Mar. 24, 2011 (Canada NewsWire Group) --
CALGARY, March 24 /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 fourth quarter and year end December 31, 2010.
2010 Year and Fourth Quarter Highlights
-
Sales and marketing, general and administrative, production and
manufacturing and research and development expenses were all down
year over year from 2009 to 2010 by 22.1 percent in total;
-
Net loss for the quarter ended December 31, 2010 was $0.6 million which
was one of the lowest quarterly losses since 2007;
-
Total expenses for the quarter ended December 31, 2010 was $1.4 million
which was one of the lowest quarterly expenses since 2007;
-
Purchase orders received during the fourth quarter and opening backlog
totaled $3.6 million ($2.0 million shipped and recognized, $0.7 million
booked to closing backlog);
-
Reduced receivables by $0.8 million compared to December 31, 2009 and
September 30, 2010 on collection of approximately $6.0 million during
the year and $2.0 million during the fourth quarter respectively;
-
Reduced inventory by $1.3 million compared to December 31, 2009 and
inventory levels remained consistent to the levels as at September 30,
2010;
-
Reduced payables and accruals by $0.2 million compared to December 31,
2009 and payables and accruals increased by $0.1 million compared to
September 30, 2010;
-
Reduced expenses by 29.9 percent or $0.6 million compared to the same
quarter last year and by 30.3 percent or $2.6 million on a year to date
basis compared to the same period last year;
-
Gross revenues were higher by 35.3 percent compared to the same quarter
last year and were lower by 44.5 percent on a year to date basis
compared to the same period last year; which was largely due to the
decline in revenues from Asia Pacific, and EMEA & SA where the orders
have been pushed into later quarters and slower purchasing decisions in
other regions; and
- Gross margins were 36.5 percent for the quarter and on a year to date basis were 34.1 percent compared to 30.5 percent for the same quarter last year and 27.4 percent for the same year last year.
Net loss for the fourth quarter of 2010 was $641,231 or $0.00 per basic and diluted loss per share compared to a net loss of $1,488,854 or $0.02 per basic and diluted loss per share for the same quarter last year. Net loss for fiscal 2010 was $4,186,351 or $0.04 per basic and diluted loss per share compared to a net loss of $5,970,502 or $0.07 per basic and diluted loss per share for the same period last year.
Commenting on fourth quarter and year end 2010 results, Swapan Kakumanu, IDC President and Chief Executive Officer stated, "Our fourth quarter financial results were the strongest quarterly results for 2010; increase in revenues and gross margins and reduction in expenses. We also exited the quarter with $0.7 million of backlog into 2011. We are seeing signs of increased purchasing activities and expect to see some of these turning into revenues for IDC in 2011. We are expecting that the Asia Pacific region will remain active during 2011 and we are ensuring we position ourselves to deliver the product and services required by this region."
Kakumanu continued, "The proceeds from the recently completed non-brokered private placement have provided the necessary cash to support the Company's initiative to promote IDC technology globally. In addition, as a part of the previously announced product portfolio expansion initiative IDC has sold DR flat panel technology in selected geographic markets during the first quarter of 2011 which is expected to add to revenue growth in the near term. We are optimistic about the potential for IDC in the coming quarters."
A conference call to review the results will take place on Friday March 25, 2011 at 10:00 a.m. EST (8:00 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.
