Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 28, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | STAAR SURGICAL CO | |
Entity Central Index Key | 0000718937 | |
Current Fiscal Year End Date | --12-30 | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | STAA | |
Entity Common Stock, Shares Outstanding | 48,206,299 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity File Number | 0-11634 | |
Title of 12(b) Security | Common | |
Security Exchange Name | NASDAQ | |
Entity Tax Identification Number | 95-3797439 | |
Entity Address, Address Line One | 25651 Atlantic Ocean Drive | |
Entity Address, City or Town | Lake Forest | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92630 | |
City Area Code | 626 | |
Local Phone Number | 303-7902 | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 129,242 | $ 199,706 |
Investments available for sale | 82,091 | |
Accounts receivable trade, net of allowance for credit losses of $103 and $43, respectively | 55,429 | 43,531 |
Inventories, net | 19,930 | 17,274 |
Prepayments, deposits and other current assets | 10,218 | 10,900 |
Total current assets | 296,910 | 271,411 |
Investments available for sale | 13,360 | |
Property, plant and equipment, net | 48,048 | 35,912 |
Finance lease right-of-use assets, net | 380 | 506 |
Operating lease right-of-use assets, net | 29,503 | 31,310 |
Intangible assets, net | 171 | 218 |
Goodwill | 1,786 | 1,786 |
Deferred income taxes | 3,710 | 3,813 |
Other assets | 808 | 822 |
Total assets | 394,676 | 345,778 |
Current liabilities: | ||
Accounts payable | 7,567 | 8,699 |
Obligations under finance leases | 167 | 127 |
Obligations under operating leases | 3,474 | 3,283 |
Allowance for sales returns | 5,040 | 4,816 |
Other current liabilities | 29,072 | 31,877 |
Total current liabilities | 45,320 | 48,802 |
Obligations under finance leases | 252 | 382 |
Obligations under operating leases | 26,032 | 28,269 |
Deferred income taxes | 1,554 | 811 |
Asset retirement obligations | 158 | 198 |
Pension liability | 1,228 | 8,758 |
Total liabilities | 74,544 | 87,220 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value; 60,000 shares authorized: 48,202 and 47,716 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively | 482 | 477 |
Additional paid-in capital | 398,448 | 373,519 |
Accumulated other comprehensive loss | (310) | (4,048) |
Accumulated deficit | (78,488) | (111,390) |
Total stockholders’ equity | 320,132 | 258,558 |
Total liabilities and stockholders’ equity | $ 394,676 | $ 345,778 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Allowance for credit losses, current | $ 103 | $ 43 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 48,202,000 | 47,716,000 |
Common stock, shares outstanding | 48,202,000 | 47,716,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 76,046 | $ 58,352 | $ 220,347 | $ 171,471 |
Cost of sales | 15,584 | 13,051 | 46,749 | 37,825 |
Gross profit | 60,462 | 45,301 | 173,598 | 133,646 |
Selling, general and administrative expenses: | ||||
General and administrative | 14,011 | 11,018 | 39,934 | 32,671 |
Selling and marketing | 23,130 | 18,175 | 64,633 | 50,229 |
Research and development | 9,616 | 8,271 | 26,193 | 24,790 |
Total selling, general and administrative expenses | 46,757 | 37,464 | 130,760 | 107,690 |
Operating income | 13,705 | 7,837 | 42,838 | 25,956 |
Other expense, net: | ||||
Interest income (expense), net | 897 | (23) | 934 | (35) |
Loss on foreign currency transactions | (2,129) | (610) | (4,904) | (2,040) |
Royalty income | 77 | 185 | 527 | 496 |
Other income (expense), net | 27 | (13) | 178 | (47) |
Total other expense, net | (1,128) | (461) | (3,265) | (1,626) |
Income before income taxes | 12,577 | 7,376 | 39,573 | 24,330 |
Provision for income taxes | 2,315 | 1,356 | 6,671 | 4,751 |
Net income | $ 10,262 | $ 6,020 | $ 32,902 | $ 19,579 |
Net income per share: | ||||
Basic | $ 0.21 | $ 0.13 | $ 0.69 | $ 0.42 |
Diluted | $ 0.21 | $ 0.12 | $ 0.67 | $ 0.40 |
Weighted average shares outstanding: | ||||
Basic | 48,102 | 47,483 | 47,915 | 47,064 |
Diluted | 49,549 | 49,592 | 49,371 | 49,448 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 10,262 | $ 6,020 | $ 32,902 | $ 19,579 |
Defined benefit plans: | ||||
Net change in plan assets | 465 | 90 | 7,126 | 2,717 |
Reclassification into other income (expense), net | 54 | 121 | 139 | 361 |
Investments available for sale unrealized loss | (432) | (432) | ||
Foreign currency translation gain (loss) | (958) | 29 | (3,474) | (1,198) |
Tax effect | 312 | (32) | 379 | 37 |
Other comprehensive income (loss), net of tax | (559) | 208 | 3,738 | 1,917 |
Comprehensive income | $ 9,703 | $ 6,228 | $ 36,640 | $ 21,496 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Balance at Jan. 01, 2021 | $ 197,222 | $ 464 | $ 338,194 | $ (5,545) | $ (135,891) |
Balance (in shares) at Jan. 01, 2021 | 46,448 | ||||
Net income | 19,579 | 19,579 | |||
Other comprehensive income (loss) | 1,917 | 1,917 | |||
Common stock issued upon exercise of options | 18,322 | $ 11 | 18,311 | ||
Common stock issued upon exercise of options (in shares) | 1,089 | ||||
Stock-based compensation | $ 12,067 | 12,067 | |||
Unvested restricted stock (in shares) | 3 | 3 | |||
Vested restricted and performance stock | $ 1 | $ 1 | |||
Vested restricted and performance stock (in shares) | 59 | ||||
Balance at Oct. 01, 2021 | 249,108 | $ 476 | 368,572 | (3,628) | (116,312) |
Balance (in shares) at Oct. 01, 2021 | 47,599 | ||||
Balance at Jul. 02, 2021 | 234,622 | $ 474 | 360,316 | (3,836) | (122,332) |
Balance (in shares) at Jul. 02, 2021 | 47,391 | ||||
Net income | 6,020 | 6,020 | |||
Other comprehensive income (loss) | 208 | 208 | |||
Common stock issued upon exercise of options | 4,212 | $ 2 | 4,210 | ||
Common stock issued upon exercise of options (in shares) | 183 | ||||
Stock-based compensation | $ 4,046 | 4,046 | |||
Unvested restricted stock (in shares) | 3 | ||||
Vested restricted and performance stock (in shares) | 25 | ||||
Balance at Oct. 01, 2021 | $ 249,108 | $ 476 | 368,572 | (3,628) | (116,312) |
Balance (in shares) at Oct. 01, 2021 | 47,599 | ||||
Balance at Dec. 31, 2021 | 258,558 | $ 477 | 373,519 | (4,048) | (111,390) |
Balance (in shares) at Dec. 31, 2021 | 47,716 | ||||
Net income | 32,902 | 32,902 | |||
Other comprehensive income (loss) | 3,738 | 3,738 | |||
Common stock issued upon exercise of options | $ 8,179 | $ 4 | 8,175 | ||
Common stock issued upon exercise of options (in shares) | 417 | 417 | |||
Stock-based compensation | $ 16,754 | 16,754 | |||
Unvested restricted stock (in shares) | 4 | 7 | |||
Vested restricted and performance stock | $ 1 | $ 1 | |||
Vested restricted and performance stock (in shares) | 62 | ||||
Balance at Sep. 30, 2022 | 320,132 | $ 482 | 398,448 | (310) | (78,488) |
Balance (in shares) at Sep. 30, 2022 | 48,202 | ||||
Balance at Jul. 01, 2022 | 299,307 | $ 480 | 387,328 | 249 | (88,750) |
Balance (in shares) at Jul. 01, 2022 | 48,024 | ||||
Net income | 10,262 | 10,262 | |||
Other comprehensive income (loss) | (559) | (559) | |||
Common stock issued upon exercise of options | 5,034 | $ 2 | 5,032 | ||
Common stock issued upon exercise of options (in shares) | 166 | ||||
Stock-based compensation | $ 6,088 | 6,088 | |||
Unvested restricted stock (in shares) | 4 | ||||
Vested restricted and performance stock (in shares) | 12 | ||||
Balance at Sep. 30, 2022 | $ 320,132 | $ 482 | $ 398,448 | $ (310) | $ (78,488) |
Balance (in shares) at Sep. 30, 2022 | 48,202 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Oct. 01, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 32,902 | $ 19,579 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property, plant, and equipment | 3,101 | 2,671 |
Amortization of intangibles | 22 | 26 |
Accretion/Amortization of investments available for sale | (307) | |
Deferred income taxes | 23 | 845 |
Change in net pension liability | 40 | 91 |
Loss on disposal of property and equipment | 2 | |
Stock-based compensation expense | 15,375 | 10,985 |
Provision for sales returns and bad debts | 361 | 1,069 |
Inventory provision | 2,020 | 1,097 |
Changes in working capital: | ||
Accounts receivable | (13,108) | (7,072) |
Inventories | (4,123) | 1,301 |
Prepayments, deposits, and other current assets | 526 | 1,288 |
Accounts payable | (1,834) | (40) |
Other current liabilities | (2,253) | 3,622 |
Net cash provided by operating activities | 32,745 | 35,464 |
Cash flows from investing activities: | ||
Acquisition of property and equipment | (14,083) | (8,956) |
Purchase of investments available for sale | (95,576) | |
Net cash used in investing activities | (109,659) | (8,956) |
Cash flows from financing activities: | ||
Repayment of finance lease obligations | (85) | (314) |
Proceeds from the exercise of stock options | 8,179 | 18,322 |
Proceeds from vested restricted stock | 1 | 1 |
Net cash provided by financing activities | 8,095 | 18,009 |
Effect of exchange rate changes on cash and cash equivalents | (1,645) | (724) |
Increase (decrease) in cash and cash equivalents | (70,464) | 43,793 |
Cash and cash equivalents, at beginning of the period | 199,706 | 152,453 |
