IDC reports fourth quarter and year end 2009 results
CALGARY, March 29 /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 fourth quarter and year ended December 31, 2009.
2009 Fourth Quarter and Year End Highlights
- Sales and marketing, general and administrative, production and manufacturing and research and development expenses were all down year over year from 2008 to 2009 by 45.3 percent; - Purchase orders received during the fourth quarter and opening backlog totaled $1.9 million ($1.5 million shipped and recognized, $0.4 million booked to closing backlog); - Reduced receivables by $3.8 million compared to December 31, 2008 on the collection of $14.0 million and by $0.3 million compared to September 30, 2009 on the collection of $2.3 million during the fourth quarter; - Reduced inventory by $1.4 million compared to December 31, 2008 and by $0.1 million compared to September 30, 2009; - Reduced payables and accruals by $1.7 million compared to December 31, 2008 and payables and accruals increased by $0.1 million compared to September 30, 2009; - Reduced expenses by 51.7 percent or $2.1 million compared to the same quarter last year and by 46.5 percent or $7.6 million on a year to date basis compared to the same period last year; - Gross revenues were lower by 52.2 percent compared to the same quarter last year and by 42.3 percent on a year to date basis compared to the same period last year; 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 30.5 percent for the quarter and on a year to date basis were 27.4 percent which were also impacted due to lower margin sales during the year and the global pricing pressures on digital radiography products, the continued utilization of inventory that was purchased during previous quarters when the US-Canadian dollar exchange rate was much higher and inventory adjustments during the quarter to ensure proper valuation.
Net loss before interest and other items for the fourth quarter ended December 31, 2009 was $1,503,425 or $0.02 loss per share compared to $3,387,083 or $0.04 loss per share for the same period last year. Net loss before interest and other items for the year ended December 31, 2009 was $6,014,443 or $0.07 loss per share, compared to $11,794,930 or $0.15 loss per share for the same period last year.
Net loss for the fourth quarter ended December 31, 2009 was $1,488,854 or $0.02 loss per share compared to $7,318,506 or $0.08 loss per share for the same period last year. Net loss for the year ended December 31, 2009 was $5,970,502 or $0.07 loss per share, compared to $15,699,310 or $0.21 loss per share for the same period last year.
Commenting on fourth quarter and 2009 results, M. Thomas Boon, IDC President and Chief Executive Officer stated, "The continued protraction of the global diagnostic imaging industry and the market for digital radiography systems in particular, has adversely impacted the company's performance throughout the past year and may continue to do so in the near term. Our distribution channels are stronger and more capable than at any time in the history of the company. IDC distributors and OEM's are poised to act on every opportunity to solidify sales of IDC's systems and technology."
Boon continued, "With the initiatives undertaken in 2009 to monetize assets, reduce its operating expenses, broaden and revitalize channels, and to improve IDC's product and technology platform, the company is positioned to take advantage of the anticipated market rebound in 2010. With recently introduced support programs, targeted sales and marketing promotions, and pending opportunities in the U.S. and emerging markets, we continue to be optimistic about the upside potential for the company this year."
A conference call to review the results will take place on Tuesday, March 30, 2010 at 10:00 a.m. EDT (8:00 a.m. MDT).
To participate in the call please dial: 647-427-7450 or 888-231-8191 approximately 5 minutes prior to the conference call. You will be asked for the topic of the call and a conference code ID, please reference: IDC 2009 Annual Financials and 64774576.
