Slide 1: Digirad Corporation
Digirad Corporation Digirad Corporation Nasdaq: DRAD January 2008 Exhibit 99.1
Slide 2: Business Summary
Digirad Corporation provides medical diagnostic imaging products and services to physicians’ offices, hospitals and imaging centers. Business Summary Digirad Mobile Imaging Services
Slide 3: Unique solid-state technology
Unique solid-state technology Compact designs 500 lb. patient-weight capacity Portable Multi-head (1-2-3) platform XPO Innovation Makes it Happen Hospital Operating Room Departmental Bedside Satellite Facilities Cardiology Groups General Practice High-Quality, High-Performance Mobile Equipment In-Of
Slide 4: Nuclear Imaging Market Trend
Source: IMV Nuclear Survey, Oct 2007 Market decline in 2006: - Greater pre-certification burdens - PET impacting oncology NM Resuming Yearly Uptrend in Nuclear Imaging Patient Visits Continuing Trend To Non-Hospital Providers Market recovery in 2007: - Secular uptrend resuming - Trend away from hosp
Slide 5: Nuclear Imaging Market: Cardiac Segment
2007* 2006 2005 16.3M 100% 15.2M 100% 17.2M 100% Total 6.5M 40% 6.1M 41% 7.9M 46% Non-Cardiac 9.8M 60% 9.1M 59% 9.3M 54% Cardiac Nuclear Imaging Patient Visits *Estimated from 1H2007 data Source: IMV Nuclear Survey, Oct 2007 Cardiac Studies: Largest Segment of Nuclear Imaging Market, Growing as Perc
Slide 6: Core Imaging Services
Core Imaging Services – meeting current physician needs Mobile Imaging For Today’s Patient, Physician Needs Diagnostic requirements for aging population Trend to decentralized (non-hospital) services Facilitates outreach programs for academia and cardiology groups Patients prefer own primary-care ph
Slide 7: Economic Benefits for Physicians' Practices
Economic Benefits for Physicians’ Practices Digirad Imaging Services Trend: Costs rising faster than revenues for traditional practices Solution: Add imaging for 29% to 60% growth of revenues $175K Avg. Annual Revenue $20K–$50K New Annual Revenue $30K–$60K New Annual Revenue Traditional Services + N
Slide 8: Core Imaging Services: Existing Hubs
Core Imaging Services California Oregon Washington Montana Idaho Nevada Utah Colorado Arizona New Mexico Texas Oklahoma Tennessee Wyoming Kentucky Kansas Nebraska South Dakota North Dakota Minnesota Iowa Missouri Arkansas Ohio Indiana Illinois Wisconsin Michigan Florida Georgia Louisiana S. Carolina
Slide 9: Centers of Influence
= Existing COI (5) UCLA The Methodist Hospital Vanderbilt University. Emory University Penn State University Centers of Influence
Slide 10: Estimated COI Revenue Growth
Estimated COI Revenue Growth - Cumulative Hypothetical Example Based on COI Expansion 2008-2011 $0 $25 $50 $75 $100 $125 2008 2009 2010 2011 Potential Cumulative Revenue From Existing 5 COIs Potential Incremental Revenue From Addition of 15 COIs At 36 months COI adds $3 million to $8 million per yea
Slide 11: Center of Influence Process
Center of Influence Process COI Partnership Execution Perform Planning Meeting • Finalize Blitz Timeline • Target Market • Top 10 customers (COI) • Additional targeted accounts (DIS) • General Database search within 60 miles • Sign LOU • Finalize PSA • Review billing / collection requirements • Iden
Slide 12: Consolidated Results: Trend, Outlook
-$10 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 2005 2006 2007est* 2008 est* Consolidated Results: Trend, Outlook *Midpoints of guidance as of January 8, 2008; net excludes estimated stock-based compensation expense . Revenue Growth, Potential for Profitability in 2008 Net Loss/Income Revenue
Slide 13: Comparative Operating Results
Comparative Operating Results (In millions, except per share) 9-Mos 2007 Full-Year 2006 Full-Year 2005 Revenues $55.1 $71.9 $68.2 Gross Profit 16.0 19.1 15.2 Operating Expenses 17.6 27.3 Operating Income (Loss) (1.5) (8.2) (11.0) EBITDA 4.1 (1.9) Net Income (Loss) $(0.3) $(6.3) $(9.6) Earnings (Loss
Slide 14: Margins: Trend, Targets
Margins: Trend, Targets 29% 23% 27% 28% 32% 31% 10% 20% 30% 40% 2005 2006 2007est* Gross Margin SG&A as % of Rev Gross Margin Rising, SG&A Declining as % of Revenue 33% 22% Future Targets
Slide 15: Balance Sheet
Balance Sheet (In millions, except per share data) Liquid, Strong Ratios, No Long-Term Debt Sep 30, 2007 Dec 31, 2006 Cash/equivalents and securities $30.8 $44.3 Total current assets 47.9 59.2 Total current liabilities 13.1 13.4 Long-term debt 0.0 0.1 Shareholders’ equity 56.2 55.4 Current ratio 3.7
Slide 16: 2008 Guidance (January 8, 2008)
2008 Guidance (January 8, 2008) 2008 Guidance Revenue DIS $ 59.0M - $ 61.0M Product $ 21.0M - $ 23.0M Total Revenue $ 80.0M - $ 84.0M Net Income/(Loss) $ (1.0M) - $ 0.5M Note: Net income/(loss) includes stock-based comp. expense of $1M
Slide 17: Investment Merits
Investment Merits Growing demand for imaging services, decentralization Expecting revenue growth in 2008: Centers Of Influence, core services Continuing control of costs/expenses Potential net income for 2008 Strong balance sheet (September 30, 2007) – $30+ million cash/equivalents – No long-term de
Slide 18: Digirad Corporation
Digirad Corporation 13950 Stowe Drive Poway, CA 92064 858-726-1600 www.digirad.com