Cash and cash equivalents, at end of the period | $ 129,242 | $ 196,246 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Note 1 — Basis of Presentation and Significant Accounting Policies The Condensed Consolidated Financial Statements of the Company present the financial position, results of operations, and cash flows of STAAR Surgical Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Commission. In accordance with those rules and regulations certain information and footnote disclosures normally included in the Comprehensive Financial Statements have been condensed or omitted pursuant to such rules and regulations. The Consolidated Balance Sheet as of December 31, 2021 was derived from the audited financial statements at that date, but does not include all the information and footnotes required by GAAP. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2022 and October 1, 2021, in the opinion of management, include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s financial condition and results of operations. The results of operations for the three and nine months ended September 30, 2022 and October 1, 2021, are not necessarily indicative of the results to be expected for any other interim period or for the entire year. Each of the Company’s fiscal reporting periods ends on the Friday nearest to the quarter ending date and generally consists of 13 weeks. Unless the context indicates otherwise “we,” “us,” the “Company,” and “STAAR” refer to STAAR Surgical Company and its consolidated subsidiaries. Cash and Cash Equivalents Cash and cash equivalents include cash and balances in deposits and money market accounts held at banks and financial institutions. Such balances generally exceed the federal insurance limits; however, the Company periodically assesses the financial condition of the institutions and believes that the risk of any loss is minimal. Investments Available for Sale Investments available for sale (“AFS”) are investments in debt securities for which the Company does not have the positive intent and ability to hold to maturity. The Company’s investment policy primary objective is capital preservation while maximizing its return on investment. Investments may include U.S. government and corporate debt securities, commercial paper, certain certificates of deposit and related security types, that are rated by two nationally recognized statistical rating organizations with minimum investment grade ratings of AAA to A-/A-1+ to A-2, or the equivalent. There are also limits to the amount of credit exposure in any given security type. Investments AFS are measured at fair value and its unrealized gains and losses reported net of the allowance for credit losses and applicable income taxes, are recognized in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets. The cost of investments AFS is adjusted for amortization of premiums and accretion of discounts to maturity. Interest earned, including amortization of premiums and accretion of discounts recognized, is included in interest income (expense) on the Consolidated Statements of Income. The cost of investments for purposes of computing realized and unrealized gains and losses is based on the specific identification method. The Company recognizes other-than-temporary impairment (“OTTI”) of a debt security for which there has been a decline in fair value below amortized cost if (i) management intends to sell the security, (ii) it is more-likely-than-not that the Company will be required to sell the security before recovery of its amortized cost basis, or (iii) the Company does not expect to recover the entire amortized cost basis of the security. The amount by which amortized cost exceeds the fair value of a debt security that is considered to have OTTI is separated into a component representing the credit loss, which is recognized in other income (expense) on the Consolidated Statements of Income, and a component related to all other factors, which is recognized in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets. The measurement of the credit loss component is equal to the difference between the debt security’s amortized cost basis and the present value of its expected future cash flows discounted at the security’s effective yield. Note 1 — Basis of Presentation and Significant Accounting Policies (Continued) Vendor Concentration There were no vendors that accounted for over 10% of the Company’s consolidated accounts payable as of September 30, 2022 and December 31, 2021. There were no vendors that accounted for over 10% of the Company’s consolidated purchases for the three and nine months ended September 30, 2022 and October 1, 2021, respectively. |
Investments Available for Sale
Investments Available for Sale | 9 Months Ended |
Sep. 30, 2022 | |
Investments Debt And Equity Securities [Abstract] | |
Investments Available for Sale | Note 2 — In the three months ended September 30, 2022, the Company started to invest its cash in slightly higher yielding securities. Investments AFS and the related fair value measurement consisted of the following (dollars in thousands): September 30, 2022 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Level 2 Fair Value Measurements: Commercial paper $ 35,093 $ 1 $ (75 ) $ 35,019 Certificates of deposit 14,404 1 (66 ) 14,339 U.S. Treasury and agency securities 4,188 — (1 ) 4,187 Corporate debt securities 41,898 5 (297 ) 41,606 Accrued interest receivable 300 — — 300 Total investments AFS $ 95,883 $ 7 $ (439 ) $ 95,451 The Company obtains the fair value from third-party pricing services. The pricing services utilize industry standard valuation models, including both income and market-based approaches and observable market inputs to determine value. These observable market inputs include reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers and other industry and economic events. The Company assessed each debt security with gross unrealized losses for credit impairment. As part of that assessment, the Company concluded that it is more-likely-than-not that the Company will not be required to sell, prior to the recovery of the amortized cost basis. The Company did not recognize impairment for the three and nine months ended September 30, 2022. The following table shows the fair value of investments AFS by contractual maturity (dollars in thousands): As of September 30, 2022 Within one year After one year through five years Total Commercial paper $ 35,019 $ — $ 35,019 Certificates of deposit 14,339 — 14,339 U.S. Treasury and agency securities 4,187 — 4,187 Corporate debt securities 28,246 13,360 41,606 Accrued interest receivable 300 — 300 Total investments AFS $ 82,091 $ 13,360 $ 95,451 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3 — Inventories Inventories, net are stated at the lower of cost and net realizable value, determined on a first-in, first-out basis and consisted of the following (in thousands): September 30, 2022 December 31, 2021 Raw materials and purchased parts $ 5,607 $ 3,971 Work in process 4,038 4,031 Finished goods 12,109 10,429 Total inventories, gross 21,754 18,431 Less inventory reserves (1,824 ) (1,157 ) Total inventories, net $ 19,930 $ 17,274 |
Prepayments, Deposits, and Othe
Prepayments, Deposits, and Other Current Assets | 9 Months Ended |
Sep. 30, 2022 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Prepayments, Deposits, and Other Current Assets | Note 4 — Prepayments, Deposits, and Other Current Assets Prepayments, deposits, and other current assets consisted of the following (in thousands): September 30, 2022 December 31, 2021 Prepayments and deposits $ 3,716 $ 4,047 Prepaid insurance 517 2,647 Prepaid marketing 2,590 543 Consumption tax receivable 694 830 Value added tax (VAT) receivable 1,555 2,197 BVG (Swiss Pension) prepayment 722 15 Other ( 1) 424 621 Total prepayments, deposits and other current assets $ 10,218 $ 10,900 (1) |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2022 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Note 5 — Property, Plant and Equipment Property, plant and equipment, net consisted of the following (in thousands): September 30, 2022 December 31, 2021 Machinery and equipment $ 27,860 $ 24,127 Computer equipment and software 9,243 8,807 Furniture and fixtures 4,453 3,658 Leasehold improvements 12,212 11,821 Construction in process 31,398 21,827 Total property, plant and equipment, gross 85,166 70,240 Less accumulated depreciation (37,118 ) (34,328 ) Total property, plant and equipment, net $ 48,048 $ 35,912 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 6 – Intangible Assets Intangible assets, net consisted of the following (in thousands): September 30, 2022 December 31, 2021 Long-lived amortized intangible assets Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Patents and licenses $ 9,194 $ (9,023 ) $ 171 $ 9,315 $ (9,097 ) $ 218 |
Other Current Liabilities
