News | News By Subject | News by Disease News By Date | Search News
Get Our FREE
Industry eNewsletter
email:    
   

Novadaq Corp. Reports Second Quarter 2010 Financial Results


8/12/2010 9:17:10 AM

TORONTO, ONTARIO--(Marketwire - August 12, 2010) - Novadaq® Technologies Inc. (TSX: NDQ), a developer of real-time imaging systems for use in the operating room, today announced 2010 second quarter revenues of $2,647,000 compared to revenues of $1,699,000 in second quarter 2009. Sales of SPY products were $1,627,000 (excluding engineering services on a development contract) representing an increase of 125% compared to Q2-2009 and 62% compared to Q1-2010.

Financial Results

As at June 30, 2010, the Company had cash and cash equivalents of $5,427,000. The Company's cash used in operating activities in Q2-2010 was $2,367,000 compared to $376,000 in Q2-2009. Novadaq's Q2-2010 net loss of $3,524,000 or $0.13 per share, compared to net loss of $3,358,000 or $0.14 per share in Q2-2009. The Q2-2010 loss among other items included a one-time non-cash inventory write-down of $427,000. Unless otherwise indicated, all dollar amounts expressed in this press release are United States (U.S.) dollars.

Comment

"Our continued focused on driving the adoption of SPY in key opinion leading plastic surgery centers throughout the United States resulted in our best sales quarter overall for SPY" said Dr. Arun Menawat, Novadaq CEO and President. "In addition, CMS recently announced that on October 1, 2010, a new ICD-9-CM procedure code describing the use of SPY in non-coronary surgical applications such as plastic reconstruction surgery will go into effect. As the momentum continues to build, we expect to announce our broader commercialization strategy by the end of the third quarter."

Conference Call

Novadaq is pleased to invite all interested parties to participate in a conference call on August 12, 2010 at 10:00 a.m. Eastern Time during which the results will be discussed.

To access the live audio webcast:


Please login 5-10 minutes prior to the event start time.                    
Go to website: http://www.investorcalendar.com/IC/CEPage.asp?ID=160767      
Select "2nd Qtr. 2010 Financial Results", fill in login information, and    
then click 'OK'                                                             
A pop-up window will open to display the audio web conference               

To access the live conference call:                                         

Live Participant Dial-In (Toll Free): (877) 407-8033                        
Live Participant Dial-In (International): (201) 689-8033                    

A telephonic replay of the conference call will be made available until midnight on 9/12/10 and can be accessed by dialing 1-877-660-6853 (within Canada and the United States) or 1-201-612-7415 (international callers) and entering the account number 286 and the conference identification number 354599 when prompted. The call will be archived for 365 days on the company's website at http://www.novadaq.com under the "Events" tab in the Investors section. In addition, a replay of the call will be available for download to a portable audio player or computer, as an MP3 or podcast file, at the same location on Novadaq's website.

About Novadaq Technologies Inc.

Novadaq Technologies develops and markets real-time fluorescence imaging technology products for use in the operating room. The company's primary core technology platform, SPY Imaging, provides clinically relevant, anatomic and physiologic images during a variety of complex open and minimally invasive surgical (MIS) procedures. SPY empowers surgeons treating life threatening diseases to more effectively treat vascular blockages; assess tissue perfusion; identify cancerous tumors and delineate margins; and visualize relevant lymph nodes for removal. More than 30 peer-reviewed publications demonstrate that SPY imaging leads to fewer post-operative complications and reduced hospital costs. The endoscopic SPY system (a SPY scope) combines all of the capabilities of SPY imaging with state-of- the- art high definition (HD) white light visualization offered by conventional endoscopes. The company's key markets include plastic reconstructive, gastrointestinal, cardiac and general surgery. To realize the full potential of its technology platform, Novadaq explores technology alliances. Novadaq announced its first alliance with Intuitive Surgical Inc. in January 2009, to integrate SPY imaging into the 3-D HD imaging capabilities of the da Vinci® Surgical Robotic System. In addition, Novadaq is the exclusive United States distributor of PLC Medical's CO2 HEART LASER System. For more information, please visit the company's website at http://www.novadaq.com.

