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IDC reports second quarter 2010 financial results

^{Published on 2010-08-13 14:10:53 - Market Wire}
 

 Second Quarter 2010 Highlights - Increased revenue by 64.5 percent to $1.5 million during the second quarter of 2010 compared to $0.9 million during the first quarter of 2010; - Increased gross margins to 37.0 percent for the second quarter of 2010 compared to 27.7 percent for the first quarter of 2010; - Reduced receivables by $0.2 million compared to December 31, 2009 on the collection of approximately $2.7 million during the first half of 2010; Days Sales Outstanding (DSO) for the quarter reduced to 47 days from 72 days for the same quarter last year and, the lowest in the last five years; - Reduced inventory by $1.0 million compared to December 31, 2009; - Payables and accruals increased by $0.1 million compared to December 31 2009; - Sales and marketing, general and administrative, production and manufacturing and research and development expenses were reduced by 33.3 percent to $1.2 million from $1.8 million during the quarter compared to the same quarter last year and were reduced by 24.3 percent to $2.8 million from $3.7 million on a year to date basis compared to the same period last year; - Reduced total expenses by 42.3 percent to $1.5 million from $2.6 million during the quarter compared to the same quarter last year and reduced by 31.2 percent to $3.3 million from $4.8 million on a year to date basis compared to the same period last year; - Purchase orders received during the second quarter and opening backlog totaled $2.1 million ($1.5 million shipped and recognized, $0.6 million booked to closing backlog); - Gross revenues were lower by 60.6 percent compared to the same quarter last year and lower by 62.2 percent on a year to date basis; which was largely due to the decline in revenues from Asia Pacific, where the orders have been pushed into upcoming quarters of 2010 and slower purchasing decisions in other regions; and - Gross margins were 37.0 percent for the quarter compared to 30.4 percent for the same quarter last year and 33.5 percent compared to 28.6 percent on a year to date basis. 

 - IDC 2010 - Q2 Financials - Conference Code ID 93566750. Imaging Dynamics Company Ltd. Consolidated Balance Sheets As at June 30 December 31 2010 2009 ------------------------------------------------------------------------- Assets (Unaudited) (Audited) Current Assets Cash and cash equivalents $ 226,339 $ 310,957 Receivables 982,758 1,187,101 Inventory 3,803,006 4,830,116 Prepaids and deposits 515,826 447,704 ------------ ------------ 5,527,929 6,775,878 Property, plant and equipment 457,268 524,154 Intangible assets 454,869 511,603 ------------ ------------ $ 6,440,066 $ 7,811,635 ------------ ------------ ------------ ------------ Liabilities and Shareholders' Equity Current Liabilities Loan $ 1,000,000 $ 500,000 Note payable 200,000 - Payables and accruals 3,639,546 3,516,738 Customer deposits 541,734 438,876 Warranty liability 1,409,250 1,457,661 ------------ ------------ 6,790,530 5,913,275 ------------ ------------ Shareholders' Equity Share capital 70,246,559 70,246,559 Contributed surplus 5,987,183 5,930,955 Warrants 4,381,787 4,238,599 Deficit (80,965,993) (78,517,753) ------------ ------------ (350,464) 1,898,360 ------------ ------------ $ 6,440,066 $ 7,811,635 ------------ ------------ ------------ ------------ ------------------------------------------------------------------------- ------------------------------------------------------------------------- Imaging Dynamics Company Ltd. Consolidated Statements of Operations, Comprehensive Loss and Deficit (Unaudited) Three Months Ended Six Months Ended -------------------------- -------------------------- June 30 June 30 June 30 June 30 2010 2009 2010 2009 ------------ ------------ ------------ ------------ Revenues, net $ 1,535,696 $ 3,899,738 $ 2,469,514 $ 6,533,292 Cost of goods sold 966,863 2,715,369 1,642,106 4,667,917 ------------ ------------ ------------ ------------ Gross profit 568,833 1,184,369 827,408 1,865,375 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Expenses Sales and marketing 374,857 571,057 773,662 1,161,129 General and administrative 472,818 757,713 1,236,307 1,488,450 Production and manufacturing 160,397 213,906 371,191 450,212 Research and development 199,746 225,416 426,187 566,736 Foreign exchange loss 65,192 195,654 40,234 204,940 Warranty 45,400 153,000 58,500 277,200 Stock-based compensation 23,661 324,364 56,228 405,462 Amortization 59,791 84,856 123,620 175,134 Interest 50,994 1,726 68,512 1,726 Financing costs - 102,285 143,188 102,285 ------------ ------------ ------------ ------------ 1,452,856 2,629,977 3,297,629 4,833,274 ------------ ------------ ------------ ------------ Loss before interest and other income (884,023) (1,445,608) (2,470,221) (2,967,899) Interest and other income 1,091 19,758 21,981 28,456 ------------ ------------ ------------ ------------ Net loss, being comprehensive loss $ (882,932) $ (1,425,850) $ (2,448,240) $ (2,939,443) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net loss per share Basic and diluted $ (0.01) $ (0.02) $ (0.03) $ (0.04) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------------------------------------------------------------------- ------------------------------------------------------------------------- Deficit, beginning of period $(80,083,061) $(74,060,844) $(78,517,753) $(72,547,251) Net loss, being comprehensive loss (882,932) (1,425,850) (2,448,240) (2,939,443) ------------ ------------ ------------ ------------ Deficit, end of period $(80,965,993) $(75,486,694) $(80,965,993) $(75,486,694) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------------------------------------------------------------------- ------------------------------------------------------------------------- Imaging Dynamics Company Ltd. Consolidated Statement of Cash Flows (Unaudited) ------------------------------------------------------------------------- Increase (decrease) in cash and cash equivalents are as follows: Three Months Ended Six Months Ended -------------------------- -------------------------- June 30 June 30 June 30 June 30 2010 2009 2010 2009 ------------ ------------ ------------ ------------ Cash flows used in operating activities Net loss $ (882,932) $ (1,425,850) $ (2,448,240) $ (2,939,443) Items not affecting cash Financing costs - 58,311 143,188 58,311 Amortization 59,791 84,856 123,620 175,134 Stock-based compensation 23,661 324,364 56,228 405,462 Warranty (550) 115,436 (48,411) 216,381 ------------ ------------ ------------ ------------ (800,030) (842,883) (2,173,615) (2,084,155) Change in non-cash working capital (Note 9) 518,450 636,585 1,388,997 1,235,019 ------------ ------------ ------------ ------------ (281,580) (206,298) (784,618) (849,136) ------------ ------------ ------------ ------------ Cash flows from (used in) financing activities Loan - - 500,000 - Note payable 200,000 - 200,000 - ------------ ------------ ------------ ------------ 200,000 - 700,000 - ------------ ------------ ------------ ------------ Net change in cash and cash equivalents (81,580) (206,298) (84,618) (849,136) Cash and cash equivalents Beginning of period 307,919 461,430 310,957 1,104,268 ------------ ------------ ------------ ------------ End of Period $ 226,339 $ 255,132 $ 226,339 $ 255,132 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------------------------------------------------------------------- -------------------------------------------------------------------------