Other Current Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Note 7 – Other Current Liabilities Other current liabilities consisted of the following (in thousands): September 30, 2022 December 31, 2021 Accrued salaries and wages $ 9,174 $ 12,030 Accrued bonuses 5,356 8,091 Income taxes payable 5,232 2,248 Marketing obligations 2,418 2,243 Other ( 1) 6,892 7,265 Total other current liabilities $ 29,072 $ 31,877 (1) No individual item in “Other” exceeds 5% of the other current liabilities. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | Note 8 – Leases Finance Leases The Company entered into finance leases primarily related to purchases of equipment used for manufacturing, computer-related equipment or furniture and fixtures. These finance leases are two to five years in length and have fixed payment amounts for the term of the contract and have options to purchase the assets at the end of the lease term. Supplemental balance sheet information related to finance leases consisted of the following (dollars in thousands): September 30, 2022 December 31, 2021 Machinery and equipment $ 28 $ 35 Computer equipment and software 16 506 Furniture and fixtures 475 475 Finance lease right-of-use assets, gross 519 1,016 Less accumulated depreciation (139 ) (510 ) Finance lease right-of-use assets, net $ 380 $ 506 Current finance lease obligations $ 167 $ 127 Long-term finance lease obligations 252 382 Total finance lease liability $ 419 $ 509 Weighted-average remaining lease term (in years) 2.5 3.2 Weighted-average discount rate 4.11 % 4.02 % Note 8 – Leases (Continued) Finance Leases (Continued) Supplemental cash flow information related to finance leases consisted of the following (dollars in thousands): Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Amortization of finance lease right-of-use asset $ 39 $ 15 $ 121 $ 71 Interest on finance lease liabilities 5 1 13 6 Cash paid for amounts included in the measurement of finance lease liabilities: Operating cash flows 5 1 13 6 Financing cash flows 40 36 85 314 Operating Leases The Company entered into operating leases primarily related to real property (office, manufacturing and warehouse facilities), automobiles and copiers. These operating leases are two to ten years in length with options to extend. The Company does not include any lease extensions in the initial valuation unless the Company was reasonably certain to extend the lease. Depending on the lease, there are those with fixed payment amounts for the entire length of the contract or payments which increase periodically as noted in the contract or increased at an inflation rate indicator. For operating leases that increase using an inflation rate indicator, the Company used the inflation rate at the time the lease was entered into for the length of the lease term. Supplemental balance sheet information related to operating leases consisted of the following (dollars in thousands): September 30, 2022 December 31, 2021 Machinery and equipment $ 762 $ 760 Computer equipment and software 446 472 Real property 33,751 34,426 Operating lease right-of-use assets, gross 34,959 35,658 Less accumulated depreciation (5,456 ) (4,348 ) Operating lease right-of-use assets, net $ 29,503 $ 31,310 Current operating lease obligations $ 3,474 $ 3,283 Long-term operating lease obligations 26,032 28,269 Total operating lease liability $ 29,506 $ 31,552 Weighted-average remaining lease term (in years) 7.6 7.8 Weighted-average discount rate 4.04 % 3.56 % Supplemental cash flow information related to operating leases was as follows (dollars in thousands): Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Operating lease cost $ 1,167 $ 931 $ 3,471 $ 2,571 Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows 1,103 846 3,069 2,432 Right-of-use assets obtained in exchange for new operating lease liabilities 126 15,212 1,166 19,219 Note 8 – Leases (Continued) Maturities of Lease Liabilities Maturities of lease liabilities under operating and finance leases having initial or remaining non-cancelable lease terms more than one year as of September 30, 2022 is as follows (in thousands): . As of September 30, 2022 12 Months Ended Operating Leases Finance Leases September 2023 $ 5,179 $ 181 September 2024 5,152 176 September 2025 4,224 85 September 2026 3,659 — September 2027 3,671 — Thereafter 13,099 — Total future minimum lease payments $ 34,984 $ 442 Less amounts representing interest (5,478 ) (23 ) Present value of future minimum lease payments $ 29,506 $ 419 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 — Income Taxes The Company recorded an income tax provision as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Provision for income taxes $ 2,315 $ 1,356 $ 6,671 $ 4,751 The effective tax rates for the three months ended September 30, 2022 and October 1, 2021 was 18.4% and 18.4%, respectively, and was 16.9% and 19.5%, for the nine months ended September 30, 2022 and October 1, 2021, respectively. The Company’s effective tax rates differ from the U.S. federal statutory rate of 21% for the three and nine months ended September 30, 2022 and October 1, 2021, respectively, primarily due to the income taxes generated in foreign jurisdictions. The differences in the effective tax rate for the three and nine months ended September 30, 2022 compared to the same period in 2021 was primarily due to jurisdictions in which the income is earned. |
Defined Benefit Pension Plans
Defined Benefit Pension Plans | 9 Months Ended |
Sep. 30, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
Defined Benefit Pension Plans | Note 10 – Defined Benefit Pension Plans The Company has defined benefit plans covering employees of its Switzerland and Japan operations. The following table summarizes the components of net periodic pension cost recorded for the Company’s defined benefit pension plans (in thousands): Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Service cost ( 1) $ 306 $ 326 $ 941 $ 1,003 Interest cost ( 2) 22 14 63 42 Expected return on plan assets ( 2) (125 ) (99 ) (366 ) (299 ) Prior service credit ( 2),(3) (44 ) (10 ) (135 ) (32 ) Actuarial loss recognized in current period ( 2),(3) 98 131 274 393 Net periodic pension cost $ 257 $ 362 $ 777 $ 1,107 (1) Recognized in selling general and administrative expenses on the Condensed Consolidated Statements of Income. ( 2 ) Recognized in other expense, net on the Condensed Consolidated Statements of Income. (3) Amounts reclassified from accumulated other comprehensive income (loss). Note 10 – Defined Benefit Pension Plans (Continued) The Company currently is not required to and does not make contributions to its Japan pension plan. The Company’s contributions to its Swiss pension plan are as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Employer contribution $ 230 $ 204 $ 666 $ 601 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | Note 11 — Stockholders’ Equity Stock-Based Compensation The cost that has been charged against income for stock-based compensation is set forth below (in thousands): Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Employee stock options $ 2,865 $ 2,594 $ 7,649 $ 7,850 Restricted stock 67 109 618 507 Restricted stock units 1,249 700 3,242 2,048 Performance stock units 1,240 124 2,932 325 Nonemployee stock options 306 136 934 255 Total stock-based compensation expense $ 5,727 $ 3,663 $ 15,375 $ 10,985 The Company recorded stock-based compensation costs in the following categories (in thousands): Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Cost of sales $ 233 $ 61 $ 409 $ 150 General and administrative 2,584 1,671 7,171 4,925 Selling and marketing 1,335 851 3,548 2,637 Research and development 1,575 1,080 4,247 3,273 Total stock-based compensation expense, net 5,727 3,663 15,375 10,985 Amounts capitalized as part of inventory 361 383 1,379 1,082 Total stock-based compensation expense, gross $ 6,088 $ 4,046 $ 16,754 $ 12,067 Incentive Plan The Amended and Restated Omnibus Equity Incentive Plan (“the Plan”) provides for various forms of stock-based incentives. To date, of the available forms of awards under the Plan, the Company has granted only stock options, restricted stock, unrestricted share grants, restricted stock units (“RSUs”) and performance stock units (“PSUs”). Options under the Plan are granted at fair market value on the date of grant, become exercisable generally over a three-year Note 11 — Stockholders’ Equity (Continued) Assumptions The fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model applying the weighted-average assumptions noted in the following table. Expected volatilities are based on historical volatility of the Company’s stock. The expected term of options granted is derived from the historical exercises and post-vesting cancellations estimated forfeiture rate based on historical forfeiture experience. The risk-free rate is based on the U.S. Treasury yield curve corresponding to the expected term at the time of the grant. Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Expected dividend yield 0 % 0 % 0 % 0 % Expected volatility 54 % 53 % 54 % 53 % Risk-free interest rate 2.91 % 0.79 % 1.88 % 0.84 % Expected term (in years) 5.10 5.38 5.10 5.38 Stock Options A summary of stock option activity under the Plan for nine months ended September 30, 2022 is presented below: Stock Options (in 000’s) Minimum Exercise Price Maximum Exercise Price Outstanding at December 31, 2021 2,435 Granted 443 Exercised (417 ) Forfeited or expired (23 ) Outstanding at September 30, 2022 2,438 $ 5.34 $ 154.96 Exercisable at September 30, 2022 1,778 Restricted Stock, Restricted Stock Units and Performance Stock Units A summary of restricted stock, RSUs and PSUs activity under the Plan for the nine months ended September 30, 2022 is presented below (shares in thousands): Restricted Stock RSUs PSUs Unvested at December 31, 2021 3 131 10 Granted 6 116 113 Vested (5 ) (57 ) (5 ) Unvested at September 30, 2022 4 190 118 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12 - Commitments and Contingencies Litigation and Claims From time to time, the Company is involved in various legal proceedings and other matters arising in the normal course of business. These legal proceedings and other matters may relate to, among other things, contractual rights and obligations, employment matters, or claims of product liability. STAAR maintains insurance coverage for various matters, including product liability and certain securities claims. While the Company does not believe that any of the claims known is likely to have a material adverse effect on the Company’s financial condition or results of operations, new claims or unexpected results of existing claims could lead to significant financial harm. Employment Agreements The Company’s Chief Executive Officer entered into an employment agreement with the Company, effective March 1, 2015. She and certain officers have as provisions of their agreements certain rights, including continuance of cash compensation and benefits, upon a “change in control,” which may include an acquisition of substantially all its assets, or termination “without cause or for good reason” as defined in the employment agreements. |
Basic and Diluted Net Income Pe
Basic and Diluted Net Income Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income Per Share | Note 13 — Basic and Diluted Net Income Per Share The following table sets forth the computation of basic and diluted net income per share (in thousands except per share amounts): Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Numerator: Net income $ 10,262 $ 6,020 $ 32,902 $ 19,579 Denominator: Weighted average common shares: Common shares outstanding 48,106 47,486 47,919 47,067 Less: Unvested restricted stock (4 ) (3 ) (4 ) (3 ) Denominator for basic calculation 48,102 47,483 47,915 47,064 Weighted average effects of potentially diluted common stock: Stock options 1,336 2,013 1,378 2,277 Unvested restricted stock 2 — 2 6 RSUs 64 86 55 90 PSUs 45 10 21 11 Denominator for diluted calculation 49,549 49,592 49,371 49,448 Net income per share: Basic $ 0.21 $ 0.13 $ 0.69 $ 0.42 Diluted $ 0.21 $ 0.12 $ 0.67 $ 0.40 The following table sets forth (in thousands) the weighted average number of options to purchase shares of common stock, restricted stock, RSUs and PSUs with either exercise prices or unrecognized compensation cost per share greater than the average market price per share of the Company’s common stock, which were not included in the calculation of diluted per share amounts because the effects would be anti-dilutive. Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Stock options 864 33 865 201 Restricted stock, RSUs and PSUs 2 6 20 3 Total 866 39 885 204 |
Disaggregation of Sales, Geogra
Disaggregation of Sales, Geographic Sales and Product Sales | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Disaggregation of Sales, Geographic Sales and Product Sales | Note 14 — Disaggregation of Sales, Geographic Sales and Product Sales In the following tables, sales are disaggregated by category, sales by geographic market and sales by product data. The following breaks down sales into the following categories (in thousands): Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Non-consignment sales $ 71,223 $ 53,819 $ 205,236 $ 156,604 Consignment sales 4,823 4,533 15,111 14,867 Total net sales $ 76,046 $ 58,352 $ 220,347 $ 171,471 The Company markets and sells its products in over 75 countries and conducts its manufacturing in the United States. Other than China and Japan, the Company does not conduct business in any country in which its sales exceed 10% of worldwide consolidated net sales. Sales are attributed to countries based on location of customers. thousands): Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Domestic $ 3,873 $ 2,385 $ 10,375 $ 7,429 Foreign: China 42,246 28,411 116,635 80,984 Japan 10,546 10,488 32,481 29,374 Other ( 1) 19,381 17,068 60,856 53,684 Total foreign sales 72,173 55,967 209,972 164,042 Total net sales $ 76,046 $ 58,352 $ 220,347 $ 171,471 (1) No other location individually exceeds 10% of the total sales. 100 Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 ICLs $ 71,953 $ 54,153 $ 208,550 $ 159,889 Other product sales: Cataract IOLs 2,191 2,525 7,640 9,324 Other surgical products 1,902 1,674 4,157 2,258 Total other product sales 4,093 4,199 11,797 11,582 Total net sales $ 76,046 $ 58,352 $ 220,347 $ 171,471 One customer, the Company’s distributor in China, accounted for 56% and 49% of net sales for the three months ended September 30, 2022 and October 1, 2021, respectively, and the same customer accounted for 53% and 47% for the nine months ended September 30, 2022 and October 1, 2021, respectively. As of September 30, 2022 and December 31, 2021, respectively, one customer, the Company’s distributor in China, accounted for 57% and 47% of consolidated trade receivables. |
COVID-19 Developments
COVID-19 Developments | 9 Months Ended |
Sep. 30, 2022 | |
C O V I D19 Developments [Abstract] | |
COVID-19 Developments | Note 15 — COVID-19 Developments In December 2019, COVID-19 surfaced and in March 2020, the World Health Organization declared a pandemic related to the rapid spread of COVID-19 around the world. The impact of the COVID-19 outbreak on the businesses and the economy in the U.S. and the rest of the world is, and is expected to continue to be, uncertain and may continue to be significant as COVID-19 variant strains emerge. The Company’s revenues have been adversely impacted, and the Company experienced a substantial slowdown in sales beginning March 20, 2020 in global geographies characterized as “hot spots” for the COVID-19 virus, including parts of Europe, North America, Asia, the Middle East and India. In certain of these markets, sales have paused as elective surgeries are discouraged to support COVID-19 related needs. The Company continues to monitor the commercial and operational impact of new variants of COVID-19. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The Condensed Consolidated Financial Statements of the Company present the financial position, results of operations, and cash flows of STAAR Surgical Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Commission. In accordance with those rules and regulations certain information and footnote disclosures normally included in the Comprehensive Financial Statements have been condensed or omitted pursuant to such rules and regulations. The Consolidated Balance Sheet as of December 31, 2021 was derived from the audited financial statements at that date, but does not include all the information and footnotes required by GAAP. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2022 and October 1, 2021, in the opinion of management, include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s financial condition and results of operations. The results of operations for the three and nine months ended September 30, 2022 and October 1, 2021, are not necessarily indicative of the results to be expected for any other interim period or for the entire year. Each of the Company’s fiscal reporting periods ends on the Friday nearest to the quarter ending date and generally consists of 13 weeks. Unless the context indicates otherwise “we,” “us,” the “Company,” and “STAAR” refer to STAAR Surgical Company and its consolidated subsidiaries. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash and balances in deposits and money market accounts held at banks and financial institutions. Such balances generally exceed the federal insurance limits; however, the Company periodically assesses the financial condition of the institutions and believes that the risk of any loss is minimal. |
Investments Available for Sale | Investments Available for Sale Investments available for sale (“AFS”) are investments in debt securities for which the Company does not have the positive intent and ability to hold to maturity. The Company’s investment policy primary objective is capital preservation while maximizing its return on investment. Investments may include U.S. government and corporate debt securities, commercial paper, certain certificates of deposit and related security types, that are rated by two nationally recognized statistical rating organizations with minimum investment grade ratings of AAA to A-/A-1+ to A-2, or the equivalent. There are also limits to the amount of credit exposure in any given security type. Investments AFS are measured at fair value and its unrealized gains and losses reported net of the allowance for credit losses and applicable income taxes, are recognized in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets. The cost of investments AFS is adjusted for amortization of premiums and accretion of discounts to maturity. Interest earned, including amortization of premiums and accretion of discounts recognized, is included in interest income (expense) on the Consolidated Statements of Income. The cost of investments for purposes of computing realized and unrealized gains and losses is based on the specific identification method. The Company recognizes other-than-temporary impairment (“OTTI”) of a debt security for which there has been a decline in fair value below amortized cost if (i) management intends to sell the security, (ii) it is more-likely-than-not that the Company will be required to sell the security before recovery of its amortized cost basis, or (iii) the Company does not expect to recover the entire amortized cost basis of the security. The amount by which amortized cost exceeds the fair value of a debt security that is considered to have OTTI is separated into a component representing the credit loss, which is recognized in other income (expense) on the Consolidated Statements of Income, and a component related to all other factors, which is recognized in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets. The measurement of the credit loss component is equal to the difference between the debt security’s amortized cost basis and the present value of its expected future cash flows discounted at the security’s effective yield. |
