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IDC reports first quarter 2009 results

^{Published on 2009-05-11 14:51:24, Last Modified on 2009-05-11 14:54:15 - Market Wire}
 

 CALGARY, May 11 /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 first quarter ended March 31, 2009. First Quarter 2009 Highlights - Cash and cash equivalents decreased by $0.6 million during the quarter to $0.5 million at March 31, 2009 from $1.1 million at December 31, 2008; - Sales and marketing, general and administrative, production and manufacturing and research and development expenses were all down by 51.5 percent to $1,898,435 from $3,913,078 during the quarter compared to the same quarter last year; - Purchase orders received during the first quarter and opening backlog totaled $3.6 million ($2.6 million shipped and recognized, $1.0 million booked to closing backlog); - Reduced receivables by $2.0 million compared to December 31, 2008 on the collection of $4.5 million during the quarter; Days Sales Outstanding (DSO) for the quarter was 137 days, the lowest in the last twelve quarters; - Reduced inventory by $0.4 million compared to December 31, 2008; - Reduced payables and accruals by $1.5 million compared to December 31 2008; - Reduced total expenses by 52.0 percent to $2.2 million from $4.6 million during the quarter compared to the same quarter last year; - Gross revenues were lower by 58.8 percent compared to the same quarter last year; which was largely due to the decline in revenues in United States ("US") as a result of the slowing economic conditions; and - Gross margins were 25.9 percent for the quarter which were also impacted due to lower margin sales during the quarter, the global pricing pressures on digital radiography products and the continued utilization of inventory that was purchased during previous quarters. Net loss was $1,513,593 or $0.02 of basic and diluted loss per share for the quarter ended March 31, 2009 compared to a loss of $2,458,523 or $0.04 of basic and diluted loss per share for the preceding comparative quarter. Commenting on the first quarter 2009 results, Tom Boon, IDC's President & CEO said, "I am pleased with our first quarter successes in the Asia Pacific and Latin America regions as it is reflective of our strategic positioning to grow our OEM business while aligning with selected distributors for the systems business. We have clearly demonstrated our ability to reduce and manage expenses, which are in line with expectations for the first quarter. The continued overall improvement in the Balance Sheet and effective management of working capital provides good evidence that our build to forecast business model, rigorous order management criteria and the empowered IDC employees can effectively manage IDC's global business." Boon continued, "The careful strategic realignment of the business that includes reducing cash burn and managing working capital, the continued improvement in the performance of our proprietary CCD digital detector technology, growth of the OEM detector head business and refocusing on sales of the systems business with capable regional distributors is providing the desired results. With a promising sales funnel, the focus for the remainder of 2009 will be to grow sales in each of the geographic regions that will enable IDC to increase shareholder value and to meet our corporate objectives for Profitable Growth and Industry Leadership." IDC will be holding its annual general meeting (AGM) on Tuesday, May 12, 2009 at 4:00 MST at the Executive Royal Inn and Conference Centre in Calgary, Alberta, Canada and invites all shareholders to attend. As mentioned during the 2008 Year End Financial Review conference all; there is no scheduled investor call to review the 2009 first quarter results. Tom Boon, President & CEO, and Swapan Kakumanu, CFO, will review the first quarter financial results and provide an update on the Company's strategies and progress within its markets at the AGM. Imaging Dynamics Company Ltd. Consolidated Balance Sheets As at March 31 December 31 2009 2008 ------------------------------------------------------------------------ Assets (Unaudited) (Audited) Current Assets Cash and cash equivalents $ 461,430 $ 1,104,268 Receivables 2,981,392 4,954,233 Inventory 5,812,447 6,254,484 Prepaids and deposits 482,724 450,676 ------------- ------------- 9,737,993 12,763,661 Property, plant and equipment 1,052,061 1,136,216 Intangible assets 214,298 220,421 ------------- ------------- $ 11,004,352 $ 14,120,298 ------------- ------------- ------------- ------------- Liabilities and Shareholders' Equity Current Liabilities Payables and accruals $ 3,787,071 $ 5,248,257 Customer