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<SEC-DOCUMENT>0000950134-07-004426.txt : 20080327
<SEC-HEADER>0000950134-07-004426.hdr.sgml : 20080327
<ACCEPTANCE-DATETIME>20070228191951
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950134-07-004426
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20070228

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			IRIDEX CORP
		CENTRAL INDEX KEY:			0001006045
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845]
		IRS NUMBER:				770210467
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1230

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		1212 TERRA BELLA AVE
		CITY:			MOUNTAIN VIEW
		STATE:			CA
		ZIP:			94043
		BUSINESS PHONE:		6509404700

	MAIL ADDRESS:	
		STREET 1:		1212 TERRA BELLA AVENUE
		CITY:			MOUNTAIN VIEW
		STATE:			CA
		ZIP:			94043
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;IRIDEX LETTERHEAD&#093;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">February&nbsp;28, 2007
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B><I>Via EDGAR and Overnight Courier </I></B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ms.&nbsp;Cecilia D. Blye<BR>
Office of Global Security Risk<BR>
Division of Corporation Finance<BR>
United States Securities and Exchange Commission<BR>
100 F Street, N.E.<BR>
Washington, D.C. 20549

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="94%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Re:</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>IRIDEX Corporation</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Form&nbsp;10-K for the Fiscal Year Ended December&nbsp;31, 2005</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Filed April&nbsp;3, 2006</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Form&nbsp;10-Q for the Quarterly Period Ended July&nbsp;1, 2006</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Filed December&nbsp;22, 2006</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>File No.&nbsp;0-27598</B></TD>
</TR>
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</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Ms.&nbsp;Blye:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On behalf of IRIDEX Corporation (&#147;we,&#148; the &#147;Company,&#148; or &#147;IRIDEX&#148;), we submit this letter in
response to comments from the staff of the Securities and Exchange Commission (the &#147;Staff&#148;)
received by letter dated January&nbsp;31, 2007, relating to the Company&#146;s Form 10-K for the fiscal year
ended December&nbsp;31, 2005 (the &#147;Form 10-K&#148;) and the Company&#146;s Form 10-Q for the quarterly period
ended July&nbsp;1, 2006 (the &#147;Form 10-Q&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In this letter, we have recited the comments from the Staff in italicized type and have
followed each comment with the Company&#146;s response. Capitalized terms used but not defined herein
shall have the meanings ascribed thereto in the Form 10-K and Form 10-Q.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>General</B></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note the reference on page 20 of your </I><I>Form 10-Q</I><I> to shipment into Sudan. We also note in
the &#147;Ophthalmology&#146;&#146; section of your website that you list an entity that distributes your
products into Syria. Sudan and Syria are countries identified by the U.S. as state sponsors
of terrorism and subject to U.S. economic sanctions and export controls. Your </I><I>Form 10-K</I><I> does
not include any information regarding business in Sudan and Syria. Please describe for us
your past, current, and any anticipated operations in, and other contacts with, Sudan and
Syria, whether</I>
</TD>
</TR>
</TABLE>
</DIV>
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</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">United States Securities and Exchange Commission<BR>
February&nbsp;28, 2007<BR>
Page 2

