IDC reports 2007 Q2 results



    CALGARY, Aug. 13 /CNW/ - Imaging Dynamics Company Ltd. (IDC or the
Company) (TSX: IDL) a global supplier in the digital radiography (DR)
equipment market, today reported financial results for the second quarter
ended June 30, 2007.

    2007 Q2 Financial Results

    Revenues for the three-month period ended June 30, 2007 were $9.3 million
compared to $8.9 million for the same quarter last year. This excludes
$0.8 million in deferred revenues and $2.5 million in orders not shipped at
June 30, 2007.
    Gross margins on sales were at 41.5% for the quarter and 41% for the six
months ended June 30, 2007. This compares to 33.6% and 35.2% for the same
periods the previous year.
    Gross profit for the three-month period ended June 30, 2007 was higher at
$3.8 million compared to $3.0 million for the same quarter last year. Gross
profit for the six month period ended June 30, 2007 was higher at $7.0 million
compared to $6.7 million for the same period last year.
    Net loss for the quarter before foreign exchange was $1.7 million or
$0.03 per share and net loss including foreign exchange was $2.6 million or
$0.04 per share compared to a loss of $1.3 million or $0.02 for the same
period last year. Net loss year-to-date before foreign exchange was
$3.6 million or $0.06 per share and net loss including foreign exchange was
$4.7 million or $0.08 per share compared to $1.4 million or $0.02 per share
for the same period last year.
    Commenting on the results, Swapan Kakumanu, IDC's CFO says, "We continue
to focus on strengthening the balance sheet and on the operations of the
company. We expect to see continued improvements on both initiatives for the
balance of the year."

    
    Financial Performance Summary

    1.  Positive cash flow from operating activities for the quarter of
        $1.9 million;
    2.  Increased cash and cash equivalents by $1.1 million from $3.0 million
        at March 31, 2007 to $4.1 million;
    3.  Reduced receivables by $3.0 million from $19.6 million at March 31,
        2007 to $16.6 million;
    4.  Reduced inventories by $2.4 million from $16.1 million at March 31,
        2007 to $13.7 million;
    5.  Reduced short-term borrowing by $1.0 million from $5.1 million at
        March 31, 2007 to $4.1 million;
    6.  Reduced payables and accruals by $2.4 million from $10.9 million at
        March 31, 2007 to $8.5 million;
    7.  Reduced day's sales outstanding (DSO) for Q2 2007 to 163 compared to
        230 for Q1 2007;
    8.  Collected $10.9 million of receivables during Q2 2007 compared to
        $9 million in Q1 2007
    9.  Increased revenues to $9.3 million in Q2 2007 from $7.8 million in Q1
        2007 and $8.9 million in Q2 2006;
    10. Increased deferred revenues to $0.8 million from $0.3 million at
        close of Q1 2007;
    11. Operating expense levels remained almost flat from the previous
        quarter in spite of increase in revenues by 19.2% compared to Q1
        2007;
    12. The Company incurred an unusual level of foreign exchange loss during
        Q2 2007 of $0.9 million or $0.02 per share. This was due in a large
        part to the decline in US dollar against the Canadian dollar and the
        revaluation of current assets and liabilities denominated in
        US dollars at June 30, 2007.
    

    Darryl Stein, President & CEO of IDC says, "Internal operations and
finance showed positive results in the quarter and demand for our products
continues to grow across all markets. We remain confident that the Company is
prepared, and well positioned, to meet growth targets and improved
profitability for 2007."
    The company received $12.6 million purchase orders in the quarter, which
included approximately $3 million orders that are carried over to the second
half of the year. Gross margins on revenues improved to 41.5% in the quarter
from 33.6% in the same period 2006.
    Total worldwide unit sales are up 21% from the same period in 2006 to
over 260 units on a year to date basis. A new generation of DR technology, the
X-Series, was successfully launched and represented over half of the units
shipped in the quarter. Unit sales showed a 42% increase from the same quarter
in 2006.

