Jun. 13, 2011 (Canada NewsWire Group) --
CALGARY, June 13, 2011 /CNW/ - Imaging Dynamics Company Ltd. ("IDC" or the "Company") (TSX: IDL) a global leader in the high growth digital radiography (DR) equipment market, today reported financial results for the first quarter (Q1) ended March 31, 2011.
First Quarter 2011 Highlights
-
Gross revenues were higher by 112 percent to $2.0 million compared to
$0.9 million for the same quarter last year due to increase of revenues
from Asia Pacific region;
-
Gross margins were 30 percent for the quarter compared to 28 percent for
the same quarter last year.
-
Sales and marketing, general and administrative, production and
manufacturing and research and development expenses were all down by 34
percent to $1.1 million from $1.6 million during the quarter compared
to the same quarter last year;
-
Net loss for the quarter ended March 31, 2011 was $0.8 million compared
to $1.4 million for the same quarter last year which was one of the
lowest quarterly losses since 2007;
-
Reduced total expenses before finance costs for the quarter ended March
31, 2011 to $1.3 million compared to $1.7 million for the same quarter
last year which was one of the lowest quarterly expenses since 2007;
-
Purchase orders received during the first quarter and opening backlog
totaled $2.7 million ($2.0 million shipped and recognized, $0.7 million
booked to closing backlog);
-
Trade and other receivables increased by $0.1 million compared to
December 31, 2010 on collection of approximately $1.9 million during
the quarter, Days Sales Outstanding (DSO) for the quarter was 21 days,
one of the lowest in the last sixteen quarters;
-
Reduced inventory by $0.1 million compared to December 31, 2010;
- Reduced trade and other payables by $0.1 million compared to December 31, 2010.
Net loss for the first quarter of 2011 was $776,162 or $0.01 per basic and diluted loss per share compared to a net loss of $1,447,131 or $0.02 per basic and diluted loss per share for the same quarter last year.
On January 1, 2011, the Company adopted International Financial Reporting Standards ("IFRS") for financial reporting purposes, using a Transaction Date of January 1, 2010. The interim consolidated financial statements for the three months ended March 31, 2011, including required comparative information has been prepared in accordance with IFRS 1, First-time Adoption of IFRS ("IFRS 1") and with International Accounting Standard 34, Interim Financial Reporting ("IAS 34") as issued by the International Accounting Standards Board ("IASB"). Previously, the Company prepared its interim and annual consolidated financial statements in accordance with Canadian GAAP. Unless otherwise noted, the 2010 comparative information has been prepared in accordance with IFRS.
The adoption of IFRS has not had a significant impact on the Company's operations, strategic decisions or cash flows.
Commenting on first quarter 2011 results, Swapan Kakumanu, IDC President and Chief Executive Officer stated, "Our first quarter financial results were the second consecutive quarterly results with increase in revenues, gross margins and reduction in expenses. We also exited the quarter with $0.7 million of backlog into the second quarter of 2011. With the recent announcement and introduction of flat panel technology to our product portfolio I am expecting this will provide some positive results in the coming quarters. However no revenue projections from this product can be reasonably made at this time."
Kakumanu continues, "We are monitoring our cash and working capital requirements on a regular basis and are looking at every opportunity to eliminate any extra overheads similar to what we have been doing over the past several quarters. Our current focus is to increase our revenue streams and reduce any other costs that we can rationalize."
