POWAY, CA--(Marketwire - Feb 17, 2012) - Digirad Corporation (NASDAQ: [ DRAD ]) today reported 2011 fourth quarter revenue of $11.9 million, 2011 full-year revenue of $53.7 million and an ending cash and available-for-sale securities balance of $30.5 million at December 31, 2011.

Digirad CEO Todd Clyde commented, "We laid out four key goals at the beginning of the year: generate positive cash flow, increase ergo sales, expand margins in both our Product and DIS business units and return to year-over-year growth in the second half of the year. We achieved the first three goals, but fell short on revenue growth due to a relatively weak fourth quarter in the Product division.

Clyde continued: "Going forward, we are seeing improvements in the capital equipment environment, more activity in the sales funnel on the Product side, continued stabilization in reimbursements and new opportunities in new camera markets. In 2012, we expect to continue to generate positive cash flow from our DIS business and to increase sales of both our cardiac and ergo cameras. We invested in strategic market research in the fourth quarter -- resulting in a better understanding of where our core technologies can be applied with greater success. Management and the Board are in the final stages of determining the best strategic path toward returning to a growth platform, and we look forward to communicating the specifics of those plans in the near future."

Fourth Quarter 2011 Summary

• Total revenue for the fourth quarter of 2011 was $11.9 million, compared to $14.7 million for the same period in the prior year and $13.4 million in the third quarter of 2011. DIS-only revenue for the fourth quarter of 2011 was $9.0 million, compared to $9.4 million for the same period of the prior year and $9.3 million in the prior quarter. Product revenue for the fourth quarter of 2011 was $2.9 million, compared to $5.2 million for the same period of the prior year and $4.1 million in the prior quarter.
  
  
• Gross profit for the fourth quarter of 2011 was $3.1 million, or 26.0 percent of revenue, compared to $3.6 million, or 24.6 percent of revenue, in the same period of the prior year and $4.2 million, or 30.9 percent of revenue, in the prior quarter.
  
  
• Net loss for the fourth quarter of 2011 was $2.8 million, or $0.15 loss per share, compared to net loss of $0.6 million, or $0.03 loss per share, in the same period of the prior year and a net income of $0.1 million, or $0.01 per share, in the prior quarter.
  
  
• Cash and cash equivalents and available-for-sale securities totaled $30.5 million, or $1.61 per share as of December 31, 2011. Cash and cash equivalents and available-for-sale securities totaled $30.2 million, or $1.63 per share as of December 31, 2010.
  
  
• During the fourth quarter of 2011, DIS asset utilization was 56 percent on 130 systems (nuclear and ultrasound), compared to 58 percent on 132 systems (nuclear and ultrasound) in the prior year fourth quarter and 56 percent on 130 systems (nuclear and ultrasound) in the prior quarter.
  

2011 Full-Year Financial Highlights:

• Total revenue for 2011 was $53.7 million, compared to $56.2 million for the prior year. DIS revenue for 2011 was $37.8 million, compared to $39.5 million for the prior year, and Product revenue for 2011 was $16.0 million compared to $16.6 million for the prior year.
  
  
• Gross profit for 2011 was $14.8 million, or 27.5 percent of revenue, compared to $12.0 million, or 21.4 percent of revenue for the prior year.
  
  
• Net loss for 2011 was $3.3 million, or $0.18 loss per share, compared to net loss of $6.2 million, or $0.33 loss per share, for the prior year.
  
  
• During 2011, DIS asset utilization was 56 percent on 131 systems (nuclear and ultrasound), compared to 61 percent on 133 systems (nuclear and ultrasound) for the prior year.
  

Conference Call Information
A conference call is scheduled for 11:00 a.m. EST today to discuss the results and management's outlook. The call may be accessed by dialing 877-941-1427 five minutes prior to the scheduled start time and referencing Digirad. A simultaneous webcast of the call may be accessed online from the Events & Presentations link on the Investor Relations page at [ www.digirad.com ]; an archived replay of the webcast will be available within 15 minutes of the end of the conference call.

About Digirad Corporation
Digirad is a leading provider of diagnostic imaging products, and personnel and equipment leasing services. For more information, please visit [ www.digirad.com ]. Digirad^® and Cardius^® are registered trademarks of Digirad Corporation.

Forward-Looking Statements
This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. These include statements regarding our ability to deliver value to customers, our expanded product and service offerings, including, the addition of the first large-field-of-view, solid state portable camera to the hospital marketplace, and our ability to generate positive cash flow in 2011. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made, including the risks associated with changes in business conditions, technology, customers' business conditions, reimbursement, radiopharmaceutical shortages, economic outlook, operational policy or structure, acceptance and use of Digirad's camera systems and services, reliability, recalls, and other risks detailed in Digirad's filings with the U.S. Securities and Exchange Commission, including Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports. Readers are cautioned to not place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and Digirad undertakes no obligation to revise or update the forward-looking statements contained herein.