IDC reports 2007 results and announces the election of M. Thomas Boon to the Board of Directors



    CALGARY, March 13 /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 fourth quarter
and the full year ended December 31, 2007. For the 2007 year, IDC reported a
loss of $0.21 per share before interest and inventory write down, for a
full-year loss after interest and write downs of $0.24 per share on revenues
of $32,446,401 as compared to a loss of $0.25 per share on revenues of
$39,030,402 last year. For the fourth quarter, the Company reported a loss of
$0.07 per share before interest and inventory write down, and a loss after
interest and write downs of $0.10 per share on revenues of $8,263,103 as
compared to a loss of $0.19 per share on revenues of $12,533,867 in Q4 2006.
    Commenting on the 2007 results, Tom Boon, IDC's President & CEO said, "I
am confident that our 2007 results are not indicative of the opportunities
that lie ahead for IDC. I joined this Company because I have had first-hand
experience with IDC's award-winning product, global distribution and committed
employee team. IDC has all the ingredients required, for profitable growth,
and our new leadership team is executing on a plan to realize the Company's
potential. I look forward to delivering substantially better results in 2008."
    In addition, IDC announces that M. Thomas Boon was elected to the Board
of Directors effective immediately. Mr. Boon, who joined the company as
President & CEO in February 2008, has 35 years of industry experience in
strategic and senior management positions at companies such as AGFA
Corporation and Eastman Kodak Company.
    "In the short time Tom Boon has been president and CEO of IDC, we have
already seen the positive impact of his leadership skills and industry
experience," said Chairman Jerry C. Cirino. "On behalf of the IDC Board of
Directors, I am excited to welcome Tom to the board, and draw on his
successful career in achieving consistent and profitable growth in
international medical technology markets."
    A conference call to review the results will take place on Friday,
March 14th at 8:00 a.m. EDT (6:00 a.m. MDT). To participate in the call,
please dial 416.644.3417 or 800.732.6179 approximately 5 minutes prior to the
conference call.

    
    Imaging Dynamics Company Ltd.
    Consolidated Balance Sheets
    As at December 31                                     2007          2006
    -------------------------------------------------------------------------

    Assets
    Current Assets
      Cash and cash equivalents                   $  1,460,554  $  5,901,192
      Receivables                                   12,219,209    21,222,060
      Inventory                                     14,142,710    16,556,720
      Prepaids and deposits                          1,100,558       930,053
                                                  ------------- -------------
                                                    28,923,031    44,610,025

    Property, plant and equipment                    1,880,932     1,710,938
    Intangible assets                                  244,912       278,511
    Deferred development costs                               -       782,917
                                                  ------------- -------------

                                                  $ 31,048,875  $ 47,382,391
                                                  ------------- -------------
                                                  ------------- -------------

    Liabilities and Shareholders' Equity
    Current Liabilities
      Short-term borrowing                        $  1,260,244  $  4,297,033
      Payables and accruals                         14,396,290    15,209,388
      Customer deposits                                345,140       580,890
      Current portion of long-term debt                 45,013        56,000
      Warranty liability                             1,098,287       817,873
                                                  ------------- -------------
                                                    17,144,974    20,961,184

    Long-term debt                                           -        14,013
    Deferred lease inducement                           24,800        49,600
                                                  ------------- -------------
                                                    17,169,774    21,024,797
                                                  ------------- -------------

    Shareholders' Equity
      Share capital                                 65,983,374    65,466,454
      Contributed surplus                            4,743,668     3,473,709
      Deficit                                      (56,847,941)  (42,582,569)
                                                  ------------- -------------

                                                    13,879,101    26,357,594
                                                  ------------- -------------

                                                  $ 31,048,875  $ 47,382,391
                                                  ------------- -------------
                                                  ------------- -------------

    -------------------------------------------------------------------------



    Imaging Dynamics Company Ltd.
    Consolidated Statements of Operations,
    Comprehensive Loss and Deficit
    For the year ended December 31                        2007          2006
    -------------------------------------------------------------------------

