IDC reports first quarter 2009 results



    CALGARY, May 11 /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 first quarter
ended March 31, 2009.

    
    First Quarter 2009 Highlights

    -   Cash and cash equivalents decreased by $0.6 million during the
        quarter to $0.5 million at March 31, 2009 from $1.1 million at
        December 31, 2008;

    -   Sales and marketing, general and administrative, production and
        manufacturing and research and development expenses were all down by
        51.5 percent to $1,898,435 from $3,913,078 during the quarter
        compared to the same quarter last year;

    -   Purchase orders received during the first quarter and opening backlog
        totaled $3.6 million ($2.6 million shipped and recognized, $1.0
        million booked to closing backlog);

    -   Reduced receivables by $2.0 million compared to December 31, 2008 on
        the collection of $4.5 million during the quarter; Days Sales
        Outstanding (DSO) for the quarter was 137 days, the lowest in the
        last twelve quarters;

    -   Reduced inventory by $0.4 million compared to December 31, 2008;

    -   Reduced payables and accruals by $1.5 million compared to December 31
        2008;

    -   Reduced total expenses by 52.0 percent to $2.2 million from $4.6
        million during the quarter compared to the same quarter last year;

    -   Gross revenues were lower by 58.8 percent compared to the same
        quarter last year; 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 25.9 percent for the quarter which were also
        impacted due to lower margin sales during the quarter, the global
        pricing pressures on digital radiography products and the continued
        utilization of inventory that was purchased during previous quarters.
    

    Net loss was $1,513,593 or $0.02 of basic and diluted loss per share for
the quarter ended March 31, 2009 compared to a loss of $2,458,523 or $0.04 of
basic and diluted loss per share for the preceding comparative quarter.
    Commenting on the first quarter 2009 results, Tom Boon, IDC's President &
CEO said, "I am pleased with our first quarter successes in the Asia Pacific
and Latin America regions as it is reflective of our strategic positioning to
grow our OEM business while aligning with selected distributors for the
systems business. We have clearly demonstrated our ability to reduce and
manage expenses, which are in line with expectations for the first quarter.
The continued overall improvement in the Balance Sheet and effective
management of working capital provides good evidence that our build to
forecast business model, rigorous order management criteria and the empowered
IDC employees can effectively manage IDC's global business."
    Boon continued, "The careful strategic realignment of the business that
includes reducing cash burn and managing working capital, the continued
improvement in the performance of our proprietary CCD digital detector
technology, growth of the OEM detector head business and refocusing on sales
of the systems business with capable regional distributors is providing the
desired results. With a promising sales funnel, the focus for the remainder of
2009 will be to grow sales in each of the geographic regions that will enable
IDC to increase shareholder value and to meet our corporate objectives for
Profitable Growth and Industry Leadership."
    IDC will be holding its annual general meeting (AGM) on Tuesday, May 12,
2009 at 4:00 MST at the Executive Royal Inn and Conference Centre in Calgary,
Alberta, Canada and invites all shareholders to attend. As mentioned during
the 2008 Year End Financial Review conference all; there is no scheduled
investor call to review the 2009 first quarter results. Tom Boon, President &
CEO, and Swapan Kakumanu, CFO, will review the first quarter financial results
and provide an update on the Company's strategies and progress within its
markets at the AGM.

    
    Imaging Dynamics Company Ltd.
    Consolidated Balance Sheets

    As at                                          March 31      December 31
                                                       2009             2008
    ------------------------------------------------------------------------

    Assets                                       (Unaudited)        (Audited)
    Current Assets
      Cash and cash equivalents              $      461,430   $    1,104,268
      Receivables                                 2,981,392        4,954,233
      Inventory                                   5,812,447        6,254,484
      Prepaids and deposits                         482,724          450,676
                                              -------------    -------------
                                                  9,737,993       12,763,661
    Property, plant and equipment                 1,052,061        1,136,216
    Intangible assets                               214,298          220,421
                                              -------------    -------------
                                             $   11,004,352   $   14,120,298
                                              -------------    -------------
                                              -------------    -------------