Imaging Dynamics Company Ltd. Consolidated Balance Sheets As at December 31 2009 2008 ------------------------------------------------------------------------- (Restated) Assets Current Assets Cash and cash equivalents $ 310,957 $ 1,104,268 Receivables 1,187,101 4,954,233 Inventory 4,830,116 6,254,484 Prepaids and deposits 447,704 450,676 ------------- ------------- 6,775,878 12,763,661 Property, plant and equipment 524,154 708,474 Intangible assets 511,603 648,163 ------------- ------------- $ 7,811,635 $ 14,120,298 ------------- ------------- ------------- ------------- Liabilities and Shareholders' Equity Current Liabilities Loan $ 500,000 $ - Payables and accruals 3,516,738 5,248,257 Customer deposits 438,876 427,080 Warranty 1,457,661 1,217,719 ------------- ------------- 5,913,275 6,893,056 ------------- ------------- Shareholders' Equity Share capital 70,246,559 70,246,559 Contributed surplus 5,930,955 5,474,899 Warrants 4,238,599 4,053,035 Deficit (78,517,753) (72,547,251) ------------- ------------- 1,898,360 7,227,242 ------------- ------------- $ 7,811,635 $ 14,120,298 ------------- ------------- ------------- ------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Imaging Dynamics Company Ltd. Consolidated Statements of Operations, Comprehensive Loss and Deficit For the year ended December 31 2009 2008 ------------------------------------------------------------------------- (Restated) Revenues, net $ 9,743,343 $ 16,876,980 Cost of goods sold (7,073,263) (12,431,854) ------------- ------------- Gross profit 2,670,080 4,445,126 ------------- ------------- ------------- ------------- Expenses Sales and marketing 2,217,001 4,949,480 General and administrative 2,698,287 3,948,699 Production and manufacturing 894,011 1,741,511 Research and development 1,016,815 1,842,873 Foreign exchange loss (gain) 319,208 (529,532) Warranty 391,700 928,600 Stock-based compensation 456,056 731,231 Bad debts 136,358 1,121,179 Restructuring costs - 467,607 Amortization of property, plant and equipment 184,320 565,023 Amortization of intangible assets 136,560 169,687 Interest 4,669 303,698 Financing costs 229,538 - ------------- ------------- 8,684,523 16,240,056 ------------- ------------- Loss before interest and other items (6,014,443) (11,794,930) Inventory write-down - (3,421,218) Asset write-down - (513,060) Interest and other income 43,941 29,898 ------------- ------------- Net loss, being comprehensive loss $ (5,970,502) $(15,699,310) ------------- ------------- ------------- ------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net loss per share Basic and diluted $ (0.07) $ (0.21) ------------- ------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Deficit, beginning of year $(72,547,251) $(56,847,941) Net loss, being comprehensive loss (5,970,502) (15,699,310) ------------- ------------- Deficit, end of year $(78,517,753) $(72,547,251) ------------- ------------- ------------- ------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Imaging Dynamics Company Ltd. Consolidated Statement of Cash Flows For the year ended December 31 2009 2008 ------------------------------------------------------------------------- Increase (decrease) in cash and cash equivalents are as follows: Cash flows from operating activities Net loss, being comprehensive loss $ (5,970,502) $(15,699,310) Items not affecting cash Financing costs 185,564 - Amortization 320,880 734,710 Asset write-down - 310,101 Stock-based compensation 456,056 731,231 Warranty 239,942 119,432 ------------- ------------- (4,768,060) (13,803,836) Change in non-cash working capital 3,474,749 6,667,178 ------------- ------------- (1,293,311) (7,136,658) ------------- ------------- Cash flows from financing activities Proceeds from share issuances, net - 8,316,220 Short-term borrowing, net - (1,260,244) Loan 500,000 - ------------- ------------- 500,000 7,055,976 ------------- ------------- Cash flows used in investing activities Intangible asset additions - - Property, plant and equipment additions - (275,604) ------------- ------------- - (275,604) ------------- ------------- Net change in cash and cash equivalents (793,311) (356,286) Cash and cash equivalents Beginning of year 1,104,268 1,460,554 ------------- ------------- End of year $ 310,957 $ 1,104,268 ------------- ------------- ------------- ------------- ------------------------------------------------------------------------- -------------------------------------------------------------------------
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 replaces conventional film-based diagnostic imaging and provides a cost-effective alternative to flat panel (TFT) technology, computed radiography (CR) systems.
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, cassettes or expensive imaging plates.
Throughout its history, IDC has been recognized by multiple industry organizations and research analysts such as: Frost & Sullivan, Deloitte Technology, MD Buyline, KLAS 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.
For further information: Mr. M. Thomas Boon, President & Chief Executive Officer, (403) 251-9939, [email protected]; Mr. Swapan Kakumanu, Executive Vice President & Chief Financial Officer, (403) 251-9939, [email protected]
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