Vendor Concentration | Vendor Concentration There were no vendors that accounted for over 10% of the Company’s consolidated accounts payable as of September 30, 2022 and December 31, 2021. There were no vendors that accounted for over 10% of the Company’s consolidated purchases for the three and nine months ended September 30, 2022 and October 1, 2021, respectively. |
Investments Available for Sale
Investments Available for Sale (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Investments Available for Sale and Related Fair Value Measurement | In the three months ended September 30, 2022, the Company started to invest its cash in slightly higher yielding securities. Investments AFS and the related fair value measurement consisted of the following (dollars in thousands): September 30, 2022 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Level 2 Fair Value Measurements: Commercial paper $ 35,093 $ 1 $ (75 ) $ 35,019 Certificates of deposit 14,404 1 (66 ) 14,339 U.S. Treasury and agency securities 4,188 — (1 ) 4,187 Corporate debt securities 41,898 5 (297 ) 41,606 Accrued interest receivable 300 — — 300 Total investments AFS $ 95,883 $ 7 $ (439 ) $ 95,451 |
Summary of Fair Value of Investments Available for Sale by Contractual Maturity | The following table shows the fair value of investments AFS by contractual maturity (dollars in thousands): As of September 30, 2022 Within one year After one year through five years Total Commercial paper $ 35,019 $ — $ 35,019 Certificates of deposit 14,339 — 14,339 U.S. Treasury and agency securities 4,187 — 4,187 Corporate debt securities 28,246 13,360 41,606 Accrued interest receivable 300 — 300 Total investments AFS $ 82,091 $ 13,360 $ 95,451 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories, net are stated at the lower of cost and net realizable value, determined on a first-in, first-out basis and consisted of the following (in thousands): September 30, 2022 December 31, 2021 Raw materials and purchased parts $ 5,607 $ 3,971 Work in process 4,038 4,031 Finished goods 12,109 10,429 Total inventories, gross 21,754 18,431 Less inventory reserves (1,824 ) (1,157 ) Total inventories, net $ 19,930 $ 17,274 |
Prepayments, Deposits, and Ot_2
Prepayments, Deposits, and Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule Of Prepayments, Deposits, and Other Current Assets | Prepayments, deposits, and other current assets consisted of the following (in thousands): September 30, 2022 December 31, 2021 Prepayments and deposits $ 3,716 $ 4,047 Prepaid insurance 517 2,647 Prepaid marketing 2,590 543 Consumption tax receivable 694 830 Value added tax (VAT) receivable 1,555 2,197 BVG (Swiss Pension) prepayment 722 15 Other ( 1) 424 621 Total prepayments, deposits and other current assets $ 10,218 $ 10,900 (1) |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, plant and equipment, net consisted of the following (in thousands): September 30, 2022 December 31, 2021 Machinery and equipment $ 27,860 $ 24,127 Computer equipment and software 9,243 8,807 Furniture and fixtures 4,453 3,658 Leasehold improvements 12,212 11,821 Construction in process 31,398 21,827 Total property, plant and equipment, gross 85,166 70,240 Less accumulated depreciation (37,118 ) (34,328 ) Total property, plant and equipment, net $ 48,048 $ 35,912 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets, net consisted of the following (in thousands): September 30, 2022 December 31, 2021 Long-lived amortized intangible assets Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Patents and licenses $ 9,194 $ (9,023 ) $ 171 $ 9,315 $ (9,097 ) $ 218 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consisted of the following (in thousands): September 30, 2022 December 31, 2021 Accrued salaries and wages $ 9,174 $ 12,030 Accrued bonuses 5,356 8,091 Income taxes payable 5,232 2,248 Marketing obligations 2,418 2,243 Other ( 1) 6,892 7,265 Total other current liabilities $ 29,072 $ 31,877 (1) No individual item in “Other” exceeds 5% of the other current liabilities. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related to Finance Leases | Supplemental balance sheet information related to finance leases consisted of the following (dollars in thousands): September 30, 2022 December 31, 2021 Machinery and equipment $ 28 $ 35 Computer equipment and software 16 506 Furniture and fixtures 475 475 Finance lease right-of-use assets, gross 519 1,016 Less accumulated depreciation (139 ) (510 ) Finance lease right-of-use assets, net $ 380 $ 506 Current finance lease obligations $ 167 $ 127 Long-term finance lease obligations 252 382 Total finance lease liability $ 419 $ 509 Weighted-average remaining lease term (in years) 2.5 3.2 Weighted-average discount rate 4.11 % 4.02 % |
Supplemental Cash Flow Information Related to Finance Leases | Note 8 – Leases (Continued) Finance Leases (Continued) Supplemental cash flow information related to finance leases consisted of the following (dollars in thousands): Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Amortization of finance lease right-of-use asset $ 39 $ 15 $ 121 $ 71 Interest on finance lease liabilities 5 1 13 6 Cash paid for amounts included in the measurement of finance lease liabilities: Operating cash flows 5 1 13 6 Financing cash flows 40 36 85 314 |
Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to operating leases consisted of the following (dollars in thousands): September 30, 2022 December 31, 2021 Machinery and equipment $ 762 $ 760 Computer equipment and software 446 472 Real property 33,751 34,426 Operating lease right-of-use assets, gross 34,959 35,658 Less accumulated depreciation (5,456 ) (4,348 ) Operating lease right-of-use assets, net $ 29,503 $ 31,310 Current operating lease obligations $ 3,474 $ 3,283 Long-term operating lease obligations 26,032 28,269 Total operating lease liability $ 29,506 $ 31,552 Weighted-average remaining lease term (in years) 7.6 7.8 Weighted-average discount rate 4.04 % 3.56 % |
Supplemental Cash Flow Information Related to Operating Leases | Supplemental cash flow information related to operating leases was as follows (dollars in thousands): Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Operating lease cost $ 1,167 $ 931 $ 3,471 $ 2,571 Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows 1,103 846 3,069 2,432 Right-of-use assets obtained in exchange for new operating lease liabilities 126 15,212 1,166 19,219 |
Schedule of Maturities of Lease Liabilities under Operating and Finance Leases Having Initial or Remaining Non-Cancelable Lease Terms More Than One Year | Maturities of lease liabilities under operating and finance leases having initial or remaining non-cancelable lease terms more than one year as of September 30, 2022 is as follows (in thousands): . As of September 30, 2022 12 Months Ended Operating Leases Finance Leases September 2023 $ 5,179 $ 181 September 2024 5,152 176 September 2025 4,224 85 September 2026 3,659 — September 2027 3,671 — Thereafter 13,099 — Total future minimum lease payments $ 34,984 $ 442 Less amounts representing interest (5,478 ) (23 ) Present value of future minimum lease payments $ 29,506 $ 419 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision | The Company recorded an income tax provision as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Provision for income taxes $ 2,315 $ 1,356 $ 6,671 $ 4,751 |
Defined Benefit Pension Plans (
Defined Benefit Pension Plans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs | The Company has defined benefit plans covering employees of its Switzerland and Japan operations. The following table summarizes the components of net periodic pension cost recorded for the Company’s defined benefit pension plans (in thousands): Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Service cost ( 1) $ 306 $ 326 $ 941 $ 1,003 Interest cost ( 2) 22 14 63 42 Expected return on plan assets ( 2) (125 ) (99 ) (366 ) (299 ) Prior service credit ( 2),(3) (44 ) (10 ) (135 ) (32 ) Actuarial loss recognized in current period ( 2),(3) 98 131 274 393 Net periodic pension cost $ 257 $ 362 $ 777 $ 1,107 (1) Recognized in selling general and administrative expenses on the Condensed Consolidated Statements of Income. ( 2 ) Recognized in other expense, net on the Condensed Consolidated Statements of Income. (3) Amounts reclassified from accumulated other comprehensive income (loss). |
