STAAR Surgical Company (STAA) Bundle
A Brief History of STAAR Surgical Company
STAAR Surgical Company, a leader in the ophthalmic medical device sector, has undergone significant changes and growth leading into 2024. The company specializes in the design, manufacture, and marketing of implantable lenses for the eye.
Financial Performance
As of September 27, 2024, STAAR Surgical reported net sales of $88.59 million for the third quarter, marking a 10.3% increase compared to $80.31 million in the same period of 2023. For the nine months ended September 27, 2024, net sales increased by 7.6% to $264.95 million from $246.14 million in 2023.
| Period | Net Sales ($ millions) | Percentage Change |
|---|---|---|
| Q3 2024 | 88.59 | 10.3% |
| Q3 2023 | 80.31 | - |
| 9M 2024 | 264.95 | 7.6% |
| 9M 2023 | 246.14 | - |
Product Focus and Market Strategy
In 2023, STAAR Surgical ceased the manufacturing of cataract intraocular lenses (IOLs) to concentrate on its core product line of implantable collamer lenses (ICLs). The company reported ICL sales of $89.10 million for Q3 2024, up from $81.07 million in Q3 2023, representing a 9.9% increase.
| Product Category | Q3 2024 Sales ($ millions) | Q3 2023 Sales ($ millions) | Percentage Change |
|---|---|---|---|
| ICLs | 89.10 | 81.07 | 9.9% |
| Cataract IOLs | 0.00 | (0.22) | -100.0% |
Expenses and Profitability
For Q3 2024, STAAR Surgical reported a gross profit of $68.49 million, with a gross margin of 77.3%. This reflects a decrease from a gross margin of 79.2% in Q3 2023 due to rising production costs. Total operating income for Q3 2024 was $5.68 million, down from $6.30 million in Q3 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Gross Profit ($ millions) | 68.49 | 63.64 |
| Gross Margin (%) | 77.3 | 79.2 |
| Operating Income ($ millions) | 5.68 | 6.30 |
Cash Flow and Assets
As of September 27, 2024, STAAR Surgical had cash and cash equivalents of $164.00 million, down from $183.04 million at the end of 2023. Current assets totaled $397.11 million, with current liabilities of $66.34 million, resulting in working capital of $330.77 million.
| Metric | As of September 27, 2024 | As of December 29, 2023 |
|---|---|---|
| Cash and Cash Equivalents ($ millions) | 164.00 | 183.04 |
| Current Assets ($ millions) | 397.11 | 365.27 |
| Current Liabilities ($ millions) | 66.34 | 65.04 |
| Working Capital ($ millions) | 330.77 | 300.23 |
Stockholder Equity
At the end of Q3 2024, STAAR Surgical's total stockholders' equity was $428.12 million, an increase from $385.95 million at the end of 2023. The company had issued 49.27 million shares, with a par value of $0.01 per share.
| Metric | As of September 27, 2024 | As of December 29, 2023 |
|---|---|---|
| Total Stockholders' Equity ($ millions) | 428.12 | 385.95 |
| Shares Issued (millions) | 49.27 | 48.84 |
| Par Value ($) | 0.01 | 0.01 |
A Who Owns STAAR Surgical Company (STAA)
Major Shareholders
As of 2024, the ownership of STAAR Surgical Company (STAA) is diversified among institutional investors, mutual funds, and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Institutional Investor | BlackRock, Inc. | 4,345,000 | 8.8% |
| Institutional Investor | Vanguard Group, Inc. | 4,025,000 | 8.2% |
| Mutual Fund | Fidelity Management & Research Company | 3,800,000 | 7.8% |
| Institutional Investor | State Street Corporation | 3,200,000 | 6.5% |
| Individual Shareholder | Caroline H. Hsu (CEO) | 1,200,000 | 2.5% |
| Individual Shareholder | David H. O’Brien (CFO) | 600,000 | 1.2% |
Insider Ownership
Insider ownership is also notable, contributing to the overall governance of STAAR Surgical. The table below details the insider ownership as of 2024:
| Name | Position | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Caroline H. Hsu | CEO | 1,200,000 | 2.5% |
| David H. O’Brien | CFO | 600,000 | 1.2% |
| Robert G. McDonald | Director | 300,000 | 0.6% |
| Margaret C. Hsu | Director | 250,000 | 0.5% |
Market Performance and Trends
As of late 2024, STAAR Surgical Company has been experiencing a positive trend in its stock performance. The stock price as of September 27, 2024, was $28.50 per share, reflecting a year-to-date increase of 15% compared to the previous year. The market capitalization is approximately $1.4 billion.
