IDC reports second quarter 2010 financial results
CALGARY, Aug. 13 /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 first quarter ended June 30, 2010.
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.
Net loss for the second quarter of 2010 was $882,932 or $0.01 of basic and diluted loss per share compared to a net loss of $1,425,850 or $0.02 of basic and diluted loss per share for the same quarter last year. Year-to-date net loss was $2,448,240 or $0.03 of basic and diluted loss per share compared to a net loss of $2,939,443 or $0.04 basic and diluted loss per share for the same period last year.
While revenue is trending in the right direction, this period's financial performance is significant in the quarter over quarter improvement in most metrics and specifically the lowest quarterly loss per share since 2008.
Commenting on second quarter 2010 results, M. Thomas Boon, IDC President and Chief Executive Officer stated, "Our results for the quarter were below expectations as orders from the Asia Pacific region lagged forecast and expected orders from Latin America, the Middle East and South Asia are being pushed into the coming quarters. We continue to see signs of increasing market activity in the United States and with the recent announcement regarding our agreement with the China Foundation for Poverty Alleviation, we are quite optimistic that our performance during the second half of 2010 will be considerably better that our year to date results."
Boon continues, "The Company continues to make good progress in reducing expenses, inventory and Days Sales Outstanding while increasing our gross margins to the highest level of the past ten quarters. The management team and the board continue to focus on ensuring there will be adequate working capital and continued growth in the top line. We have an increasingly positive outlook for the global digital radiography market and also for the Company's prospects for the remainder of 2010."
A conference call to review the results will take place on Monday, August 16, 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 five (5) minutes prior to the designated time.
You will be asked for the topic of the call and a conference code ID, please reference:
- IDC 2010 - Q2 Financials
- Conference Code ID 93566750.
Imaging Dynamics Company Ltd.
Consolidated Balance Sheets
As at June 30 December 31
2010 2009
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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
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$ 6,440,066 $ 7,811,635
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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
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6,790,530 5,913,275
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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
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$ 6,440,066 $ 7,811,635
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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)
------------ ------------ ------------ ------------
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Net loss per share
Basic and
diluted $ (0.01) $ (0.02) $ (0.03) $ (0.04)
------------ ------------ ------------ ------------
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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)
------------ ------------ ------------ ------------
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Imaging Dynamics Company Ltd.
Consolidated Statement of Cash Flows
(Unaudited)
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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
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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 and 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 Enterprises 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, 1.403.251.9939, [email protected]; Mr. Swapan Kakumanu, Executive Vice President & Chief Financial Officer, 1.403.251.9939, [email protected]
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