NASHUA, N.H., May 7 /PRNewswire-FirstCall/ -- iCAD, Inc. , an industry-leading provider of Computer-Aided Detection (CAD) solutions for the early identification of cancer, today announced financial results for the three months ended March 31, 2008. Financial highlights for the first quarter of 2008 include the following (all comparisons are with the first quarter of 2007):
“Our financial performance during the first quarter of 2008 was one of ongoing improvement,” commented Ken Ferry, iCAD’s President and CEO. “We saw continued strong demand for our digital products and were particularly pleased to have received U.S. Food and Drug Administration (FDA) approval for our SecondLook(R) Digital product for use with Fujifilm’s Computed Radiography for Mammography (FCRm) systems. SecondLook(R) Digital for FCRm is the first CAD product approved and available in the U.S. for use with computed radiography. This represents a considerable market opportunity for iCAD as Fujifilm has enjoyed record domestic sales, having sold 500 FCRm systems since receiving their FDA approval in July 2006. In March we introduced a new version of our comparative reading solution, TotalLook and while it temporarily slowed film based product sales as customers wanted to see a demonstration before making a purchase decision, we expect substantial increased demand as we get a full quarter of traction in the second quarter.”
“The digital CAD market opportunity continues to be strong with considerable room for sustained growth. According to the FDA website, 561 full field digital mammography (FFDM) units were placed in service in the first quarter, an increase of 39 percent over the first quarter of 2007. Even with this substantial growth, approximately 67 percent of the installed base is still film based, reflecting a substantial growth opportunity for us over the next two to three years, as more centers continue to migrate to digital technology.”
2008 First Quarter Results
Total revenue for the first quarter of 2008 was $6.4 million, a 5 percent increase compared with total revenue of $6.1 million for the first quarter of 2007. The increase reflects continued growth in sales of the Company’s digital products, offset by declines in film-based revenue and service and supply revenue. Lower film-based revenue was largely due to the mid-quarter introduction of the Company’s new version of its TotalLook product, as customers held off purchases awaiting the new product, which began shipping toward the end of the quarter. The Company expects that second quarter results will benefit from the launch of this new product and that film-based product revenue will increase as a result. The decline in service and supply revenue is primarily due to a reduction this quarter in time and material billings for repair services and related parts sales. Service and supply revenue is expected to increase as the installed base of digital CAD systems grows and transitions from warranty to service contracts.
The gross margin for the first quarter of 2008, increased to 82.3 percent from 80.3 percent in the prior-year first quarter. The net loss for the first quarter of 2008, including stock-based compensation expense of $392,000, narrowed to $446,000 or $0.01 per share, from a net loss, including stock-based compensation expense of $277,000, of $583,000 or $0.02 per share in the first quarter of 2007.
For the first quarter of 2008, sales of iCAD’s digital products increased 24 percent to $4.3 million from $3.5 million in the prior-year period. Sales of film-based products decreased 25 percent to $1.4 million from $1.8 million, and service and supply revenue declined 11 percent to $777,000 from $877,000, both compared with first quarter 2007 results.
Commenting on the balance sheet, Darlene Deptula-Hicks, Executive Vice President and Chief Financial Officer, said, “We continue to strengthen our balance sheet and are pleased to report that during the first quarter iCAD generated over $900,000 in cash, marking our third consecutive quarter of positive cash flow. During the quarter we held operating expenses to the lower end of our projected range and consequently we remain in a strong position moving forward.”
As of March 31, 2008, iCAD had cash and cash equivalents of $5.3 million, compared with $4.3 million as of December 31, 2007. As of March 31, 2008 inventories increased modestly to $2.0 million from $1.8 million as of December 31, 2007, primarily due to preparing for the launch of Fuji CAD. Accounts payable were $1.6 million, down 20 percent from $2.0 million and accounts receivable decreased 30 percent to $4.5 million, from $6.5 million as of December 31, 2007.
2008 Financial Guidance
iCAD affirms financial guidance for the first six months of 2008. As previously reported the Company expects total revenue for the first half of 2008 to be in the range of $15 million to $16 million. The Company also expects to achieve a first-half gross margin consistent with or slightly better than 2007, and anticipates operating expenses will be between $5.6 million and $5.9 million per quarter for the first two quarters of 2008. This guidance includes sales of iCAD’s SecondLook(R) Digital and TotalLook products to Fujifilm globally, which commenced in the second quarter.
Conference Call
iCAD management will host an investment community conference call beginning at 10:00 a.m. ET today to discuss these results and to answer questions. Stockholders and other interested parties may participate in the conference call by dialing 866-383-8119 (domestic) or +617-597-5344 (international) and entering passcode 45812263. The call will also be broadcast live on the Internet at http://www.streetevents.com, http://www.fulldisclosure.com or http://www.icadmed.com.
A replay of the conference call will be accessible two hours after its completion through May 14, 2008 by dialing 888-286-8010 (domestic) or +617-801-6888 (international) and entering passcode 16440562. The call will also be archived for 90 days at http://www.streetevents.com, http://www.fulldisclosure.com and http://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 more than 2,000 women’s healthcare centers worldwide. For more information, call (877) iCADnow or visit http://www.icadmed.com.
For iCAD Investor Relations, contact Anne Marie Fields of Lippert/Heilshorn &
Associates at 212-838-3777 x6604 or via email at afields@lhai.com
For iCAD Public Relations, contact Jill Testagrossa of Schwartz Communications
at 781-684-0770 or via email at icad@schwartz-pr.com
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995:
Certain statements contained in this News Release, including but not limited to, statements about the Company’s confidence or strategies or expectations about revenues, results of operations, timing of regulatory approval of products or market opportunities, 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.
CONTACT: Darlene Deptula-Hicks, EVP and CFO of iCAD, Inc.,
+1-603-882-5200, ext. 7944, ddeptula@icadmed.com; or for iCAD Investor
Relations, Anne Marie Fields of Lippert-Heilshorn & Associates,
+1-212-838-3777, ext. 6604, afields@lhai.com; or for iCAD Public Relations,
Jill Testagrossa of Schwartz Communications, +1-781-684-0770,
icad@schwartz-pr.com
Web site: http://www.icadmed.com/