    Revenues, net                                 $ 32,446,401  $ 39,030,402

    Cost of goods sold                             (20,769,086)  (24,983,024)
                                                  ------------- -------------

    Gross profit                                    11,677,315    14,047,378
                                                  ------------- -------------
                                                  ------------- -------------

    Expenses
      Sales and marketing                            7,941,338     9,192,053
      General and administrative                     4,736,341     3,870,636
      Production and manufacturing                   1,650,895     1,847,623
      Research and development                       2,636,822     2,360,160
      Foreign exchange loss (gain)                   1,347,633      (161,825)
      Warranty                                         693,628       890,433
      Stock-based compensation                       1,338,311     1,593,263
      Bad debts                                      1,814,953     1,094,339
      Amortization of property, plant and equipment    685,004       398,722
      Amortization of deferred development costs       782,917       484,769
      Amortization of intangible assets                 38,805        35,837
      Interest                                         409,450       329,725
                                                  ------------- -------------

                                                    24,076,097    21,935,735
                                                  ------------- -------------

    Loss before interest and other items           (12,398,782)   (7,888,357)

    Inventory write down                            (1,975,764)   (4,776,213)
    Deferred development costs write down                    -    (1,663,507)
    Interest and other income                          109,174       321,231
                                                  ------------- -------------

    Net loss and comprehensive loss               $(14,265,372) $(14,006,846)
                                                  ------------- -------------
                                                  ------------- -------------

    -------------------------------------------------------------------------

    Net loss per share
        Basic and diluted                         $      (0.24) $      (0.25)
                                                  ------------- -------------
                                                  ------------- -------------

    -------------------------------------------------------------------------

    Deficit, beginning of year                    $(42,582,569) $(28,575,723)

    Net loss                                       (14,265,372)  (14,006,846)
                                                  ------------- -------------

    Deficit, end of year                          $(56,847,941) $(42,582,569)
                                                  ------------- -------------
                                                  ------------- -------------

    -------------------------------------------------------------------------



    Imaging Dynamics Company Ltd.
    Consolidated Statement of Cash Flows
    For the year ended December 31                        2007          2006
    -------------------------------------------------------------------------

    Increase (decrease) in cash and cash
     equivalents are as follows:

    Cash flows from operating activities
      Net loss                                    $(14,265,372) $(14,006,846)
        Items not affecting cash
          Amortization of deferred lease inducement    (24,800)      (24,800)
          Amortization                               1,506,726       919,328
          Deferred development costs write down              -     1,663,507
          Stock-based compensation                   1,338,311     1,593,263
          Warranty                                     280,414       352,322
                                                  ------------- -------------
                                                   (11,164,721)   (9,503,226)

        Change in non-cash working capital          10,197,508    (4,011,132)
                                                  ------------- -------------
                                                      (967,213)  (13,514,358)
                                                  ------------- -------------

    Cash flows from financing activities
          Proceeds from share issuances, net           448,568    14,376,926
          Short-term borrowing, net                 (3,036,789)    1,390,943
          Repayment of long-term debt                  (25,000)      (25,000)
                                                  ------------- -------------
                                                    (2,613,221)   15,742,869
                                                  ------------- -------------

    Cash flows used in investing activities
          Deferred development costs additions               -    (1,182,349)
          Intangible asset additions                    (5,206)      (20,604)
          Property, plant and equipment additions     (854,998)     (791,739)
                                                  ------------- -------------
                                                      (860,204)   (1,994,692)
                                                  ------------- -------------

    Net change in cash and cash equivalents         (4,440,638)      233,819

    Cash and cash equivalents
      Beginning of year                              5,901,192     5,667,373
                                                  ------------- -------------

      End of year                                 $  1,460,554  $  5,901,192
                                                  ------------- -------------
                                                  ------------- -------------

    -------------------------------------------------------------------------
    

    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.





For further information:

For further information: Tom Boon, President and CEO, Swapan Kakamanu,
Chief Financial Officer, 1-866-975-6737, info@imagingdynamics.com,
www.imagingdynamics.com

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Imaging Dynamics Company Ltd.

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