IMRIS reports record order backlog and gross profit performance



    WINNIPEG, May 4 /CNW/ - IMRIS Inc. (TSX: IM) ("IMRIS" or the "Company")
today reported strong first quarter 2009 financial results highlighted by
continued growth in sales and a significant increase in gross profit.

    
    Q1 2009 Highlights:

    -   Order backlog increased to a record $84.1 million - 145% higher than
        a year earlier
    -   Gross margin increased to 39% compared with 9.7% in Q1 2008
    -   Sales increased to $4.8 million, 16% increase over Q1 2008
    -   Global expansion continued with sale of a second system in China, to
        Fudan University Huashan Hospital
    -   Subsequent to the quarter end, regulatory approval of IMRIS's
        integrated MR-Angio system received in Europe
    

    "We had an excellent first quarter, marked by strong customer demand for
IMRISneuro, significant improvements in gross profit, and solid progress
advancing our integrated MR-Angio system toward commercial launch," said David
Graves, Chairman, President and Chief Executive Officer. "The results through
the first quarter are tracking well in relation to our expectations and
reflect our success in advancing our business in support of creating
shareholder value."

    
    Financial Highlights:

    -------------------------------------------------------------------------
    (in Canadian dollars,         Three months ended March 31
     unaudited)                   ----------------------------
                                          2009           2008         Change
    -------------------------------------------------------------------------
    Sales                            4,804,279      4,158,136            16%
    Gross profit                     1,847,811        402,023           360%
      Gross profit as % of sales         38.5%           9.7%              -
    Operating expenses               5,819,924      5,130,332            13%
    Net loss                        (3,631,047)    (4,404,512)          (18%)
    Basic and diluted loss per
     share                               (0.13)         (0.16)          (19%)
    Cash, cash equivalents &
     accounts receivable            19,796,508   19,805,713(1)             -
    Total assets                    38,874,301   39,848,770(1)           (2%)
    -------------------------------------------------------------------------

    First Quarter 2009 Results

    Sales
    -----

    Sales in the first quarter were $4.8 million, representing an increase of
16% compared with the first quarter of 2008. The year over year increase was
directly attributable to an increase in IMRISneuro system installations. Sales
are primarily comprised of new system deliveries, as well as extended
maintenance contracts. These maintenance contracts contributed $0.3 million in
the first quarter of 2009, compared with $0.2 million during the same period
in 2008.

    Gross Profit
    ------------

    Gross profit was $1.8 million in the first quarter of 2009, compared with
$0.4 million in the first quarter of 2008. These results include significant
margin expansion with gross profit as a percentage of sales increasing to
38.5% in Q1 2009 compared from 9.7% in the first quarter of 2008. The strong
improvement in 2009 reflects a shift from market penetration-based pricing to
value-based pricing as IMRISneuro has become established as the global leader
for intraoperative MR imaging. Lower direct costs associated with the
components of the IMRISneuro system also contributed to the improved gross
profit performance in 2009.

    Operating Expenses
    ------------------

    Operating expenses increased to $5.8 million in the first quarter of 2009
or by $0.7 million from a year earlier. The overall increase is largely due to
growth in the business. Costs associated with sales and marketing, customer
support and operations, and research and development all increased from Q1
2008. Amortization also increased to $0.5 million in the first quarter of 2009
from $0.3 million a year earlier, due to additions to the Company's research
and development test facilities.

    Net Loss
    --------

    The Company's first quarter 2009 net loss was $3.6 million compared with
$4.4 million a year earlier. The improvement in the net loss is due primarily
to the higher gross profit margins offset in part by additional operating
expenses to fund growth in the business.

    Liquidity and Capital Resources
    -------------------------------

    Cash and cash equivalents at March 31, 2009 were $12.7 million. In
addition the Company had accounts receivable of $7.1 million, which are
expected to be collected within the next 30 to 60 days. The value of these
assets taken together is $19.8 million compared with $19.8 million at December
31, 2008. The Company believes that these assets, together with ongoing
expected cash flow from operations including customer deposits on future
orders should provide sufficient liquidity to meet the anticipated needs of
ongoing operations and existing projects including funding of current research
and development programs and budgeted capital asset expenditures.

