LAKE FOREST, Calif.—STAAR Surgical Company (NASDAQ: STAA), maker of phakic IOLs with the EVO family of implantable collamer lenses (EVO ICL) for vision correction, reported results for the fourth quarter and fiscal year ended December 27, 2024. Net loss for fiscal year 2024 was $20.2 million, compared with net income of $21.3 million for the prior year, the company said. Net loss for the fourth quarter of 2024 was $34.2 million, compared with net income of $7.8 million for the prior-year quarter.

Net sales were reported at $313.9 million for fiscal year 2024, compared with $322.4 million in the prior year, a decrease of 2.6 percent, the company advised. Net sales were $49.0 million for the fourth quarter of 2024, compared with $76.3 million in the prior-year quarter, a decline of 35.8 percent. The decrease in net sales for both periods was driven largely by the significant decline in revenue from China in the fourth quarter of 2024, the company said.

“STAAR’s fiscal 2024 results reflect fluctuating demand in China, which more than offset the strong performance across our other regions,” said Tom Frinzi, chair of the board and CEO of STAAR Surgical. “China is the largest market in the world for refractive procedures, and macroeconomic conditions and consumer confidence in China remain weak. While the government stimulus announced in September looked promising, the demand for our cash-pay ICLs deteriorated dramatically as we exited the year.

"ICL procedure volumes in China improved in January, but we expect overall lower demand in China in fiscal 2025, particularly in the first half," Frinzi added. "We have been collaborating with our distributors to address elevated inventory levels in China as a result of the challenging demand environment, while at the same time positioning the company for a rebound once the market recovers.”

ICL sales were $46.9 million for the fourth quarter of 2024, compared with $74.6 million in the prior year quarter, the company stated. Excluding China, ICL sales were $39.5 million, an increase of 17 percent as compared with the prior-year period. Gross profit margin for the fourth quarter of 2024 was 64.7 percent of total net sales, compared with the prior-year quarter of 79.6 percent of total net sales.

The company did post 22 percent growth in ICL sales in the Americas during the fourth quarter and 19 percent growth for the fiscal year. Operating expenses for the fourth quarter of 2024 were $59.6 million, compared with $50.3 million in the prior-year quarter, primarily due to increased investments in commercial operations and innovation, the company said. Operating loss for the fourth quarter of 2024 was $27.9 million, compared with operating income of $10.4 million for the fourth quarter of 2023.

ICL sales were $312.5 million for fiscal 2024, compared to $319.4 million in the prior year, the company noted. Excluding China, ICL sales were $151.6 million, an increase of 13 percent year-over-year. Gross profit margin for fiscal year 2024 was 76.3 percent of total net sales, compared with 78.4 percent of total net sales for fiscal year 2023.

Operating expenses for fiscal year 2024 were $252.2 million, compared with $224.6 million in the prior year. Operating loss for fiscal year 2024 was $12.6 million compared with operating income of $28.1 million for fiscal year 2023, according to the announcement. Cash, cash equivalents and investments available for sale at December 27, 2024, totaled $230.5 million, compared with $232.4 million at the end of the fourth quarter of 2023.
 
In fiscal year 2025, the company said it will manage its working capital and implement appropriate cost cutting measures in light of the lower revenue forecast. The company intends to lower production output, decrease capital expenditures, and make targeted reductions to operating expenses, which will impact headcount and discretionary spend.

“Outside of China, we expect to sustain double-digit growth across our global markets in 2025 as demand for our ICL technology continues to outpace the refractive market overall. Myopia is not going away, and we have a unique technology in Collamer with over 30 years of proven clinical outcomes,” Frinzi said. “We have built up a strong balance sheet that provides STAAR with the resiliency to face these macroeconomic challenges, which we believe are transitory. We will continue to make market-building investments in surgeon education, technology and our commercial teams and strategies to drive ICL adoption, while reducing costs in targeted areas to align our operations with the current demand environment.”