IDC reports first quarter 2010 results
CALGARY, May 14 /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 first quarter ended March 31, 2010.
First Quarter 2010 Highlights
- Sales and marketing, general and administrative, production and
manufacturing and research and development expenses were all down by
15.7 percent to $1,599,529 from $1,898,435 during the quarter
compared to the same quarter last year;
- Purchase orders received during the first quarter and opening backlog
totaled $1.3 million ($0.9 million shipped and recognized,
$0.4 million booked to closing backlog);
- Reduced receivables by $0.6 million compared to December 31, 2009 on
the collection of $1.5 million during the quarter; Days Sales
Outstanding (DSO) for the quarter was 88 days, one of the lowest in
the last sixteen quarters;
- Reduced inventory by $0.5 million compared to December 31, 2009;
- Reduced payables and accruals by $0.2 million compared to December 31
2009;
- Reduced total expenses by 16.3 percent to $1.8 million from
$2.2 million during the quarter compared to the same quarter last
year;
- Gross revenues were lower by 64.5 percent compared to the same
quarter last year; which was largely due to the decline in revenues
from Asia Pacific, where the orders have been pushed into second and
third quarters of 2010 and slower purchasing decisions in other
regions; and
- Gross margins were 27.7 percent for the quarter compared to
25.9 percent for the same quarter last year.
Net loss was $1,565,308 or $0.02 of basic and diluted loss per share for the quarter ended March 31, 2010 compared to a loss of $1,513,593 or $0.02 of basic and diluted loss per share for the preceding comparative quarter.
Commenting on first quarter 2010 results, Tom Boon, IDC President and Chief Executive Officer stated, "It continues to be a challenging economic environment in the global medical digital imaging market segment in which the Company competes. In the past quarter there were moderate signs for improvement in the United States. Although sales in the Asia Pacific region were below expectation, I expect that this region will be on or above plan throughout the remainder of the year."
Boon continued, "We have made moderate improvements on the balance sheet and continue to demonstrate the organization's ability to effectively control and reduce expenses. The management and the Board are proactively considering alternatives for improving the Company's working capital. IDC has a good business foundation, a competitive product offering, and respected distribution channels which will enable the company to improve sales as the market rebounds throughout the year."
IDC will be holding its annual general meeting ("AGM") on Tuesday May 18, 2010 at 3:30 p.m. MDT and invites all shareholders to attend. There is no scheduled investor call to review the 2010 first quarter results.
Imaging Dynamics Company Ltd.
Consolidated Balance Sheets
As at March 31 December 31
2010 2009
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Assets (Unaudited) (Audited)
Current Assets
Cash and cash equivalents $ 307,919 $ 310,957
Receivables 611,461 1,187,101
Inventory 4,334,136 4,830,116
Prepaids and deposits 336,911 447,704
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5,590,427 6,775,878
Property, plant and equipment 489,535 524,154
Intangible assets 482,393 511,603
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$ 6,562,355 $ 7,811,635
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Liabilities and Shareholders' Equity
Current Liabilities
Loan $ 1,000,000 $ 500,000
Payables and accruals 3,277,886 3,516,738
Customer deposits 365,862 438,876
Warranty liability 1,409,800 1,457,661
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6,053,548 5,913,275
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Shareholders' Equity
Share capital 70,246,559 70,246,559
Contributed surplus 5,963,522 5,930,955
Warrants 4,381,787 4,238,599
Deficit (80,083,061) (78,517,753)
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508,807 1,898,360
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$ 6,562,355 $ 7,811,635
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Imaging Dynamics Company Ltd.
Consolidated Statements of Operations, Comprehensive Loss and Deficit
For the three months ended March 31 (Unaudited) 2010 2009
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Revenues, net $ 933,818 $ 2,633,554
Cost of goods sold 675,243 1,952,548
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Gross profit 258,575 681,006
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Expenses
Sales and marketing 398,805 590,072
General and administrative 763,489 730,737
Production and manufacturing 210,794 236,306
Research and development 226,441 341,320
Foreign exchange (gain) loss (24,958) 9,286
Warranty 13,100 124,200
Stock-based compensation 32,567 81,098
Amortization 63,829 90,278
Interest 17,518 -
Financing costs 143,188 -
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1,844,773 2,203,297
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Loss before interest and other income (1,586,198) (1,522,291)
Interest and other income 20,890 8,698
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Net loss, being comprehensive loss $ (1,565,308) $ (1,513,593)
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Net loss per share
Basic and diluted $ (0.02) $ (0.02)
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Deficit, beginning of period $(78,517,753) $(72,547,251)
Net loss, being comprehensive loss (1,565,308) (1,513,593)
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Deficit, end of period $(80,083,061) $(74,060,844)
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Imaging Dynamics Company Ltd.
Consolidated Statement of Cash Flows
For the three months ended March 31 (Unaudited) 2010 2009
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Cash flows used in operating activities
Net loss $ (1,565,308) $ (1,513,593)
Items not affecting cash
Financing costs 143,188 -
Amortization 63,829 90,278
Stock-based compensation 32,567 81,098
Warranty (47,861) 100,945
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(1,373,585) (1,241,272)
Change in non-cash working capital 870,547 598,434
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(503,038) (642,838)
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Cash flows used in financing activities
Loan 500,000 -
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Net change in cash and cash equivalents (3,038) (642,838)
Cash and cash equivalents
Beginning of period 310,957 1,104,268
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End of period $ 307,919 $ 461,430
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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 solution for producing high quality diagnostic images, enhancing patient care and improving workflow.
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.
For further information: Mr. M. Thomas Boon, President & Chief Executive Officer, (403) 251-9939, [email protected]; Mr. Swapan Kakumanu, Executive Vice President & Chief Financial Officer, (403) 251-9939, [email protected]
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