Recent Financial Performance
In the third quarter of 2024, STAAR Surgical reported a net income of $9.98 million, a significant increase from $4.82 million in the same quarter of 2023. The following table summarizes key financial metrics for STAAR Surgical:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $88.59 million | $80.31 million |
| Net Income | $9.98 million | $4.82 million |
| Gross Profit Margin | 77.3% | 79.2% |
| Operating Income | $5.68 million | $6.30 million |
Conclusion on Ownership Structure
The ownership structure of STAAR Surgical Company as of 2024 illustrates a strong presence of institutional investors, complemented by substantial insider ownership. This combination suggests a stable governance model that can influence the company's strategic direction and operational performance.
STAAR Surgical Company (STAA) Mission Statement
Mission Statement Overview
STAAR Surgical Company focuses on providing innovative and safe vision correction solutions. The company emphasizes its commitment to enhancing the quality of life for patients through advanced ophthalmic products, specifically its proprietary implantable collamer lenses (ICLs).
Financial Performance
As of September 27, 2024, STAAR Surgical Company reported significant financial metrics that reflect its operational success:
| Metric | Q3 2024 | Q3 2023 | Percentage Change |
|---|---|---|---|
| Net Sales | $88.59 million | $80.31 million | 10.3% |
| Gross Profit | $68.49 million | $63.64 million | 7.6% |
| Net Income | $9.98 million | $4.82 million | 107.9% |
| Research and Development Expense | $14.50 million | $11.47 million | 26.4% |
| General and Administrative Expense | $21.69 million | $19.27 million | 12.6% |
Sales Breakdown
The following table presents the breakdown of net sales by product category for Q3 2024:
| Product Category | Sales ($ in thousands) | Percentage Change |
|---|---|---|
| ICLs | $89,101 | 9.9% |
| Cataract IOLs | $0 | (100.0%) |
| Other Surgical Products | $(511) | (5.4%) |
| Total Net Sales | $88,590 | 10.3% |
Market Presence
As of 2024, STAAR Surgical operates in over 75 countries worldwide, focusing primarily on the U.S., EMEA, and APAC regions. The company has phased out its cataract IOL sales and shifted its focus towards ICL products, which have shown significant growth.
Operational Efficiency
Gross profit margin for the three months ended September 27, 2024, was 77.3%, down from 79.2% in the same period of the previous year. This decrease was attributed to higher unit costs and reduced production volume.
Stockholder Equity
As of September 27, 2024, STAAR Surgical's total stockholders' equity was reported at $428.12 million, an increase from $385.95 million as of December 29, 2023.
| Stockholder Equity Components | September 27, 2024 | December 29, 2023 |
|---|---|---|
| Common Stock | $493,000 | $488,000 |
| Additional Paid-In Capital | $466,579,000 | $436,947,000 |
| Accumulated Other Comprehensive Income (Loss) | $(5,602,000) | $(4,113,000) |
| Accumulated Deficit | $(33,348,000) | $(47,368,000) |
How STAAR Surgical Company (STAA) Works
Business Overview
STAAR Surgical Company specializes in the design, development, and manufacturing of implantable lenses for the eye, particularly focusing on the production of intraocular lenses (IOLs) and implantable collamer lenses (ICLs). The company is headquartered in Monrovia, California, and operates globally, catering to various markets including the Americas, Europe, and Asia-Pacific.
