CALGARY, Aug. 13 /CNW/ - Imaging Dynamics Company Ltd. (IDC or the Company) (TSX: IDL) a global supplier in the digital radiography (DR) equipment market, today reported financial results for the second quarter ended June 30, 2007.
2007 Q2 Financial Results
Revenues for the three-month period ended June 30, 2007 were $9.3 million compared to $8.9 million for the same quarter last year. This excludes $0.8 million in deferred revenues and $2.5 million in orders not shipped at June 30, 2007.
Gross margins on sales were at 41.5% for the quarter and 41% for the six months ended June 30, 2007. This compares to 33.6% and 35.2% for the same periods the previous year.
Gross profit for the three-month period ended June 30, 2007 was higher at $3.8 million compared to $3.0 million for the same quarter last year. Gross profit for the six month period ended June 30, 2007 was higher at $7.0 million compared to $6.7 million for the same period last year.
Net loss for the quarter before foreign exchange was $1.7 million or $0.03 per share and net loss including foreign exchange was $2.6 million or $0.04 per share compared to a loss of $1.3 million or $0.02 for the same period last year. Net loss year-to-date before foreign exchange was $3.6 million or $0.06 per share and net loss including foreign exchange was $4.7 million or $0.08 per share compared to $1.4 million or $0.02 per share for the same period last year.
Commenting on the results, Swapan Kakumanu, IDC's CFO says, "We continue to focus on strengthening the balance sheet and on the operations of the company. We expect to see continued improvements on both initiatives for the balance of the year."
Financial Performance Summary
1. Positive cash flow from operating activities for the quarter of
$1.9 million;
2. Increased cash and cash equivalents by $1.1 million from $3.0 million
at March 31, 2007 to $4.1 million;
3. Reduced receivables by $3.0 million from $19.6 million at March 31,
2007 to $16.6 million;
4. Reduced inventories by $2.4 million from $16.1 million at March 31,
2007 to $13.7 million;
5. Reduced short-term borrowing by $1.0 million from $5.1 million at
March 31, 2007 to $4.1 million;
6. Reduced payables and accruals by $2.4 million from $10.9 million at
March 31, 2007 to $8.5 million;
7. Reduced day's sales outstanding (DSO) for Q2 2007 to 163 compared to
230 for Q1 2007;
8. Collected $10.9 million of receivables during Q2 2007 compared to
$9 million in Q1 2007
9. Increased revenues to $9.3 million in Q2 2007 from $7.8 million in Q1
2007 and $8.9 million in Q2 2006;
10. Increased deferred revenues to $0.8 million from $0.3 million at
close of Q1 2007;
11. Operating expense levels remained almost flat from the previous
quarter in spite of increase in revenues by 19.2% compared to Q1
2007;
12. The Company incurred an unusual level of foreign exchange loss during
Q2 2007 of $0.9 million or $0.02 per share. This was due in a large
part to the decline in US dollar against the Canadian dollar and the
revaluation of current assets and liabilities denominated in
US dollars at June 30, 2007.
Darryl Stein, President & CEO of IDC says, "Internal operations and finance showed positive results in the quarter and demand for our products continues to grow across all markets. We remain confident that the Company is prepared, and well positioned, to meet growth targets and improved profitability for 2007."
The company received $12.6 million purchase orders in the quarter, which included approximately $3 million orders that are carried over to the second half of the year. Gross margins on revenues improved to 41.5% in the quarter from 33.6% in the same period 2006.
Total worldwide unit sales are up 21% from the same period in 2006 to over 260 units on a year to date basis. A new generation of DR technology, the X-Series, was successfully launched and represented over half of the units shipped in the quarter. Unit sales showed a 42% increase from the same quarter in 2006.
Imaging Dynamics Company Ltd.
Consolidated Balance Sheets
(Unaudited)
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June 30 December 31
2007 2006
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Assets (Unaudited) (Audited)
Current Assets
Cash and cash equivalents $ 4,104,582 $ 5,901,192
Receivables 16,594,539 21,222,060
Inventory 13,736,646 16,556,720
Prepaids and deposits 743,941 930,053
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35,179,708 44,610,025
Property, plant and equipment 1,703,426 1,710,938
Intangible assets 259,174 278,511
Deferred development costs 391,459 782,917
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$ 37,533,767 $ 47,382,391
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Liabilities and Shareholders' Equity
Current Liabilities
Short-term borrowing $ 4,072,197 $ 4,297,033
Payables and accruals 8,508,432 15,180,338
Customer deposits 822,635 580,890
Current portion of capital lease obligations 9,966 9,966
Current portion of long-term debt 45,013 56,000
Warranty liability 1,142,448 817,873
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14,600,691 20,942,100
Capital lease obligations 14,263 19,084
Long-term debt - 14,013
Deferred lease inducement 37,200 49,600
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14,652,154 21,024,797
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Shareholders' Equity
Share capital 65,908,192 65,466,454
Contributed surplus 4,259,749 3,473,709
Deficit (47,286,328) (42,582,569)
------------- -------------
22,881,613 26,357,594
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$ 37,533,767 $ 47,382,391
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Imaging Dynamics Company Ltd.