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;<I>through direct or indirect arrangements. In your description, identify the
specific products, technologies, and services that are distributed or otherwise provided into
Sudan and Syria. Your response should describe any agreements, commercial arrangements or
other contacts with the governments of Sudan and Syria or entities controlled by those
governments.</I></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Response</U>:<U> </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our business in Sudan and Syria is comprised of the delivery and sale of medical lasers, laser
delivery devices and accessories exported for medical end use. Our sales into Sudan and Syria have
historically all been conducted through third party distributors and these sales have not
historically been quantitatively or qualitatively material to our business or operations. Other than the immaterial contact with the Ministry of
Health of Sudan and other arrangements described below, we do not
have any agreements, commercial arrangements or contacts with the
governments of Sudan or Syria or, to our knowledge, with any
entities controlled by those governments.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Transactions in Sudan</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In our
fiscal years 2004, 2005 and 2006 we received three purchase orders
through our third party distributor for end-customers located
in Sudan.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In March&nbsp;2005 we received a purchase order from Falcon (London) Ltd., an export trading
company whose end user was Alwalidain Eye Hospital, State Ministry of Health, Khartoum,
Sudan for an OcuLight GL Photocoagulator, 20 Gauge Endoprobes, a Laser Indirect
Ophthamoloscope, a Slit Lamp Adapter and various accessory parts with an aggregate purchase
price equal to $33,420.00. Full prepayment of this order was received in March&nbsp;2005 in
advance of the products being shipped in the same month.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In February&nbsp;2006 we received a purchase order from Falcon (London) Ltd., whose end user
was Al-Basar International Foundation, Makkah Eye Complex, for an OcuLight GLx Laser, a
Slit Lamp and Slit Lamp Adapter, table tops, safety glasses, and a carrying case with an
aggregate purchase price equal to $34,550.00.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In March&nbsp;2006, the February&nbsp;2006 purchase order was cancelled by Falcon (London) Ltd.
and a new purchase order was placed for an OcuLight GLx Laser, a Slit Lamp and Slit Lamp
Adapter, an OcuLight SLx Laser, a three-tier Slit Lamp Adapter, a cart, footswitch,
motorized table, safety
glasses, 20 gauge EndoProbes, and a Laser Indirect Ophthalmoscope with an aggregate purchase
price equal to $77,000.00. Prior to completing this sale, IRIDEX applied for and was
granted an OFAC export license (SU-1900) for shipment to Sudan. The OFAC export license
remains valid through June&nbsp;1, 2007; however, IRIDEX required that Falcon (London) Ltd. pay
for the products prior to shipment. This transaction was removed from our backlog following
December&nbsp;31, 2006 as no payment had yet been received. Payment for this order was received
on February&nbsp;1, 2007; however, IRIDEX has not shipped the products pending review of its
export procedures.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In addition to these purchase orders, in 2006 IRIDEX received a request through Emtron, our Turkish
distributor, to respond to a Ministry of Health bid in Sudan. However, IRIDEX&#146;s export license
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">United States Securities and Exchange Commission<BR>
February&nbsp;28, 2007<BR>
Page 3

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">application to OFAC in connection with this bid was denied because complete end-user contact
information could not be obtained from Emtron or the Ministry of Health of Sudan. No further action
has been taken on this bid.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Transactions in Syria</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In our fiscal years 2004 and 2005 we did not transact any business in Syria. In fiscal year 2006
we received four purchase orders through our third party distributor for end-customers located in Syria.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In January&nbsp;2006 we received a purchase order for an OcuLight SLX Laser, a Laser Indirect
Ophthalmoscope, 20 Gauge EndoProbes and eye safety filters and glasses with an aggregate
purchase price equal to $32,630.00. Full prepayment for this order was received in January
2006 prior to the order shipping in the same month.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In February&nbsp;2006 we received a purchase order for an OcuLight SLX Laser, a Laser
Indirect Ophthalmoscope, 20 gauge EndoProbes, and eye safety filters and glasses with an
aggregate purchase price equal to $31,330.00. Full prepayment for this order was received
on February&nbsp;21, 2006 and the products relating to this order were shipped on February&nbsp;23,
2006.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In June&nbsp;2006 we received a purchase order for an OcuLight SL Laser, a Laser Indirect
Ophthalmoscope, 20 Gauge Endoprobes, a Diopexy probe and eye safety filters and glasses
with an aggregate purchase price equal to $23,520.00. Full prepayment for this order was
received in July&nbsp;2006 prior to shipment of the products in the same month.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In November&nbsp;2006 we received a purchase order for an OcuLight GLx Laser, a Slit Lamp and
table top and a Slit Lamp Adapter with an aggregate purchase price equal to $27,700.00.
The products relating to this order were shipped in November&nbsp;2006 and payment was received
in January, 2007.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All four of the sales detailed above were conducted for Iridex through its distributor, Pioneers
for Medical and Scientific Equipment located in Damascus, Syria.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Description of Products that we have sold into Syria and Sudan</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>OcuLight GL/GLx Green (532 nm) Laser</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The OcuLight GL or GLx a semiconductor-based photocoagulator console is used in ophthalmology
deliver visible (532nm) laser light. This laser offers 1.5 watts of power to the eye and is
compatible with multiple delivery devices. These green laser consoles are indicated for use in
treating retinal photocoagulation and laser trabeculoplasty.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>OcuLight SL/SLx Infrared (810)&nbsp;Solid-State Laser</B>
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">United States Securities and Exchange Commission<BR>
February&nbsp;28, 2007<BR>
Page 4

