IRIDEX CORP Q3 FY2024 earnings call

• CEO Change and Strategic Review: Scott Shuda mentioned the Board's dissatisfaction with the pace of the strategic review led to Patrick Mercer's elevation as CEO. There's strong interest in IRIDEX, and active discussions with multiple entities, with an expected announcement on transactions before year-end. - Q3 Performance: Patrick Mercer noted Q3 revenue was lower than anticipated due to retina business challenges but saw strong Q4 start. Glaucoma products showed momentum with aggregate probe and console sales up year-over-year. - Q4 Outlook: Encouraging reports on orders and shipments early in Q4, including strong activity at AAO meeting where new I-5 laser platform was introduced and orders taken. - Cost-Cutting: Patrick Mercer outlined a cost-cutting program to align expenses with revenue, expecting EBITDA breakeven or better in Q4. - Glaucoma Reimbursement: The revised LCD for glaucoma, effective November 17, excludes limitations on IRIDEX products, expected to increase physician adoption of glaucoma products.

Cyclo G6 product family: Third quarter revenue was $3.1 million, a 3% increase versus the third quarter of 2023. This was driven by stabilization of probe sales due to improved glaucoma procedure reimbursement clarity in the US. 13,600 Cyclo G6 probes were sold in the third quarter, a 10% sequential decline. 26 Cyclo G6 systems were sold compared to 27 in the prior year period. Retina segment: Third quarter revenue was $6.5 million, down 18% compared to the third quarter of 2023, due to longer capital sales cycles and shipment delays in certain regions. Other revenue: Totaled $2 million in the third quarter of 2024, an increase from $1.9 million in the third quarter of 2023.

• Expect the fourth quarter to be EBITDA positive. - OpEx reduction trend to continue in Q4 with a full quarter of cost reductions implemented in Q3. - New I-5 laser platform introduced and orders taken at AAO meeting. - Revised glaucoma LCD expected to increase adoption of IRIDEX glaucoma products.

• Regulatory hurdles causing shipment delays in certain regions. - Potential revenue forgone due to cost-cutting measures. - Uncertainties related to the outcome of the strategic review process.

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