IDC reports third quarter 2012 results
CALGARY, Nov. 12, 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 the financial results for the third quarter ended September 30, 2012.
Third Quarter 2012 Highlights
- Successfully closed on a non-brokered private placement of $2.25 million during the quarter;
- Gross revenues were lower by 57 percent to $0.82 million compared to $1.92 million for the same quarter last year and were lower by 56 percent to $2.57 million compared to $5.91 million on a year to date basis, due to decrease in revenues from Emerging Markets due to working capital constraints;
- Gross margins were 30 percent for the quarter compared to 28 percent for the same quarter last year and 30 percent compared to 28 percent on a year to date basis, largely due to lower margin sales into the Asia Pacific region;
- Sales and marketing, general and administrative, production and manufacturing and research and development expenses were lower by 14 percent to $0.86 million from $1.00 million during the quarter compared to the same quarter last year and were reduced by 19 percent to $2.41 million from $3.00 million on a year to date basis compared to the same period last year;
- Net loss for the quarter ended September 30, 2012 was $1.25 million compared to a net loss of $0.45 million for the same quarter last year and the net loss was $1.32 million compared to $1.66 million on a year to date basis compared to the same period last year;
- Total expenses before finance costs for the quarter ended September 30, 2012 were $1.48 million compared to total expenses of $0.95 million for the same quarter last year and to $2.31 million compared to $3.09 million on a year to date basis compared to the same period last year;
- Purchase orders received during the third quarter and opening backlog totaled $1.1 million ($0.82 million shipped and recognized, $0.28 million booked to closing backlog);
- Trade and other receivables decreased by $0.48 million compared to December 31, 2011 on collection of approximately $3.10 million (including $0.58 million collect from an old trade receivable that was fully allowed for as bad debts during previous periods) during the first half of 2012, Days Sales Outstanding (DSO) for the quarter was 13 days compared to 18 days for the same quarter last year;
- Reduced inventory by $0.47 million compared to December 31, 2011;
- Trade and other payables decreased by $0.94 million compared to December 31, 2011.
Net loss for the third quarter of 2012 was $1,249,204 or $0.00 per basic and diluted loss per share compared to a net loss of $449,219 or $0.00 per basic and diluted loss per share for the same quarter last year. Year-to-date, net loss was $1,318,287 or $0.00 per basic and diluted loss per share compared to a net loss of $1,662,893 or $0.01 per basic and diluted loss per share for the same period last year.
"We are continuing to evaluate and identify new acquisition opportunities for the Company that will enable us to grow our operations specifically in the Asia Pacific region; in addition we also continue to work on potential tender contracts in this region, " commented T.T. Lee, IDC Chairman and Chief Executive Officer.
Lee continued, "The recent appointment of the new independent board and our strategic discussions with other signification stakeholders will allow us to kick start the business and focus on growth and profitability for the Company and I look forward to communicating more details over the coming months."
| Imaging Dynamics Company Ltd. | ||||||||
| Consolidated Statements of Financial Position | ||||||||
| September 30 | December 31 | |||||||
| 2012 | 2011 | |||||||
| (Unaudited) | (Audited) | |||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 1,082,220 | $ | 134,629 | ||||
| Trade and other receivables | 147,191 | 631,020 | ||||||
| Inventory | 1,820,111 | 2,293,494 | ||||||
| Prepaid expenses and other | 173,991 | 91,601 | ||||||
| 3,223,513 | 3,150,744 | |||||||
| Property, plant and equipment | 249,126 | 304,627 | ||||||
| Intangible assets | 265,475 | 318,876 | ||||||
| $ | 3,738,114 | $ | 3,774,247 | |||||
| Liabilities | ||||||||
| Current Liabilities | ||||||||
| Loan - short term portion | $ | - | $ | 1,000,000 | ||||
| Trade and other payables | 2,212,998 | 3,156,550 | ||||||
| Customer deposits | 113,842 | 459,672 | ||||||
| Warranty provision | 292,850 | 614,050 | ||||||
| 2,619,690 | 5,230,272 | |||||||
| Loan - long term portion | 1,000,000 | - | ||||||
| $ | 3,619,690 | $ | 3,774,247 | |||||
| Shareholders' Equity (Deficiency) | ||||||||
| Share capital | 74,389,826 | 72,145,740 | ||||||
| Share-based payments reserve | 6,865,445 | 6,216,795 | ||||||
| Contributed surplus | 4,630,094 | 4,053,035 | ||||||
| Warrants reserve | - | 577,059 | ||||||
| Deficit | (85,766,941) | (84,448,654) | ||||||
| 118,424 | (1,456,025) | |||||||
| $ | 3,738,114 | $ | 3,774,247 | |||||
