Imaging Dynamics Company Ltd. (Imaging Dynamics), a Canada-based medical technology company, has reported net revenues of CAD16.8 million for the full year-end 2008, compared with the net revenues of CAD32.4 million in the previous year-end. It has also reported a net loss of CAD15.7 million, or CAD0.21 loss per share, for the full year-end 2008, compared with the net loss of CAD14.2 million, or CAD0.24 loss per share, in the previous year-end.
2008 Year and Fourth Quarter Highlights
Cash and cash equivalents increased by CAD0.4 million during fourth quarter to CAD1.1 million at December 31, 2008 from CAD0.7 million at September 30, 2008;
Revenue for the fourth quarter increased by 47% when compared to the third quarter of 2008 while maintaining gross margins;
Sales and marketing, general and administrative, production and manufacturing and research and development expenses were all down year over year from 2007 to 2008 by 26.5% and quarter over quarter from Q3 2008 to Q4 2008 by 11.3% ;
Purchase orders received during the fourth quarter and opening backlog totaled CAD4.1 million (CAD3.1 million shipped and recognized, CAD1.0 million booked to closing backlog);
Receivables reduced by CAD7.3 million when compared to December 31, 2007 on the collection of CAD23.7 million and by CAD0.8 million compared to September 30, 2008 on the collection of CAD4.4 million during the fourth quarter;
Inventory reduced by CAD7.9 million compared to December 31, 2007 and by CAD4.5 million compared to September 30, 2008 which included a CAD3.4 million write down of inventory during the fourth quarter;
Reduced payables and accruals by CAD9.2 million compared to December 31, 2007 and payables and accruals increased by CAD0.7 million compared to September 30, 2008;
Reduced expenses by 34.8% or CAD2.2 million compared to the same quarter last year and by 33.7% or CAD8.1 million on a year to date basis compared to the same period last year;
Gross revenues were lower by 62.8% compared to the same quarter last year and by 48.0% on a year to date basis compared to the same period last year; which was largely due to the decline in revenues in US as a result of the slowing economic conditions and Asia-Pacific due to business slow down during the Beijing Olympics during the third quarter and foreign exchange impact as majority of the sales are in US dollars (US dollar was weak against the Canadian dollar for most part of 2008 compared to 2007); and
Gross margins were 21.1% for the quarter and on a year to date basis were 26.3% which were also impacted due to; lower margin sales during the year and the global pricing pressures on digital radiography products, the continued utilization of inventory that was purchased during previous quarters when the US-Canadian dollar exchange rate was much higher and inventory adjustments during the quarter to ensure proper valuation.
For the 2008 year, Imaging Dynamics reported a loss of CAD0.15 per share before interest and inventory and asset write down, for a full-year loss after interest and write downs of CAD0.21 per share on revenues of CAD16,876,980 as compared to a loss of CAD0.24 per share on revenues of CAD32,446,401 last year. For the fourth quarter, the Company reported a loss of CAD0.04 per share before interest and inventory and asset write down, and a loss after interest and write downs of CAD0.08 per share on revenues of CAD3,071,181 as compared to a loss of CAD0.10 per share on revenues of CAD8,263,103 in Q4 2007.
Tom Boon, Imaging Dynamics’ president & CEO said, “While our year over year results are clearly disappointing, we are not immune to the global economic challenges the diagnostic imaging industry is currently facing. However, I am very encouraged by our quarter over quarter results. Sales were up by 47% while maintaining our margins, cash was up, receivables and inventory were down – these are signs that the steps we have implemented are taking hold and their effects are making a positive impact. Most importantly, I am seeing early signs that the customer confidence in Imaging Dynamics is returning as demonstrated by the increased sales activity, the large China order recently received and the clear uptick in revenue. Our X-Series product performance is world class, the Imaging Dynamics brand is strong, our global channels are demonstrating more activity and our employees are exceeding my expectations given the organizational changes that were implemented during the past several quarters. These are early indicators that give me confidence that Imaging Dynamics will demonstrate improved results throughout 2009.”