Schedule of Defined Benefit Plans Disclosures | Note 10 – Defined Benefit Pension Plans (Continued) The Company currently is not required to and does not make contributions to its Japan pension plan. The Company’s contributions to its Swiss pension plan are as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Employer contribution $ 230 $ 204 $ 666 $ 601 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders Equity Note [Abstract] | |
Schedule of Compensation Cost | The cost that has been charged against income for stock-based compensation is set forth below (in thousands): Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Employee stock options $ 2,865 $ 2,594 $ 7,649 $ 7,850 Restricted stock 67 109 618 507 Restricted stock units 1,249 700 3,242 2,048 Performance stock units 1,240 124 2,932 325 Nonemployee stock options 306 136 934 255 Total stock-based compensation expense $ 5,727 $ 3,663 $ 15,375 $ 10,985 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The Company recorded stock-based compensation costs in the following categories (in thousands): Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Cost of sales $ 233 $ 61 $ 409 $ 150 General and administrative 2,584 1,671 7,171 4,925 Selling and marketing 1,335 851 3,548 2,637 Research and development 1,575 1,080 4,247 3,273 Total stock-based compensation expense, net 5,727 3,663 15,375 10,985 Amounts capitalized as part of inventory 361 383 1,379 1,082 Total stock-based compensation expense, gross $ 6,088 $ 4,046 $ 16,754 $ 12,067 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The risk-free rate is based on the U.S. Treasury yield curve corresponding to the expected term at the time of the grant. Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Expected dividend yield 0 % 0 % 0 % 0 % Expected volatility 54 % 53 % 54 % 53 % Risk-free interest rate 2.91 % 0.79 % 1.88 % 0.84 % Expected term (in years) 5.10 5.38 5.10 5.38 |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of stock option activity under the Plan for nine months ended September 30, 2022 is presented below: Stock Options (in 000’s) Minimum Exercise Price Maximum Exercise Price Outstanding at December 31, 2021 2,435 Granted 443 Exercised (417 ) Forfeited or expired (23 ) Outstanding at September 30, 2022 2,438 $ 5.34 $ 154.96 Exercisable at September 30, 2022 1,778 |
Schedule of Share-based Compensation, Restricted Stock, RSUs and PSUs Activity | A summary of restricted stock, RSUs and PSUs activity under the Plan for the nine months ended September 30, 2022 is presented below (shares in thousands): Restricted Stock RSUs PSUs Unvested at December 31, 2021 3 131 10 Granted 6 116 113 Vested (5 ) (57 ) (5 ) Unvested at September 30, 2022 4 190 118 |
Basic and Diluted Net Income _2
Basic and Diluted Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Basic and Diluted Net Income Per Share | The following table sets forth the computation of basic and diluted net income per share (in thousands except per share amounts): Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Numerator: Net income $ 10,262 $ 6,020 $ 32,902 $ 19,579 Denominator: Weighted average common shares: Common shares outstanding 48,106 47,486 47,919 47,067 Less: Unvested restricted stock (4 ) (3 ) (4 ) (3 ) Denominator for basic calculation 48,102 47,483 47,915 47,064 Weighted average effects of potentially diluted common stock: Stock options 1,336 2,013 1,378 2,277 Unvested restricted stock 2 — 2 6 RSUs 64 86 55 90 PSUs 45 10 21 11 Denominator for diluted calculation 49,549 49,592 49,371 49,448 Net income per share: Basic $ 0.21 $ 0.13 $ 0.69 $ 0.42 Diluted $ 0.21 $ 0.12 $ 0.67 $ 0.40 |
Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share | Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Stock options 864 33 865 201 Restricted stock, RSUs and PSUs 2 6 20 3 Total 866 39 885 204 |
Disaggregation of Sales, Geog_2
Disaggregation of Sales, Geographic Sales and Product Sales (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Disaggregation of Sales | In the following tables, sales are disaggregated by category, sales by geographic market and sales by product data. The following breaks down sales into the following categories (in thousands): Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Non-consignment sales $ 71,223 $ 53,819 $ 205,236 $ 156,604 Consignment sales 4,823 4,533 15,111 14,867 Total net sales $ 76,046 $ 58,352 $ 220,347 $ 171,471 |
Net Sales by Geographic Areas | The composition of the Company’s net sales to unaffiliated customers was as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Domestic $ 3,873 $ 2,385 $ 10,375 $ 7,429 Foreign: China 42,246 28,411 116,635 80,984 Japan 10,546 10,488 32,481 29,374 Other ( 1) 19,381 17,068 60,856 53,684 Total foreign sales 72,173 55,967 209,972 164,042 Total net sales $ 76,046 $ 58,352 $ 220,347 $ 171,471 (1) No other location individually exceeds 10% of the total sales. |
Net Sales by Products and Services | The composition of the Company’s net sales by product line was as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 ICLs $ 71,953 $ 54,153 $ 208,550 $ 159,889 Other product sales: Cataract IOLs 2,191 2,525 7,640 9,324 Other surgical products 1,902 1,674 4,157 2,258 Total other product sales 4,093 4,199 11,797 11,582 Total net sales $ 76,046 $ 58,352 $ 220,347 $ 171,471 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies - Additional Information (Details) - Vendor Concentration Risk - Maximum | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Dec. 31, 2021 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Consolidated Accounts Payable | |||||
Organization And Description Of Business And Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 10% | 10% | |||
Consolidated Purchases | |||||
Organization And Description Of Business And Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 10% | 10% | 10% | 10% |
Investments Available for Sal_2
Investments Available for Sale - Summary of Investments Available for Sale and Related Fair Value Measurement (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Schedule Of Available For Sale Securities [Line Items] | |
Estimated Fair Value | $ 95,451 |
Commercial Paper | |
Schedule Of Available For Sale Securities [Line Items] | |
Estimated Fair Value | 35,019 |
Certificates of Deposit | |
Schedule Of Available For Sale Securities [Line Items] | |
Estimated Fair Value | 14,339 |
U.S. Treasury and Agency Securities | |
Schedule Of Available For Sale Securities [Line Items] | |
Estimated Fair Value | 4,187 |
Corporate Debt Securities | |
Schedule Of Available For Sale Securities [Line Items] | |
Estimated Fair Value | 41,606 |
Accrued Interest Receivable | |
Schedule Of Available For Sale Securities [Line Items] | |
Estimated Fair Value | 300 |
Level 2 | |
Schedule Of Available For Sale Securities [Line Items] | |
Amortized Cost | 95,883 |
Unrealized Gains | 7 |
Unrealized Losses | (439) |
Estimated Fair Value | 95,451 |
Level 2 | Commercial Paper | |
Schedule Of Available For Sale Securities [Line Items] | |
Amortized Cost | 35,093 |
Unrealized Gains | 1 |
Unrealized Losses | (75) |
Estimated Fair Value | 35,019 |
Level 2 | Certificates of Deposit | |
Schedule Of Available For Sale Securities [Line Items] | |
Amortized Cost | 14,404 |
Unrealized Gains | 1 |
Unrealized Losses | (66) |
Estimated Fair Value | 14,339 |
Level 2 | U.S. Treasury and Agency Securities | |
Schedule Of Available For Sale Securities [Line Items] | |
Amortized Cost | 4,188 |
Unrealized Losses | (1) |
Estimated Fair Value | 4,187 |
Level 2 | Corporate Debt Securities | |
Schedule Of Available For Sale Securities [Line Items] | |
Amortized Cost | 41,898 |
Unrealized Gains | 5 |
Unrealized Losses | (297) |
Estimated Fair Value | 41,606 |
Level 2 | Accrued Interest Receivable | |
Schedule Of Available For Sale Securities [Line Items] | |
Amortized Cost | 300 |
Estimated Fair Value | $ 300 |
Investments Available for Sal_3
Investments Available for Sale - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Investments Debt And Equity Securities [Abstract] | ||
Impairment recognized | $ 0 | $ 0 |
Investments Available for Sal_4
Investments Available for Sale - Summary of Fair Value of Investments Available for Sale by Contractual Maturity (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Schedule Of Available For Sale Securities [Line Items] | |
Within one year | $ 82,091 |
After one year through five years | 13,360 |
Total | 95,451 |
Commercial Paper | |
Schedule Of Available For Sale Securities [Line Items] | |
Within one year | 35,019 |
Total | 35,019 |
Certificates of Deposit | |
Schedule Of Available For Sale Securities [Line Items] | |
Within one year | 14,339 |
Total | 14,339 |
U.S. Treasury and Agency Securities | |
Schedule Of Available For Sale Securities [Line Items] | |
Within one year | 4,187 |
Total | 4,187 |
Corporate Debt Securities | |
Schedule Of Available For Sale Securities [Line Items] | |
