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Digirad Corporation Reports Financial Results for First-Quarter 2008
Date:4/24/2008

POWAY, Calif., April 24 /PRNewswire-FirstCall/ -- Digirad Corporation (Nasdaq: DRAD), a leading provider of medical diagnostic imaging systems and services to physicians' offices, hospitals and imaging centers, today reported financial results for first quarter ended March 31, 2008.

Consolidated revenues were higher, compared to the same time period in 2007, due to an increase in mobile imaging services revenues within Digirad Imaging Solutions. The Company's product division experienced a downturn in large part due to the difficult market conditions during the quarter. Operating expenses were relatively unchanged from the year ago period, but the effects of weaker margins and lower product sales contributed to the loss in the quarter.

Chief Executive Mark Casner commented: "We are clearly disappointed with the performance of our product division during first quarter, but we remain cautiously optimistic that these results reflect more of an acute phase than a systemic problem. And while it can be difficult to predict future results, early indications show that bookings and shipments have picked up during the first few weeks of April.

"In late third-quarter 2007, we launched labor-retention initiatives to reduce turnover in the DIS division," Casner continued. "I am pleased to report that these initiatives have produced some positive results, but they have also contributed to the squeeze on margins this quarter. As a result, we are evaluating these initiatives and will likely refine them this quarter to address this issue."

Growth of DIS services revenues in first quarter, compared to first-quarter 2007, was the result of incremental revenue from ultrasound imaging that in second-quarter 2007 Digirad added to it
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SOURCE Digirad Corporation
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