    Liabilities and Shareholders' Equity
    Current Liabilities
      Payables and accruals                  $    3,787,071   $    5,248,257
      Customer deposits                             103,870          427,080
      Warranty liability                          1,318,664        1,217,719
                                              -------------    -------------
                                                  5,209,605        6,893,056
                                              -------------    -------------
    Shareholders' Equity
      Share capital                              70,246,559       70,246,559
      Contributed surplus                         5,555,997        5,474,899
      Warrants                                    4,053,035        4,053,035
      Deficit                                   (74,060,844)     (72,547,251)
                                              -------------    -------------
                                                  5,794,747        7,227,242
                                              -------------    -------------
                                             $   11,004,352   $   14,120,298
                                              -------------    -------------
                                              -------------    -------------

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



    Imaging Dynamics Company Ltd.
    Consolidated Statements of Operations, Comprehensive Loss
    and Deficit

    For the three months ended March 31
     (Unaudited)                                       2009             2008
    ------------------------------------------------------------------------

    Revenues, net                            $    2,633,554   $    6,388,795

    Cost of goods sold                            1,952,548        4,270,788
                                              -------------    -------------
    Gross profit                                    681,006        2,118,007
                                              -------------    -------------
                                              -------------    -------------

    Expenses
      Sales and marketing                           590,072        1,478,982
      General and administrative                    730,737        1,245,547
      Production and manufacturing                  236,306          554,874
      Research and development                      341,320          633,675
      Foreign exchange (gain) loss                    9,286         (158,582)
      Warranty                                      124,200          157,907
      Stock-based compensation                       81,098          376,788
      Amortization                                   90,278          177,639
      Interest                                            -          124,783
                                              -------------    -------------

                                                  2,203,297        4,591,613
                                              -------------    -------------

    Loss before interest and other income        (1,522,291)      (2,473,606)

    Interest and other income                         8,698           15,083
                                              -------------    -------------

    Net loss, being comprehensive loss       $   (1,513,593)  $   (2,458,523)
                                              -------------    -------------
                                              -------------    -------------

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


    Net loss per share
      Basic and diluted                      $        (0.02)  $        (0.04)
                                              -------------    -------------
                                              -------------    -------------

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

    Deficit, beginning of period             $  (72,547,251)  $  (56,847,941)

    Net loss, being comprehensive loss           (1,513,593)      (2,458,523)
                                              -------------    -------------

    Deficit, end of period                   $  (74,060,844)  $  (59,306,464)
                                              -------------    -------------
                                              -------------    -------------

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



    Imaging Dynamics Company Ltd.
    Consolidated Statement of Cash Flows

    For the three months ended March 31
     (Unaudited)                                       2009             2008
    ------------------------------------------------------------------------

    Cash flows from operating activities
      Net loss                               $   (1,513,593)  $   (2,458,523)
        Items not affecting cash
          Amortization                               90,278          177,639
          Stock-based compensation                   81,098          376,788
          Warranty                                  100,945           24,574
                                              -------------    -------------
                                                 (1,241,272)      (1,879,522)
        Change in non-cash working capital          598,434        2,602,252
                                              -------------    -------------
                                                   (642,838)         722,730
                                              -------------    -------------
    Cash flows used in financing activities
          Short-term borrowing, net                       -          (15,936)
                                              -------------    -------------
    Cash flows used in investing activities
          Property, plant and equipment
           additions                                      -         (100,809)
                                              -------------    -------------
    Net change in cash and cash equivalents        (642,838)         605,985

    Cash and cash equivalents
      Beginning of period                         1,104,268        1,460,554
                                              -------------    -------------

      End of period                          $      461,430   $    2,066,539
                                              -------------    -------------
                                              -------------    -------------

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

    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 direct capture technology replaces
conventional film-based image capture and provides a cost-effective
alternative to cassette based 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 harmful chemicals, cassettes or
expensive imaging plates. 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.

    
    The Special and Annual General Meeting (AGM) of the shareholders of
    Imaging Dynamics Company Ltd. will be held:

    Executive Royal Inn & Conference Centre
    Tuesday, May 12, 2009 at 4:00 p.m. MST
    Emerald Ballroom 'B'
    2828 - 23rd Street N.E., Calgary, Alberta
    403.291.2003
    

    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 & CEO, Swapan Kakumanu,
Chief Financial Officer, 1-866-975-6737, investor@imagingdynamics.com,
www.imagingdynamics.com

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