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IDC reports third quarter 2009 results

^{Published on 2009-11-12 14:02:33 - Market Wire}
 

 Third Quarter 2009 Highlights - Reduced receivables by $3.4 million compared to December 31, 2008 on the collection of approximately $10.8 million during the nine months ended September 30, 2009; Days Sales Outstanding (DSO) for the quarter reduced to 122 days from 301 days for the same quarter last year; - Reduced inventory by $1.3 million compared to December 31, 2008; - Reduced payables and accruals by $1.8 million compared to December 31 2008; - Cash and cash equivalents decreased by $0.6 million to $0.5 million at September 30, 2009 from $1.1 million at December 31, 2008; - Sales and marketing, general and administrative, production and manufacturing and research and development expenses were reduced by 44.4 percent to $1.5 million from $2.7 million during the quarter compared to the same quarter last year and were reduced by 48.6 percent to $5.2 million from $10.1 million on a year to date basis compared to the same period last year; - Reduced total expenses by 38.6 percent to $1.9 million from $3.1 million during the quarter compared to the same quarter last year and reduced by 44.8 percent to $6.7 million from $12.2 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 $3.2 million ($1.7 million shipped and recognized, $1.5 million booked to closing backlog); - Gross revenues were lower by 16.6 percent compared to the same quarter last year and lower by 40.1 percent on a year to date basis; 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 20.5 percent for the quarter compared to 20.2 percent for the same quarter last year and 26.9 percent compared to 27.5 percent on a year to date basis; which were also impacted due to lower margin sales during the period, the global pricing pressures on digital radiography products and the continued utilization of inventory that was purchased during previous quarters. 

 Imaging Dynamics Company Ltd. Consolidated Balance Sheets September 30 December 31 As at 2009 2008 ------------------------------------------------------------------------- Assets (Unaudited) (Audited) Current Assets Cash and cash equivalents $ 497,566 $ 1,104,268 Receivables 1,507,033 4,954,233 Inventory 4,952,011 6,254,484 Prepaids and deposits 677,706 450,676 -------------- ------------- 7,634,316 12,763,661 Property and equipment 899,631 1,136,216 Intangible assets 202,053 220,421 -------------- ------------- $ 8,736,000 $ 14,120,298 -------------- ------------- -------------- ------------- Liabilities and Shareholders' Equity Current Liabilities Payables and accruals $ 3,422,272 $ 5,248,257 Customer deposits 610,101 427,080 Warranty liability 1,468,923 1,217,719 -------------- ------------- 5,501,296 6,893,056 -------------- ------------- Shareholders' Equity Share capital 70,246,559 70,246,559 Contributed surplus 5,905,698 5,474,899 Warrants 4,111,346 4,053,035 Deficit (77,028,899) (72,547,251) -------------- ------------- 3,234,704 7,227,242 -------------- ------------- $ 8,736,000 $ 14,120,298 -------------- ------------- -------------- ------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Imaging Dynamics Company Ltd. Consolidated Statements of Operations, Comprehensive Loss and Deficit (Unaudited) ------------------------------------------------------------------------- Three Months Ended Nine Months Ended --------------------------- --------------------------- September 30 September 30 September 30 September 30 2009 2008 2009 2008 ------------- ------------- ------------- ------------- Revenues, net $ 1,742,299 $ 2,089,039 $ 8,275,591 $ 13,805,799 Cost of goods sold 1,384,960 1,667,423 6,052,877 10,009,660 ------------- ------------- ------------- ------------- Gross profit 357,339 421,616 2,222,714 3,796,139 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Expenses Sales and marketing 517,527 1,107,928 1,678,656 3,918,250 General and administrative 579,710 863,482 2,068,160 3,209,442 Production and manufacturing 238,825 383,257 689,037 1,394,135 Research and development 176,621 364,376 743,357 1,550,045 Foreign exchange (gain) loss 74,940 (309,836) 279,880 (245,043) Warranty 71,200 147,460 348,400 466,304 Stock-based compensation 25,337 121,395 430,799 683,022 Bad debts 136,358 176,182 136,358 428,048 Amortization 79,819 178,329 254,953 536,617 Interest 121 61,355 1,847 263,166 Financing costs - - 102,285 - ------------- ------------- ------------- ------------- 1,900,458 3,093,928 6,733,732 12,203,986 ------------- ------------- ------------- ------------- Loss before interest and other income (1,543,119) (2,672,312) (4,511,018) (8,407,847) Interest and other income 914 207 29,370 27,043 ------------- ------------- ------------- ------------- Net loss, being comprehensive loss $ (1,542,205) $ (2,672,105) $ (4,481,648) $ (8,380,804) ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net loss per share Basic and diluted $ (0.02) $ (0.03) $ (0.05) $ (0.12) ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Deficit, beginning of period $(75,486,694) $(62,556,640) $(72,547,251) $(56,847,941) Net loss, being comprehensive loss (1,542,205) (2,672,105) (4,481,648) (8,380,804) ------------- ------------- ------------- ------------- Deficit, end of period $(77,028,899) $(65,228,745) $(77,028,899) $(65,228,745) ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Imaging Dynamics Company Ltd. Consolidated Statement of Cash Flows (Unaudited) ------------------------------------------------------------------------- Increase (decrease) in cash and cash equivalents are as follows: Three Months Ended Nine Months Ended --------------------------- --------------------------- September 30 September 30 September 30 September 30 2009 2008 2009 2008 ------------- ------------- ------------- ------------- Cash flows used in operating activities Net loss $ (1,542,205) $ (2,672,105) $ (4,481,648) $ (8,380,804) Items not affecting cash Financing costs - - 58,311 - Amortization 79,819 178,329 254,953 536,617 Stock-based compensation 25,337 121,395 430,799 683,022 Warranty 34,823 (181,722) 251,204 (323,526) ------------- ------------- ------------- ------------- (1,402,226) (2,554,103) (3,486,381) (7,484,691) Change in non-cash working capital 1,644,660 1,199,315 2,923,653 (61,602) ------------- ------------- ------------- ------------- 242,434 (1,354,788) (562,728) (7,546,293) ------------- ------------- ------------- ------------- Cash flows from (used in) financing activities Proceeds from share issuances, net - - - 8,316,220 Short-term borrowing, net - (498,975) - (1,260,244) Repayment of loans payable - - - (45,013) Financing costs - - (43,974) - ------------- ------------- ------------- ------------- - (498,975) (43,974) 7,010,963 ------------- ------------- ------------- ------------- Cash flows used in investing activities Property and equipment additions - (9,691) - (252,752) ------------- ------------- ------------- ------------- Net change in cash and cash equivalents 242,434 (1,863,454) (606,702) (788,082) Cash and cash equivalents Beginning of period 255,132 2,535,926 1,104,268 1,460,554 ------------- ------------- ------------- ------------- End of period 497,566 672,472 497,566 672,472 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------------------------------------------------------------------- -------------------------------------------------------------------------