    
    Imaging Dynamics Company Ltd.
    Consolidated Balance Sheets
    (Unaudited)
    -------------------------------------------------------------------------
                                                       June 30   December 31
                                                          2007          2006
                                                  ------------- -------------
    Assets                                          (Unaudited)     (Audited)
    Current Assets
      Cash and cash equivalents                   $  4,104,582  $  5,901,192
      Receivables                                   16,594,539    21,222,060
      Inventory                                     13,736,646    16,556,720
      Prepaids and deposits                            743,941       930,053
                                                  ------------- -------------

                                                    35,179,708    44,610,025
    Property, plant and equipment                    1,703,426     1,710,938
    Intangible assets                                  259,174       278,511
    Deferred development costs                         391,459       782,917
                                                  ------------- -------------

                                                  $ 37,533,767  $ 47,382,391
                                                  ------------- -------------
                                                  ------------- -------------

    Liabilities and Shareholders' Equity
    Current Liabilities
      Short-term borrowing                        $  4,072,197  $  4,297,033
      Payables and accruals                          8,508,432    15,180,338
      Customer deposits                                822,635       580,890
      Current portion of capital lease obligations       9,966         9,966
      Current portion of long-term debt                 45,013        56,000
      Warranty liability                             1,142,448       817,873
                                                  ------------- -------------

                                                    14,600,691    20,942,100
    Capital lease obligations                           14,263        19,084
    Long-term debt                                           -        14,013
    Deferred lease inducement                           37,200        49,600
                                                  ------------- -------------

                                                    14,652,154    21,024,797
                                                  ------------- -------------

    Shareholders' Equity
      Share capital                                 65,908,192    65,466,454
      Contributed surplus                            4,259,749     3,473,709
      Deficit                                      (47,286,328)  (42,582,569)
                                                  ------------- -------------

                                                    22,881,613    26,357,594
                                                  ------------- -------------

                                                  $ 37,533,767  $ 47,382,391
                                                  ------------- -------------
                                                  ------------- -------------

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



    Imaging Dynamics Company Ltd.
    Consolidated Statements of Operations and Deficit
    (Unaudited)
    -------------------------------------------------------------------------
                              Three Months Ended            Six Months Ended
                      --------------------------- ---------------------------
                           June 30       June 30       June 30       June 30
                              2007          2006          2007          2006
                      ------------- ------------- ------------- -------------

    Revenues, net     $  9,274,939  $  8,924,481  $ 17,059,069  $ 19,152,556

    Cost of goods sold   5,430,197     5,926,389    10,059,784    12,419,214
                      ------------- ------------- ------------- -------------

    Gross profit         3,844,742     2,998,092     6,999,285     6,733,342
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------

    Expenses
      Sales and
       marketing         1,800,508     1,478,446     3,592,029     3,226,407
      General and
       administrative    1,404,284       957,502     2,594,129     1,784,517
      Production and
       manufacturing       360,113       402,566       792,632       750,719
      Research and
       development         563,346       527,111     1,139,213     1,059,125
      Foreign exchange
       loss                933,478       273,371     1,119,563        71,779
      Warranty             307,722       203,797       545,142       444,379
      Stock-based
       compensation        428,102       302,786       819,210       556,451
      Bad debts            226,360             -       226,360             -
      Amortization         337,088       166,589       682,479       326,450
      Interest             135,670        76,867       245,220       137,696
                      ------------- ------------- ------------- -------------
                         6,496,671     4,389,035    11,755,977     8,357,523
                      ------------- ------------- ------------- -------------

    Loss before
     interest and
     other income       (2,651,929)   (1,390,943)   (4,756,692)   (1,624,181)
    Interest and
     other income           24,567       106,165        52,933       176,280
                      ------------- ------------- ------------- -------------

    Net loss          $ (2,627,362) $ (1,284,778) $ (4,703,759) $ (1,447,901)
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------

