BUSINESS STAAR Surgical Posts 1Q Net Sales $63.2 Million, Up 25 Percent Year-on-Year By Staff Monday, May 9, 2022 12:18 AM LAKE FOREST, Calif.—STAAR Surgical Company (NASDAQ: STAA), a leading developer, manufacturer and marketer of implantable lenses and companion delivery systems for the eye, reported record net sales of $63.2 million for the first quarter ended April 1, 2022, a 25 percent increase over the prior year quarter. The sales increase was driven by ICL (implantable collamer lenses) sales and unit growth of 26 percent and 29 percent, respectively, as compared to the prior year period. Other product sales increased 6 percent compared to the prior year quarter, STAAR said.“Our first quarter results represent a new record for quarterly net sales and quarterly ICL units as we successfully raise surgeon and patient awareness and enthusiasm for the visual freedom provided by our proprietary EVO Visian ICL family of lenses,” said Caren Mason, president and CEO of STAAR Surgical. “In the first quarter, we had strong global growth highlighted by unit growth in China up 37 percent, Japan up 35 percent and India up 34 percent, all as compared to the prior year quarter. "As previously announced in March, we are absolutely thrilled to have received FDA approval for EVO lenses. We are excited to bring EVO’s game-changing technology to the United States. Commercialization of EVO in the U.S. including a multi-channel advertising campaign is underway in multiple cities. Also, despite COVID-19 lockdowns in multiple cities in China, shipments of EVO lenses to China remain robust in anticipation of the upcoming summer implant season. "Based on our global demand forecast, including projected release of remaining backlog lenses, we are today reaffirming our previously provided outlook for annual sales. For fiscal 2022, we continue to anticipate approximately $295 million in net sales, which represents year over year growth of 28 percent. The STAAR team, globally, is focused on making fiscal 2022 another year of record commercial and financial progress,” Mason said. STAAR said its ICL sales climbed to 93 percent of total net sales for the first quarter of 2022. Gross profit margin for the first quarter of 2022 was 77.9 percent compared to the prior year period of 77.1 percent. Factors impacting gross margin in the first quarter of 2022, as compared to the prior year period, include product and geographic sales mix and decreased period costs associated with manufacturing projects, STAAR said. Operating expenses for the first quarter of 2022 were $37.2 million compared to the prior year quarter of $31.7 million. General and administrative expenses were $11.9 million compared to the prior year quarter of $10.2 million. The increase in general and administrative expenses was due to increased facilities costs and compensation-related expenses. Selling and marketing expenses were $17.3 million compared to the prior year quarter of $13.2 million. The increase in selling and marketing expenses is due to increased advertising and promotional expenses and compensation-related expenses. Research and development expenses were $7.9 million compared to the prior year quarter of $8.3 million due to lower U.S. EVO clinical trial expenses, according to STAAR. Net income for the first quarter of 2022 was $9.6 million compared with net income of $5.0 million for the prior year quarter. STAAR attributed the year-over-year increase to higher gross profit and lower operating expenses, partly related to timing, as a percentage of sales. Adjusted net iIncome for the first quarter of 2022 was $14.4 million compared to $9.6 million for the prior year quarter.