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IDC Reports Second Quarter 2011 Results

^{Published on 2011-08-12 14:05:57 - Market Wire}
 

CALGARY, Aug. 12, 2011 /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 second quarter (Q2) ended June 30, 2011.

Second Quarter 2011 Highlights

• Gross revenues were higher by 30 percent to $2.0 million compared to $1.5 million for the same quarter last year and were higher by 61 percent to $4.0 million compared to $2.5 million on a year to date basis, due to increase of revenues from emerging markets;
  
  
• Gross margins were 26 percent for the quarter compared to 37 percent for the same quarter last year and 28 percent compared to 33 percent on a year to date basis, largely due to lower margin sales into Asia Pacific region;
  
  
• Sales and marketing, general and administrative, production and manufacturing and research and development expenses were all down by 22 percent to $0.9 million from $1.2 million during the quarter compared to the same quarter last year and were reduced by 29 percent to $2.0 million from $2.8 million on a year to date basis compared to the same period last year;
  
  
• Net loss for the quarter ended June 30, 2011 was $0.4 million compared to $0.9 million for the same quarter last year and was $1.2 million compared to $2.4 million on a year to date basis compared to the same period last year which was one of the lowest quarterly losses since 2007;
  
  
• Reduced total expenses before finance costs for the quarter ended June 30, 2011 to $0.9 million compared to $1.4 million for the same quarter last year and to $2.1 million compared to $3.1 million on a year to date basis compared to the same period last year which was one of the lowest quarterly expenses since 2007;
  
  
• Purchase orders received during the second quarter and opening backlog totaled $2.6 million ($2.0 million shipped and recognized, $0.6 million booked to closing backlog);
  
  
• Trade and other receivables remained similar compared to December 31, 2010 on collection of approximately $4.0 million during the first half of 2011, Days Sales Outstanding (DSO) for the quarter was 21 days, one of the lowest in the last sixteen quarters;
  
  
• Reduced inventory by $0.3 million compared to December 31, 2010;
  
  
• Reduced trade and other payables by $0.6 million compared to December 31, 2010.

Net loss for the second quarter of 2011 was $437,512 or $0.00 per basic and diluted loss per share compared to a net loss of $925,643 or $0.01 per basic and diluted loss per share for the same quarter last year.  Year-to-date, net loss was $1,213,674 or $0.01 per basic and diluted loss per share compared to a net loss of $2,372,774 or $0.03 per basic and diluted loss per share for the same period last year.

On January 1, 2011, the Company adopted International Financial Reporting Standards ("IFRS") for financial reporting purposes, using a Transaction Date of January 1, 2010. The interim consolidated financial statements for the three and six months ended June 30, 2011, including required comparative information has been prepared in accordance with IFRS 1, First-time Adoption of IFRS ("IFRS 1") and with International Accounting Standard 34, Interim Financial Reporting ("IAS 34") as issued by the International Accounting Standards Board ("IASB").  Previously, the Company prepared its interim and annual consolidated financial statements in accordance with Canadian GAAP.  Unless otherwise noted, the 2010 comparative information has been prepared in accordance with IFRS.

The adoption of IFRS has not had a significant impact on the Company's operations, strategic decisions or cash flows.

Commenting on second quarter 2011 results, Swapan Kakumanu, IDC President and Chief Executive Officer stated, "Our second quarter financial results were the third consecutive quarterly results with increase in revenues and reduction in expenses. We also exited the quarter with $0.6 million of backlog into the third quarter of 2011."

Kakumanu continued, "We are monitoring our cash and working capital requirements on a day-to-day basis and looking at several strategic options for IDC.  Our current focus is to maintain sufficient cash and working capital to sustain future IDC operations."

"Our President and Chief Executive Officer, Swapan Kakumanu, has done a great job of reducing overall costs associated with running the business and in managing a very tight cash position for an extended period of time," commented Jerry C. Cirino, Chairman of the Board.  "The fact is that the multi-year economic downturn and its impact on the medical imaging market has been a tremendous strain on our business." Cirino continued, "The Board has taken numerous steps in the past to raise capital, including a rights offering, private placements and debt agreements. The Board is now actively seeking a partner to provide the necessary capital to sustain and reposition the Company.  This capital infusion is critical to the Company at this juncture and is the top priority of the management and the Board.  Interested parties should contact Mr. Swapan Kakumanu at 403-539-9767."

A conference call to review the results hosted by Swapan Kakumanu, President & Chief Executive Officer and Jerry C. Cirino, Chairman of the Board, will take place on Monday August 15, 2011 at 8:00 a.m. EST (6:00 a.m. MST).  To participate in the call please dial 647-427-7450 or 888-231-8191 approximately 5 minutes prior to the conference call. If requested, please reference Conference Code ID: 91772212.

Imaging Dynamics Company Ltd.
Consolidated Statements of Financial Position

Imaging Dynamics Company Ltd.
Consolidated Statements of Operations and Comprehensive Loss

Imaging Dynamics Company Ltd.
Consolidated Statements of Cash Flows

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 consistent 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.