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

    Net (loss)
     income per share
      Basic and
       diluted        $      (0.04) $      (0.02) $      (0.08) $      (0.02)
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------

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

    Deficit, beginning
     of period        $(44,658,966) $(28,738,846) $(42,582,569) $(28,575,723)

    Net loss            (2,627,362)   (1,284,778)   (4,703,759)   (1,447,901)
                      ------------- ------------- ------------- -------------

    Deficit, end of
     period           $(47,286,328) $(30,023,624) $(47,286,328) $(30,023,624)
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------

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



    Imaging Dynamics Company Ltd.
    Consolidated Statement of Cash Flows
    (Unaudited)
    -------------------------------------------------------------------------

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

                              Three Months Ended            Six Months Ended
                      --------------------------- ---------------------------
                           June 30       June 30       June 30       June 30
                              2007          2006          2007          2006
                      ------------- ------------- ------------- -------------
    Cash flows from
     operating activities
      Net loss        $ (2,627,362) $ (1,284,778) $ (4,703,759) $ (1,447,901)
        Items not
         affecting cash
          Amortization
           of deferred
           lease
           inducement       (6,200)       (6,200)      (12,400)      (12,400)
          Amortization     337,088       166,589       682,479       326,450
          Stock-based
           compensation    428,102       302,786       819,210       556,451
          Warranty         250,636        74,905       324,575       176,294
                      ------------- ------------- ------------- -------------

                        (1,617,736)     (746,698)   (2,889,895)     (401,106)
      Change in
       non-cash working
       capital           3,548,798    (2,323,960)    1,203,546    (9,271,840)
                      ------------- ------------- ------------- -------------

                         1,931,062    (3,070,658)   (1,686,349)   (9,672,946)
                      ------------- ------------- ------------- -------------

    Cash flows from
     financing
     activities
      Proceeds from
       share issuances,
       net                 361,168       137,667       408,568    14,216,813
      Repayment of
       capital lease
       obligation           (2,449)       (1,672)       (4,821)       (5,572)
      Short-term
       borrowing, net   (1,069,481)     (207,200)     (224,836)    1,558,887
      Repayment of
       long-term debt      (25,000)            -       (25,000)      (25,000)
                      ------------- ------------- ------------- -------------

                          (735,762)      (71,205)      153,911    15,745,128
                      ------------- ------------- ------------- -------------

    Cash flows from
     investing
     activities
      Deferred
       development
       costs additions           -      (406,460)            -      (868,210)
      Intangible asset
       addition                  -       (17,097)            -       (32,534)
      Property, plant
       and equipment
       additions           (87,511)     (233,037)     (264,172)     (313,176)
                      ------------- ------------- ------------- -------------

                           (87,511)     (656,594)     (264,172)   (1,213,920)
                      ------------- ------------- ------------- -------------

    Net change in cash
     and cash
     equivalents         1,107,789    (3,798,457)   (1,796,610)    4,858,262

    Cash and cash
     equivalents
      Beginning of
       period            2,996,793    14,324,092     5,901,192     5,667,373
                      ------------- ------------- ------------- -------------

      End of period   $  4,104,582  $ 10,525,635  $  4,104,582  $ 10,525,635
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------

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

    About IDC:

    Imaging Dynamics Company (IDC) is a medical technology company and an
innovative force in the fast-growing field of digital radiography (DR)
technology.
    IDC's X-Series of direct capture technology replaces conventional
film-based X-rays and provides a cost-effective alternative to cassette based
film or computed radiography (CR) systems.
    Each IDC DR solution provides high resolution radiographic images in the
digital format required for today's electronic medical record networks, all
without the use of film, environmentally harming chemicals, cassettes or
expensive imaging plates.
    IDC is based in Calgary, Alberta, Canada.

    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.





For further information:

For further information: Darryl Stein, President and CEO; Swapan
Kakamanu, Chief Financial Officer, 1-866-975-6737, info@imagingdynamics.com,
www.imagingdynamics.com

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Imaging Dynamics Company Ltd.

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