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

s line of mobile imaging services. According to Casner, ultrasound business is progressing well according to plan.

DIS now accounts for more than 75 percent of total revenues, and the Company's centers of influence are beginning to produce higher bookings and revenue each quarter. Also during the quarter, Digirad added Johns Hopkins Medical Center, one of the nation's premiere academic medical centers, to its centers of influence. The Company began this program less than a year ago, now has working relationships with six centers of influence, and expects to sign at least four additional centers by the end of 2008.

Casner added: "The results of our centers of influence strategy are encouraging, but we feel it is too early to offer a definitive outlook. However, as this expansion continues to gain traction, we'll be able to better understand and predict not only the revenue implications but also the timing of those revenue flows."

First-Quarter 2008 Financial Summary:

-- Consolidated revenues were $18.3 million, compared to $17.5 million in

first-quarter 2007.

-- Digirad Imaging Solutions (DIS) revenue rose 13.6 percent to $13.9

million from $12.2 million in first-quarter 2007, due primarily to the

introduction of ultrasound imaging services.

-- Product-related revenue was $4.4 million, compared to $5.3 million in

first-quarter 2007, due to fewer camera sales resulting from healthcare

imaging reimbursement pressures and the slowing economy.

-- Gross profit declined to $4.4 million from $5.4 million in

first-quarter 2007, due primarily to lower camera sales, and higher

labor and other servicing costs related to DIS.

-- Total operating expenses rose to $6.1 million from $5.9 million in

first-quarter 2007 due to higher amortization costs from the

acquisition of Ultrascan in the second-quarter 2007.

-- Net loss for the quarter wa
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SOURCE Digirad Corporation
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