NASHUA, N.H., May 8 /PRNewswire-FirstCall/ -- iCAD, Inc. , an industry-leading provider of Computer-Aided Detection (CAD) solutions for the early detection of cancer, today announced financial results for its first quarter ended March 31, 2007.
Highlights of the quarter include 41% revenue growth, higher gross margin and a reduced loss from operations over the first quarter of 2006. The Company reported revenue of $6.1 million for the first quarter of 2007 as compared to $4.4 million for the same period of 2006. Gross margin for the first quarter increased to 80.3%, from 79.0% in the prior-year first quarter. Net loss for the first quarter of 2007, including equity based compensation of $277,000, decreased to $554,000, or ($0.02) per share, compared to a net loss, including equity based compensation of $8,000, of $1.6 million or ($0.04) per share in the first quarter of 2006.
Sales of iCAD's digital solutions rose 76% over the prior year first quarter from $2.0 million to $3.5 million due to the continued strength in demand for full field digital mammography technology. Sales of film based products rose 3% over the prior year first quarter from $1.76 million to $1.8 million and service revenue rose 35% over the prior year first quarter from $650,000 to $877,000. Additionally, backlog rose 320% over the prior year first quarter from $493,000 to $2.1 million.
Q1 2007 Q1 2006 % Growth Digital revenue $ 3,453,370 $ 1,964,060 75.8% Film based revenue 1,817,304 1,759,907 3.3% Service revenue 876,812 649,683 35.0% Total revenue $6,147,486 $4,373,650 40.6%
"Our first quarter performance demonstrates the continued strong demand for digital mammography CAD. Also, on a comparative basis, we've made significant progress against our key financial measures as well," said Ken Ferry, Chief Executive Officer of iCAD, Inc. "We are also seeing business momentum on a global basis and believe that the increasing demand for digital mammography CAD in Europe and Japan will nicely compliment our U.S. performance in the coming quarters. This additional market reach will also serve us well as we bring new CAD products to the market that we expect will extend our reach beyond mammography."
iCAD's management will host a conference call today at 10:00 a.m. EDT to discuss financial results and answer investor questions. Shareholders and other interested parties may participate by dialing +1 866 356 4123 (domestic) or +1 617 597 5393 (international) and entering passcode 76366422, a few minutes before the start of the conference call. A replay of the conference call will be accessible two hours after its completion through May 15, 2007 by dialing +1 888 286 8010 (domestic) or +1 617 801 6888 (international) and entering passcode 97889019. The call will also be broadcast live and archived for 90 days on the Internet at www.streetevents.com, www.fulldisclosure.com and www.icadmed.com.
About iCAD, Inc.
iCAD, Inc. is an industry-leading provider of Computer- Aided Detection (CAD) solutions that enable healthcare professionals to better serve patients by identifying pathologies and pinpointing cancer earlier. iCAD offers a comprehensive range of high-performance, upgradeable CAD systems for the high, mid and low volume mammography markets. iCAD is entrusted with the task of early cancer detection by almost one thousand women's healthcare centers worldwide. For more information, call +1 877 iCADnow or visit www.icadmed.com.
For iCAD, contact Darlene Deptula-Hicks at 603-882-5200 x7944 or via email at ddeptula@icadmed.com
For iCAD Investor Relations, contact Kevin McGrath of Cameron Associates at 212-245-4577 or via email at kevin@cameronassoc.com
For iCAD Public Relations, contact Wendy Ryan of Schwartz Communications at 781-684-0770 or via e-mail at icad@schwartz-pr.com
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
Certain statements contained in this News Release constitute "forward- looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the risks of uncertainty of patent protection, the impact of supply and manufacturing constraints or difficulties, product market acceptance, possible technological obsolescence, increased competition, customer concentration and other risks detailed in the Company's filings with the Securities and Exchange Commission. The words "believe", "demonstrate", "intend", "expect", "estimate", "anticipate", "likely", and similar expressions identify forward- looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made. The Company is under no obligation to provide any updates to any information contained in this release.
