IDC Reports Fourth Quarter and Year End 2012 Results

CALGARY, April 2, 2013 /CNW/ - Imaging Dynamics Company Ltd. ("IDC" or the "Company") (TSX: IDL) a global leader in the high growth medical imaging technology and digital radiography (DR) equipment market, today reported financial results for the fourth quarter and year ended December 31, 2012.

2012 Fourth Quarter and Annual Highlights

• Gross revenues were lower by 69 percent to $0.54 million compared to $1.73 million for the same quarter last year and were lower by 59 percent to $3.11 million compared to $7.63 million for the year, due to decrease in revenues from Emerging Markets;
  
  
• Gross margins were 24 percent for the quarter compared to 18 percent for the same quarter last year and 29 percent compared to 26 percent for the year;
  
  
• Sales and marketing, general and administrative, production and manufacturing and research and development expenses were higher by 20 percent to $1.02 million from $0.86 million during the quarter compared to the same quarter last year and were reduced by 11 percent to $3.44 million for the current year as compared to $3.86 million for last year due to cost reduction initiatives;
  
  
• Net loss for the quarter ended December 31, 2012 was $0.74 million compared to a net loss of $0.25 million for the same quarter last year and the net loss was $2.06 million for the current year as compared to $1.91 million for last year, primarily due to lower revenue;
  
  
• Total expenses before finance costs for the quarter ended December 31, 2012 were $0.98 million compared to total expenses of $0.54 million for the same quarter last year and to $3.29 million for the current year as compared to $3.63 million for last year;
  
  
• Trade and other receivables decreased by $0.44 million compared to December 31, 2011, Days Sales Outstanding (DSO) for the quarter was 29 days compared to 26 days for the same quarter last year;
  
  
• Reduced inventory by $0.70 million compared to December 31, 2011;
  
  
• Trade and other payables decreased by $0.86 million compared to December 31, 2011.
  
  
• The Company has undertaken to consolidate the common shares on the basis of one (1) post-consolidation share for every five (5) pre-consolidation shares prior to the next Annual Meeting of Shareholders unless the share price equals or exceeds 10 cents per share on or before May 20, 2013.

A conference call to discuss the 2012 Year End and Fourth Quarter results is not planned at this time.

The Company expects to announce the date and location its Annual General Shareholder Meeting (AGM) in the coming weeks.

Going concern (Note 2)
Commitments and contingencies (Note 21)
Subsequent events (Note 22)

About Imaging Dynamics Company (IDC):

IDC is a global medical imaging technology provider and innovative force in the high growth field of digital radiography (DR) technology.

The Company has over 3,000 installations in 50 countries of its proprietary, award winning direct capture DR technology, which replaces conventional film-based diagnostic imaging and provides a cost-effective solution for medical facilities of all sizes to provide high quality diagnostic X-ray images and improve the level of healthcare for their patients.

Throughout its history, IDC has been recognized by multiple industry organizations and research analysts such as: Frost & Sullivan and Deloitte Technology; for its dedication to innovation, global market growth, and customer focused value proposition.

The Company has its corporate office in Calgary, Canada, a business office in Hong Kong, and a representative office in Beijing, China.

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.

SOURCE: Imaging Dynamics Company Ltd.