A conference call to review the results hosted by Swapan Kakumanu, President & CEO and Jerry C. Cirino, Chairman of the Board, will take place on Tuesday June 14, 2011 at 11:00 a.m. EST (9:00 a.m. MST). To participate in the call please dial 647-427-7450 or 888-231-8191 approximately 5 minutes prior to the conference call. If requested, please reference Conference Code ID: 74338711.
| Imaging Dynamics Company Ltd. | |||||||||
| Consolidated Statements of Financial Position | |||||||||
| March 31 | December 31 | January 1 | |||||||
| As at (Unaudited) | 2011 | 2010 | 2010 | ||||||
| Assets | |||||||||
| Current Assets | |||||||||
| Cash and cash equivalents | $ | 361,420 | $ | 18,373 | $ | 310,957 | |||
| Trade and other receivables | 507,154 | 407,531 | 1,187,101 | ||||||
| Inventory | 3,460,133 | 3,566,316 | 4,830,116 | ||||||
| Prepaid expenses and other | 200,301 | 203,617 | 447,704 | ||||||
| 4,529,008 | 4,195,837 | 6,775,878 | |||||||
| Property, plant and equipment | 372,984 | 399,138 | 524,154 | ||||||
| Intangible assets | 381,243 | 404,405 | 511,603 | ||||||
| $ | 5,283,235 | $ | 4,999,380 | $ | 7,811,635 | ||||
| Liabilities | |||||||||
| Current Liabilities | |||||||||
| Loan | $ | 937,146 | $ | 861,313 | $ | 275,735 | |||
| Trade and other payables | 3,278,585 | 3,328,912 | 3,516,738 | ||||||
| Customer deposits | 138,974 | 96,289 | 438,876 | ||||||
| Warranty provision | 1,311,853 | 1,317,490 | 1,457,661 | ||||||
| 5,666,558 | 5,604,004 | 5,689,010 | |||||||
| Shareholders' Deficiency | |||||||||
| Share capital | 72,145,740 | 71,527,873 | 70,246,559 | ||||||
| Share-based payments reserve | 6,151,960 | 6,020,671 | 5,957,482 | ||||||
| Contributed surplus | 4,053,035 | 4,053,035 | - | ||||||
| Warrants reserve | 577,059 | 328,752 | 4,238,599 | ||||||
| Deficit | (83,311,117) | (82,534,955 | (78,320,015) | ||||||
| (383,323) | (604,624) | 2,122,625 | |||||||
| $ | 5,283,235 | $ | 4,999,380 | $ | 7,811,635 | ||||
| Imaging Dynamics Company Ltd. | ||||||
| Consolidated Statements of Operations and Comprehensive Loss | ||||||
| For the three months ended March 31 (Unaudited) | 2011 | 2010 | ||||
| Revenues | $ | 1,983,414 | $ | 933,818 | ||
| Cost of sales | 1,383,494 | 675,243 | ||||
| Gross profit | 599,920 | 258,575 | ||||
| Expenses | ||||||
| Sales and marketing | 331,608 | 398,805 | ||||
| General and administrative | 375,720 | 763,489 | ||||
| Production and manufacturing | 181,817 | 210,794 | ||||
| Research and development | 171,233 | 226,441 | ||||
| Foreign exchange loss (gain) | 24,389 | (24,958) | ||||
| Warranty | 5,500 | 13,100 | ||||
| Share-based payments | 131,289 | 23,196 | ||||
| Amortization of property, plant and equipment | 26,154 | 34,619 | ||||
| Amortization of intangible assets | 23,162 | 29,210 | ||||
| 1,270,872 | 1,674,696 | |||||
| Loss before finance costs | (670,952) | (1,416,121) | ||||
| Finance costs | ||||||
| Interest expense | (29,589) | (17,518) | ||||
| Finance expense | (75,833) | (34,382) | ||||
| Interest and other income | 212 | 20,890 | ||||
| Net loss and comprehensive loss | $ | (776,162) | $ | (1,447,131) | ||
| Net loss per share | ||||||
| Basic and diluted | $ | (0.01) | $ | (0.02) | ||
| Imaging Dynamics Company Ltd. | ||||||||||||||||||
| Consolidated Statements of Changes in Equity | ||||||||||||||||||
| (Unaudited) | Share capital |
Share-based payments reserve |
Contributed surplus |
Warrants reserve |
Deficit | Total equity | ||||||||||||
| Balance, January 1, 2011 | $ | 71,527,873 | $ | 6,020,671 | $ | 4,053,035 | $ | 328,752 | $ | (82,534,955) | $ | (604,624) | ||||||
