IDC Reports First Quarter 2012 Results

CALGARY, May 14, 2012 /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 end March 31, 2012.

First quarter 2012 Highlights

• Gross revenues were lower by 46 percent to $1.1 million compared to $2.0 million for the same quarter last year mainly due to decrease in revenues from Asia Pacific and Latin America regions;
• Gross margins remained at 30 percent for the quarter similar to the same quarter last year;
• Sales and marketing, general and administrative, production and manufacturing and research and development expenses were all down by 34 percent to $0.7 million from $1.1 million during the quarter compared to the same quarter last year;
• Net loss for the quarter ended March 31, 2012 was $0.3 million compared to $0.8 million for the same quarter last year which was one of the lowest quarterly losses since 2007;
• Reduced total expenses before finance costs for the quarter ended March 31, 2012 to $0.6 million compared to $1.3 million for the same quarter last year which was one of the lowest quarterly expenses since 2007;
• Purchase orders received during the first quarter and opening backlog totaled $1.6 million ($1.1 million shipped and recognized, $0.5 million booked to closing backlog);
• Trade and other receivables decreased by $0.5 million compared to December 31, 2011 on  collection of approximately $1.6 million during the quarter, Days Sales Outstanding (DSO) for the quarter was 32 days, compared to 21 days for the same quarter last year;
• Reduced inventory by $0.3 million compared to December 31, 2011;
• Trade and other payables at March 31, 2012 remained consistent to the balance at December 31, 2011.

Net loss for the first quarter of 2012 was $308,895 or $0.00 per basic and diluted loss per share compared to a net loss of $776,162 or $0.01 per basic and diluted loss per share for the same quarter last year.

Commenting on first quarter 2012 results, Swapan Kakumanu, IDC President and Chief Executive Officer stated, "Our first quarter financial results were below our expectations mainly due to the reduction in expected revenues from Asia Pacific and Latin America Regions. Our continued working capital limitations is impacting the growth of revenues and affecting our future cash flows, margins and net income. We continued to reduce overhead expenses and manage our tight working capital. IDC continues to look at several strategic options. We also exited the quarter with $0.5 million of backlog into the second quarter of 2012.  The Asia Pacific region is expected to improve during 2012 and we are taking all necessary initiatives to regain our market share in the North American market. The immediate focus is to ensure we have sufficient working capital to support ongoing overheads and business growth, and working with TSX on meeting the minimum listing review that is currently in progress."

"Our process of evaluating and identifying new strategic options to sustain and grow the business is advancing. We are working diligently to resolve our near term growth constraints", commented Shameze Rampertab, Chairman of the Board.

Imaging Dynamics Company Ltd.
Consolidated Statements of Financial Position
			March 31		December 31
			2012		2011
			(Unaudited)		(Audited)
Assets
Current Assets
	Cash and cash equivalents	$	304,178	$	134,629
	Trade and other receivables		112,54		631,020
	Inventory		2,030,393		2,293,494
	Prepaid expenses and other		134,801		91,601
			2,581,913		3,150,744
Property, plant and equipment			284,832		304,627
Intangible assets			300,178		318,876
		$	3,166,923	$	3,774,247
Liabilities
Current Liabilities
	Loan	$	1,000,000	$	1,000,000
	Trade and other payables		3,120,432		3,156,550
	Customer deposits		306,578		459,672
	Warranty provision		498,250		614,050
			4,925,260		5,230,272
Shareholders' Deficiency
Share capital			72,145,740		72,145,740
Share-based payments reserve			6,223,378		6,216,795
Contributed surplus			4,301,342		4,053,035
Warrants reserve			328,752		577,059
Deficit			(84,757,549)		(84,448,654)
			(1,758,337)		(1,456,025)
		$	3,166,923	$	3,774,247

Imaging Dynamics Company Ltd.
Consolidated Statements of Operations and Comprehensive Loss
For the three months ended March 31 (Unaudited)			2012		2011
Revenues		$	1,076,971	$	1,983,414
Cost of sales			751,351		1,383,494
Gross profit			325,620		599,920
Expenses
	Sales and marketing		217,730		331,608
	General and administrative		295,245		375,720
	Production and manufacturing		132,533		181,817
	Research and development		51,438		171,233
	Foreign exchange (gain) loss		(41,483)		24,389
	Warranty (recovery) expense		(95,597)		5,500
	Share-based payments		6,583		131,289
	Amortization of property, plant and equipment		19,795		26,154
	Amortization of intangible assets		18,698		23,162
			604,942		1,270,872
Loss before finance costs			(279,322)		(670,952)
Finance costs
	Interest expense		(29,589)		(29,589)
	Finance expense		-		(75,833)
	Interest and other income		16		212
Net loss and comprehensive loss		$	(308,895)	$	(776,162)
Net loss per share
	Basic and diluted	$	(0.00)	$	(0.01)

Imaging Dynamics Company Ltd.
Consolidated Statements of Changes in Shareholders' Deficiency
(Unaudited)		Share capital		Share-based payments reserve		Contributed surplus		Warrants reserve		Deficit		Total  equity
Balance, December 31, 2011	$	72,145,740	$	6,216,795	$	4,053,035	$	577,059	$	(84,448,654)	$	(1,456,025)
Share-based compensation		-		6,583		-		-		-		6,583
Expired warrants		-		-		248,307		(248,307)		-		-
Loss for the period		-		-		-		-		(308,895)		(308,895)
Balance, March 31, 2012	$	72,145,740	$	6,223,378	$	4,301,342	$	328,752	$	(84,757,549)	$	(1,758,337)
Balance, January 1, 2011	$	71,527,873	$	6,020,671	$	4,053,035	$	328,752	$	(82,534,955)	$	(604,624)
Issued for cash - private placement		880,000		-		-		-		-		880,000
Share issue costs		(13,826)		-		-		-		-		(13,826)
Share-based compensation		-		131,289		-		-		-		131,289
Warrants		(248,307)		-		-		248,307		-		-
Loss for the period		-		-		-		-		(776,162)		(776,162)
Balance, March 31, 2011	$	72,145,740	$	6,151,960	$	4,053,035	$	577,059	$	(83,311,117)	$	(383,323)

Imaging Dynamics Company Ltd.
Consolidated Statements of Cash Flows
For the three months ended March 31 (Unaudited)					2012		2011
Cash provided by (used in)
Operating activities
	Net loss			$	(308,895)	$	(776,162)
		Items not affecting cash
			Finance expense		-		75,833
			Amortization of property, plant and equipment		19,795		26,154
			Amortization of intangible assets		18,698		23,162
			Share-based payments		6,583		131,289
			Warranty		(115,800)		(5,637)
					(379,619)		(525,361)
		Change in non-cash working capital			549,168		2,234
					169,549		(523,127)
Financing activities
		Issuance of shares, net of issuance costs			-		866,174
					-		866,174
Net increase in cash and cash equivalents					169,549		343,047
Cash and cash equivalents, beginning of period					134,629		18,373
Cash and cash equivalents, end of period				$	304,178	$	361,420

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 and the new innovaXion Flat Panel 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, and cassettes.

Throughout its history, IDC has been recognized by multiple industry organizations and research analysts such as: Frost & Sullivan, Deloitte Technology and PROFIT; for its 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.

 

 

Contacts: 

Mr. Swapan Kakumanu
President & Chief Executive Officer
1.403.251.9939
[email protected]m