IMRIS reports significant growth in sales and order backlog in 2007



    Commercialization and global expansion strategies progressing well

    WINNIPEG, March 10 /CNW/ - IMRIS Inc. (TSX: IM) ("IMRIS" or the
"Company") today reported its financial results for the year and fourth
quarter ended December 31, 2007.

    
    Annual Results Summary:

    -   Substantial sales growth year-over-year due to increase in IMRISneuro
        installations
    -   Order backlog rose 62% year-over-year to $31.7 million
    -   Gross profit percentage decreased year-over-year due to establishment
        of demonstration sites as part of commercialization strategy
    -   Net loss increased year-over-year primarily due to increased staff
        levels as part of commercialization strategy
    

    "Our ability to execute against our business strategies has resulted in
strong growth year-over-year," said David Graves, Chairman, President and
Chief Executive Officer. "Sales increased from $4.3 million in 2006 to
$17.4 million in 2007, and our backlog of signed orders increased to almost
$32 million at the end of the year, reflecting the market's growing acceptance
of our product."
    Mr. Graves added, "We also received our first two orders from
international customers in the year and opened sales offices in India, China
and Europe to support our global expansion strategy. We expect that our order
backlog will continue to grow as we expand our addressable markets and secure
more agreements with leading hospitals around the world. Another highlight of
the year was the successful completion of our initial public offering in
November. The proceeds provide us with the necessary working capital to
further the commercialization of our IMRISneuro product and the development of
additional applications for our core technology, which we believe will open
new markets for the Company."

    
    Selected Financial Highlights
    (in CDN dollars)
    (unaudited)
    -------------------------------------------------------------------------
                  Fourth Quarter Ended                     Year Ended
                           December 31     %              December 31     %
                      2007        2006  Change        2007        2006 Change
                -------------------------------------------------------------

    Sales        3,424,391   3,565,980    (4%)  17,445,058   4,304,138  305%

    Gross
     Profit        467,000   1,480,806   (68%)   2,264,620   1,630,196   39%
    Gross
     Profit
     Percentage      13.6%       41.5%               13.0%       37.9%

    Operating
     Expenses    4,888,156   3,250,873    50%   16,973,130   9,381,394   81%

    Net Income
     (Loss)     (4,069,166) (1,767,349) (130%) (14,570,193) (7,955,896) (83%)

    Net Income
     (Loss) per
     basic and
     fully
     diluted
     share           (0.16)      (0.12)              (0.75)      (0.64)
    -------------------------------------------------------------------------
    

    Annual and Fourth Quarter 2007 Results

    Sales for the fourth quarter of 2007 were $3.4 million, bringing our
sales for the year to $17.4 million, compared to $4.3 million in the prior
year. This increase resulted from four systems being installed during 2007
versus one system installed in 2006.
    Gross profit was $0.5 million for the fourth quarter and $2.3 million for
the year, an increase of $0.6 million over 2006 year as a result of the higher
number of systems installed.
    As a percentage of sales, gross profit for the year declined from 38% in
2006 to 13% in the 2007 year. As previously reported, the decrease in gross
profit percentage was due primarily to discounted prices provided to two
strategic customers who have agreed to act as demonstration and visitation
sites, as well as a $1.0 million non-product related cost to provide room
finishes to one of these sites. These installations provide IMRIS with highly
credible reference sites for showcasing the IMRISneuro product to prospective
customers in the future.
    Operating expenses were $4.9 million for the fourth quarter and were
$17.0 million for the year, representing increases of $1.6 million and
$7.6 million respectively compared to the same periods last year. The
increases were reflected across all major functional areas of the Company,
including administration, customer support and operations, research and
development and sales and marketing.
    A substantial amount of the increases in these departmental expenses was
attributable to increased staff levels as the Company continues to build
organizational capacity across all functional areas.
    The net loss was $14.6 million for the year and $4.1 million for the
fourth quarter, representing increased losses of $6.6 million and $2.3 million
respectively compared to the same periods last year. On a basic and diluted
share basis, the net loss was $0.75 for the year and $0.16 for the fourth
quarter, compared to net losses of $0.64 and $0.12 per basic and diluted share
respectively for the same periods last year. The increases were principally
due to the higher operating expense levels to facilitate the Company's
increased commercialization efforts.

    Outlook

    Order Backlog

    During the fourth quarter of 2007, we received orders for an additional
$6.8 million, increasing our order backlog to $31.7 million as at December 31,
2007, an increase of 62% over the $19.6 million order backlog as at December
31, 2006. Subsequent to year-end, we received an additional purchase order
bringing the order backlog to $37.4 million as at the date hereof. This
backlog includes approximately $1.4 million of unrecognized revenues
associated with two systems that were near completion at the end of 2007, and
orders for eight additional systems.
    "Our customers and their patients continue to provide us with positive
feedback on the difference that IMRISneuro is making in the quality of their
lives," said Mr. Graves. "IMRIS' outlook is stronger than ever as we continue
to build on our position as a market leader in surgical imaging systems. Not
only has our order backlog continued to grow, but so has the number of
prospective customers that we are engaged with."
    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
10 a.m. ET (9 a.m. CT) on Monday, March 10, 2008. Following management's
presentation, there will be a question and answer session for analysts and
institutional investors. To participate in the teleconference, please call
416-644-3415 or 1-800-732-9307. To access the live audio webcast, please visit
IMRIS' website at www.imris.com. A taped rebroadcast will be available to
listeners following the call until midnight (ET) on Monday, March 17, 2008. To
access the rebroadcast, please call 416-640-1917 or 1-877-289-8525 and enter
passcode 21264180 followed by the number sign. The webcast will also be
archived on IMRIS' website.

    About IMRIS

    IMRIS (TSX: IM) is a global leader in providing advanced surgical imaging
solutions designed to measurably improve patient outcomes. The company's
flagship product, IMRISneuro, is a fully integrated operating room that
combines the unique, moveable MR imaging scanner with the IMRIS surgical
information management system. The wide range of benefits, including real-time
high resolution MR images, improved patient safety, enhanced surgical
efficiency and increased financial viability for hospitals, results in a
breakthrough imaging product unparalleled in today's marketplace. The unique
and innovative IMRISneuro has been validated by leading neurosurgeons around
the world for use in world-class neuroscience centers. See 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 "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.





For further information:

For further information: Ron Sabourin, Executive Vice President, Finance
and Chief Financial Officer, IMRIS Inc., Tel: (204) 480-7090, Email:
rsabourin@imris.com; Susan McLeod, Manager, Marketing Communications, IMRIS
Inc., Tel: (204) 480-7094, Email: smcleod@imris.com

Organization Profile

IMRIS Inc.

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