IDC reports first quarter 2010 results

CALGARY, May 14 /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 first quarter ended March 31, 2010.

    
    First Quarter 2010 Highlights

    -   Sales and marketing, general and administrative, production and
        manufacturing and research and development expenses were all down by
        15.7 percent to $1,599,529 from $1,898,435 during the quarter
        compared to the same quarter last year;

    -   Purchase orders received during the first quarter and opening backlog
        totaled $1.3 million ($0.9 million shipped and recognized,
        $0.4 million booked to closing backlog);

    -   Reduced receivables by $0.6 million compared to December 31, 2009 on
        the collection of $1.5 million during the quarter; Days Sales
        Outstanding (DSO) for the quarter was 88 days, one of the lowest in
        the last sixteen quarters;

    -   Reduced inventory by $0.5 million compared to December 31, 2009;

    -   Reduced payables and accruals by $0.2 million compared to December 31
        2009;

    -   Reduced total expenses by 16.3 percent to $1.8 million from
        $2.2 million during the quarter compared to the same quarter last
        year;

    -   Gross revenues were lower by 64.5 percent compared to the same
        quarter last year; which was largely due to the decline in revenues
        from Asia Pacific, where the orders have been pushed into second and
        third quarters of 2010 and slower purchasing decisions in other
        regions; and

    -   Gross margins were 27.7 percent for the quarter compared to
        25.9 percent for the same quarter last year.
    

Net loss was $1,565,308 or $0.02 of basic and diluted loss per share for the quarter ended March 31, 2010 compared to a loss of $1,513,593 or $0.02 of basic and diluted loss per share for the preceding comparative quarter.

Commenting on first quarter 2010 results, Tom Boon, IDC President and Chief Executive Officer stated, "It continues to be a challenging economic environment in the global medical digital imaging market segment in which the Company competes. In the past quarter there were moderate signs for improvement in the United States. Although sales in the Asia Pacific region were below expectation, I expect that this region will be on or above plan throughout the remainder of the year."

Boon continued, "We have made moderate improvements on the balance sheet and continue to demonstrate the organization's ability to effectively control and reduce expenses. The management and the Board are proactively considering alternatives for improving the Company's working capital. IDC has a good business foundation, a competitive product offering, and respected distribution channels which will enable the company to improve sales as the market rebounds throughout the year."

IDC will be holding its annual general meeting ("AGM") on Tuesday May 18, 2010 at 3:30 p.m. MDT and invites all shareholders to attend. There is no scheduled investor call to review the 2010 first quarter results.

    
    Imaging Dynamics Company Ltd.
    Consolidated Balance Sheets

    As at                                            March 31    December 31
                                                         2010           2009
    -------------------------------------------------------------------------

    Assets                                         (Unaudited)      (Audited)
    Current Assets
      Cash and cash equivalents                  $    307,919   $    310,957
      Receivables                                     611,461      1,187,101
      Inventory                                     4,334,136      4,830,116
      Prepaids and deposits                           336,911        447,704
                                                -------------- --------------

                                                    5,590,427      6,775,878
    Property, plant and equipment                     489,535        524,154
    Intangible assets                                 482,393        511,603
                                                -------------- --------------

                                                 $  6,562,355   $  7,811,635
                                                -------------- --------------
                                                -------------- --------------

    Liabilities and Shareholders' Equity
    Current Liabilities
      Loan                                       $  1,000,000   $    500,000
      Payables and accruals                         3,277,886      3,516,738
      Customer deposits                               365,862        438,876
      Warranty liability                            1,409,800      1,457,661
                                                -------------- --------------

                                                    6,053,548      5,913,275
                                                -------------- --------------
    Shareholders' Equity
      Share capital                                70,246,559     70,246,559
      Contributed surplus                           5,963,522      5,930,955
      Warrants                                      4,381,787      4,238,599
      Deficit                                     (80,083,061)   (78,517,753)
                                                -------------- --------------

                                                      508,807      1,898,360
                                                -------------- --------------

                                                 $  6,562,355   $  7,811,635
                                                -------------- --------------
                                                -------------- --------------

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

    For the three months ended March 31 (Unaudited)      2010           2009
    -------------------------------------------------------------------------

    Revenues, net                                $    933,818   $  2,633,554

    Cost of goods sold                                675,243      1,952,548
                                                -------------- --------------

    Gross profit                                      258,575        681,006
                                                -------------- --------------
                                                -------------- --------------

    Expenses
      Sales and marketing                             398,805        590,072
      General and administrative                      763,489        730,737
      Production and manufacturing                    210,794        236,306
      Research and development                        226,441        341,320
      Foreign exchange (gain) loss                    (24,958)         9,286
      Warranty                                         13,100        124,200
      Stock-based compensation                         32,567         81,098
      Amortization                                     63,829         90,278
      Interest                                         17,518              -
      Financing costs                                 143,188              -
                                                -------------- --------------

                                                    1,844,773      2,203,297
                                                -------------- --------------

    Loss before interest and other income          (1,586,198)    (1,522,291)

    Interest and other income                          20,890          8,698
                                                -------------- --------------

    Net loss, being comprehensive loss           $ (1,565,308)  $ (1,513,593)
                                                -------------- --------------
                                                -------------- --------------

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

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

    Deficit, beginning of period                 $(78,517,753)  $(72,547,251)
    Net loss, being comprehensive loss             (1,565,308)    (1,513,593)
                                                -------------- --------------
    Deficit, end of period                       $(80,083,061)  $(74,060,844)
                                                -------------- --------------
                                                -------------- --------------

    -------------------------------------------------------------------------
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    Imaging Dynamics Company Ltd.
    Consolidated Statement of Cash Flows
    For the three months ended March 31 (Unaudited)      2010           2009
    -------------------------------------------------------------------------

    Cash flows used in operating activities
      Net loss                                   $ (1,565,308)  $ (1,513,593)
        Items not affecting cash
        Financing costs                               143,188              -
        Amortization                                   63,829         90,278
        Stock-based compensation                       32,567         81,098
        Warranty                                      (47,861)       100,945
                                                -------------- --------------

                                                   (1,373,585)    (1,241,272)
      Change in non-cash working capital              870,547        598,434
                                                -------------- --------------

                                                     (503,038)      (642,838)
                                                -------------- --------------

    Cash flows used in financing activities
      Loan                                            500,000              -
                                                -------------- --------------

    Net change in cash and cash equivalents            (3,038)      (642,838)

    Cash and cash equivalents
      Beginning of period                             310,957      1,104,268
                                                -------------- --------------

      End of period                              $    307,919   $    461,430
                                                -------------- --------------
                                                -------------- --------------

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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, MD Buyline, KLAS 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.

SOURCE Imaging Dynamics Company Ltd.

For further information: For further information: Mr. M. Thomas Boon, President & Chief Executive Officer, (403) 251-9939, tboon@imagingdynamics.com; Mr. Swapan Kakumanu, Executive Vice President & Chief Financial Officer, (403) 251-9939, skakumanu@imagingdynamics.com

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Imaging Dynamics Company Ltd.

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