IDC reports fourth quarter and year end 2009 results

CALGARY, March 29 /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 fourth quarter and year ended December 31, 2009.

2009 Fourth Quarter and Year End Highlights

    
    -   Sales and marketing, general and administrative, production and
        manufacturing and research and development expenses were all down
        year over year from 2008 to 2009 by 45.3 percent;

    -   Purchase orders received during the fourth quarter and opening
        backlog totaled $1.9 million ($1.5 million shipped and recognized,
        $0.4 million booked to closing backlog);

    -   Reduced receivables by $3.8 million compared to December 31, 2008 on
        the collection of $14.0 million and by $0.3 million compared to
        September 30, 2009 on the collection of $2.3 million during the
        fourth quarter;

    -   Reduced inventory by $1.4 million compared to December 31, 2008 and
        by $0.1 million compared to September 30, 2009;

    -   Reduced payables and accruals by $1.7 million compared to December
        31, 2008 and payables and accruals increased by $0.1 million compared
        to September 30, 2009;

    -   Reduced expenses by 51.7 percent or $2.1 million compared to the same
        quarter last year and by 46.5 percent or $7.6 million on a year to
        date basis compared to the same period last year;

    -   Gross revenues were lower by 52.2 percent compared to the same
        quarter last year and by 42.3 percent on a year to date basis
        compared to the same period 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 30.5 percent for the quarter and on a year to date
        basis were 27.4 percent which were also impacted due to lower margin
        sales during the year and the global pricing pressures on digital
        radiography products, the continued utilization of inventory that was
        purchased during previous quarters when the US-Canadian dollar
        exchange rate was much higher and inventory adjustments during the
        quarter to ensure proper valuation.
    

Net loss before interest and other items for the fourth quarter ended December 31, 2009 was $1,503,425 or $0.02 loss per share compared to $3,387,083 or $0.04 loss per share for the same period last year. Net loss before interest and other items for the year ended December 31, 2009 was $6,014,443 or $0.07 loss per share, compared to $11,794,930 or $0.15 loss per share for the same period last year.

Net loss for the fourth quarter ended December 31, 2009 was $1,488,854 or $0.02 loss per share compared to $7,318,506 or $0.08 loss per share for the same period last year. Net loss for the year ended December 31, 2009 was $5,970,502 or $0.07 loss per share, compared to $15,699,310 or $0.21 loss per share for the same period last year.

Commenting on fourth quarter and 2009 results, M. Thomas Boon, IDC President and Chief Executive Officer stated, "The continued protraction of the global diagnostic imaging industry and the market for digital radiography systems in particular, has adversely impacted the company's performance throughout the past year and may continue to do so in the near term. Our distribution channels are stronger and more capable than at any time in the history of the company. IDC distributors and OEM's are poised to act on every opportunity to solidify sales of IDC's systems and technology."

Boon continued, "With the initiatives undertaken in 2009 to monetize assets, reduce its operating expenses, broaden and revitalize channels, and to improve IDC's product and technology platform, the company is positioned to take advantage of the anticipated market rebound in 2010. With recently introduced support programs, targeted sales and marketing promotions, and pending opportunities in the U.S. and emerging markets, we continue to be optimistic about the upside potential for the company this year."

A conference call to review the results will take place on Tuesday, March 30, 2010 at 10:00 a.m. EDT (8:00 a.m. MDT).

To participate in the call please dial: 647-427-7450 or 888-231-8191 approximately 5 minutes prior to the conference call. You will be asked for the topic of the call and a conference code ID, please reference: IDC 2009 Annual Financials and 64774576.

    
    Imaging Dynamics Company Ltd.
    Consolidated Balance Sheets
    As at December 31                                     2009          2008
    -------------------------------------------------------------------------
                                                                   (Restated)
    Assets
    Current Assets
      Cash and cash equivalents                   $    310,957  $  1,104,268
      Receivables                                    1,187,101     4,954,233
      Inventory                                      4,830,116     6,254,484
      Prepaids and deposits                            447,704       450,676
                                                  ------------- -------------
                                                     6,775,878    12,763,661

    Property, plant and equipment                      524,154       708,474
    Intangible assets                                  511,603       648,163
                                                  ------------- -------------
                                                  $  7,811,635  $ 14,120,298
                                                  ------------- -------------
                                                  ------------- -------------


