CALGARY, April 23 /CNW/ - Imaging Dynamics Company Ltd. (IDC or the Company) (TSX: IDL) a global supplier in the high growth digital radiography (DR) equipment market, today reported financial results for the first quarter ending March 31, 2008.
Commenting on the first quarter 2008 results, Tom Boon, IDC's President & CEO said, "I am pleased with the progress we have made on most aspects of the business. Cash was up, receivables were down, inventory was down, payables were down; even short term borrowing was down. These are all good indicators that the changes we are making are working and that we are well on our way to building the foundation of a Company that can live up to its potential."
"On the sales front, the revenue recognized is lower when reported in Canadian dollars although it is nearly the same in US dollars when compared to first quarter last year. More importantly, the Company's shift to a Build-to-PO business model defers sales recognition to future periods and creates an order backlog. The Company is exiting first quarter with approximately $3.0 Million in order backlog for total purchase orders on hand of $9.4 million. This should alleviate any concerns around sales momentum or IDC's growth opportunities," said Mr. Boon.
First quarter highlights:
- New President and CEO recruited and on board;
- Purchase orders totaling $9.4 Million ($6.4 shipped and recognized,
$3.0 booked to backlog);
- Cash and cash equivalents net of short-term borrowing increased by
$0.6 million compared to December 31, 2007;
- Reduced receivables by $2.1 million compared to December 31, 2007 on
the collection of $8.5 million during the quarter;
- Reduced inventory by $1.8 million compared to December 31, 2007;
- Reduced payables and accruals by $1.9 million compared to
December 31, 2007;
- Achieved positive cash flows from operating activities;
- Reduced expenses by 13% compared to the same quarter last year;
- Transition to a "Build to Purchase Order" model from a "Build to
Forecast" model is now completed and fully implemented in order to
achieve operational efficiencies and reduce cash to cash cycle;
- Gross revenues were lower by 17.9% compared to same quarter last year
which was largely due to the decline in average US - Canadian dollar
exchange rate which declined by approximately 14.3% form the same
quarter last year; and
- Gross margins were 33% for the quarter which was also impacted due to
the lower revenue in Canadian dollars and the utilization of
inventory that was purchased during previous quarters when the US -
Canadian dollar exchange rate was higher.
A conference call to review the results will take place on Thursday, April
24th at 8:00 a.m. EDT (6:00 a.m. MDT). To participate in the call, please dial
416.644.3420 or 800.731.5319 approximately 5 minutes prior to the conference
call.
Imaging Dynamics Company Ltd.
Consolidated Balance Sheets
As at March 31 December 31
2008 2007
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Assets (Unaudited) (Audited)
Current Assets
Cash and cash equivalents $ 2,066,539 $ 1,460,554
Receivables 10,159,120 12,219,209
Inventory 12,302,162 14,142,710
Prepaids and deposits 736,019 1,100,558
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25,263,840 28,923,031
Property, plant and equipment 1,810,225 1,880,932
Intangible assets 238,789 244,912
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$ 27,312,854 $ 31,048,875
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Liabilities and Shareholders' Equity
Current Liabilities
Short-term borrowing $ 1,244,308 $ 1,260,244
Payables and accruals 12,519,776 14,421,090
Customer deposits 597,543 345,140
Loan payable 31,000 45,013
Warranty liability 1,122,861 1,098,287
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15,515,488 17,169,774
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Shareholders' Equity
Share capital 65,983,374 65,983,374
Contributed surplus 5,120,456 4,743,668
Deficit (59,306,464) (56,847,941)
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11,797,366 13,879,101
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$ 27,312,854 $ 31,048,875
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Imaging Dynamics Company Ltd.
Consolidated Statements of Operations, Comprehensive
Loss and Deficit
For the three months ended March 31 (Unaudited) 2008 2007
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Revenues, net $ 6,388,795 $ 7,784,130
Cost of goods sold 4,270,788 4,629,587
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Gross profit 2,118,007 3,154,543
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Expenses
Sales and marketing 1,478,982 1,791,521
General and administrative 1,245,547 1,189,845
Production and manufacturing 554,874 432,519
Research and development 633,675 575,867
Foreign exchange (gain) loss (158,582) 186,085
Warranty 157,907 237,420
Stock-based compensation 376,788 391,108
Amortization 177,639 345,391
Interest 124,783 109,550
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4,591,613 5,259,306
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Loss before interest and other income (2,473,606) (2,104,763)
Interest and other income 15,083 28,366
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Net loss, being comprehensive loss $ (2,458,523) $ (2,076,397)
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Net loss per share
Basic and diluted $ (0.04) $ (0.04)
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Deficit, beginning of period $(56,847,941) $(42,582,569)
Net loss, being comprehensive loss (2,458,523) (2,076,397)
Accumulated other comprehensive income - -
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Deficit, end of period $(59,306,464) $(44,658,966)
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Imaging Dynamics Company Ltd.
Consolidated Statement of Cash Flows
For the three months ended March 31 (Unaudited) 2008 2007
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Cash flows from operating activities
Net loss $ (2,458,523) $ (2,076,397)
Items not affecting cash
Amortization 177,639 345,391
Stock-based compensation 376,788 391,108
Warranty 24,574 73,939
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(1,879,522) (1,265,959)
Change in non-cash working capital 2,616,265 (2,353,824)
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736,743 (3,619,783)
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Cash flows used in financing activities
Proceeds from share issuances, net - 47,400
Short-term borrowing, net (15,936) 844,645
Repayment of loan payable (14,013) -
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(29,949) 892,045
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Cash flows used in investing activities
Property, plant and equipment additions (100,809) (176,661)
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Net change in cash and cash equivalents 605,985 (2,904,399)
Cash and cash equivalents
Beginning of period 1,460,554 5,901,192
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End of period $ 2,066,539 $ 2,996,793
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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.
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