IDC reports second quarter 2012 results

CALGARY, Aug. 7, 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 second quarter ended June 30, 2012.

Second quarter 2012 Highlights

• Gross revenues were lower by 66 percent to $0.68 million compared to $2.0 million for the same quarter last year and were lower by 56 percent to $1.75 million compared to $3.98 million on a year to date basis, due to decrease in revenues from Emerging Markets due to working capital constraints;
  
  
• Gross margins were 31 percent for the quarter compared to 26 percent for the same quarter last year and 30 percent compared to 28 percent on a year to date basis, largely due to lower margin sales into the Asia Pacific region;
  
  
• Sales and marketing, general and administrative, production and manufacturing and research and development expenses were lower by 9 percent to $0.86 million from $0.94 million during the quarter compared to the same quarter last year and were reduced by 22 percent to $1.55 million from $2.0 million on a year to date basis compared to the same period last year;
  
  
• Net profit for the quarter ended June 30, 2012 was $0.24 million compared to a net loss of $0.44 million for the same quarter last year and the net loss was $0.07 million compared to $1.21 million on a year to date basis compared to the same period last year which was one of the lowest quarterly losses since 2007;
  
  
• Reduced total expenses before finance costs for the quarter ended June 30, 2012 to $0.22 million compared to total expenses of $0.87 million for the same quarter last year and to $0.83 million compared to $2.14 million on a year to date basis compared to the same period last year which was one of the lowest quarterly expenses since 2007;
  
  
• Included in current quarter expenses is a one-time recovery of a bad debt expense of $0.58 million on collection of an old trade receivable that was fully allowed for as bad debts during previous periods and interest expense recovery of $0.26 million that was accrued as other payables in previous periods resulting from the amendment to the Loan terms;
  
  
• Purchase orders received during the second quarter and opening backlog totaled $1.10 million ($0.68 million shipped and recognized, $0.42 million booked to closing backlog);
  
  
• Trade and other receivables decreased by $0.55 million compared to December 31, 2011 on  collection of approximately $2.88 million (including $0.58 million collect from an old trade receivable that was fully allowed for as bad debts during previous periods) during the first half of 2012, Days Sales Outstanding ("DSO") for the quarter was 13 days compared to 21 days for the same quarter last year;
  
  
• Reduced inventory by $0.53 million compared to December 31, 2011;
  
  
• Trade and other payables decreased by $0.18 million compared to December 31, 2011.

Net profit the second quarter of 2012 was $239,813 or $0.00 profit per share compared to a net loss of $437,512 or $0.00 loss per share for the same quarter last year.  Year-to-date, net loss was $69,082 or $0.00 loss per share compared to a net loss of $1,213,674 or $0.01 loss per share for the same period last year.

Commenting on second quarter 2012 results, Swapan Kakumanu, IDC President and Chief Financial Officer stated, "Our second quarter financial results were affected by working capital constraints which we have addressed with the recent closing of the private placement.  We are optimistic with this new investment and the appointment of Mr. T.T. Lee as Chairman and Chief Executive Officer of the Company; we will be able to work towards growing our market share and working towards profitable operations."

"We are actively evaluating and identifying new acquisition opportunities for the Company that will enable us to grow our operations specifically in the Asia Pacific region and we are also working on some larger tender contracts in this region " commented T.T. Lee, Chairman and Chief Executive Officer.

Mr. Lee continued, "I am currently working with my fellow Board Members, the Management team and Employees to work on a strategy to reinvigorate the business and focus on growth and profitability for the Company and I look forward to communicating details of this strategy over the coming months."

Imaging Dynamics Company Ltd.
Consolidated Statements of Financial Position

Imaging Dynamics Company Ltd.
Consolidated Statements of Operations and Comprehensive Profit (Loss)

Imaging Dynamics Company Ltd.
Consolidated Statements of Changes in Equity

Imaging Dynamics Company Ltd.
Consolidated Statements of Cash Flows

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.   

SOURCE: Imaging Dynamics Company Ltd.