CALGARY, July 30 /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 three and six months ended June 30, 2009.
Second Quarter 2009 Highlights
- Increased revenue by 48.1 percent to $3.9 million during the second
quarter of 2009 compared to $2.6 million during the first quarter of
2009;
- Increased gross margins to 30.4 percent for the second quarter of
2009 compared to 25.9% for the first quarter of 2009;
- Reduced receivables by $1.8 million compared to December 31, 2008 on
the collection of approximately $8.0 million during the first half of
2009; Days Sales Outstanding (DSO) for the quarter reduced to 72 days
from 156 days for the same quarter last year and, lowest in the last
four years;
- Reduced inventory by $1.2 million compared to December 31, 2008;
- Reduced payables and accruals by $1.3 million compared to December 31
2008;
- Established a $1 million credit facility during the quarter which has
not been drawn as of today;
- Cash and cash equivalents decreased by $0.8 million to $0.3 million
at June 30, 2009 from $1.1 million at December 31, 2008;
- Sales and marketing, general and administrative, production and
manufacturing and research and development expenses were reduced by
48.6 percent to $1.8 million from $3.4 million during the quarter
compared to the same quarter last year and were reduced by 50.1
percent to $3.7 million from $7.4 million on a year to date basis
compared to the same period last year;
- Reduced total expenses by 41.8 percent to $2.6 million from $4.5
million during the quarter compared to the same quarter last year and
reduced by 46.9 percent to $4.8 million from $9.1 million on a year
to date basis compared to the same period last year;
- Purchase orders received during the second quarter and opening
backlog totaled $4.6 million ($3.9 million shipped and recognized,
$0.7 million booked to closing backlog);
- Gross revenues were lower by 26.8 percent compared to the same
quarter last year and lower by 44.2 percent on a year to date basis;
which was largely due to the decline in revenues in United States
("US") as a result of the slowing economic conditions; and
- Gross margins were 30.4 percent for the quarter compared to 23.6
percent for the same quarter last year and 28.6 percent compared to
28.8 percent on a year to date basis; which were also impacted due to
lower margin sales during the period, the global pricing pressures on
digital radiography products and the continued utilization of
inventory that was purchased during previous quarters.
Net loss was for the second quarter of 2009 was $1,425,850 or $0.02 of basic and diluted loss per share compared to a net loss of $3,250,176 or $0.05 of basic and diluted loss per share for the same quarter last year. Year-to-date net loss was $2,939,443 or $0.04 of basic and diluted loss per share compared to a net loss of $5,708,699 or $0.09 basic and diluted loss per share for the same period last year.
Commenting on the second quarter 2009 results, Tom Boon, IDC's President and CEO said, "With both a 48.1 percent revenue growth and a gross margin increase to 30.4 percent compared to the first quarter of 2009, as well as the continued quarter over quarter improvement on our balance sheet, I believe that IDC is demonstrating to our customers and the shareholders that our strategic initiatives are working. Our expenses are in line with expectations and we are effectively managing our working capital without having to access the credit facility that is now in place with existing investors. I am pleased that every employee of this company is focused on the fundamentals of running a sound operational business."
Boon continued, "There were consistent results from the Asia Pacific region with our OEM business and good systems sales in both India and Canada during the quarter. We continue to refine our channel initiatives to improve access to the markets for our detectors and for participation in selected public tenders in the emerging markets for our systems. With strategic initiatives in place for the U.S. market and a healthy sales funnel for each of the other regions, the outlook for the second half of 2009 is encouraging. In this uniquely challenging time, I am confident that IDC is on the right path for profitable growth."
A conference call to review the results will take place on Friday, July 31, 2008 at 8.00 a.m. EDT (6.00 a.m. MDT).
To participate in the call please dial 416-644-3417 or 800-731-5774 approximately 5 minutes prior to the conference call.
Imaging Dynamics Company Ltd.
Consolidated Balance Sheets
As at June 30 December 31
2009 2008
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Assets (Unaudited) (Audited)
Current Assets
Cash and cash equivalents $ 255,132 $ 1,104,268
Receivables 3,161,445 4,954,233
Inventory 5,054,653 6,254,484
Prepaids and deposits 539,475 450,676
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9,010,705 12,763,661
Property, plant and equipment 973,328 1,136,216
Intangible assets 208,175 220,421
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$ 10,192,208 $ 14,120,298
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Liabilities and Shareholders' Equity
Current Liabilities
Payables and accruals $ 3,907,802 $ 5,248,257
Customer deposits 98,734 427,080
Warranty liability 1,434,100 1,217,719
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5,440,636 6,893,056
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Shareholders' Equity
Share capital 70,246,559 70,246,559
Contributed surplus 5,880,361 5,474,899
Warrants 4,111,346 4,053,035
Deficit (75,486,694) (72,547,251)
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4,751,572 7,227,242
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$ 10,192,208 $ 14,120,298
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Imaging Dynamics Company Ltd.
