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CALGARY, July 31 /CNW/ - Imaging Dynamics Company Ltd. (IDC or the Company) (TSX: IDL) a global supplier in the digital radiography (DR) equipment market, today reported financial results for the second quarter ending June 30, 2008. For the second quarter of 2008, IDC reported a loss of $0.05 per share on revenues of $5,327,965 as compared to a loss of $0.04 per share on revenues of $9,274,939 for the same quarter last year.
Second Quarter Highlights
- Raised $9.4 million though a prospectus/private placement offering;
- Purchase Orders received during the quarter and opening backlog
totaled $7.3 million ($5.3 shipped and recognized, $2.0 booked to
closing backlog);
- Cash and cash equivalents net of short-term borrowing increased by
$1.8 million compared to December 31, 2007 and by $1.2 million
compared to March 31, 2008;
- Reduced receivables by $4.2 million compared to December 31, 2007 on
the collection of $14.9 million during the six months and by
$2.1 million compared to March 31, 2008 on the collection of
$6.4 million during the quarter;
- Reduced inventory by $3.3 million compared to December 31, 2007 and
by $1.4 million compared to March 31, 2008;
- Reduced payables and accruals by $9.1 million compared to
December 31, 2007 and by $7.2 million compared to March 31, 2008;
- Reduced expenses by 30% compared to the same quarter last year and
by 23% on a year to date basis compared to the same period last
year;
- Gross revenues were lower by 43% compared to the same quarter last
year and by 31% on a year to date basis compared to the same period
last year; which was largely due to the decline in revenues in
United States ("US") and Latin America;
- Gross margins were 24% for the quarter and on a year to date basis
were 29% which were also impacted due to lower margin sales during
the quarter, foreign exchange impact on gross revenues, the
continued utilization of inventory that was purchased during
previous quarters when the US- Canadian dollar exchange rate was
much higher and inventory adjustments during the quarter to ensure
proper valuation.
Commenting on the second quarter 2008 results, Tom Boon, IDC's President & CEO said, "While I am pleased with IDC's ability to raise money and in the overall improvement in our balance sheet, we must offset the softness on the U.S. market with growth opportunities in the international and emerging markets where the IDC brand is strong and our value proposition gives IDC a competitive advantage. I remain confident that the opportunities we see in the second half of 2008 will position IDC for profitable growth and industry leadership with our patented and award winning CCD based DR technology."
A conference call to review the results will take place on Friday, August 1, 2008 at 8:00 a.m. EDT (6:00 a.m. MDT). To participate in the call, please dial 416.644.3419 or 800.731.5319 approximately 5 minutes prior to the conference call.
Imaging Dynamics Company Ltd.
Consolidated Balance Sheets
As at June 30 December 31
2008 2007
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Assets (Unaudited) (Audited)
Current Assets
Cash and cash equivalents $ 2,535,926 $ 1,460,554
Receivables 8,013,893 12,219,209
Inventory 10,879,761 14,142,710
Prepaids and deposits 747,659 1,100,558
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22,177,239 28,923,031
Property, plant and equipment 1,777,950 1,880,932
Intangible assets 232,667 244,912
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$ 24,187,856 $ 31,048,875
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Liabilities and Shareholders' Equity
Current Liabilities
Short-term borrowing $ 498,975 $ 1,260,244
Payables and accruals 5,350,683 14,421,090
Customer deposits 333,466 345,140
Loan payable - 45,013
Warranty liability 956,483 1,098,287
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7,139,607 17,169,774
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Shareholders' Equity
Share capital 70,246,559 65,983,374
Contributed surplus 5,305,295 4,743,668
Warrants 4,053,035 -
Deficit (62,556,640) (56,847,941)
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17,048,249 13,879,101
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$ 24,187,856 $ 31,048,875
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Imaging Dynamics Company Ltd.