Within one year | 28,246 |
After one year through five years | 13,360 |
Total | 41,606 |
Accrued Interest Receivable | |
Schedule Of Available For Sale Securities [Line Items] | |
Within one year | 300 |
Total | $ 300 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory, Current (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials and purchased parts | $ 5,607 | $ 3,971 |
Work in process | 4,038 | 4,031 |
Finished goods | 12,109 | 10,429 |
Total inventories, gross | 21,754 | 18,431 |
Less inventory reserves | (1,824) | (1,157) |
Total inventories, net | $ 19,930 | $ 17,274 |
Prepayments, Deposits, and Ot_3
Prepayments, Deposits, and Other Current Assets - Schedule Of Prepayments, Deposits, and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |||
Prepayments and deposits | $ 3,716 | $ 4,047 | |
Prepaid insurance | 517 | 2,647 | |
Prepaid marketing | 2,590 | 543 | |
Consumption tax receivable | 694 | 830 | |
Value added tax (VAT) receivable | 1,555 | 2,197 | |
BVG (Swiss Pension) prepayment | 722 | 15 | |
Other | [1] | 424 | 621 |
Total prepayments, deposits and other current assets | $ 10,218 | $ 10,900 | |
[1]No individual item in “other current assets” exceeds 5% of the total prepayments, deposits and other current assets. |
Prepayments, Deposits, and Ot_4
Prepayments, Deposits, and Other Current Assets - Schedule Of Prepayments, Deposits, and Other Current Assets (Parenthetical) (Details) | Sep. 30, 2022 | Dec. 31, 2021 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Percent of prepayments deposits and other current assets included in other current assets | 5% | 5% |
Property, Plant and Equipment -
Property, Plant and Equipment - Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Abstract] | ||
Machinery and equipment | $ 27,860 | $ 24,127 |
Computer equipment and software | 9,243 | 8,807 |
Furniture and fixtures | 4,453 | 3,658 |
Leasehold improvements | 12,212 | 11,821 |
Construction in process | 31,398 | 21,827 |
Total property, plant and equipment, gross | 85,166 | 70,240 |
Less accumulated depreciation | (37,118) | (34,328) |
Total property, plant and equipment, net | $ 48,048 | $ 35,912 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Long-lived intangible assets | ||
Long-lived intangible assets, Net | $ 171 | $ 218 |
Patents and licenses | ||
Long-lived intangible assets | ||
Long-lived intangible assets, Gross Carrying Amount | 9,194 | 9,315 |
Long-lived intangible assets, Accumulated Amortization | (9,023) | (9,097) |
Long-lived intangible assets, Net | $ 171 | $ 218 |
Other Current Liabilities - Sch
Other Current Liabilities - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |||
Accrued salaries and wages | $ 9,174 | $ 12,030 | |
Accrued bonuses | 5,356 | 8,091 | |
Income taxes payable | 5,232 | 2,248 | |
Marketing obligations | 2,418 | 2,243 | |
Other | [1] | 6,892 | 7,265 |
Total other current liabilities | $ 29,072 | $ 31,877 | |
[1]No individual item in “Other” exceeds 5% of the other current liabilities |
Other Current Liabilities - S_2
Other Current Liabilities - Schedule of Other Current Liabilities (Parenthetical) (Details) | Sep. 30, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Percent of Other Current Liabilities Included in Other | 5% | 5% |
Leases - Additional Information
Leases - Additional Information (Details) | Sep. 30, 2022 |
Minimum | |
Lessee Lease Description [Line Items] | |
Finance lease, term of contract | 2 years |
Operating lease, term of contract | 2 years |
Maximum | |
Lessee Lease Description [Line Items] | |
Finance lease, term of contract | 5 years |
Operating lease, term of contract | 10 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Finance Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Lessee Lease Description [Line Items] | ||
Finance lease right-of-use assets, gross | $ 519 | $ 1,016 |
Less accumulated depreciation | (139) | (510) |
Finance lease right-of-use assets, net | 380 | 506 |
Current finance lease obligations | 167 | 127 |
Long-term finance lease obligations | 252 | 382 |
Total finance lease liability | $ 419 | $ 509 |
Weighted-average remaining lease term (in years) | 2 years 6 months | 3 years 2 months 12 days |
Weighted-average discount rate | 4.11% | 4.02% |
Machinery and Equipment | ||
Lessee Lease Description [Line Items] | ||
Finance lease right-of-use assets, gross | $ 28 | $ 35 |
Computer Equipment and Software | ||
Lessee Lease Description [Line Items] | ||
Finance lease right-of-use assets, gross | 16 | 506 |
Furniture and Fixtures | ||
Lessee Lease Description [Line Items] | ||
Finance lease right-of-use assets, gross | $ 475 | $ 475 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Finance Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Leases [Abstract] | ||||
Amortization of finance lease right-of-use asset | $ 39 | $ 15 | $ 121 | $ 71 |
Interest on finance lease liabilities | 5 | 1 | 13 | 6 |
Cash paid for amounts included in the measurement of finance lease liabilities: | ||||
Operating cash flows | 5 | 1 | 13 | 6 |
Financing cash flows | $ 40 | $ 36 | $ 85 | $ 314 |
Leases - Supplemental Balance_2
Leases - Supplemental Balance Sheet Information Related to Operating Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Lessee Lease Description [Line Items] | ||
Operating lease right-of-use assets, gross | $ 34,959 | $ 35,658 |
Less accumulated depreciation | (5,456) | (4,348) |
Operating lease right-of-use assets, net | 29,503 | 31,310 |
Current operating lease obligations | 3,474 | 3,283 |
Long-term operating lease obligations | 26,032 | 28,269 |
Total operating lease liability | $ 29,506 | $ 31,552 |
Weighted-average remaining lease term (in years) | 7 years 7 months 6 days | 7 years 9 months 18 days |
Weighted-average discount rate | 4.04% | 3.56% |
Machinery and Equipment | ||
Lessee Lease Description [Line Items] | ||
Operating lease right-of-use assets, gross | $ 762 | $ 760 |
Computer Equipment and Software | ||
Lessee Lease Description [Line Items] | ||
Operating lease right-of-use assets, gross | 446 | 472 |
Real Property | ||
Lessee Lease Description [Line Items] | ||
Operating lease right-of-use assets, gross | $ 33,751 | $ 34,426 |
Leases - Supplemental Cash Fl_2
Leases - Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Leases [Abstract] | ||||
Operating lease cost | $ 1,167 | $ 931 | $ 3,471 | $ 2,571 |
Cash paid for amounts included in the measurement of operating lease liabilities: | ||||
Operating cash flows | 1,103 | 846 | 3,069 | 2,432 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 126 | $ 15,212 | $ 1,166 | $ 19,219 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities under Operating and Finance Leases Having Initial or Remaining Non-Cancelable Lease Terms More Than One Year (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Operating Lease Liabilities, Payments, Due, Rolling Maturity [Abstract] | ||
September 2023 | $ 5,179 | |
September 2024 | 5,152 | |
September 2025 | 4,224 | |
September 2026 | 3,659 | |
September 2027 | 3,671 | |
Thereafter | 13,099 | |
Total future minimum lease payments | 34,984 | |
Less amounts representing interest | (5,478) | |
Present value of future minimum lease payments | 29,506 | $ 31,552 |
Finance Lease Liabilities, Payments, Rolling Maturity [Abstract] | ||
September 2023 | 181 | |
September 2024 | 176 | |
September 2025 | 85 | |
Total future minimum lease payments | 442 | |
Less amounts representing interest | (23) | |
Present value of future minimum lease payments | $ 419 | $ 509 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Provision (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 2,315 | $ 1,356 | $ 6,671 | $ 4,751 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 18.40% | 18.40% | 16.90% | 19.50% |
Effective tax rates differ from U.S. federal statutory rate | 21% | 21% | 21% | 21% |
Defined Benefit Pension Plans -
Defined Benefit Pension Plans - Schedule of Net Benefit Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | ||
Compensation And Retirement Disclosure [Abstract] | |||||
Service cost | [1] | $ 306 | $ 326 | $ 941 | $ 1,003 |
Interest cost | [2] | 22 | 14 | 63 | 42 |
Expected return on plan assets | [2] | (125) | (99) | (366) | (299) |
Prior service credit | [2],[3] | (44) | (10) | (135) | (32) |
Actuarial loss recognized in current period | [2],[3] | 98 | 131 | 274 | 393 |
Net periodic pension cost | $ 257 | $ 362 | $ 777 | $ 1,107 | |
[1]Recognized in selling general and administrative expenses on the Condensed Consolidated Statements of Income.[2]Recognized in other expense, net on the Condensed Consolidated Statements of Income.[3]Amounts reclassified from accumulated other comprehensive income (loss). |
Defined Benefit Pension Plans_2
Defined Benefit Pension Plans - Schedule of Defined Benefit Plans Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Swiss pension plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 230 | $ 204 | $ 666 | $ 601 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Compensation Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 5,727 | $ 3,663 | $ 15,375 | $ 10,985 |
Employee Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 2,865 | 2,594 | 7,649 | 7,850 |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 67 | 109 | 618 | 507 |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 1,249 | 700 | 3,242 | 2,048 |
