NASHUA, N.H., March 6 /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 the fourth quarter and year ended December 31, 2007. Financial highlights include the following:
"2007 was a very strong year for iCAD as we posted record total revenue, turned the corner on profitability, generated positive cash flow for the second half of the year and significantly strengthened our balance sheet," commented Ken Ferry, President and CEO. "The market for digital CAD for mammography continues to experience strong growth as evidenced by our 60% revenue growth in this area during 2007, and reflects the growing acceptance of full field digital mammography technology and CAD as the standard of care," he added. "There remains considerable room for growth in the digital CAD market as only approximately 30% of mammography systems at the 8,800 certified mammography sites in the U.S. have transitioned to digital technology from film-based technology and we see strong potential for international growth in this area as well. CAD purchases are running nearly one-to-one with full- field digital mammography systems, underscoring the clinical and workflow benefits derived from CAD. We remain confident that iCAD will maintain a leadership position in digital CAD and we will continue to capitalize on this growing market opportunity."
2007 Fourth Quarter Results
Total revenue for the fourth quarter of 2007 was a record $8.1 million, a 26% increase compared with total revenue of $6.4 million for the fourth quarter of 2006. The increase was a result of continued high growth in the Company's digital products revenue, as well as solid growth in film-based product revenue and service revenue. The gross margin for the fourth quarter of 2007 increased to 80.5% from 79.2% in the prior-year fourth quarter. Operating expenses for the fourth quarter declined by 8%, to $5.9 million, as compared to $6.4 million for the fourth quarter of 2006. Net income for the fourth quarter of 2007, including stock based compensation expense of $378,000, was $525,000 or $0.01 per diluted share, compared with a net loss, including stock based compensation expense of $567,000, of $1.4 million or a loss of $0.04 per share in the fourth quarter of 2006, and marks the company's first profitable quarter since the first quarter of 2005.
2007 Full Year Results
For the year ended December 31, 2007, total revenue increased 35% to $26.6 million compared with total revenue of $19.7 million in 2006. The gross margin for 2007 increased to 80.2% from 78.2% in 2006. Operating expenses for 2007 were $22.5 million as compared to $21.9 million for 2006, an increase of only 3%. The net loss for 2007, including stock-based compensation expense of $1.2 million, was $1.5 million or a loss of $0.04 per share, an improvement of $5.1 million compared with the net loss for 2006, including stock-based compensation expense of $1.3 million, of $6.6 million or a loss of $0.18 per share.
For the full year 2007 sales of iCAD's digital products increased 60% over the prior year to $16.4 million from $10.3 million. Sales of film-based products grew by 4% over the prior year to $6.8 million from $6.5 million, and service revenue rose 17% to $3.4 million from $2.9 million recorded in 2006.
Commenting on the balance sheet, Darlene Deptula-Hicks, Executive Vice President and Chief Financial Officer said, "In addition to strong operating performance in 2007, we have strengthened every balance sheet metric critical to building a healthy and sustainable growth company."
As of December 31, 2007, iCAD had cash and cash equivalents of $4.3 million, compared with $3.6 million as of December 31, 2006. As of December 31, 2007 inventories decreased 41% to $1.8 million, from $3.0 million as of December 31, 2006. Accounts payable were $2.0 million, down 21% from $2.6 million and accounts receivable increased 76% to $6.5 million, from $3.7 million as of December 31, 2006.
2008 Financial Guidance
iCAD today introduces financial guidance for the first six months of 2008. The Company expects total revenue for the first six months of 2008 to be in the range of $15 million to $16 million. The Company also expects to achieve gross margins consistent with 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 the effect of anticipated revenue from the sale of iCAD's SecondLook Digital and TotalLook products to FujiFilm globally commencing in the second quarter.
Conference Call
iCAD management will host an investment-community conference call beginning at 10:00 a.m. Eastern time today to discuss these results and to answer questions. Shareholders and other interested parties may participate in the conference call by dialing 888-713-4213 (domestic) or +617-213-4865 (international) and entering passcode 94453837. The call will also be broadcast live on the Internet at www.streetevents.com, www.fulldisclosure.com or www.icadmed.com.
A replay of the conference call will be accessible two hours after its completion through March 13, 2008 by dialing 888-286-8010 (domestic) or +617- 801-6888 (international) and entering passcode 65836264. The call will also be archived for 90 days 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 more than 1,000 women's healthcare centers worldwide. For more information, call (877) iCADnow or visit www.icadmed.com.
For iCAD, contact Darlene Deptula-Hicks, EVP and CFO at 603-882-5200 x7944 or via email at ddeptula@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 Wendy Ryan 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, +1-603-882-5200
x7944, ddeptula@icadmed.com; iCAD Investor Relations, Anne Marie Fields of
Lippert/Heilshorn & Associates, +1-212-838-3777 x6604, afields@lhai.com;
iCAD Public Relations, Wendy Ryan of Schwartz Communications,
+1-781-684-0770, icad@schwartz-pr.com
Web site: http://www.icadmed.com/