    Liabilities and Shareholders' Equity
    Current Liabilities
      Loan                                        $    500,000  $          -
      Payables and accruals                          3,516,738     5,248,257
      Customer deposits                                438,876       427,080
      Warranty                                       1,457,661     1,217,719
                                                  ------------- -------------
                                                     5,913,275     6,893,056
                                                  ------------- -------------
    Shareholders' Equity
      Share capital                                 70,246,559    70,246,559
      Contributed surplus                            5,930,955     5,474,899
      Warrants                                       4,238,599     4,053,035
      Deficit                                      (78,517,753)  (72,547,251)
                                                  ------------- -------------

                                                     1,898,360     7,227,242
                                                  ------------- -------------

                                                  $  7,811,635  $ 14,120,298
                                                  ------------- -------------
                                                  ------------- -------------

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


    Imaging Dynamics Company Ltd.
    Consolidated Statements of Operations, Comprehensive Loss
    and Deficit
    For the year ended December 31                        2009          2008
    -------------------------------------------------------------------------
                                                                   (Restated)

    Revenues, net                                 $  9,743,343  $ 16,876,980

    Cost of goods sold                              (7,073,263)  (12,431,854)
                                                  ------------- -------------

    Gross profit                                     2,670,080     4,445,126
                                                  ------------- -------------
                                                  ------------- -------------


    Expenses
      Sales and marketing                            2,217,001     4,949,480
      General and administrative                     2,698,287     3,948,699
      Production and manufacturing                     894,011     1,741,511
      Research and development                       1,016,815     1,842,873
      Foreign exchange loss (gain)                     319,208      (529,532)
      Warranty                                         391,700       928,600
      Stock-based compensation                         456,056       731,231
      Bad debts                                        136,358     1,121,179
      Restructuring costs                                    -       467,607
      Amortization of property, plant and equipment    184,320       565,023
      Amortization of intangible assets                136,560       169,687
      Interest                                           4,669       303,698
      Financing costs                                  229,538             -
                                                  ------------- -------------
                                                     8,684,523    16,240,056
                                                  ------------- -------------

    Loss before interest and other items            (6,014,443)  (11,794,930)

    Inventory write-down                                     -    (3,421,218)
    Asset write-down                                         -      (513,060)
    Interest and other income                           43,941        29,898
                                                  ------------- -------------

    Net loss, being comprehensive loss            $ (5,970,502) $(15,699,310)
                                                  ------------- -------------
                                                  ------------- -------------

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

    Net loss per share
      Basic and diluted                           $      (0.07) $      (0.21)
                                                  ------------- -------------

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

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

    Net loss, being comprehensive loss              (5,970,502)  (15,699,310)
                                                  ------------- -------------

    Deficit, end of year                          $(78,517,753) $(72,547,251)
                                                  ------------- -------------
                                                  ------------- -------------

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



    Imaging Dynamics Company Ltd.
    Consolidated Statement of Cash Flows
    For the year ended December 31                        2009          2008
    -------------------------------------------------------------------------

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

    Cash flows from operating activities
      Net loss, being comprehensive loss          $ (5,970,502) $(15,699,310)
        Items not affecting cash
          Financing costs                              185,564             -
          Amortization                                 320,880       734,710
          Asset write-down                                   -       310,101
          Stock-based compensation                     456,056       731,231
          Warranty                                     239,942       119,432
                                                  ------------- -------------
                                                    (4,768,060)  (13,803,836)

      Change in non-cash working capital             3,474,749     6,667,178
                                                  ------------- -------------
                                                    (1,293,311)   (7,136,658)
                                                  ------------- -------------
    Cash flows from financing activities
          Proceeds from share issuances, net                 -     8,316,220
          Short-term borrowing, net                          -    (1,260,244)
          Loan                                         500,000             -
                                                  ------------- -------------
                                                       500,000     7,055,976
                                                  ------------- -------------
    Cash flows used in investing activities
          Intangible asset additions                         -             -
          Property, plant and equipment additions            -      (275,604)
                                                  ------------- -------------
                                                             -      (275,604)
                                                  ------------- -------------

    Net change in cash and cash equivalents           (793,311)     (356,286)

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

      End of year                                 $    310,957  $  1,104,268
                                                  ------------- -------------
                                                  ------------- -------------

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

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 alternative to flat panel (TFT) technology, computed radiography (CR) systems.

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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