| Imaging Dynamics Company Ltd. | |||||||||||||
| Consolidated Statements of Operations and Comprehensive Loss | |||||||||||||
| (Unaudited) | |||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||
| September 30 | September 30 | September 30 | September 30 | ||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||
| Revenues | $ | 819,060 | $ | 1,921,652 | $ | 2,573,865 | $ | 5,905,819 | |||||
| Cost of sales | 571,938 | 1,391,601 | 1,791,504 | 4,258,778 | |||||||||
| Gross profit | 247,122 | 530,051 | 782,361 | 1,647,041 | |||||||||
| Expenses | |||||||||||||
| Sales and marketing | 285,742 | 238,789 | 755,808 | 777,128 | |||||||||
| General and administrative | 404,978 | 508,556 | 1,121,389 | 1,308,592 | |||||||||
| Production and manufacturing | 126,692 | 169,416 | 378,906 | 484,253 | |||||||||
| Research and development | 39,345 | 82,105 | 155,337 | 429,662 | |||||||||
| Foreign exchange loss (gain) | 2,300 | 108,681 | (11,941) | 54,948 | |||||||||
| Warranty (recovery) expense | (48,900) | (228,400) | (267,309) | (305,300) | |||||||||
| Share-based payments | 636,895 | 26,402 | 648,650 | 199,521 | |||||||||
| Bad debts (recovery) expense | - | - | (580,151) | - | |||||||||
| Amortization | 34,160 | 43,508 | 108,902 | 139,129 | |||||||||
| 1,481,212 | 949,057 | 2,309,591 | 3,087,933 | ||||||||||
| Loss before finance costs | (1,234,090) | (419,006) | (1,527,230) | (1,440,892) | |||||||||
| Finance costs | |||||||||||||
| Interest recovery | - | - | 257,178 | - | |||||||||
| Interest (expense) | (15,124) | (30,246) | (48,329) | (90,453) | |||||||||
| Finance (expense) | - | - | - | (138,687) | |||||||||
| Interest and other income | 10 | 33 | 94 | 7,139 | |||||||||
| Net loss and comprehensive loss | $ | (1,249,204) | $ | (449,219) | $ | (1,318,287) | $ | (1,662,893) | |||||
| Net profit (loss) per share | |||||||||||||
| Basic and diluted | $ | (0.00) | $ | (0.00) | $ | (0.00) | $ | (0.01) | |||||
| Imaging Dynamics Company Ltd. | ||||||||||||||||||
| Consolidated Statements of Changes in Equity | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Share capital | Share-based payments reserve |
Contributed surplus |
Warrants reserve |
Deficit | Total equity | |||||||||||||
| Balance, January 1, 2012 | $ | 72,145,740 | $ | 6,216,795 | $ | 4,053,035 | $ | 577,059 | $ | (84,448,654) | $ | (1,456,025) | ||||||
| Issued for cash - private placement | 2,250,000 | - | - | - | - | 2,250,000 | ||||||||||||
| Share issue costs | (5,914) | - | - | - | - | (5,914) | ||||||||||||
| Share-based compensation | - | 648,650 | - | - | - | 648,650 | ||||||||||||
| Expired warrants | - | - | 577,059 | (577,059) | - | - | ||||||||||||
| Loss for the period | - | - | - | - | (1,318,287) | (1,318,287) | ||||||||||||
| Balance, September 30, 2012 | $ | 74,389,826 | $ | 6,865,445 | $ | 4,630,094 | $ | - | $ | (85,766,941) | $ | 118,424 | ||||||
| - | ||||||||||||||||||
| 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 | - | 199,521 | - | - | - | 199,521 | ||||||||||||
| Warrants | (248,307) | - | - | 248,307 | - | - | ||||||||||||
| Loss for the period | - | - | - | - | (1,662,893) | (1,662,893) | ||||||||||||
| Balance, September 30, 2011 | $ | 72,145,740 | $ | 6,220,192 | $ | 4,053,035 | $ | 577,059 | $ | (84,197,848) | $ | (1,201,822) | ||||||
| Imaging Dynamics Company Ltd. | ||||||||||
| Consolidated Statements of Cash Flows | ||||||||||
| For the nine months ended September 30 (Unaudited) | 2012 | 2011 | ||||||||
| Cash provided by (used in) | ||||||||||
| Operating activities | ||||||||||
| Net loss | $ | (1,318,287) | $ | (1,662,893) | ||||||
| Items not affecting cash | ||||||||||
| Finance expense | - | 138,687 | ||||||||
| Amortization | 108,902 | 139,129 | ||||||||
| Share-based payments | 648,650 | 199,521 | ||||||||
| Warranty | (321,200) | (372,719) | ||||||||
| (881,935) | (1,558,275) | |||||||||
| Change in non-cash working capital | (414,560) | 1,029,405 | ||||||||
| (1,296,495) | (528,870) | |||||||||
| Financing activities | ||||||||||
| Issuance of shares, net of issuance costs | 2,244,086 | 866,174 | ||||||||
| Net increase (decrease) in cash and cash equivalents | 947,591 | 337,304 | ||||||||
| Cash and cash equivalents, beginning of period | 134,629 | 18,373 | ||||||||
| Cash and cash equivalents, end of period | $ | 1,082,220 | $ | 355,677 | ||||||
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 with approximately 3,000 installations in 50 countries. IDC's product line of CCD-based X-Series direct capture technology and 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; 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.
The IDC head office is based in Calgary, Canada with business offices in Hong Kong and China.
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.
SOURCE: Imaging Dynamics Company Ltd.
Contacts:
Mr. T.T.Lee
Chairman and Chief Executive Officer
1.403.251.9939
[email protected]
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