Forward-Looking Statements

Certain statements included in this press release may be considered forward-looking. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on Novadaq's current beliefs as well as assumptions made by and information currently available to Novadaq and relate to, among other things, results of future clinical tests of the SPY Imaging System and SPY scope, anticipated financial performance, business prospects, strategies, regulatory developments, market acceptance and future commitments.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by Novadaq in its public securities filings actual events may differ materially from current expectations. Novadaq disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


Novadaq Technologies Inc.                                                   

                         CONSOLIDATED BALANCE SHEET                         
                                (Unaudited)                                 
                        (expressed in U.S. dollars)                         

                                                        As at         As at 
                                                     June 30,  December 31, 
                                                         2010          2009 
                                                            $             $ 
                                                ----------------------------

ASSETS                                                                      
Current                                                                     
Cash and cash equivalents                           5,427,390     2,524,958 
Accounts receivable                                 1,980,649     1,398,593 
Current portion of prepaid expenses and other                               
 receivables                                        2,266,739     2,003,681 
Inventory                                             497,844     1,017,268 
                                                ----------------------------
Total current assets                               10,172,622     6,944,500 
                                                ----------------------------
Long-term investments                                       -       150,000 
Property, plant and equipment, net                  1,373,312     1,762,554 
Prepaid expenses and other receivables                209,398       189,148 
Deferred development costs                            405,195       405,195 
Intangible assets, net                              6,876,390     7,273,564 
                                                ----------------------------
                                                   19,036,917    16,724,961 
                                                ----------------------------
                                                ----------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY                                        
Current                                                                     
Accounts payable and accrued liabilities            3,038,243     3,254,575 
Current portion of deferred revenue                   714,844       710,365 
Current portion of deferred license and                                     
 development revenue                                4,500,000     3,000,000 
                                                ----------------------------
Total current liabilities                           8,253,087     6,964,940 
                                                ----------------------------
Long-term debt                                      3,705,242     3,527,700 
Long-term income tax payable                           43,090        48,979 
Deferred revenue                                      259,995       238,158 
                                                ----------------------------
Total liabilities                                  12,261,414    10,779,777 
                                                ----------------------------

Shareholders' equity                                                        
Share capital                                      86,883,879    81,188,324 
Warrants                                              916,560             - 
Contributed surplus                                 7,314,899     6,882,280 
Deficit                                           (88,339,835)  (82,125,420)
                                                ----------------------------
Total shareholders' equity                          6,775,503     5,945,184 
                                                ----------------------------
                                                   19,036,917    16,724,961 
                                                ----------------------------
                                                ----------------------------




Novadaq Technologies Inc.                                                   

                     CONSOLIDATED STATEMENT OF LOSS AND                     
                       COMPREHENSIVE LOSS AND DEFICIT                       
                                (Unaudited)                                 
                        (expressed in U.S. dollars)                         

                         Three-month period ended    Six-month period ended 
                                          June 30                   June 30 
                                2010         2009         2010         2009 
                                   $            $            $            $ 
                        ----------------------------------------------------

REVENUE                                                                     
Product sales              2,338,591    1,352,471    4,396,030    4,001,251 
Service revenue              307,831      347,081      669,800      711,967 
                        ----------------------------------------------------
Total revenue              2,646,422    1,699,552    5,065,830    4,713,218 
Cost of sales              1,318,591    1,117,187    2,636,544    2,477,470 
                        ----------------------------------------------------
Gross profit               1,327,831      582,365    2,429,286    2,235,748 
                        ----------------------------------------------------

OPERATING EXPENSES                                                          
Sales and marketing        1,953,818    1,837,583    3,736,065    3,655,424 
Research and development   1,174,475      839,696    2,025,641    1,806,279 
General and                                                                 
 administration              817,406      721,405    1,439,986    1,563,612 
Depreciation                  67,152      102,646      144,241      198,310 
Amortization                 198,587      308,247      397,174      616,493 
Impairment of inventory      426,600            -      426,600            - 
(Gain) loss on foreign                                                      
 exchange                     58,999       (9,139)      40,000       21,235 
                        ----------------------------------------------------
Total operating expenses   4,697,037    3,800,438    8,209,707    7,861,353 
                        ----------------------------------------------------
Loss before the                                                             
 following:               (3,369,206)  (3,218,073)  (5,780,421)  (5,625,605)
Impairment of long-term                                                     
 investment                        -            -     (125,000)           - 
Interest expense and                                                        
 imputed interest                                                           
 expense                    (160,183)    (143,654)    (316,170)    (210,470)
Interest income                5,242        3,343        7,176        6,331 
                        ----------------------------------------------------
Net loss and                                                                
 comprehensive loss for                                                     
 the period               (3,524,147)  (3,358,384)  (6,214,415)  (5,829,744)
                        ----------------------------------------------------

