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CALGARY, Feb. 22 /CNW/ - Imaging Dynamics Company Ltd. (TSX: IDL), is pleased to provide a review of its operations in 2006, a year of record sales, expansion into new countries and markets, and organizational change.
Operations
Worldwide product sales in 2006 doubled from the previous year to over 500 orders; however, total revenues, gross margins and profitability were adversely impacted by delays in product launches and regulatory approvals, operational inefficiencies and expenditures in restructuring.
The company completed an internal reorganization, including new management in corporate finance, product development, operations, and customer service. The company also completed initiatives to outsource manufacturing, overhaul its regulatory department and has aligned itself with a world leader in logistics and distribution.
In addition, the company began implementation of its Enterprise Resource Planning (ERP) system to improve efficiencies in corporate finance, accounting, manufacturing, product fulfillment and distribution.
Darryl Stein, President & CEO of IDC stated, "We are responding to the many challenges associated with rapid growth and expansion. We have made important personnel changes, implemented new internal processes and forged important partnerships to meet the growing demand for our products worldwide. We now have the people, processes and partnerships to take the company to the next level."
Growth
The company substantially increased its foothold in the global market for radiography products in 2006 with expansion into 36 countries. The company's focus on quality and affordability continues to appeal to a broad range of radiology markets from university teaching hospitals to private clinics, as well as specialty markets of orthopaedics, chiropractic, veterinary and mobile imaging.
IDC markets both turn-key digital radiography systems and digital imaging components on an OEM basis to X-ray manufacturers. In 2006, IDC achieved record levels of sales in its System and OEM business with a 100% growth in unit sales from 2005. The launch of the new Xaminer series, delayed to the second half of the year, contributed over 200 units by year end.
North America revenues, including $7 Million from the new X2200 Series, multiple orders to the U.S. Military and solid growth in orthopaedics, contributed to record shipments in both the United States and Canada.
In addition, the company signed OEM partnerships with five of the industry's leading X-ray suppliers to the chiropractic and veterinary markets. To date, IDC has completed over 150 product installations in these two rapidly growing markets heading into 2007.
In Asia, the company has expanded to fourteen channel partners and coverage in five new countries. The company recorded significant growth in both Systems and OEM products. The delayed launch of the Xaminer series had an adverse effect on orders in Asia; however, the company finished 87% above 2005 orders. Industry analysts, Frost and Sullivan recognized IDC as the fastest growing supplier of digital products in Asia in 2006.
Sales in Latin America reflect the company's investment and commitment to strong dealer and OEM partnerships with $3 Million growth in revenue from 2005. Installations into key hospitals were completed in Venezuela, Chile, Peru, Columbia, Brazil, Argentina, Puerto Rico, Mexico and the Dominican Republic.
New distribution agreements and product installations completed in 2006 include the countries of Denmark, United Kingdom, Pakistan, Turkey, United Arab Emirates, South Africa, Poland, Germany, France, and Qatar. Expansion into India continued with multiple units ordered and installed into the country's largest health care provider, the Apollo Group.
"Important lessons in 2006 substantially changed the way our company now operates. I am confident that the investment and changes we have made to operations will enable the company to achieve its goals for 2007 and beyond," said Mr. Stein.
About IDC
With sales in 36 countries around the world, Imaging Dynamics is emerging as the leading provider of affordable digital radiography systems, which replace conventional film-based X-rays, eliminating the need for film, chemistry, cassettes or expensive imaging plates. The company offers a complete Systems product line that satisfies all levels of the market, from high-end hospital applications to chiropractic and veterinary facilities, as well as modular components for OEM manufacturers. The company's head office and manufacturing facilities are located in Calgary, Alberta, Canada.
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: the early stage of commercialization of IDC's products; the infancy of the digital radiography industry in general; 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.