iCAD, INC. Consolidated Statements of Operations (unaudited) Three Months Ended Three Months Ended March 31, 2007 March 31, 2006 Sales $6,147,486 $4,373,650 Cost of sales 1,208,628 918,879 Gross margin 4,938,858 3,454,771 Operating expenses: Engineering and product development 1,064,875 1,319,198 General and administrative 1,813,355 1,749,053 Marketing and sales 2,508,759 1,985,687 Total operating expenses 5,386,989 5,053,938 Income (loss) from operations (448,131) (1,599,167) Interest expense - net 105,806 6,727 Net loss (553,937) (1,605,894) Preferred dividend 29,050 30,432 Net income (loss) attributable to common stockholders $(582,987) $(1,636,326) Net income (loss) per share: Basic and Diluted $(0.02) $(0.04) Weighted average number of shares used in computing income (loss) per share: Basic and Diluted 37,472,457 36,863,386 iCAD, INC. AND SUBSIDIARIES Consolidated Balance Sheets March 31, December 31, Assets 2007 2006 Current assets: Cash and cash equivalents $3,431,049 $3,623,404 Trade accounts receivable, net of allowance for doubtful accounts of $91,000 in 2007 and $88,000 in 2006 3,874,547 3,683,178 Inventory, net 2,628,382 3,031,995 Prepaid and other current assets 276,126 219,723 Total current assets 10,210,104 10,558,300 Property and equipment: Equipment 3,953,460 3,716,247 Leasehold improvements 59,856 70,164 Furniture and fixtures 306,059 296,170 Marketing assets 295,893 290,282 Total property and equipment 4,615,268 4,372,863 Less accumulated depreciation and amortization 2,499,444 2,269,139 Net property and equipment 2,115,824 2,103,724 Other assets: Deposits 63,194 60,444 Patents, net of accumulated amortization 126,863 146,394 Technology intangibles, net of accumulated amortization 3,577,905 3,731,926 Tradename, distribution agreements and other, net of accumulated amortization 167,400 173,600 Goodwill 43,515,285 43,515,285 Total other assets 47,450,647 47,627,649 Total assets $59,776,575 $60,289,673 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $2,062,352 $2,557,108 Accrued interest 327,669 221,050 Accrued salaries and other expenses 2,247,014 2,547,231 Deferred revenue 917,595 788,122 Current maturities of notes payable - 375,000 Total current liabilities 5,554,630 6,488,511 Convertible revolving loans payable to related party 2,258,906 2,258,906 Convertible loans payable to related parties 2,786,765 2,784,559 Convertible loans payable to non- related parties 669,118 663,970 Other long term liabilities 86,433 122,000 Total liabilities 11,355,852 12,317,946 Commitments and contingencies Stockholders' equity: Preferred stock, $ .01 par value: authorized 1,000,000 shares; issued and outstanding 6,295 in 2007 and 2006, with an aggregate liquidation value of $1,660,000 plus 7% annual dividend, in 2006 and 2005, respectively. 63 63 Common stock, $ .01 par value: authorized 50,000,000 shares; issued 37,865,333 in 2007 and 37,290,848 shares in 2006; outstanding 37,797,457 in 2007 and 37,222,971 shares in 2006 378,653 372,908 Additional paid-in capital 133,657,535 132,660,347 Accumulated deficit (84,665,264) (84,111,327) Treasury stock at cost (67,876 shares) (950,264) (950,264) Total Stockholders' equity 48,420,723 47,971,727 Total liabilities and stockholders' equity $59,776,575 $60,289,673
iCAD, Inc.CONTACT: Darlene Deptula-Hicks of iCAD, Inc., +1-603-882-5200, ext. 7944,ddeptula@icadmed.com; or Investors, Kevin McGrath of Cameron Associates,+1-212-245-4577, kevin@cameronassoc.com, for iCAD, Inc.; or Media, WendyRyan of Schwartz Communications, +1-781-684-0770, icad@schwartz-pr.com, foriCAD, Inc.
Web site: http://www.icadmed.com//
