IDC reports fourth quarter 2013 results

CALGARY, April 14, 2014 /CNW/ - Imaging Dynamics Company Ltd. ("IDC" or the "Company") (NEX: IDL.H) today reported financial results for the fourth quarter and year ended December 31, 2013.

2013 Fourth Quarter and Annual Highlights

• Gross revenues were higher by 188 percent to $1.55 million compared to $0.54 million for the same quarter last year and were lower by 4 percent to $2.99 million compared to $3.11 million for the year, due to decrease in revenues in most regions except Asia-Pacific, where revenues were higher;
• Gross margins were 23 percent for the quarter compared to 24 percent for the same quarter last year and 37 percent compared to 29 percent for the year;
• Sales and marketing, general and administrative, production and manufacturing and research and development expenses were lower by 35 percent to $0.66 million from $1.02 million during the quarter compared to the same quarter last year and were reduced by 20 percent to $2.75 million for the current year as compared to $3.44 million for last year due to continued cost reduction initiatives;
• Net loss for the quarter ended December 31, 2013 was $0.39 million compared to a net loss of $0.74 million for the same quarter last year and the net loss was $1.96 million for the current year as compared to $2.06 million for last year, primarily due to bad debt recovery in 2012, partially offset by reduced expenses and lack of stock-based compensation during 2013;
• Total expenses before finance costs for the quarter ended December 31, 2013 were $0.71 million compared to total expenses of $0.98 million for the same quarter last year and to $2.93 million for the current year as compared to $3.29 million for last year;
• Closing backlog of $0.35 million of purchase orders received from customers and paid in advance.
• Trade and other receivables decreased by $0.08 million compared to December 31, 2012, Days Sales Outstanding (DSO) for the quarter was 8 days compared to 29 days for the same quarter last year;
• Reduced inventory by $0.52 million compared to December 31, 2012;
• Trade and other payables decreased by $0.44 million compared to December 31, 2012.

A conference call to discuss the 2013 annual and fourth quarter results is not planned at this time.  The Company expects to announce the date and location its Annual General Shareholder Meeting (AGM) in the coming weeks.

Reflecting on the results for fiscal 2013 Dr. Sidong Huang, President and CEO of the Company made the following comments:  "I would like to take this opportunity to reiterate the Company's efforts to protect and enhance shareholders value.  Since the newly elected Board of Directors and management team assumed responsibility for IDC last September, the Company has made progress in building sales activity and improving IDC's financial situation.  The Company's marketing and sales force is working hard to increase sales from IDC's existing customers.   In addition, the Company is developing relationships with additional distribution partners. The Company also attaches great importance to the development of several new products expected to be registered and introduced into the marketplace in Q3 2014. Further, IDC's plans for the dental segment are advancing nicely and it is hoped that the dental strategy will add to the Company's revenue stream in the coming periods.  We will provide more information on each of these areas of potential growth for IDC in the coming weeks."

About Imaging Dynamics Company (IDC):

IDC is a global medical imaging technology provider and innovative force in the high growth field of digital radiography (DR) technology.

The Company has over 4,000 installations in 50 countries of its proprietary, award winning direct capture DR technology, which replaces conventional film-based diagnostic imaging and provides a cost-effective solution for medical facilities of all sizes to provide high quality diagnostic X-ray images and improve the level of healthcare for their patients.

Throughout its history, IDC has been recognized by multiple industry organizations and research analysts such as: Frost & Sullivan and Deloitte Technology; for its dedication to innovation, global market growth, and customer focused value proposition.

The Company has its corporate office in Calgary, Canada, a business office in Hong Kong, and a representative office in Beijing, China.

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.

SOURCE: Imaging Dynamics Company Ltd.

please contact: Dr. Sidong Huang, President and Chief Executive Officer, 1.403.251.9939 Office, 1.866.975.6737 Toll Free, [email protected]; Ms. Anna Lentz, Chief Financial Officer, 1.403.251.9939 Office, 1.866.975.6737 Toll Free, [email protected]