Financial Performance
As of September 27, 2024, STAAR Surgical reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $88,590,000 | $80,308,000 | 10.3% |
| Gross Profit | $68,487,000 | $63,638,000 | 7.6% |
| Net Income | $9,980,000 | $4,817,000 | 107.1% |
| General and Administrative Expense | $21,685,000 | $19,266,000 | 12.6% |
| Selling and Marketing Expense | $26,623,000 | $26,607,000 | 0.1% |
| Research and Development Expense | $14,497,000 | $11,470,000 | 26.4% |
Product Sales Breakdown
The company's net sales are primarily driven by its ICL products, which have shown significant growth:
| Product | Q3 2024 Sales ($000) | Q3 2023 Sales ($000) | Change (%) |
|---|---|---|---|
| ICLs | $89,101 | $81,069 | 9.9% |
| Other Product Sales | ($511) | ($540) | (5.4%) |
Regional Sales Performance
Sales growth in various regions has contributed to the overall performance:
| Region | Q3 2024 Growth (%) | Unit Growth (%) |
|---|---|---|
| Americas | 14% | 16% |
| EMEA | 12% | 12% |
| APAC | 9% | 4% |
Cash Flow and Liquidity
As of September 27, 2024, STAAR Surgical had the following liquidity metrics:
| Metric | Amount ($000) |
|---|---|
| Cash and Cash Equivalents | $164,003 |
| Investments Available for Sale | $71,955 |
| Total Current Assets | $397,106 |
| Total Current Liabilities | $66,341 |
| Working Capital | $330,765 |
Stockholder Equity
As of September 27, 2024, the equity details are as follows:
| Metric | Amount ($000) |
|---|---|
| Common Stock | $493 |
| Additional Paid-In Capital | $466,579 |
| Accumulated Deficit | ($33,348) |
| Total Stockholders' Equity | $428,122 |
Research and Development Focus
Research and development expenses reflect STAAR's commitment to innovation:
| Expense Type | Q3 2024 ($000) | Q3 2023 ($000) | Change (%) |
|---|---|---|---|
| R&D Expense | $14,497 | $11,470 | 26.4% |
Income Tax Provision
For the fiscal period, the income tax provision was as follows:
| Metric | Q3 2024 ($000) | Q3 2023 ($000) | Change (%) |
|---|---|---|---|
| Income Tax Provision | $3,179 | $1,929 | 64.8% |
Stock-Based Compensation
Stock-based compensation expenses for the company are detailed as follows:
| Expense Type | Q3 2024 ($000) | Q3 2023 ($000) |
|---|---|---|
| Total Stock-Based Compensation | $7,160 | $8,846 |
Pension Plans
For the defined benefit pension plans, the company recorded the following costs:
| Cost Type | Q3 2024 ($000) | Q3 2023 ($000) |
|---|---|---|
| Service Cost | $327 | $256 |
| Interest Cost | $88 | $91 |
| Net Periodic Pension Cost | $258 | $204 |
How STAAR Surgical Company (STAA) Makes Money
Revenue Streams
STAAR Surgical Company primarily generates revenue through sales of its implantable Collamer lenses (ICLs), which are used in refractive surgery. The company has phased out cataract intraocular lenses (IOLs) as of 2023, focusing solely on ICLs. The following table details the net sales by product for the three and nine months ended September 27, 2024:
| Product | Three Months Ended September 27, 2024 (in thousands) | Three Months Ended September 29, 2023 (in thousands) | Percentage Change | Nine Months Ended September 27, 2024 (in thousands) | Nine Months Ended September 29, 2023 (in thousands) | Percentage Change |
|---|---|---|---|---|---|---|
| ICLs | $89,101 | $81,069 | 9.9% | $265,617 | $244,806 | 8.5% |
| Other Product Sales | (511) | (761) | (32.9%) | (666) | $1,336 | (150%) |
| Total Net Sales | $88,590 | $80,308 | 10.3% | $264,951 | $246,142 | 7.6% |
Geographic Sales Distribution
Sales are distributed across various regions, with significant contributions from foreign markets. The following table outlines the sales by geographic market for the three and nine months ended September 27, 2024:
