IDC reports third quarter 2011 financial results

CALGARY, Nov. 14, 2011 /CNW/ - Imaging Dynamics Company Ltd. ("IDC" or the "Company") (TSX: IDL) a global leader in the high growth digital radiography equipment market, today reported financial results for the third quarter ended September 30, 2011.

Third Quarter 2011 Highlights

• Gross revenues were higher by 102 percent to $1.9 million compared to $1.0 million for the same quarter last year and were higher by 73 percent to $5.9 million compared to $3.4 million on a year to date basis, due to increase of revenues from Emerging Markets;
  
  
• Gross margins were 28 percent for the quarter compared to 30 percent for the same quarter last year and 28 percent compared to 33 percent on a year to date basis, largely due to lower margin sales into Asia Pacific region;
  
  
• Sales and marketing, general and administrative, production and manufacturing and research and development expenses were all down by 19 percent to $1.0 million from $1.2 million during the quarter compared to the same quarter last year and were reduced by 26 percent to $3.0 million from $4.0 million on a year to date basis compared to the same period last year;
  
  
• Net loss for the quarter ended September 30, 2011 was $0.5 million compared to $1.1 million for the same quarter last year and was $1.7 million compared to $3.5 million of a year to date basis compared to the same period last year which was one of the lowest quarterly losses since 2007;
  
  
• Consistent quarterly growth in revenues compared to prior year and majority of the revenues generated from repeat customers from the Asia Pacific region;
  
  
• Reduced total expenses before finance costs for the quarter ended September 30, 2011 to $1.0 million compared to $1.3 million for the same quarter last year and to $3.1 million compared to $4.4 million on a year to date basis compared to the same period last year which was one of the lowest quarterly expenses since 2007;
  
  
• Purchase orders received during the third quarter and opening backlog totaled $2.5 million ($1.9 million shipped and recognized, $0.6 million booked to closing backlog);
  
  
• Reduced trade and other receivables by $0.1 million compared to December 31, 2010 on  collection of approximately $6.0 million during the nine months ended September 30, 2011, Days Sales Outstanding for the quarter was 18 days, one of the lowest in the last seventeen quarters;
  
  
• Reduced inventory by $0.7 million compared to December 31, 2010;
  
  
• Reduced trade and other payables by $0.2 million compared to December 31, 2010.

Net loss for the third quarter of 2011 was $449,219 or $0.00 per basic and diluted loss per share compared to a net loss of $1,147,198 or $0.01 per basic and diluted loss per share for the same quarter last year.  Year-to-date, net loss was $1,662,893 or $0.01 per basic and diluted loss per share compared to a net loss of $3,519,972 or $0.04 per basic and diluted loss per share for the same period last year.

On January 1, 2011, the Company adopted International Financial Reporting Standards ("IFRS") for financial reporting purposes, using a Transaction Date of January 1, 2010. The interim consolidated financial statements for the three and six months ended June 30, 2011, including required comparative information has been prepared in accordance with IFRS 1, First-time Adoption of IFRS ("IFRS 1") and with International Accounting Standard 34, Interim Financial Reporting ("IAS 34") as issued by the International Accounting Standards Board ("IASB").  Previously, the Company prepared its interim and annual consolidated financial statements in accordance with Canadian GAAP.  Unless otherwise noted, the 2010 comparative information has been prepared in accordance with IFRS.

The adoption of IFRS has not had a significant impact on the Company's operations, strategic decisions or cash flows.

Commenting on third quarter 2011 results, Swapan Kakumanu, IDC President and Chief Executive Officer stated, "Our third quarter financial results were the fourth consecutive quarterly results with increase in revenues and reduction in expenses. We also exited the quarter with $0.6 million of backlog into the fourth quarter of 2011."

Kakumanu continued, "We are very closely monitoring and managing our cash and working capital requirements on a day-to-day basis.  As mentioned in our 2011 second quarter results press release, we have been actively looking and working on several strategic options for IDC.  Our current focus is to maintain sufficient cash and working capital to sustain future IDC operations until we finalize one of the strategic options, discussed in our second quarter results release; that will be beneficial for IDC and our shareholders."

"We have identified a number of investment initiatives with significant opportunities of revenue growth. In order to pursue these initiatives, the Board is assessing a number of strategic options providing capital to sustain and grow the Company. These activities continue to be a top priority", commented Shameze Rampertab, Chairman of the Board.

Imaging Dynamics Company Ltd.
Consolidated Statements of Financial Position

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

Imaging Dynamics Company Ltd.
Consolidated Statements of Changes in Equity

Imaging Dynamics Company Ltd.
Consolidated Statements of Cash Flows
For the nine months ended September 30 (Unaudited)  

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 consistent 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.