Benchmark Reports STAAR Surgical's Q4 Revenue Beat Eclipsed by Accelerating Spending but 2011 Continues to Look Promising

According to Benchmark, STAAR Surgical Corporation's (NASDAQ:

) Q4 revenue was eclipsed by accelerating spending but 2011 continues to look promising. Benchmark reported that revenue in 4Q10 expanded 8.3% to $14.4 million, which exceeded the $14.2 million consensus and Benchmark forecast. “Loss per share of $0.02 missed the $0.01 profit consensus and our $0.00 forecast. Gross margin expanded 3.1 p.p. to 64.7%, primarily due to favorably shifting product mix. Operating expense expanded 10.4% in Q4 to $10.0 million, which was $0.9 million greater than our forecast. We believe this increased investment reflects Management's preparation for FDA Toric approval in 2011. Management anticipates relatively flat 2011 operating expense growth in 2011, not withstanding our anticipation of accelerated spending upon Toric approval and launch. We reduced our 2011 EPS forecast to $0.05 from $0.07 and reduced our 2012 EPS forecast to $0.20 from $0.21. Our price target remains $10.00 based on a $6.00 core business valuation plus $4.00 for the potential upside of Toric approval.” STAAR Surgical Corporation closed yesterday at $6.00.