STAAR Surgical Reports 10% Revenue Growth, Net Income Surge in Q3 2024

STAAR Surgical Company reported significant financial developments in its 10-Q filing for the quarter ending September 27, 2024. The company, which specializes in implantable lenses for ophthalmic surgery, experienced a notable increase in net sales, with total revenues reaching $88.6 million for the three months ended September 27, 2024, compared to $80.3 million for the same period in 2023, marking a 10% increase. For the nine-month period, net sales rose to $265.0 million from $246.1 million, reflecting a 7.6% growth.

The growth in revenue was primarily driven by sales of implantable Collamer lenses (ICLs), which accounted for 100% of the company’s sales. ICL sales for the three months ended September 27, 2024, were $89.1 million, up from $81.1 million in the prior year, while for the nine months, sales increased to $265.6 million from $244.8 million. The company noted that sales from China were particularly strong, contributing significantly to overall revenue.

Gross profit for the three months ended September 27, 2024, was $68.5 million, an increase from $63.6 million in the same period last year. However, the gross profit margin decreased to 77.3% from 79.2%, attributed to higher costs of sales, which represented 22.7% of net sales compared to 20.8% in the prior year. Operating income for the quarter was $5.7 million, down from $6.3 million, while net income surged to $10.0 million from $4.8 million, reflecting a strong performance despite the decline in operating income.

For the nine months, net income increased to $14.0 million from $13.6 million, with basic net income per share rising to $0.29 from $0.28. The effective tax rate for the quarter was 24.2%, down from 28.6% in the previous year, contributing to the improved net income.

On the balance sheet, total assets increased to $537.6 million as of September 27, 2024, from $488.7 million at the end of 2023. Cash and cash equivalents decreased to $164.0 million from $183.0 million, while investments available for sale rose significantly to $72.0 million from $37.7 million.

The company also reported an increase in research and development expenses, which rose by 26.4% for the quarter, driven by investments in external AI tools and increased salary-related costs. General and administrative expenses also saw a rise of 12.6% for the quarter, reflecting higher facility costs and compensation expenses.

Overall, STAAR Surgical Company demonstrated robust revenue growth and profitability improvements, primarily driven by its core ICL product line, while also investing in future growth through increased R&D spending.