Digirad Reaches Quarterly Net Income
POWAY, Calif., April 30 /PRNewswire-FirstCall/ -- Digirad Corporation (Nasdaq: DRAD), today reported it was ahead of internal schedules on its 2009 goal of generating consistent profitability and positive cash flow. Net income was $44,000 for the first quarter ended March 31, 2009.
Digirad CEO Todd Clyde said, "We are pleased to report significant financial and operational progress during the first quarter. We previously communicated our 2009 goals as:
1) Creating greater efficiency by selling or closing underperforming hubs; 2) improving our approach to launching and growing Centers of Influence (COI); 3) introducing new imaging technologies; 4) developing new technology platforms; and lastly, 5) progress toward consistent profitability and positive cash flow.
"We are ahead of plan on nearly every one of these goals. We have sold or closed all but one underperforming hub, achieved double-digit growth in our current Centers of Influence locations, launched our Cardius(R) X-ACT rapid cardiac SPECT/VCT imaging system to help open the hospital and large cardiology practice markets, recorded net income in the first quarter of 2009 and burned less cash than anticipated."
First Quarter Financial Highlights:
Clyde added, "Our DIS personnel and equipment leasing services segment is operating today on a stronger base-business footprint. We continue to remain focused on driving positive margins as we attract new business in the markets where we already have presence and can leverage our teams, assets and COI relationships. In this quarter, we felt the effects of the poor economy, which impacted the purchasing patterns of our camera customers. Although we have little visibility into how long the negative camera sales trend may last, we remain focused on our goal of achieving consistent profitability and cash flow."
Conference Call Information
A conference call is scheduled for 11:00 a.m. EDT today to discuss the results and management's outlook. The call may be accessed by dialing 800-762-8795 five minutes prior to the scheduled start time and referencing Digirad. For callers outside the United States, dial 480-629-9041. A simultaneous webcast of the call may be accessed online from the Events & Presentations link on the Investor Relations page at www.digirad.com; an archived replay of the webcast will be available within 15 minutes of the end of the conference call.
About Digirad Corporation
Digirad is a leading provider of diagnostic imaging products, and personnel and equipment leasing services. For more information, please visit www.digirad.com. Digirad(R), Digirad Imaging Solutions(R), and Cardius(R) are registered trademarks of Digirad Corporation.
This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. These include statements regarding our planned investment in our technology roadmap, expected product launches, and the impact of our innovative initiatives on sales. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made, including the risks associated with changes in business conditions, technology, customers' business conditions, work force, suppliers, business prospects, economic outlook, operational policy or structure, acceptance and use of Digirad's camera systems and services, reliability, recalls, and other risks detailed in Digirad's filings with the U.S. Securities and Exchange Commission, including Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports. Readers are cautioned to not place undue reliance on these forward looking statements, which speak only as of the date hereof. All forward looking statements are qualified in their entirety by this cautionary statement, and Digirad undertakes no obligation to revise or update the forward looking statements contained herein.
Investor Contact: Company Contact: Matt Clawson Todd Clyde, CEO Allen & Caron 858-726-1600 949-474-4300 firstname.lastname@example.org
[Financial tables next pages] Digirad Corporation Consolidated Statements of Operations (In thousands, except per share amounts) Three Months Ended March 31, 2009 2008 (unaudited) Revenues: DIS $13,851 $13,854 Product 3,859 4,417 Total revenues 17,710 18,271 Cost of revenues: DIS 10,194 10,912 Product 2,407 2,946 Total cost of revenues 12,601 13,858 Gross profit 5,109 4,413 Operating expenses: Research and development 772 644 Sales and marketing 1,708 2,119 General and administrative 2,409 3,159 Amortization and impairment of intangible assets 170 190 Restructuring loss 145 -- Total operating expenses 5,204 6,112 Loss from operations (95) (1,699) Interest income and other, net 139 304 Net income (loss) $44 ($1,395) Net income (loss) per share - basic and diluted $0.00 ($0.07) Weighted average shares outstanding: Basic 19,017 18,931 Diluted 19,172 18,931 Stock-based compensation expense is included in the above as follows: Cost of DIS revenue $8 $17 Cost of Product revenue $14 $11 Research and development $9 $13 Sales and marketing $25 $24 General and administrative $109 $115
Digirad Corporation Consolidated Balance Sheets (In thousands, except per share amounts) March 31, December 31, 2009 2008(1) (unaudited) Assets Cash and cash equivalents $15,327 $13,525 Securities available-for-sale 12,781 14,759 Accounts receivable, net 9,801 9,324 Inventories, net 6,355 4,978 Property and equipment held for sale - 1,122 Other current assets 1,702 1,982 Total current assets 45,966 45,690 Property and equipment, net 12,548 13,428 Intangible assets, net 1,663 1,833 Goodwill 184 184 Restricted cash 60 60 Total assets $60,421 $61,195 Liabilities and stockholders' equity Accounts payable $2,571 $2,197 Accrued compensation 2,737 3,457 Accrued warranty 809 906 Deferred revenue 2,481 2,723 Other accrued liabilities 2,786 2,811 Total current liabilities 11,384 12,094 Deferred rent 112 142 Total stockholders' equity 48,925 48,959 Total liabilities and stockholders' equity $60,421 $61,195 (1) The consolidated balance sheet as of December 31, 2008, has been derived from the audited financial statements as of that date.
|SOURCE Digirad Corporation|
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