| Imaging Dynamics Company Ltd. | ||||||
| Consolidated Balance Sheets | ||||||
| As at December 31 | 2010 | 2009 | ||||
| Assets | ||||||
| Current Assets | ||||||
| Cash and cash equivalents | $ | 18,373 | $ | 310,957 | ||
| Receivables | 407,531 | 1,187,101 | ||||
| Inventory | 3,566,316 | 4,830,116 | ||||
| Prepaids and deposits | 203,617 | 447,704 | ||||
| 4,195,837 | 6,775,878 | |||||
| Property, plant and equipment | 399,138 | 524,154 | ||||
| Intangible assets | 404,405 | 511,603 | ||||
| $ | 4,999,380 | $ | 7,811,635 | |||
| Liabilities and Shareholders' Deficiency | ||||||
| Current Liabilities | ||||||
| Loan | $ | 1,000,000 | $ | 500,000 | ||
| Payables and accruals | 3,328,912 | 3,516,738 | ||||
| Customer deposits | 96,289 | 438,876 | ||||
| Warranty | 1,317,490 | 1,457,661 | ||||
| 5,742,691 | 5,913,275 | |||||
| Shareholders' Deficiency | ||||||
| Share capital | 71,527,873 | 70,246,559 | ||||
| Contributed surplus | 10,104,168 | 5,930,955 | ||||
| Warrants | 328,752 | 4,238,599 | ||||
| Deficit | (82,704,104) | (78,517,753) | ||||
| (743,311) | 1,898,360 | |||||
| $ | 4,999,380 | $ | 7,811,635 | |||
| Imaging Dynamics Company Ltd. | ||||||
| Consolidated Statements of Operations and Comprehensive Loss and Deficit | ||||||
| For the years ended December 31 | 2010 | 2009 | ||||
| Revenues, net | $ | 5,408,185 | $ | 9,743,343 | ||
| Cost of goods sold | (3,566,014) | (7,073,263) | ||||
| Gross profit | 1,842,171 | 2,670,080 | ||||
| Expenses | ||||||
| Sales and marketing | 1,581,738 | 2,217,001 | ||||
| General and administrative | 2,249,134 | 2,698,287 | ||||
| Production and manufacturing | 691,039 | 894,011 | ||||
| Research and development | 796,080 | 1,016,815 | ||||
| Foreign exchange (gain) loss | (82,895) | 319,208 | ||||
| Warranty | 16,300 | 391,700 | ||||
| Stock-based compensation | 120,178 | 456,056 | ||||
| Bad debts | 175,125 | 136,358 | ||||
| Amortization of property, plant and equipment | 125,016 | 184,320 | ||||
| Amortization of intangible assets | 107,198 | 136,560 | ||||
| Interest | 128,677 | 4,669 | ||||
| Financing costs | 143,188 | 229,538 | ||||
| 6,050,778 | 8,684,523 | |||||
| Loss before interest and other items | (4,208,607) | (6,014,443) | ||||
| Interest and other income | 22,256 | 43,941 | ||||
| Net loss, being comprehensive loss | $ | (4,186,351) | $ | (5,970,502) | ||
| Net loss per share | ||||||
| Basic and diluted | $ | (0.04) | $ | (0.07) | ||
| Deficit, beginning of year | $ | (78,517,753) | $ | (72,547,251) | ||
| Net loss | (4,186,351) | (5,970,502) | ||||
| Deficit, end of year | $ | (82,704,104) | $ | (78,517,753) | ||
| Imaging Dynamics Company Ltd. | ||||||
| Consolidated Statement of Cash Flows | ||||||
| For the years ended December 31 | 2010 | 2009 | ||||
| Increase (decrease) in cash and cash equivalents are as follows: | ||||||
| Cash flows used in operating activities | ||||||
| Net loss | $ | (4,186,351) | $ | (5,970,502) | ||
| Items not affecting cash | ||||||
| Financing costs | 143,188 | 185,564 | ||||
| Amortization | 232,214 | 320,880 | ||||
| Stock-based compensation | 120,178 | 456,056 | ||||
| Warranty | (140,171) | 239,942 | ||||
| (3,830,942) | (4,768,060) | |||||
| Change in non-cash working capital | 1,757,044 | 3,474,749 | ||||
| (2,073,898) | (1,293,311) | |||||
| Cash flows from financing activities | ||||||
| Proceeds from share issuances, net | 1,281,314 | - | ||||
| Loan | 500,000 | 500,000 | ||||
| 1,781,314 | 500,000 | |||||
| Net change in cash and cash equivalents | (292,584) | (793,311) | ||||
| Cash and cash equivalents | ||||||
| Beginning of year | 310,957 | 1,104,268 | ||||
| End of year | $ | 18,373 | $ | 310,957 | ||
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 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, cassettes or expensive imaging plates.
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