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Digirad Reports 2007 Third-Quarter, Nine-Month Financial Results
Date:10/25/2007

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"In addition, we are starting to see initial revenue from our centers of influence marketing strategy that has, to date, resulted in active working relationships with three highly respected academic medical institutions," Casner continued. "Based on indications from these centers and our plan to add affiliations with other centers of similar standing, this strategy holds the potential to contribute incremental revenues in 2008."

Consolidated revenues for the quarter were $18.8 million, compared to $16.7 million for third-quarter 2006. DIS (Digirad Imaging Services) revenue was $13.5 million, compared to $11.4 million in third quarter 2006. For the quarter, DIS operated 135 units, both nuclear and ultrasound, with an overall asset utilization rate of 62%, compared to 83 units (all nuclear) and an asset utilization rate of 51% for third-quarter 2006.

Third-quarter product-related revenues, consisting of camera sales and maintenance fees, were $5.3 million and included sales of 17 cameras for both the third-quarter 2007 and third-quarter 2006. Product-related gross margin was flat compared to last year.

Consolidated gross profit for the quarter improved to $4.8 million, or 25.4% of revenues, from $4.1 million, or 24.5% of revenues, for third-quarter 2006. DIS gross margin improved to 24.7% of revenues, compared to 23.8% for third-quarter 2006. Product-related gross margin was 27.3%, compared to 25.9% for third-quarter 2006.

Casner added: "During the quarter we continued to upgrade our DIS nuclear fleet by replacing 13 more single-head cameras with our multi-headed Cardius XPO configuration. We now have 55 multi-headed mobile cameras in operation and expect to replace 6 of the 36 remaining single-headed cameras during the fourth quarter of 2007. As in recent periods, we expect these ongoing upgrades to lead to higher reliability and increased throughput, which are expected to contribute to higher utilization and lower labor costs, in s
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SOURCE Digirad Corporation
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