| Issued for cash - private placement | 880,000 | - | - | - | - | 880,000 | ||||||||||||
| Share issue costs | (13,826) | - | - | - | - | (13,826) | ||||||||||||
| Share-based compensation | - | 131,289 | - | - | - | 131,289 | ||||||||||||
| Warrants | (248,307) | - | - | 248,307 | - | - | ||||||||||||
| Loss for the period | - | - | - | - | (776,162) | (776,162) | ||||||||||||
| Balance, March 31, 2011 | $ | 72,145,740 | $ | 6,151,960 | $ | 4,053,035 | $ | 577,059 | $ | (83,311,117) | $ | (383,323) | ||||||
| - | ||||||||||||||||||
| Balance, January 1, 2010 | $ | 70,246,559 | $ | 5,957,482 | $ | - | $ | 4,238,599 | $ | (78,320,015) | $ | 2,122,625 | ||||||
| Share-based compensation | - | 23,196 | - | - | - | 23,196 | ||||||||||||
| Warrants | - | - | - | 143,188 | - | 143,188 | ||||||||||||
| Loss for the year | - | - | - | - | (1,447,131) | (1,447,131) | ||||||||||||
| Balance, March 31, 2010 | $ | 70,246,559 | $ | 5,980,678 | $ | - | $ | 4,381,787 | $ | (79,767,146) | $ | 841,878 | ||||||
| Imaging Dynamics Company Ltd. | ||||||||||
| Consolidated Statements of Cash Flows | ||||||||||
| For the three months ended March 31 (Unaudited) | 2011 | 2010 | ||||||||
| Cash provided by (used in) | ||||||||||
| Operating activities | ||||||||||
| Net loss | $ | (776,162) | $ | (1,447,131) | ||||||
| Items not affecting cash | ||||||||||
| Finance expense | 75,833 | 34,382 | ||||||||
| Amortization of property, plant and equipment | 26,154 | 34,619 | ||||||||
| Amortization of intangible assets | 23,162 | 29,210 | ||||||||
| Share-based payments | 131,289 | 23,196 | ||||||||
| Warranty | (5,637) | (47,861) | ||||||||
| (525,361) | (1,373,585) | |||||||||
| Change in non-cash working capital | 2,234 | 870,547 | ||||||||
| (523,127) | (503,038) | |||||||||
| Financing activities | ||||||||||
| Issuance of shares, net of issuance costs | 866,174 | - | ||||||||
| Loan | - | 500,000 | ||||||||
| 866,174 | 500,000 | |||||||||
| Net increase (decrease) in cash and cash equivalents | 343,047 | (3,038) | ||||||||
| Cash and cash equivalents, beginning of period | 18,373 | 310,957 | ||||||||
| Cash and cash equivalents, end of period | $ | 361,420 | $ | 307,919 | ||||||
About Imaging Dynamics Company (IDC):
IDC is a medical devices technology company and innovative force in the high growth field of digital radiography (DR) technology. IDC's product line of CCD-based X-Series direct capture technology and the new innovaXion Flat Panel technology replaces conventional film-based diagnostic imaging and provides a cost-effective solution for producing high quality diagnostic images, enhancing patient care and improving workflow.
Each IDC DR solution provides high resolution radiographic images in the digital format required for today's (PACS) Picture Archiving & Communication Systems and the growing requirements for the electronic health record, all without the use of film, environmentally unfriendly chemicals, and cassettes.
Throughout its history, IDC has been recognized by multiple industry organizations and research analysts such as: Frost & Sullivan, Deloitte Technology and PROFIT; for its consistent dedication to innovation, global growth, and customer focused value proposition.
IDC is based in Calgary, Alberta, Canada.
Visit the IDC Web site: www.imagingdynamics.com
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.
Mr. Swapan Kakumanu
President & Chief Executive Officer
1.403.251.9939
skakumanu@imagingdynamics.com