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Digirad Corporation Reports Financial Results for 2007 Fourth Quarter and Twelve Months
Date:2/7/2008

Ultrascan net assets and $8.6 million for capital expenditures primarily associated with the fleet upgrade of the Company's mobile imaging services operations. Cash usage was offset in part by positive cash flows from operations of $4.7 million during the year. Net receivables were $8.5 million, compared to $7.5 million on December 31, 2006. Net inventories were $5.5 million, compared to $5.9 million on December 31, 2006.

Focus for 2008

Casner further commented: "Looking forward, our key focus for 2008 will be driving DIS revenue growth through our Centers of Influence strategy, increasing our mobile imaging fleet utilization which should translate into a profitable 2008 for our DIS business, and reaching profitability for the first time in the history of our product business, as we intend to increase product-related revenue, reduce costs and improve reliability in this business segment."

Management Reaffirms Guidance for 2008

For full-year 2008, the Company anticipates consolidated revenues in a range of $80 million to $84 million, consisting of DIS imaging services revenue of $59 million to $61 million and product-related revenue of $21 million to $23 million; and consolidated net results for 2008 to range from net income of $500,000 to a net loss of $1 million, including estimated stock-based compensation expense of $1 million.

Conference Call Information

Digirad has scheduled a conference call at 11:00 a.m. EDT today. A simultaneous webcast of the call may be accessed online from the Events & Presentations link on the Investor Relations page at http://www.digirad.com; an archived replay of the webcast will be available within 15 minutes of the end of the conference call. A telephone replay of the call will be available at (800) 406-7325 or (303) 590-3030, conference ID #3838461, from approximately 2 p.m. EST. The telephone replay will be available until 11:59 p.m. EST on
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SOURCE Digirad Corporation
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