|IDC 2015 Results|
IMAGING DYNAMICS COMPANY LTD. REPORTS 2015 FINANCIAL RESULTS
Calgary, Alberta, April 29, 2016 - Imaging Dynamics Company Ltd. ("IDC" or the "Company") (TSXV: IDL) reports its financial results for the December 31, 2015 fiscal year-end.
2015 Annual Highlights
2015 was a year of transition for IDC. A new Board and Management team was established to embark on a renewal of the company and its products. A comprehensive strategic plan was developed that focused on three key areas:
On the basis of the above, IDC was able to complete two private placements, during a very difficult funding environment, which raised $2.0 million CAD in a share offering and $6.25 million CAD in a convertible debenture. In addition, a second convertible debenture of $5.75 million CAD was announced in December 2015, which ultimately closed in January 2016. These private placements will be used to expand business operations based on a new strategic plan, for working capital purposes, to refinance existing long-term debt and to repay certain long-term debt outstanding.
Gross revenues for the 2015 year were $2.4 million compared to $2.5 million for the prior year, a decrease of 4.3 percent over last year. The sales revenues during the year were mainly from the Asia-Pacific region and the United States.
Operating costs (sales and marketing, general and administrative, production and manufacturing, and research and development expenses) were up by 76 percent to $3.6 million from $2.0 million as compared to last year. The significant increase can mostly be attributed to one time costs as a result of IDC expanding its sales network throughout China and Asia and establishing and investing in its research and development academies. The Company is focusing on building its new strategic direction.
For the reasons mentioned above, Net loss for the year ended December 31, 2015 was $3.8 million compared to a net loss of $1.4 million for last year, a decrease over the prior year results.
Given the vast market potential and to better service the Chinese and Asian markets, IDC opened a new subsidiary based in the Shanghai Free Trade Zone to establish an R&D Academy to explore, develop, and market new products.
ďIDC has worldwide brand recognition, including in the Chinese and Asian markets. However, its product lines need further diversification and its operations require more efficiencies. We have funded and embarked on a new strategic plan to address this and are pleased with the progress made so far. There is no question that the Chinese and Asian markets are a huge opportunity for IDC and given IDCís positive brand recognition, its existing distribution relationships combined with our new product development efforts and strategic plan, we feel that IDC can re-establish itself as a strong force in the medical imaging marketplace,Ē said Mr. Yucheng Zhou, IDCís CEO and Chairman.
A conference call to discuss the 2015 annual results is not planned at this time. The Company expects to announce the date and location of its Annual General Meeting in the near future.
About Imaging Dynamics Company (IDC):
IDC is a global medical imaging technology provider and innovative force in the high growth field of digital radiography (DR) technology.
The Company has over 4,000 installations in 50 countries of its proprietary, award winning direct capture DR technology, which replaces conventional film-based diagnostic imaging and provides a cost-effective solution for medical facilities of all sizes to provide high quality diagnostic X-ray images and improve the level of healthcare for their patients.
Throughout its history, IDC has been recognized by multiple industry organizations and research analysts such as: Frost & Sullivan and Deloitte Technology; for its dedication to innovation, global market growth, and customer focused value proposition.
The Company has its corporate office in Calgary, Canada, a representative office in Beijing, China, and also an operations and R&D center in Shanghai, China.
Visit the IDC web site: www.imagingdynamics.com
For more information, please contact:
Assistant Corporate Secretary
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.
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