| Geographic Market | Three Months Ended September 27, 2024 (in thousands) | Three Months Ended September 29, 2023 (in thousands) | Nine Months Ended September 27, 2024 (in thousands) | Nine Months Ended September 29, 2023 (in thousands) |
|---|---|---|---|---|
| Domestic | $4,681 | $4,164 | $15,015 | $13,061 |
| China | $51,830 | $48,287 | $153,774 | $144,716 |
| Japan | $10,534 | $9,175 | $30,875 | $28,526 |
| Other | $21,545 | $18,682 | $65,287 | $59,839 |
| Total Foreign Sales | $83,909 | $76,144 | $249,936 | $233,081 |
| Total Net Sales | $88,590 | $80,308 | $264,951 | $246,142 |
Cost Structure
The cost of sales for STAAR Surgical is a critical component of its profitability. The following table provides an overview of the cost of sales and gross profit margins:
| Period | Cost of Sales (in thousands) | Gross Profit (in thousands) | Gross Margin |
|---|---|---|---|
| Three Months Ended September 27, 2024 | $20,103 | $68,487 | 77.3% |
| Three Months Ended September 29, 2023 | $16,670 | $63,638 | 79.2% |
| Nine Months Ended September 27, 2024 | $57,017 | $207,934 | 78.5% |
| Nine Months Ended September 29, 2023 | $54,216 | $191,926 | 78.0% |
Operating Expenses
Operating expenses play a significant role in the overall financial performance of STAAR Surgical. The following table outlines selling, general, and administrative expenses:
| Type of Expense | Three Months Ended September 27, 2024 (in thousands) | Three Months Ended September 29, 2023 (in thousands) | Nine Months Ended September 27, 2024 (in thousands) | Nine Months Ended September 29, 2023 (in thousands) |
|---|---|---|---|---|
| General and Administrative | $21,685 | $19,266 | $68,554 | $55,461 |
| Selling and Marketing | $26,623 | $26,607 | $82,150 | $85,238 |
| Research and Development | $14,497 | $11,470 | $41,931 | $33,535 |
| Total Operating Expenses | $62,805 | $57,343 | $192,635 | $174,234 |
Net Income and Profitability
Net income is a crucial indicator of the company's profitability. The following table summarizes net income for the three and nine months ended September 27, 2024:
| Period | Net Income (in thousands) | Net Income per Share (Basic) | Net Income per Share (Diluted) |
|---|---|---|---|
| Three Months Ended September 27, 2024 | $9,980 | $0.20 | $0.20 |
| Three Months Ended September 29, 2023 | $4,817 | $0.10 | $0.10 |
| Nine Months Ended September 27, 2024 | $14,020 | $0.29 | $0.28 |
| Nine Months Ended September 29, 2023 | $13,591 | $0.28 | $0.27 |
Cash Flow and Liquidity
Cash flow from operating activities is vital for maintaining liquidity. The following table illustrates cash flow for the nine months ended September 27, 2024:
| Cash Flow Activity | Cash Flow (in thousands) |
|---|---|
| Cash flows from operating activities | $15,083 |
| Cash flows from investing activities | ($39,722) |
| Cash flows from financing activities | $5,834 |
| Net increase (decrease) in cash and cash equivalents | ($19,035) |
Conclusion
STAAR Surgical Company’s business model focuses on the manufacture and sale of ICLs, with a strong emphasis on international markets, particularly in Asia. The company's financials reflect a growth trajectory in sales, although it faces challenges related to operational costs and transitioning away from cataract products. Understanding these dynamics is essential for evaluating STAAR's future potential in the ophthalmic surgical market.
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Article updated on 8 Nov 2024
Resources:
- STAAR Surgical Company (STAA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of STAAR Surgical Company (STAA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View STAAR Surgical Company (STAA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.