Deficit, beginning of                                                       
 period                  (84,815,688) (69,607,449) (82,125,420) (67,136,089)
                        ----------------------------------------------------
Deficit, end of period   (88,339,835) (72,965,833) (88,339,835) (72,965,833)
                        ----------------------------------------------------
                        ----------------------------------------------------

Basic and fully diluted                                                     
 loss per share                (0.13)       (0.14)       (0.23)       (0.24)
                        ----------------------------------------------------
                        ----------------------------------------------------


Novadaq Technologies Inc.                                                   

                    CONSOLIDATED STATEMENT OF CASH FLOWS                    
                                (Unaudited)                                 
                        (expressed in U.S. dollars)                         

                                 Three-month period                         
                                              ended  Six-month period ended 
                                            June 30                 June 30 
                                   2010        2009        2010        2009 
                                      $           $           $           $ 
                            ------------------------------------------------

OPERATING ACTIVITIES                                                        
Net loss for the period      (3,524,147) (3,358,384) (6,214,415) (5,829,744)
Add (deduct) items not                                                      
 involving cash                                                             
  Depreciation and                                                          
   amortization                 419,130     599,896     877,772   1,177,830 
  Imputed interest expense       89,865      79,505     177,542     115,001 
  Impairment of inventory       426,600           -     426,600           - 
  Loss on long-term                                                         
   investment                         -           -     125,000           - 
  Stock-based compensation      238,085     165,481     432,619     252,046 
                            ------------------------------------------------
                             (2,350,467) (2,513,502) (4,172,882) (4,284,867)
Net change in non-cash                                                      
 working capital balances                                                   
 related to operations          (16,215)  2,137,555     559,533   3,553,809 
                            ------------------------------------------------
Cash used in operating                                                      
 activities                  (2,366,682)   (375,947) (3,615,349)   (731,058)
                            ------------------------------------------------

FINANCING ACTIVITIES                                                        
Issuance of convertible                                                     
 debentures, net of                                                         
 transaction costs                    -           -           -   5,062,409 
Exercise of options               1,958           -       1,958           - 
                            ------------------------------------------------
Issuance of common shares                                                   
 and warrants, net of                                                       
 transaction costs                    -           -   6,610,157           - 
                            ------------------------------------------------
Cash (used) provided by                                                     
 financing activities             1,958           -   6,612,115   5,062,409 
                            ------------------------------------------------

INVESTING ACTIVITIES                                                        
Purchase of property, plant,                                                
 and equipment                  (83,859)    (36,797)    (91,357)   (129,954)
Redemption of long-term                                                     
 investment                           -           -      25,000      50,000 
Purchase of short-term                                                      
 investments, net                     -    (699,304)          -    (699,304)
                            ------------------------------------------------
Cash (used in) provided by                                                  
 investing activities           (83,859)   (736,101)     66,357    (779,258)
                            ------------------------------------------------
Foreign exchange (loss)                                                     
 income on cash held in                                                     
 foreign currency               (91,797)      5,658     (27,977)    (14,223)
                            ------------------------------------------------

Net (decrease) increase in                                                  
 cash and cash equivalents                                                  
 during the period           (2,540,380) (1,106,390)  2,902,432   3,537,870 
Cash and cash equivalents,                                                  
 beginning of period          7,967,770   8,636,093   2,524,958   3,991,833 
                            ------------------------------------------------
Cash and cash equivalents,                                                  
 end of period                5,427,390   7,529,703   5,427,390   7,529,703 
                            ------------------------------------------------
                            ------------------------------------------------


Contacts:
Investor: Novadaq Technologies Inc.
Suzie Robinson, APR
972-488-6508
srobinson@novadaq.com
www.novadaq.com


Read at BioSpace.com

comments powered by Disqus
   

ADD TO DEL.ICIO.US    ADD TO DIGG    ADD TO FURL    ADD TO STUMBLEUPON    ADD TO TECHNORATI FAVORITES