Digirad Corporation Reports Financial Results for 2007 Fourth Quarter and Twe...(12337 53429 52867 Gross profi...)

Gross profit 4,492 4,910 20,518 19,059

Operating expenses:

Research and development 631 645 3,072 3,894

Sales and marketing 2,009 2,030 7,670 8,827

General and administrative 2,794 2,846 11,920 14,535

Amortization and impairment

of intangible assets 371 (8) 697 27

Total operating expenses 5,805 5,513 23,359 27,283

Loss from operations (1,313) (603) (2,841) (8,224)

Interest income, net 343 454 1,566 1,988

Other expense (130) -- (101) (54)

Net loss $(1,100) $(149) $(1,376) $(6,290)

Net loss per share - basic $(0.06) $(0.01) $(0.07) $(0.34)

and diluted

Weighted average shares

outstanding:

Basic and diluted 18,916 18,791 18,845 18,761

Stock-based compensation expense is included in the above as follows:

Cost of DIS revenue $10 $17 $71 $141

Cost of Product revenue (11) 9 49 74

Research and development 15 -- 77 130

Sales and marketing 35 41 102 279

General and administrative 32 110 606 942

Digirad Corporation

Condensed Consolidated Balance Sheets(1)

(in thousands)

December 31,

2007 2006

(unaudited)

Assets

Cash and cash equivalents
'/>"/>