Performance Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 1,240 | 124 | 2,932 | 325 |
Non Employee Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 306 | $ 136 | $ 934 | $ 255 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense, net | $ 5,727 | $ 3,663 | $ 15,375 | $ 10,985 |
Amounts capitalized as part of inventory | 361 | 383 | 1,379 | 1,082 |
Total stock-based compensation expense, gross | 6,088 | 4,046 | 16,754 | 12,067 |
Cost of Sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense, net | 233 | 61 | 409 | 150 |
General and Administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense, net | 2,584 | 1,671 | 7,171 | 4,925 |
Selling and Marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense, net | 1,335 | 851 | 3,548 | 2,637 |
Research and Development Expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense, net | $ 1,575 | $ 1,080 | $ 4,247 | $ 3,273 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2022 shares | |
Stockholders Equity Note [Line Items] | |
Estimated forfeiture rate | 5% |
Omnibus Plan | |
Stockholders Equity Note [Line Items] | |
Share-based compensation arrangement by share-based payment award, expiration period | 10 years |
Omnibus Plan | Employee Stock Option | |
Stockholders Equity Note [Line Items] | |
Share-based compensation arrangement by share-based payment award, vesting period | 3 years |
Omnibus Plan | Restricted Stock | |
Stockholders Equity Note [Line Items] | |
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 2,133,765 |
Omnibus Plan | Restricted Stock | Minimum | |
Stockholders Equity Note [Line Items] | |
Share-based compensation arrangement by share-based payment award, vesting period | 1 year |
Omnibus Plan | Restricted Stock | Maximum | |
Stockholders Equity Note [Line Items] | |
Share-based compensation arrangement by share-based payment award, vesting period | 3 years |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Stockholders Equity Note [Abstract] | ||||
Expected dividend yield | 0% | 0% | 0% | 0% |
Expected volatility | 54% | 53% | 54% | 53% |
Risk-free interest rate | 2.91% | 0.79% | 1.88% | 0.84% |
Expected term (in years) | 5 years 1 month 6 days | 5 years 4 months 17 days | 5 years 1 month 6 days | 5 years 4 months 17 days |
Stockholders' Equity - Schedu_4
Stockholders' Equity - Schedule of Share-based Compensation, Stock Options, Activity (Details) - $ / shares shares in Thousands | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders Equity Note [Abstract] | |
Options, Outstanding at December 31, 2021 | 2,435 |
Options, Granted, Shares | 443 |
Options, Exercised, Shares | (417) |
Options, Forfeited or expired, Shares | (23) |
Options, Outstanding at September 30, 2022 | 2,438 |
Options, Exercisable at September 30, 2022 | 1,778 |
Minimum Exercise Price | $ 5.34 |
Maximum Exercise Price | $ 154.96 |
Stockholders' Equity - Schedu_5
Stockholders' Equity - Schedule of Share-based Compensation, Restricted Stock, RSUs and PSUs Activity (Details) shares in Thousands | 9 Months Ended |
Sep. 30, 2022 shares | |
Restricted Stock | |
Schedule of Restricted Stock Restricted Stock Units and Performance Stock Units [Line Items] | |
Unvested at December 31, 2021 | 3 |
Granted | 6 |
Vested | (5) |
Unvested at September 30, 2022 | 4 |
RSUs | |
Schedule of Restricted Stock Restricted Stock Units and Performance Stock Units [Line Items] | |
Unvested at December 31, 2021 | 131 |
Granted | 116 |
Vested | (57) |
Unvested at September 30, 2022 | 190 |
PSUs | |
Schedule of Restricted Stock Restricted Stock Units and Performance Stock Units [Line Items] | |
Unvested at December 31, 2021 | 10 |
Granted | 113 |
Vested | (5) |
Unvested at September 30, 2022 | 118 |
Basic and Diluted Net Income _3
Basic and Diluted Net Income Per Share - Summary of Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Numerator: | ||||
Net income | $ 10,262 | $ 6,020 | $ 32,902 | $ 19,579 |
Weighted average common shares: | ||||
Common shares outstanding | 48,106 | 47,486 | 47,919 | 47,067 |
Less: Unvested restricted stock | (4) | (3) | (4) | (3) |
Denominator for basic calculation | 48,102 | 47,483 | 47,915 | 47,064 |
Weighted average effects of potentially diluted common stock: | ||||
Diluted | 49,549 | 49,592 | 49,371 | 49,448 |
Net income per share: | ||||
Basic | $ 0.21 | $ 0.13 | $ 0.69 | $ 0.42 |
Diluted | $ 0.21 | $ 0.12 | $ 0.67 | $ 0.40 |
Employee Stock Options | ||||
Weighted average effects of potentially diluted common stock: | ||||
Diluted | 1,336 | 2,013 | 1,378 | 2,277 |
Unvested Restricted Stock | ||||
Weighted average effects of potentially diluted common stock: | ||||
Diluted | 2 | 2 | 6 | |
RSUs | ||||
Weighted average effects of potentially diluted common stock: | ||||
Diluted | 64 | 86 | 55 | 90 |
Performance Stock Units | ||||
Weighted average effects of potentially diluted common stock: | ||||
Diluted | 45 | 10 | 21 | 11 |
Basic and Diluted Net Income _4
Basic and Diluted Net Income Per Share - Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, Amount | 866 | 39 | 885 | 204 |
Employee Stock Option | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, Amount | 864 | 33 | 865 | 201 |
Restricted stock, RSUs and PSUs | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, Amount | 2 | 6 | 20 | 3 |
Disaggregation of Sales, Geog_3
Disaggregation of Sales, Geographic Sales and Product Sales - Disaggregation of Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2022 | Oct. 01, 2021 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Total net sales | $ 76,046 | $ 76,046 | $ 58,352 | $ 58,352 | $ 220,347 | $ 171,471 |
Non Consignment Sales [Member] | ||||||
Total net sales | 71,223 | 53,819 | 205,236 | 156,604 | ||
Consignment Sales [Member] | ||||||
Total net sales | $ 4,823 | $ 4,533 | $ 15,111 | $ 14,867 |
Disaggregation of Sales, Geog_4
Disaggregation of Sales, Geographic Sales and Product Sales - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 Country | Dec. 31, 2021 | Oct. 01, 2021 | Sep. 30, 2022 Country Segment | Oct. 01, 2021 | |
Geographic and Product Data [Line Items] | |||||
Number of countries in which Company operates | Country | 75 | 75 | |||
Number of operating segments | Segment | 1 | ||||
Sales Revenue, Net | Geographic Concentration Risk [Member] | Other than China and Japan [Member] | Maximum | |||||
Geographic and Product Data [Line Items] | |||||
Concentration risk, percentage | 10% | ||||
Sales Revenue, Net | Geographic Concentration Risk [Member] | China [Member] | Customer One [Member] | |||||
Geographic and Product Data [Line Items] | |||||
Concentration risk, percentage | 56% | 49% | 53% | 47% | |
Sales Revenue, Net | Product Concentration Risk [Member] | Ophthalmic Surgical Product [Member] | |||||
Geographic and Product Data [Line Items] | |||||
Concentration risk, percentage | 100% | ||||
Accounts Receivable [Member] | Geographic Concentration Risk [Member] | China [Member] | Customer One [Member] | |||||
Geographic and Product Data [Line Items] | |||||
Concentration risk, percentage | 47% | 57% |
Disaggregation of Sales, Geog_5
Disaggregation of Sales, Geographic Sales and Product Sales - Net Sales by Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2022 | Sep. 30, 2022 | Oct. 01, 2021 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | ||
Geographic And Sales [Line Items] | |||||||
Total net sales | $ 76,046 | $ 76,046 | $ 58,352 | $ 58,352 | $ 220,347 | $ 171,471 | |
Geographic Distribution, Domestic [Member] | |||||||
Geographic And Sales [Line Items] | |||||||
Total net sales | 3,873 | 2,385 | 10,375 | 7,429 | |||
Geographic Distribution, Foreign [Member] | |||||||
Geographic And Sales [Line Items] | |||||||
Total net sales | 72,173 | 55,967 | 209,972 | 164,042 | |||
Geographic Distribution, Foreign [Member] | China [Member] | |||||||
Geographic And Sales [Line Items] | |||||||
Total net sales | 42,246 | 28,411 | 116,635 | 80,984 | |||
Geographic Distribution, Foreign [Member] | JAPAN | |||||||
Geographic And Sales [Line Items] | |||||||
Total net sales | 10,546 | 10,488 | 32,481 | 29,374 | |||
Geographic Distribution, Foreign [Member] | Other [Member] | |||||||
Geographic And Sales [Line Items] | |||||||
Total net sales | [1] | $ 19,381 | $ 17,068 | $ 60,856 | $ 53,684 | ||
[1]No other location individually exceeds 10% of the total sales. |
Disaggregation of Sales, Geog_6
Disaggregation of Sales, Geographic Sales and Product Sales - Net Sales by Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2022 | Oct. 01, 2021 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Product Information [Line Items] | ||||||
Total other product sales | $ 4,093 | $ 4,199 | $ 11,797 | $ 11,582 | ||
Total net sales | $ 76,046 | 76,046 | $ 58,352 | 58,352 | 220,347 | 171,471 |
ICLs [Member] | ||||||
Product Information [Line Items] | ||||||
Revenue from contract with customer, excluding assessed tax | 71,953 | 54,153 | 208,550 | 159,889 | ||
Cataract IOLs [Member] | ||||||
Product Information [Line Items] | ||||||
Total other product sales | 2,191 | 2,525 | 7,640 | 9,324 | ||
Other surgical products [Member] | ||||||
Product Information [Line Items] | ||||||
Total other product sales | $ 1,902 | $ 1,674 | $ 4,157 | $ 2,258 |