IDC REPORTS FOURTH QUARTER and YEAR END 2011 RESULTS
Calgary, Canada – March 28, 2012 - Imaging Dynamics Company Ltd. (“IDC” or the “Company”) (TSX: IDL) a global leader in the high growth digital radiography (DR) equipment market, today reported financial results for the fourth quarter and year ended December 31, 2011.
2011 Year and Fourth Quarter Highlights
• Gross revenues were lower by 13 percent to $1.7 million compared to $2.0 million for the same quarter last year and were higher by 41 percent to $7.6 million compared to $5.4 million on a fiscal year basis, due to increase of revenues from Emerging Markets and lower than anticipated revenues from other regions in the fourth quarter of 2011;
• Gross margins were 18 percent for the quarter compared to 36 percent for the same quarter last year and 26 percent compared to 34 percent on a fiscal year basis, largely due to lower margin sales into Asia Pacific region;
• Sales and marketing, general and administrative, production and manufacturing and research and development expenses were all down by 33 percent to $0.9 million from $1.3 million during the quarter compared to the same quarter last year and were reduced by 27 percent to $3.9 million from $5.3 million on a fiscal year basis compared to last year;
• Net loss for the quarter ended December 31, 2011 was $0.3 million compared to $0.7 million for the same quarter last year and was $1.9 million compared to $4.2 million on a fiscal year basis compared to last year which was one of the lowest quarterly losses since 2007;
• Consistent quarterly growth in revenues compared to prior year and majority of the revenues generated from repeat customers from the Asia Pacific region;
• Reduced total expenses before finance costs for the quarter ended December 31, 2011 to $0.5 million compared to $1.3 million for the same quarter last year and to $3.6 million compared to $5.7 million on a fiscal year basis compared to last year which was one of the lowest quarterly expenses since 2007;
• Purchase orders received during the fourth quarter and opening backlog totaled $2.1 million ($1.7 million shipped and recognized, $0.4 million booked to closing backlog);
• Trade and other receivables increased by $0.2 million compared to December 31, 2010 on collection of approximately $7.4 million during the year ended December 31, 2011, Days Sales Outstanding (DSO) for the quarter was 26 days, one of the lowest in the last sixteen quarters;
• Reduced inventory by $1.3 million compared to December 31, 2010; and
• Reduced trade and other payables by $0.2 million compared to December 31, 2010.
Net loss for the fourth quarter of 2011 was $250,806 or $0.00 per basic and diluted loss per share which included a warranty recovery of $301,427, compared to a net loss of $694,968 or $0.00 per basic and diluted loss per share for the same quarter last year. Net loss for fiscal 2011 was $1,913,699 or $0.01 per basic and diluted loss per share which included a warranty recover of $606,727, compared to a net loss of $4,214,940 or $0.04 per basic and diluted loss per share for the previous year.
On January 1, 2011, the Company adopted International Financial Reporting Standards (“IFRS”) for financial reporting purposes, using a Transaction Date of January 1, 2010. The Company’s consolidated financial statements for the year ended December 31, 2011 are the first consolidated financial statements under IFRS and are prepared in accordance with IFRS 1, and as such include the application of IFRS 1 “First-Time Adoption of International Financial Reporting Standards” (“IFRS 1”). IFRS 1 requires all first-time adopters to retrospectively apply all effective IFRS standards as of the transition date of January 1, 2010.
The adoption of IFRS has not had a significant impact on the Company’s operations, strategic decisions or cash flows.
Commenting on fourth quarter and year end 2011 results, Swapan Kakumanu, IDC President and Chief Executive Officer stated, “Our fourth quarter financial results were slightly below our expectations with respect to revenue and gross margins but we continued to reduce overhead expenses and manage our tight working capital. We exited the quarter with $0.4 million of backlog into 2012 and overall our fiscal year 2011 revenues were 41 percent higher than 2010. We are expecting the Asia Pacific region will remain active during 2012 and we are taking all necessary initiatives to regain our market share in the North American market.”
Kakumanu continued, “As we have done in 2011, we are very closely monitoring and managing our current cash and working capital requirements on a day-to-day basis. Our current focus continues to be to maintain sufficient cash and working capital to sustain future IDC operations until we finalize one of the strategic options that the Management and Board are actively pursuing.”
“We continue to actively evaluate and identify new strategic options for capital to sustain and grow the business”, commented Shameze Rampertab, Chairman of the Board.
For an overview of the financial charts, please click here >>
About Imaging Dynamics Company (IDC):
IDC is a medical devices technology company and innovative force in the high growth field of digital radiography (DR) technology. IDC’s product line of CCD-based X-Series direct capture technology and the new innovaXion Flat Panel technology replaces conventional film-based diagnostic imaging and provides a cost-effective solution for producing high quality diagnostic images, enhancing patient care and improving workflow.
Each IDC DR solution provides high resolution radiographic images in the digital format required for today’s (PACS) Picture Archiving & Communication Systems and the growing requirements for the electronic health record, all without the use of film, environmentally unfriendly chemicals, and cassettes.
Throughout its history, IDC has been recognized by multiple industry organizations and research analysts such as: Frost & Sullivan, Deloitte Technology and PROFIT; for its consistent dedication to innovation, global growth, and customer focused value proposition.
IDC is based in Calgary, Alberta, Canada.
Mr. Swapan Kakumanu
President & Chief Executive Officer
Statements in this release which describe IDC's intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of IDC to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. IDC may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions. Known and unknown risks and uncertainties include: IDC's ability to manufacture its products with a sufficient level of quality and in volumes which satisfy market demand; the ability of IDC to establish direct and indirect sales channels; the ability of IDC to establish industry partnerships; IDC's ability to attract and retain key personnel; the strength and breadth of IDC's patents; and other factors relating to general economic conditions, specific industry conditions and IDC's particular situation.