Consolidated Statements of Operations, Comprehensive Loss 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
2009 2008 2009 2008
------------- ------------- ------------- -------------
Revenues, net $ 3,899,738 $ 5,327,965 $ 6,533,292 $ 11,716,760
Cost of goods sold 2,715,369 4,071,449 4,667,917 8,342,237
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Gross profit 1,184,369 1,256,516 1,865,375 3,374,523
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Expenses
Sales and
marketing 571,057 1,331,340 1,161,129 2,810,322
General and
administrative 757,713 1,100,413 1,488,450 2,345,960
Production and
manufacturing 213,906 456,004 450,212 1,010,878
Research and
development 225,416 551,994 566,736 1,185,669
Foreign exchange
loss 195,654 223,375 204,940 64,793
Warranty 153,000 160,937 277,200 318,844
Stock-based
compensation 324,364 184,839 405,462 561,627
Bad debts - 251,866 - 251,866
Amortization 84,856 180,649 175,134 358,288
Interest 1,726 77,028 1,726 201,811
Financing costs 102,285 - 102,285 -
------------- ------------- ------------- -------------
2,629,977 4,518,445 4,833,274 9,110,058
------------- ------------- ------------- -------------
Loss before
interest and
other income (1,445,608) (3,261,929) (2,967,899) (5,735,535)
Interest and
other income 19,758 11,753 28,456 26,836
------------- ------------- ------------- -------------
Net loss, being
comprehensive
loss $ (1,425,850) $ (3,250,176) $ (2,939,443) $ (5,708,699)
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Net loss per share
(Note 8)
Basic and
diluted $ (0.02) $ (0.05) $ (0.04) $ (0.09)
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Deficit, beginning
of period $(74,060,844) $(59,306,464) $(72,547,251) $(56,847,941)
Net loss, being
comprehensive
loss (1,425,850) (3,250,176) (2,939,443) (5,708,699)
------------- ------------- ------------- -------------
Deficit, end of
period $(75,486,694) $(62,556,640) $(75,486,694) $(62,556,640)
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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
2009 2008 2009 2008
------------- ------------- ------------- -------------
Cash flows from
operating
activities
Net loss $(1,425,850) $ (3,250,176) $ (2,939,443) $ (5,708,699)
Items not
affecting cash
Financing
costs 58,311 - 58,311 -
Amortization 84,856 180,649 175,134 358,288
Stock-based
compensation 324,364 184,839 405,462 561,627
Warranty 115,436 (166,378) 216,381 (141,804)
------------- ------------- ------------- -------------
(842,883) (3,051,066) (2,084,155) (4,930,588)
Change in non-
cash working
capital 680,559 (3,877,182) 1,278,993 (1,260,917)
------------- ------------- ------------- -------------
(162,324) (6,928,248) (805,162) (6,191,505)
------------- ------------- ------------- -------------
Cash flows from
financing activities
Proceeds from share
issuances, net - 8,316,220 - 8,316,220
Short-term borrowing,
net - (745,333) - (761,269)
Repayment of loans
payable - (31,000) - (45,013)
Financing costs (43,974) - (43,974) -
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(43,974) 7,539,887 (43,974) 7,509,938
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Cash flows used
in investing
activities
Property, plant
and equipment
additions $ - $ (142,252) $ - $ (243,061)
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Net change in
cash and cash
equivalents (206,268) 469,387 (849,136) 1,075,372
Cash and cash
equivalents
Beginning of
period 461,430 2,066,539 1,104,268 1,460,554
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End of period $ 255,132 $ 2,535,926 $ 255,132 $ 2,535,926
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About IDC:
IDC (Imaging Dynamics Company) is a medical technology company and innovative force in the fast-growing field of digital radiography (DR) technology.
IDC's X-series line of DR technology produces high resolution digital diagnostic images. Its purpose is to replace the need for film and chemical film processing, as well as the storage and retrieval costs normally associated with traditional X-ray technology. The Company provides an environmentally friendly solution for producing diagnostic images compared to traditional analog imaging.
IDC (Imaging Dynamics Company Ltd.) is a public company incorporated under the laws of the Province of Alberta. The Corporation is listed on the Toronto Stock Exchange, trading under the symbol "IDL".
IDC received the 2007 Frost & Sullivan Technology Innovation Award and the 2008 PROFIT 100 ranking as one of Canada's fastest-growing companies. IDC was also recognized by the 2008 Deloitte Technology Fast 500, which ranks the fastest growing technology, media, telecommunications and life sciences companies in North America.
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.