deposits 103,870 427,080 Warranty liability 1,318,664 1,217,719 ------------- ------------- 5,209,605 6,893,056 ------------- ------------- Shareholders' Equity Share capital 70,246,559 70,246,559 Contributed surplus 5,555,997 5,474,899 Warrants 4,053,035 4,053,035 Deficit (74,060,844) (72,547,251) ------------- ------------- 5,794,747 7,227,242 ------------- ------------- $ 11,004,352 $ 14,120,298 ------------- ------------- ------------- ------------- ------------------------------------------------------------------------ Imaging Dynamics Company Ltd. Consolidated Statements of Operations, Comprehensive Loss and Deficit For the three months ended March 31 (Unaudited) 2009 2008 ------------------------------------------------------------------------ Revenues, net $ 2,633,554 $ 6,388,795 Cost of goods sold 1,952,548 4,270,788 ------------- ------------- Gross profit 681,006 2,118,007 ------------- ------------- ------------- ------------- Expenses Sales and marketing 590,072 1,478,982 General and administrative 730,737 1,245,547 Production and manufacturing 236,306 554,874 Research and development 341,320 633,675 Foreign exchange (gain) loss 9,286 (158,582) Warranty 124,200 157,907 Stock-based compensation 81,098 376,788 Amortization 90,278 177,639 Interest - 124,783 ------------- ------------- 2,203,297 4,591,613 ------------- ------------- Loss before interest and other income (1,522,291) (2,473,606) Interest and other income 8,698 15,083 ------------- ------------- Net loss, being comprehensive loss $ (1,513,593) $ (2,458,523) ------------- ------------- ------------- ------------- ------------------------------------------------------------------------ ------------------------------------------------------------------------ Net loss per share Basic and diluted $ (0.02) $ (0.04) ------------- ------------- ------------- ------------- ------------------------------------------------------------------------ ------------------------------------------------------------------------ Deficit, beginning of period $ (72,547,251) $ (56,847,941) Net loss, being comprehensive loss (1,513,593) (2,458,523) ------------- ------------- Deficit, end of period $ (74,060,844) $ (59,306,464) ------------- ------------- ------------- ------------- ------------------------------------------------------------------------ Imaging Dynamics Company Ltd. Consolidated Statement of Cash Flows For the three months ended March 31 (Unaudited) 2009 2008 ------------------------------------------------------------------------ Cash flows from operating activities Net loss $ (1,513,593) $ (2,458,523) Items not affecting cash Amortization 90,278 177,639 Stock-based compensation 81,098 376,788 Warranty 100,945 24,574 ------------- ------------- (1,241,272) (1,879,522) Change in non-cash working capital 598,434 2,602,252 ------------- ------------- (642,838) 722,730 ------------- ------------- Cash flows used in financing activities Short-term borrowing, net - (15,936) ------------- ------------- Cash flows used in investing activities Property, plant and equipment additions - (100,809) ------------- ------------- Net change in cash and cash equivalents (642,838) 605,985 Cash and cash equivalents Beginning of period 1,104,268 1,460,554 ------------- ------------- End of period $ 461,430 $ 2,066,539 ------------- ------------- ------------- ------------- ------------------------------------------------------------------------ About IDC: IDC (Imaging Dynamics Company) is a medical technology company and innovative force in the fast-growing field of digital radiography (DR) technology. IDC's X-Series line of direct capture technology replaces conventional film-based image capture and provides a cost-effective alternative to cassette based 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 harmful chemicals, cassettes or expensive imaging plates. IDC received the 2007 Frost & Sullivan Technology Innovation Award and the 2008 PROFIT 100 ranking as one of Canada's fastest-growing companies. IDC was also recognized by the 2008 Deloitte Technology Fast 500, which ranks the fastest growing technology, media, telecommunications and life sciences companies in North America. IDC is based in Calgary, Alberta, Canada. The Special and Annual General Meeting (AGM) of the shareholders of Imaging Dynamics Company Ltd. will be held: Executive Royal Inn & Conference Centre Tuesday, May 12, 2009 at 4:00 p.m. MST Emerald Ballroom 'B' 2828 - 23rd Street N.E., Calgary, Alberta 403.291.2003 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: Tom Boon, President & CEO, Swapan Kakumanu, Chief Financial Officer, 1-866-975-6737, [ investor@imagingdynamics.com ], [ www.imagingdynamics.com ]