iCAD, Inc. Reports Fourth Quarter And Fiscal Year 2014 Financial Results

Tenth Consecutive Quarter of Revenue Growth
Recurring Service Revenue Expands to 65% of Total Revenue in Fourth Quarter
Provides 2015 Financial Guidance

NASHUA, N.H., Feb. 24, 2015 (GLOBE NEWSWIRE) -- iCAD, Inc. (Nasdaq:ICAD), an industry-leading provider of advanced image analysis, workflow solutions and radiation therapy for the early identification and treatment of cancer, today reported financial results for the three months and fiscal year ended December 31, 2014.

Fourth Quarter Highlights:

• Total revenue of $13.2 million, an increase of 44.1% year-over-year
• Recurring service revenue of $8.6 million, an increase of 104.2% year-over-year
• Therapy revenue of $8.5 million, an increase of 70.6% year-over-year
• Gross margin of 70.6%, up from 68.8% in Q4 2013
• Non-GAAP adjusted EBITDA of $2.5 million, or 18.7% of revenue, up from 3.1% in Q4 2013

"2014 was a highly successful year for the Company highlighted by 33% annual revenue growth," said Ken Ferry, Chief Executive Officer. "We ended the year with our tenth consecutive quarter of year-over-year revenue growth, strong recurring revenue momentum, improving gross margins and positive cash flow generation from operations. The strategic acquisitions that we made in the third quarter continue to add significant value, driving adoption and utilization of our skin cancer therapy products and services by Dermatologists and Radiation Oncologists. Our cancer detection business delivered a strong quarter and year of growth and is poised for continued progress ahead of the significant opportunity associated with the launch of our 3D tomosynthesis software products."

Mr. Ferry continued, "Looking forward, we see a significant opportunity for continued growth in our business. In the therapy segment, we are still in the early stages of penetrating the large market opportunities for the use of the Xoft® system to treat skin and breast cancers. We have initiatives in place to increase awareness, expand clinical evidence, and broaden reimbursement in support of our products. We believe this will be a key driver of our financial results going forward, giving us confidence in our 2015 revenue guidance of $55 to $59 million, which would represent growth of 25 to 34 percent over 2014."

Fourth Quarter 2014 Financial Results

Revenue: Total revenue for the fourth quarter of 2014 increased 44.1% to $13.2 million from $9.1 million for the fourth quarter of 2013, reflecting a 7.2% decrease in product revenue and a 104.2% increase in service revenue. Service revenue for the fourth quarter of 2014 was approximately 65% of total revenues compared to approximately 46% of total revenues in the fourth quarter of 2013.

Total therapy revenue increased 70.6% which includes Xoft^® Axxent^® Electronic Brachytherapy System^® product sales, as well as the associated service revenue. Cancer detection revenue increased 12.3% which includes film, digital mammography, MRI and CT CAD platforms, as well as the associated service revenue.