IDC Reports 2006 Results

    CALGARY, March 30 /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 fourth quarter
and the full year ended December 31, 2006. For the 2006 year, IDC reported a
loss of $0.14 per share before one time write downs, for a full-year loss of
$0.25 per share after write downs on revenues of $39,030,402. For the fourth
quarter, the Company reported a loss of $0.07 per share before one-time write
downs, on revenues of $12,533, 867 and a loss of $0.19 per share after write
    Commenting on the results of 2006, Darryl Stein, President & CEO of IDC
said, "In 2006, the Company focused its efforts on top line sales growth,
market share capture and channel development. Significant investments were
made in new products, new geographies and new markets. These investments added
over 50 new channel partners globally and growth through new products into the
veterinary and chiropractic markets. IDC has invested into building a global
distribution network, and a broad array of products to meet the growing demand
for digital technology.
    The Company has experienced exceptional growth over the last two years -
revenues growing by over 550% in that period - with a strategy that has taken
more time, money and resources than was anticipated, negatively affecting the
Company's financial performance with respect to expenses and write downs.
    The introduction of new products to displace earlier models equated to a
higher rate of inventory obsolescence than in the past, and an increased
learning curve for the Company's technical personnel and integration efforts.
    The focus in 2007 is to reap the benefits of investments made in 2006.
The Company's operations and infrastructure are being revamped to more
effectively support the sales engine we have created. We started restructuring
the operations of the Company in late Q3 of 2006. New management and staff
were hired; new processes and new tools are being implemented, including the
implementation of a new Enterprise Resource Planning (ERP) system. In January
2007 the financial modules were implemented, and the testing and validation of
the manufacturing, inventory, purchase order and sales order modules has been
completed and will go live during April 2007. This provides full financial and
operational connectivity with a direct impact on the efficiencies and
profitability of the organization.
    The internal restructuring and implementation efforts have been arduous
but essential to the long-term health of the business. We made a deliberate
decision to give the Company time to complete implementing all of the
restructuring efforts and as such revenues booked for Q1 will be soft, but for
all the right reasons. I am confident that within 60 days IDC will not only be
positioned, but capable of delivering on the significant opportunities ahead
of us."

    Imaging Dynamics Company Ltd.
    Consolidated Balance Sheets
    As at December 31                                    2006           2005

    Current Assets
      Cash and cash equivalents                  $  5,901,192   $  5,667,373
      Receivables                                  21,222,060     16,053,945
      Inventory                                    16,556,720      6,910,871
      Pre-paids and deposits                          930,053      3,285,707
                                                -------------- --------------
                                                   44,610,025     31,917,896
                                                -------------- --------------
                                                -------------- --------------

    Property, plant and equipment                   1,710,938      1,317,921
    Intangible assets                                 278,511        293,745
    Deferred development costs                        782,917      1,748,844
                                                -------------- --------------
                                                 $ 47,382,391   $ 35,278,406
                                                -------------- --------------
                                                -------------- --------------
    Liabilities and Shareholders' Equity
    Current Liabilities
      Short-term borrowing                       $  4,297,033   $  2,906,090
      Payables and accruals                        15,180,338      6,669,160
      Customer deposits                               580,890        635,316
      Current portion of capital lease
       obligations                                      9,966          9,988
      Current portion of long-term debt                56,000         56,000
      Warranty liability                              817,873        465,551
                                                -------------- --------------
                                                   20,942,100     10,742,105

    Capital lease obligations                          19,084         28,637
    Long-term debt                                     14,013         39,013
    Deferred lease inducement                          49,600         74,400
                                                -------------- --------------
                                                   21,024,797     10,884,155
                                                -------------- --------------
    Shareholders' Equity
      Share capital                                65,466,454     50,898,031
      Contributed surplus                           3,473,709      2,071,943
      Deficit                                     (42,582,569)   (28,575,723)
                                                -------------- --------------

                                                   26,357,594     24,394,251
                                                -------------- --------------

                                                 $ 47,382,391   $ 35,278,406
                                                -------------- --------------
                                                -------------- --------------

    Imaging Dynamics Company Ltd.
    Consolidated Statements of Operations and Deficit
    For the year ended December 31                       2006           2005

    Revenues, net                                $ 39,030,402   $ 28,878,669

    Cost of goods sold                            (24,983,024)   (16,124,069)
                                                -------------- --------------

    Gross Profit                                   14,047,378     12,754,573
                                                -------------- --------------
                                                -------------- --------------

      Sales and marketing                           9,192,053      4,389,562
      General and administrative                    3,870,636      2,296,236
      Production and manufacturing                  1,847,623      1,521,724
      Research and development                      2,360,160      1,541,369
      Foreign exchange (gain) loss                   (161,825)         2,854
      Warranty                                        890,433        654,511
      Stock-based compensation                      1,593,263        588,632
      Bad debts                                     1,094,339              -
      Amortization of property, plant
       and equipment                                  398,722        289,718
      Amortization of deferred development costs      484,769        172,522
      Amortization of patents                          35,837         28,842
      Interest                                        329,725        130,895
                                                -------------- --------------

                                                   21,935,735     11,616,866
                                                -------------- --------------
    (Loss) income before interest and
     other items                                   (7,888,357)     1,137,707

    Inventory write-down                           (4,776,213)             -
    Deferred development costs write down          (1,663,507)             -
    Interest and other income                         321,231        210,777
                                                -------------- --------------

    Net (loss) income                            $(14,006,846)  $  1,348,484
                                                -------------- --------------
                                                -------------- --------------


    Net (loss) income per share
      Basic                                      $      (0.25)  $       0.03
                                                -------------- --------------
                                                -------------- --------------
      Diluted                                    $      (0.25)  $       0.02
                                                -------------- --------------
                                                -------------- --------------


    About IDC:

    IDC is an emerging world leader in providing affordable Digital
Radiography (DR) systems. IDC Xplorer and Xaminer Direct Capture technologies
replaces conventional film based X-ray and provides a cost effective
alternative to inefficient cassette based Computed Radiography (CR) systems.
The IDC product line provides the industry's highest resolution radiographic
images in the digital format needed for modern Electronic Medical Records
networks, without the use of film, chemistry, cassettes or expensive imaging
plates. IDC is based in Calgary, Alberta, Canada and trades on the TSX under
the symbol "IDL" and has approximately 58.5 million shares outstanding.
    For more information, visit

    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: the early stage of commercialization of IDC's products; the infancy
of the digital radiography industry in general; 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: Darryl Stein, President & CEO, Swapan Kakumanu,
 Chief Financial Officer, 1-866-975-6737,

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Imaging Dynamics Company Ltd.

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