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The OcuLight SL or SLx is an infrared photocoagulator console used to perform retinal
photocoagulation and glaucoma procedures including transscleral applications. These consoles are
available in two infrared output power ranges: OcuLight SL at 2 watts and the OcuLight SLx at 3
watts of power output.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Ophthamalic Delivery Devices</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Laser Indirect Ophthalmalic (LIO) </I></B><I>&#151; </I>The indirect ophthalmoscope is designed to be worn on the
physician&#146;s head and to be used in procedures to treat eye disorders. This product has both
diagnostic and treatment functionality.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Slit Lamp Adapter (SLA) &#151;</I></B>These adapters allow physicians to convert a standard slit lamp into a
therapeutic photocoagulator delivery system. These systems are available in a wide variety of spot
diameters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>EndoProbe </I></B><B>&#151; </B>The EndoProbe or laser probe is used for endophotocoagulation, a retinal treatment
performed in a hospital operating room or surgery center. These sterile, disposable probes are
available in different styles.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>DioPexy Probe </I></B><I>&#151; </I>This probe is a hand-held instrument which is used in procedures to treat retinal
tears and breaks noninvasively through the sclera.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have sold various components and accessories relating to the lasers and the laser delivery
devices described above into Sudan and Syria, including: slit lamps, various styles of table tops
for use in positioning the equipment, protective glasses for use by operators of our lasers and
carrying cases for certain devices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">IRIDEX supplementally advises the Staff that in the course of our review of the Staff&#146;s comments we
determined that we have made minimal exports of our medical products into Iran for medical end use
purposes. We are investigating the facts surrounding these shipments and upon conclusion of this
investigation IRIDEX will submit a Voluntary Self Disclosure to the Office of Export Enforcement,
the Office of Foreign Asset Control and to the Department of State if it appears that an export
violation has occurred and, to the extent material, will disclose any
such violations in our future reports submitted pursuant to the
Securities Exchange Act of 1934, as appropriate.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><I>2.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Please discuss the materiality of the activities and other contacts described in response to
the foregoing comment, and whether they constitute a material investment risk for your
security holders. You should address materiality in quantitative terms, including the
approximate dollar amounts of any associated revenues, assets, and liabilities for the last
three fiscal years and any subsequent period. Please also address materiality in terms of
qualitative factors that a reasonable investor would deem important in making an investment
decision, including the potential impact of corporate activities upon a company&#146;s reputation
and share value.</I></TD>
</TR>


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</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">United States Securities and Exchange Commission<BR>
February&nbsp;28, 2007<BR>
Page 5

