NASHUA, N.H., Nov. 2 /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 third quarter ended September 30, 2007, as well as the nine months year to date for 2007.
Third Quarter 2007 Financial Results and Highlights (all financial comparisons are versus the third quarter of 2006)
Commenting on the quarter’s results, Ken Ferry, president and CEO of iCAD, said, “Our strong third quarter performance reinforces our confidence that our long-term growth strategy is on track. In addition to posting solid sales gains, we strengthened every balance sheet metric critical to building a healthy and sustainable growth company. We were especially pleased with the continued strength in our digital CAD sales, which validates the ongoing success of our ‘go to market’ strategy and underscores the growing market opportunity for iCAD as the mammography landscape continues to convert from analog to digital technology.”
Third Quarter Results
Total revenue for the third quarter of 2007 was $6.3 million, a 24% increase compared with total revenue of $5.0 million for the third quarter of 2006. The increase in revenue was a result of continued growth in the company’s digital revenue, as well as growth in film-based analog revenue and service and supply revenue. The gross margin for the 2007 third quarter increased to 80.1% from 76.3% for the prior-year third quarter. Net loss for the third quarter of 2007, including stock-based compensation expense of $363,000, decreased to $682,000, or ($0.02) per share, compared with a net loss, including stock-based compensation expense of $220,000, of $1.1 million or ($0.03) per share in the third quarter of 2006.
For the quarter, sales of iCAD’s digital solutions increased 30% to $4.0 million from $3.1 million in the prior-year period. Sales of film-based analog products increased 17% to $1.5 million from $1.3 million, and service revenue rose 14% to $801,000 from $704,000.
Year-to-Date Results
For the nine months ended September 30, 2007, total revenue increased 39% to $18.5 million compared with total revenue of $13.3 million for the nine months ended September 30, 2006. The gross margin for the first nine months of 2007 increased to 80.1% from 77.8% in the comparable prior-year period. Net loss for the nine months ended September 30, 2007, including stock-based compensation expense of $856,000, decreased by $3.2 million to $2.1 million, or ($0.06) per share, compared with a net loss, including stock-based compensation expense of $767,000, of $5.3 million, or ($0.14) per share, for the nine months ended September 30, 2006.
For the first nine months of 2007, sales of iCAD’s digital solutions increased 69% over the prior-year period to $11.4 million from $6.8 million. Sales of film-based analog products grew by 4% over the prior year to $4.6 million from $4.4 million, and service revenue rose 20% to $2.5 million from $2.1 million.
As of September 30, 2007, iCAD had cash and cash equivalents of $3.9 million, compared with $3.6 million as of December 31, 2006. Inventory as of September 30, 2007 was $1.8 million, down 40% from $3.0 million as of December 31, 2006. Accounts payable were $1.3 million, down 48% from $2.6 million and accounts receivable were $4.1 million, up 12% from $3.7 million at December 31, 2006.
2007 Financial Guidance
iCAD today affirms financial guidance, as announced on August 9, 2007. The Company expects 2007 total revenue to be in the range of $26 million to $27 million. This guidance does not include any potential revenue from the sale of iCAD’s SecondLook Digital and TotalLook products to Fuji in the U.S. The Company expects to maintain gross margin in the 80% range and anticipates operating expenses will be between $5.3 million and $5.7 million per quarter, with the fourth quarter of 2007 at the high end of the range for operating expenses.
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 (866) 356-4441 (domestic) or (617) 597-5396 (international) and entering passcode 58280262. 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 November 9, 2007 by dialing (888) 286-8010 (domestic) or (617) 801-6888 (international) and entering passcode 13753185. 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 1,000 women’s healthcare centers worldwide. For more information, call (877) iCADnow or visit http://www.icadmed.com.
ddeptula@icadmed.com
For iCAD Investor Relations, contact Anne Marie Fields of Lippert/Heilshorn &
Associates at 212-838-3777 x6604 or via email at icad@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 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 Investor Relations,
Anne Marie Fields of Lippert/Heilshorn & Associates for iCAD, Inc.,
+1-212-838-3777, ext. 6604, icad@lhai.com; or Public Relations, Wendy Ryan
of Schwartz Communications for iCAD, Inc., +1-781-684-0770,
icad@schwartz-pr.com
Web site: http://www.icadmed.com/
