CALGARY, May 14 /CNW/ - Imaging Dynamics Company Ltd. (IDC or the Company) (TSX: IDL) today reported financial results for the first quarter ended March 31, 2007.
Commenting on the results, Darryl Stein, IDC's President and CEO says, "As I stated previously in the Q4 press release, we made a deliberate decision to slow down sales in Q1 and allow the Company to put in place the appropriate infrastructure and controls required to grow revenues in a prudent manner. Our first quarter reflects many of the changes and is evidenced by the following:
1. Improved Gross Margins from 36% in 2006 to 40.5% in Q1.
2. Operational expenses were reduced by over 20% from the previous
quarter.
3. Product demand continues to grow with an order backlog exceeding 2006
YTD.
4. New controls and processes show improved shipment performance,
margins and financial terms.
The company continues to add depth and experience to the management team and the Board of Directors.
The company is pleased to announce the appointment of Mr. John Cooper to the Board of Directors. Mr. Cooper has over 20 years of public company experience in operations and management as the past President of Superior Propane (TSX:SPF) and currently as a General Manager of Waste Management of Canada Corporation (NYSE:WMI). Mr. Cooper brings expertise in business process and organizational structure to large, growing companies.
In addition, the Company has nominated Mr. Jerry Cirino as a candidate for Chairman, pending his election to the Board at the Annual General Meeting in June.
Mr. Cirino has over 25 years of Medical Imaging experience including past President and CEO of SourceOne Healthcare Technologies, and Executive Vice President of Marconi Medical Systems and President of their Global Health Care Products Business. Mr. Cirino has global experience in operations, corporate restructuring, mergers and acquisitions, public and private equity and strategic planning.
Imaging Dynamics Company Ltd.
Consolidated Balance Sheets
As at March 31 December 31
2007 2006
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Assets (Unaudited) (Audited)
Current Assets
Cash and cash equivalents $ 2,996,793 $ 5,901,192
Receivables 19,607,373 21,222,060
Inventory 16,128,766 16,556,720
Prepaids and deposits 742,931 930,053
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39,475,863 44,610,025
Property, plant and equipment 1,751,293 1,710,938
Intangible assets 268,843 278,511
Deferred development costs 583,500 782,917
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$ 42,079,499 $ 47,382,391
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Liabilities and Shareholders' Equity
Current Liabilities
Short-term borrowing $ 5,141,678 $ 4,297,033
Payables and accruals 10,874,533 15,180,338
Customer deposits 311,680 580,890
Current portion of capital lease
obligations 9,966 9,966
Current portion of long-term debt 70,013 56,000
Warranty liability 891,812 817,873
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17,299,682 20,942,100
Capital lease obligations 16,712 19,084
Long-term debt - 14,013
Deferred lease inducement 43,400 49,600
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17,359,794 21,024,797
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Shareholders' Equity
Share capital 65,538,858 65,466,454
Contributed surplus 3,839,813 3,473,709
Deficit (44,658,966) (42,582,569)
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24,719,705 26,357,594
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$ 42,079,499 $ 47,382,391
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Imaging Dynamics Company Ltd.
Consolidated Statements of Operations and Deficit
For the three months ended March 31 2007 2006
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(Unaudited) (Unaudited)
Revenues, net $ 7,784,130 $ 10,228,075
Cost of goods sold 4,629,587 6,492,825
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Gross profit 3,154,543 3,735,250
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Expenses
Sales and marketing 1,791,521 1,747,961
General and administrative 1,189,845 827,015
Production and manufacturing 432,519 348,153
Research and development 575,867 532,014
Foreign exchange (gain) loss 186,085 (201,592)
Warranty
237,420 240,582
Stock-based compensation 391,108 253,665
Amortization 345,391 159,861
Interest 109,550 60,829
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5,259,306 3,968,488
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Loss before interest and other income (2,104,763) (233,238)
Interest and other income 28,366 70,115
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Net loss $ (2,076,397) $ (163,123)
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Net loss per share (Note 9)
Basic and diluted $ (0.04) $ 0.00
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Deficit, beginning of period $(42,582,569) $(28,575,723)
Net loss (2,076,397) (163,123)
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Deficit, end of period $(44,658,966) $(28,738,846)
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Imaging Dynamics Company Ltd.
Consolidated Statement of Cash Flows
For the three months ended March 31 2007 2006
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(Unaudited) (Unaudited)
Increase (decrease) in cash and cash
equivalents are as follows:
Cash flows from operating activities
Net loss $ (2,076,397) $ (163,123)
Items not affecting cash
Amortization of deferred lease
inducement (6,200) (6,200)
Amortization 345,391 159,861
Stock-based compensation 391,108 253,665
Warranty 73,939 101,389
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(1,272,159) 345,592
Change in non-cash working capital
(Note 10) (2,345,252) (6,947,880)
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(3,617,411) (6,602,288)
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Cash flows from financing activities
Proceeds from share issuances, net 47,400 14,079,146
Repayment of capital lease obligation (2,372) (3,899)
Short-term borrowing, net 844,645 1,766,087
Repayment of long-term debt - (25,000)
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889,673 15,816,334
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Cash flows from investing activities
Deferred development costs additions - (461,750)
Intangible asset addition - (15,437)
Property, plant and equipment additions (176,661) (80,140)
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(176,661) (557,327)
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Net change in cash and cash equivalents (2,904,399) 8,656,719
Cash and cash equivalents
Beginning of period 5,901,192 5,667,373
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End of period $ 2,996,793 $ 14,324,092
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About IDC
Imaging Dynamics Company (IDC) is a medical technology company and an 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 the industry's highest resolution radiographic images in the digital format required for today's electronic medical record networks. All without the use of film, environmentally harming chemicals, cassettes or expensive imaging plates.
IDC is based 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.
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