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;<I>For example, we note that Arizona and Louisiana have adopted legislation requiring their
state retirement systems to prepare reports regarding state pension fund assets invested in,
and/or permitting divestment of state pension fund assets from, companies that do business
with countries identified as state sponsors of terrorism. The Missouri Investment Trust has
established an equity fund for the investment of certain state-held monies that screens out
stocks of companies that do business with U.S.-designated state sponsors of terrorism. The
Pennsylvania legislature has adopted a resolution directing its Legislative Budget and
Finance Committee to report annually to the General Assembly regarding state funds invested
in companies that have ties to terrorist-sponsoring countries. California, Connecticut,
Illinois, Maine, Oregon and New Jersey have adopted, and other states are considering,
legislation prohibiting the investment of certain state assets in, and/or requiring the
divestment of certain state assets from, companies that do business with Sudan. Harvard
University, Stanford University, Yale University, the University of California and other
academic institutions have adopted policies prohibiting investment in, and/or requiring
divestment from, companies that do business with Sudan. Your materiality analysis should
address the potential impact of the investor sentiment evidenced by such actions directed
toward companies that have operations associated with Sudan and Syria.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Your qualitative materiality analysis also should address whether, and the extent to which,
the Sudanese and Syrian governments, or entities controlled by those governments, have
received cash or acted as intermediaries in connection with your operations.</I></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Response</U>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s sales into Sudan and Syria have not been material to our business or results of
operations on either a quantitative or qualitative basis and we do not believe that these sales
constitute a material investment risk for our investors. As discussed above, the aggregate value of
the Company&#146;s sales into Sudan and Syria were $0.0 in fiscal 2004, $0.03M in fiscal 2005, and
$0.12M in fiscal 2006, which represented 0.0%, 0.09 % and 0.3% of our annual revenues in each of
the respective fiscal years. No sales have been made into either Sudan or Syria during fiscal
2007. As all of our sales into Sudan and Syria were through third party distributors, IRIDEX does
not have any assets located in either Sudan or Syria. To our knowledge, neither the Sudanese
government nor the Syrian government have received cash or acted as intermediaries in connection
with our operations in Sudan and Syria. In 2006 IRIDEX received a request through Emtron, our
Turkish distributor, to respond to a Ministry of Health bid in Sudan, however, IRIDEX&#146;s export
license application to OFAC in connection with this bid was denied because complete end user
contact information could not be obtained from Emtron or Sudan and no
further action has been taken on this bid. We do not believe that this minimal involvement with
the government of Sudan is material to our business or that it constitutes a material investment
risk for our investors. Due to the immateriality of our activities in Sudan and Syria from a
financial standpoint and the fact that the products that we marketed and sold in these countries
are medical products and that the ultimate end-users of such products are healthcare providers, we
do not believe that our activities in Sudan and Syria should be deemed material to a reasonable
investor.
</DIV>



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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">United States Securities and Exchange Commission<BR>
February&nbsp;28, 2007<BR>
Page 6

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><I>3.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Please advise us whether, to the best of your knowledge, understanding, and belief, any of
your products, technologies or services provided into Sudan or Syria have military uses, and
describe possible military uses of which you are aware.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Please also advise us whether, to the best of your knowledge, understanding, and belief,
your products, technologies or services have been put to military use by Sudan or Syria, and
describe any such use of which you are aware.</I></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Response</U>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To the best of our knowledge, understanding, and belief (i)&nbsp;none of our products, technologies or
services provided into Sudan or Syria have military uses and (ii)&nbsp;none of our products,
technologies or services have been put to military use by Sudan or Syria.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">*****
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In connection with IRIDEX&#146;s responses to the Staff&#146;s comments, we acknowledge that we are
responsible for the adequacy and accuracy of the disclosure in our filings with the Securities and
Exchange Commission, Staff comments or changes to disclosure in response to Staff comments do not
foreclose the Securities and Exchange Commission from taking any action with respect to such
filings, and we may not assert Staff comments as a defense in any proceeding initiated by the
Securities and Exchange Commission or any person under the federal securities laws of the United
States.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">United States Securities and Exchange Commission<BR>
February&nbsp;28, 2007<BR>
Page 7

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please acknowledge receipt of this letter by stamping the enclosed duplicate of this letter
and returning it to the undersigned in the envelope provided.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We would like to discuss these comments and responses at your earliest convenience. David J.
Segre, Esq. and Todd C. Carpenter, Esq. of Wilson Sonsini Goodrich &#038; Rosati, Professional
Corporation can be reached at (650)&nbsp;493-9300 and I may be reached at (650)&nbsp;962-8848 ext. 3016.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Sincerely,<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">/s/ Meryl  Rains
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Meryl Rains&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">IRIDEX Corporation<BR>
Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="95%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">cc:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Barry Caldwell</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Larry Tannenbaum</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">David J. Segre</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Todd C. Carpenter</TD>
</TR>
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</TABLE>
</DIV>



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