IDC Reports First Quarter 2012 Results

CALGARY, May 14, 2012 /CNW/ - Imaging Dynamics Company Ltd. ("IDC" or the "Company") (TSX: IDL) a global leader in the high growth digital radiography (DR) equipment market, today reported financial results for the first quarter end March 31, 2012.

First quarter 2012 Highlights

• Gross revenues were lower by 46 percent to $1.1 million compared to $2.0 million for the same quarter last year mainly due to decrease in revenues from Asia Pacific and Latin America regions;
• Gross margins remained at 30 percent for the quarter similar to the same quarter last year;
• Sales and marketing, general and administrative, production and manufacturing and research and development expenses were all down by 34 percent to $0.7 million from $1.1 million during the quarter compared to the same quarter last year;
• Net loss for the quarter ended March 31, 2012 was $0.3 million compared to $0.8 million for the same quarter last year which was one of the lowest quarterly losses since 2007;
• Reduced total expenses before finance costs for the quarter ended March 31, 2012 to $0.6 million compared to $1.3 million for the same quarter last year which was one of the lowest quarterly expenses since 2007;
• Purchase orders received during the first quarter and opening backlog totaled $1.6 million ($1.1 million shipped and recognized, $0.5 million booked to closing backlog);
• Trade and other receivables decreased by $0.5 million compared to December 31, 2011 on  collection of approximately $1.6 million during the quarter, Days Sales Outstanding (DSO) for the quarter was 32 days, compared to 21 days for the same quarter last year;
• Reduced inventory by $0.3 million compared to December 31, 2011;
• Trade and other payables at March 31, 2012 remained consistent to the balance at December 31, 2011.

Net loss for the first quarter of 2012 was $308,895 or $0.00 per basic and diluted loss per share compared to a net loss of $776,162 or $0.01 per basic and diluted loss per share for the same quarter last year.

Commenting on first quarter 2012 results, Swapan Kakumanu, IDC President and Chief Executive Officer stated, "Our first quarter financial results were below our expectations mainly due to the reduction in expected revenues from Asia Pacific and Latin America Regions. Our continued working capital limitations is impacting the growth of revenues and affecting our future cash flows, margins and net income. We continued to reduce overhead expenses and manage our tight working capital. IDC continues to look at several strategic options. We also exited the quarter with $0.5 million of backlog into the second quarter of 2012.  The Asia Pacific region is expected to improve during 2012 and we are taking all necessary initiatives to regain our market share in the North American market. The immediate focus is to ensure we have sufficient working capital to support ongoing overheads and business growth, and working with TSX on meeting the minimum listing review that is currently in progress."

"Our process of evaluating and identifying new strategic options to sustain and grow the business is advancing. We are working diligently to resolve our near term growth constraints", commented Shameze Rampertab, Chairman of the Board.

About Imaging Dynamics Company (IDC):

IDC is a medical devices technology company and innovative force in the high growth field of digital radiography (DR) technology. IDC's product line of CCD-based X-Series direct capture technology and the new innovaXion Flat Panel technology replaces conventional film-based diagnostic imaging and provides a cost-effective solution for producing high quality diagnostic images, enhancing patient care and improving workflow. 

Each IDC DR solution provides high resolution radiographic images in the digital format required for today's (PACS) Picture Archiving & Communication Systems and the growing requirements for the electronic health record, all without the use of film, environmentally unfriendly chemicals, and cassettes.

Throughout its history, IDC has been recognized by multiple industry organizations and research analysts such as: Frost & Sullivan, Deloitte Technology and PROFIT; for its dedication to innovation, global growth, and customer focused value proposition.

IDC is based in Calgary, Alberta, Canada.

Visit the IDC Web site:  www.imagingdynamics.com

Statements in this release which describe IDC's intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of IDC to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. IDC may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions. Known and unknown risks and uncertainties include: IDC's ability to manufacture its products with a sufficient level of quality and in volumes which satisfy market demand; the ability of IDC to establish direct and indirect sales channels; the ability of IDC to establish industry partnerships; IDC's ability to attract and retain key personnel; the strength and breadth of IDC's patents; and other factors relating to general economic conditions, specific industry conditions and IDC's particular situation.