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IDC Q2 2016 Results

IMAGING DYNAMICS COMPANY LTD. Reports Second Quarter 2016 Results


Calgary, Alberta, August 26, 2016 - Imaging Dynamics Company Ltd. ("IDC" or the "Company") (TSXV: IDL) reports its financial results for the second quarter ended June 30, 2016.

2016 Second Quarter Highlights

The second quarter of 2016 saw IDC continue to execute its new strategy to renew the Company and its products with significant advancements:


  • Gross revenues for the second quarter increased by 70 percent to $1,049,002 compared to $617,418 for the same quarter last year.  In the quarter, 86 per cent (2015 – 59 per cent) of sales were in the China and 14 per cent (2015 - 41 per cent) in the Americas reflecting the new sales and marketing strategy launched in China earlier this year;

     

  • The Company moved its head office into a new facility in Calgary, Alberta and built leasehold improvements in Calgary and China;

     

  • Gross margins for the three months ended June 30, 2016 were $249,676 or 24 per cent compared to 50 per cent in the same quarter of 2015.  Last year’s higher Gross Margin was primarily due to the Company selling previously written down inventory in North America;

     

  • Overhead costs (sales, general and administrative, production and manufacturing, and research and development expenses) were $1,775,589, up from $662,932 during the same quarter last year.  This increase is due to establishing operations in China and Canada.  In addition, the Company has once again begun to increase research and development costs, spending $206,051 in the quarter, an increase of over ten times the same quarter in 2015;

     

  • Net loss for the second quarter ended June 30, 2016 was $1,748,999 compared to net loss of $620,350 for the same quarter last year.  The main contributors to this loss were lower gross margins as described above, increased overhead due to setting up and reorganizing the business so it is able to sustain future growth, and interest costs on the convertible debentures;

     

  • Trade and other receivables increased from $169,637 at December 31, 2015 to $1,405,906 at June 30, 2016 due to an increase in sales during second quarter;

     

  • Inventory increased from $205,664 at December 31, 2015 to $1,117,094 due to expanded product offerings in anticipation of higher sales;

     

  • Trade and other payables increased from $2,317,683 at December 31, 2015 to $4,255,765 at June 30, 2016.  This increase is due to higher accruals and obligations for inventory, expenses and capital additions.


 “I am very pleased with how well our new sales and marketing program is working, especially in China. The inbound queries and serious interest in IDC’s existing and new products is very encouraging. The upcoming financing will give us the necessary resources to build and further capitalize on this momentum,” said Mr. Yucheng Zhou, IDC’s CEO and Chairman.


A conference call to discuss the quarter’s results is not planned at this time. The Company’s interim consolidated financial statements for the three and six months ended June 30, 2016 and the related management discussion and analysis are available on Sedar.com.


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 sales and marketing office in Beijing, China, and also operations, research and development centres in Calgary, Canada and Shanghai, China.



Visit the IDC web site:  www.imagingdynamics.com


For more information, please contact:
Mr. Eugene Woychyshyn


Chief Financial Officer       
1.403.251.9939 Office  
1.866.975.6737 Toll Free   


ewoychyshyn@imagingdynamics.com       


 

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.

 


Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.