Consolidated Statements of Operations and Deficit
(Unaudited)
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Three Months Ended Six Months Ended
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June 30 June 30 June 30 June 30
2007 2006 2007 2006
------------- ------------- ------------- -------------
Revenues, net $ 9,274,939 $ 8,924,481 $ 17,059,069 $ 19,152,556
Cost of goods sold 5,430,197 5,926,389 10,059,784 12,419,214
------------- ------------- ------------- -------------
Gross profit 3,844,742 2,998,092 6,999,285 6,733,342
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Expenses
Sales and
marketing 1,800,508 1,478,446 3,592,029 3,226,407
General and
administrative 1,404,284 957,502 2,594,129 1,784,517
Production and
manufacturing 360,113 402,566 792,632 750,719
Research and
development 563,346 527,111 1,139,213 1,059,125
Foreign exchange
loss 933,478 273,371 1,119,563 71,779
Warranty 307,722 203,797 545,142 444,379
Stock-based
compensation 428,102 302,786 819,210 556,451
Bad debts 226,360 - 226,360 -
Amortization 337,088 166,589 682,479 326,450
Interest 135,670 76,867 245,220 137,696
------------- ------------- ------------- -------------
6,496,671 4,389,035 11,755,977 8,357,523
------------- ------------- ------------- -------------
Loss before
interest and
other income (2,651,929) (1,390,943) (4,756,692) (1,624,181)
Interest and
other income 24,567 106,165 52,933 176,280
------------- ------------- ------------- -------------
Net loss $ (2,627,362) $ (1,284,778) $ (4,703,759) $ (1,447,901)
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Net (loss)
income per share
Basic and
diluted $ (0.04) $ (0.02) $ (0.08) $ (0.02)
------------- ------------- ------------- -------------
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Deficit, beginning
of period $(44,658,966) $(28,738,846) $(42,582,569) $(28,575,723)
Net loss (2,627,362) (1,284,778) (4,703,759) (1,447,901)
------------- ------------- ------------- -------------
Deficit, end of
period $(47,286,328) $(30,023,624) $(47,286,328) $(30,023,624)
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Imaging Dynamics Company Ltd.
Consolidated Statement of Cash Flows
(Unaudited)
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Increase (decrease) in cash and cash equivalents are as follows:
Three Months Ended Six Months Ended
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June 30 June 30 June 30 June 30
2007 2006 2007 2006
------------- ------------- ------------- -------------
Cash flows from
operating activities
Net loss $ (2,627,362) $ (1,284,778) $ (4,703,759) $ (1,447,901)
Items not
affecting cash
Amortization
of deferred
lease
inducement (6,200) (6,200) (12,400) (12,400)
Amortization 337,088 166,589 682,479 326,450
Stock-based
compensation 428,102 302,786 819,210 556,451
Warranty 250,636 74,905 324,575 176,294
------------- ------------- ------------- -------------
(1,617,736) (746,698) (2,889,895) (401,106)
Change in
non-cash working
capital 3,548,798 (2,323,960) 1,203,546 (9,271,840)
------------- ------------- ------------- -------------
1,931,062 (3,070,658) (1,686,349) (9,672,946)
------------- ------------- ------------- -------------
Cash flows from
financing
activities
Proceeds from
share issuances,
net 361,168 137,667 408,568 14,216,813
Repayment of
capital lease
obligation (2,449) (1,672) (4,821) (5,572)
Short-term
borrowing, net (1,069,481) (207,200) (224,836) 1,558,887
Repayment of
long-term debt (25,000) - (25,000) (25,000)
------------- ------------- ------------- -------------
(735,762) (71,205) 153,911 15,745,128
------------- ------------- ------------- -------------
Cash flows from
investing
activities
Deferred
development
costs additions - (406,460) - (868,210)
Intangible asset
addition - (17,097) - (32,534)
Property, plant
and equipment
additions (87,511) (233,037) (264,172) (313,176)
------------- ------------- ------------- -------------
(87,511) (656,594) (264,172) (1,213,920)
------------- ------------- ------------- -------------
Net change in cash
and cash
equivalents 1,107,789 (3,798,457) (1,796,610) 4,858,262
Cash and cash
equivalents
Beginning of
period 2,996,793 14,324,092 5,901,192 5,667,373
------------- ------------- ------------- -------------
End of period $ 4,104,582 $ 10,525,635 $ 4,104,582 $ 10,525,635
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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 high 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: 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.