    Outlook(2)

    Order Backlog
    -------------

    In the first quarter of 2009, IMRIS received purchase orders for three new
systems which contributed to the Company's order backlog increasing to a
record $84.1 million at March 31, 2009. Included in the current order backlog
is the Fudan University Huashan Hospital in Shanghai, China. This hospital
will be the first in Asia to take delivery of the new 3 Tesla version of
IMRISneuro and the sale marks IMRIS's second project in China.
    At $84.1 million, the Company's order backlog has increased from $67.8
million at December 31, 2008 and $31.7 million at the end of 2007. IMRIS has
achieved continuous backlog growth in the last eleven consecutive quarters,
reflecting the growing recognition of IMRISneuro as the global surgical
imaging solution of choice.

    IMRIScardio and IMRISNV
    -----------------------
    

    During the quarter, IMRIS continued to advance its integrated MR-Angio
system in support of two new applications. These applications include
IMRIScardio which is expected to open up treatment opportunities for
cardiovascular diseases and IMRISNV which is an integrated solution for the
treatment of stroke and other neurovascular diseases. Regulatory approval for
Europe has been received and FDA approval is expected by July 2009.
    The Company's full financial statements as well as management's
discussion and analysis will be available at www.sedar.com and www.imris.com.

    Conference Call

    Management will host a conference call to discuss the results at 4:00
p.m. ET on Monday, May 4, 2009. Following management's presentation, there
will be a question-and-answer session for analysts and institutional
investors. To participate in the teleconference, please call 416-644-3423 or
1-800-731-5774. To access the live audio webcast, please visit IMRIS's website
at www.imris.com. A taped rebroadcast will be available to listeners following
the call until midnight (ET) on May 11, 2009. To access the rebroadcast,
please call 416-640-1917 or 1-877-289-8525 and enter passcode 21303670
followed by the number sign. The webcast will also be archived on IMRIS's
website.

    About IMRIS

    IMRIS (TSX: IM) is a global leader in providing fully integrated,
advanced surgical imaging solutions. The company's flagship product,
IMRISneuro, utilizes patented technology that allows a high field MRI scanner
to be moved in to the operating room on demand, providing imaging during the
surgical procedure without compromising patient safety. This unique and
innovative system has been validated by leading neurosurgeons for use in
world-class neuroscience centers.
    For more information, visit www.imris.com.

    Forward-Looking Statements

    This press release may contain or refer to forward-looking information
based on current expectations.  In some cases, forward-looking statements can
be identified by terminology such as "anticipate", "may", "expect", "believe",
"prospective", "continue" or the negative of these terms or other similar
expressions concerning matters that are not historical facts.  These
statements should not be understood as guarantees of future performance or
results.  Such statements involve known and unknown risks, uncertainties and
other factors that may cause actual results, performance or achievements to be
materially different from those implied by such statements.  Although such
statements are based on management's reasonable assumptions, there can be no
assurance that actual results will be consistent with such statements. 
Forward-looking statements are subject to significant risks and uncertainties,
and other factors that could cause actual results to differ materially from
expected results.  These forward-looking statements are made as of the date
hereof and we assume no responsibility to update or revise them to reflect new
events or circumstances.

    
    -------------------------
    (1) At December 31.

    (2) The order backlog is defined as the unrecognized portion of the
        revenues anticipated to be recorded from confirmed system orders,
        plus the next twelve months of revenues to be derived from executed
        service contracts.
    





For further information:

For further information: Ron Sabourin, Executive Vice President Finance
and Administration and Chief Financial Officer, IMRIS Inc., Tel: (204)
480-7090, Email: rsabourin@imris.com; Brad Woods, Investor Relations, IMRIS
Inc., Tel: (204) 480-7094, Email: bwoods@imris.com

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