenses were $28.8 million compared with the prior year quarter of $32.3 million.

The company stated that the decrease in selling and marketing expenses was due to lower marketing, promotion and advertising activities. Research and development expenses were $14.1 million compared with the prior year quarter of $11.8 million. The increase in research and development expenses was due primarily to increased compensation-related expenses partially offset by lower clinical trial costs.

STAAR Surgical’s operating income for the second quarter of 2024 was reported at $11.9 million or 12.0 percent of net sales, as compared with operating income of $8.6 million or 9.3 percent of net sales for the second quarter of 2023. Net income for the second quarter of 2024 was $7.4 million or $0.15 income per share compared with net income of $6.1 million or $0.12 income per share for the prior year quarter. The increase in net income was attributable to higher sales and gross profit. The company said this is partially offset by higher operating expense and loss on foreign currency transactions.

Cash, cash equivalents and investments available for sale at June 28, 2024, totaled $235.5 million, compared with $232.4 million at December 29, 2023. Finally, the company raised its outlook for fiscal year 2024 net sales and adjusted EBITDA. The company now expects the following for fiscal year 2024:

  • Net sales of $340 million to $345 million, increased from the prior outlook for net sales of $335 million to $340 million.

  • Adjusted EBITDA of approximately $42 million and adjusted EBITDA per diluted share of approximately $0.80, increased from the prior outlook of adjusted EBITDA of approximately $39 million and adjusted EBITDA per diluted share of approximately $0.75.
The outlook contemplates EVO ICL sales growth in the Americas of 15 percent, including 25 percent in the U.S. (the prior outlook was 10 percent); EMEA sales growth of 6 percent (the prior outlook was for sales consistent with fiscal year 2023); and APAC growth of 7 percent, including approximately 10 percent in China, the company stated.