Consolidated Statements of Operations, Comprehensive Loss and Deficit
(Unaudited)
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Three Months Ended Six Months Ended
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June 30 June 30 June 30 June 30
2008 2007 2008 2007
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Revenues, net $ 5,327,965 $ 9,274,939 $ 11,716,760 $ 17,059,069
Cost of goods sold 4,071,449 5,430,197 8,342,237 10,059,784
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Gross profit 1,256,516 3,844,742 3,374,523 6,999,285
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Expenses
Sales and
marketing 1,331,340 1,800,508 2,810,322 3,592,029
General and
administrative 1,100,413 1,404,284 2,345,960 2,594,129
Production and
manufacturing 456,004 360,113 1,010,878 792,632
Research and
development 551,994 563,346 1,185,669 1,139,213
Foreign exchange
loss 223,375 933,478 64,793 1,119,563
Warranty 160,937 307,722 318,844 545,142
Stock-based
compensation 184,839 428,102 561,627 819,210
Bad debts 251,866 226,360 251,866 226,360
Amortization 180,649 337,088 358,288 682,479
Interest 77,028 135,670 201,811 245,220
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4,518,445 6,496,671 9,110,058 11,755,977
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Loss before
interest and
other income (3,261,929) (2,651,929) (5,735,535) (4,756,692)
Interest and
other income 11,753 24,567 26,836 52,933
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Net loss, being
comprehensive
loss $ (3,250,176) $ (2,627,362) $ (5,708,699) $ (4,703,759)
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Net loss per share
Basic and
diluted $ (0.05) $ (0.04) $ (0.09) $ (0.08)
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Deficit, beginning
of period $(59,306,464) $(44,658,966) $(56,847,941) $(42,582,569)
Net loss, being
comprehensive
loss (3,250,176) (2,627,362) (5,708,699) (4,703,759)
------------- ------------- ------------- -------------
Deficit, end of
period $(62,556,640) $(47,286,328) $(62,556,640) $(47,286,328)
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Imaging Dynamics Company Ltd.
Consolidated Statement of Cash Flows
(Unaudited)
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Increase (decrease) in cash and cash equivalents are as follows:
Three Months Ended Six Months Ended
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June 30 June 30 June 30 June 30
2008 2007 2008 2007
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Cash flows from
operating
activities
Net loss $ (3,250,176) $ (2,627,362) $ (5,708,699) $ (4,703,759)
Items not
affecting cash
Amortization 180,649 337,088 358,288 682,479
Stock-based
compensation 184,839 428,102 561,627 819,210
Warranty (166,378) 250,636 (141,804) 324,575
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(3,051,066) (1,611,536) (4,930,588) (2,877,495)
Change in non-
cash working
capital (3,877,182) 3,540,149 (1,260,917) 1,186,325
------------- ------------- ------------- -------------
(6,928,248) 1,928,613 (6,191,505) (1,691,170)
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Cash flows from
financing
activities
Proceeds from
share issuances,
net 8,316,220 361,168 8,316,220 408,568
Short-term
borrowing, net (745,333) (1,069,481) (761,269) (224,836)
Repayment of
loans payable (31,000) (25,000) (45,013) (25,000)
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7,539,887 (733,313) 7,509,938 158,732
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Cash flows used
in investing
activities
Property, plant
and equipment
additions (142,252) (87,511) (243,061) (264,172)
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Net change in cash
and cash
equivalents 469,387 1,107,789 1,075,372 (1,796,610)
Cash and cash
equivalents
Beginning of
period 2,066,539 2,996,793 1,460,554 5,901,192
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End of period $ 2,535,926 $ 4,104,582 $ 2,535,926 $ 4,104,582
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About IDC
IDC (Imaging Dynamics Company) is a medical technology company and innovative force in the fast-growing field of digital radiography (DR) technology. IDC's X-Series of direct capture technology replaces conventional film-based X-rays and provides a cost-effective alternative to cassette based film or computed radiography (CR) systems.
Each IDC DR solution provides high resolution radiographic images in the digital format required for today's electronic medical record networks, all without the use of film, environmentally harmful chemicals, cassettes or expensive imaging plates. In addition to its number one ranking for three consecutive quarters for customer service by MD Buyline, IDC is the recipient of the 2007 Frost & Sullivan Technology Innovation Award and is among the 2007 Deloitte Technology Fast 500, which ranks the fastest growing technology, media, telecommunications and life sciences companies in North America.
IDC is based in Calgary, Alberta, Canada.
You may also 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.
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