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

er 30,

2007 2006 2007 2006

Revenues:

DIS $13,500 $11,388 $39,020 $38,008

Product 5,274 5,314 16,104 16,671

Total revenues 18,774 16,702 55,124 54,679

Cost of revenues:

DIS 10,166 8,681 28,771 29,080

Product 3,834 3,937 10,327 11,450

Total cost of revenues 14,000 12,618 39,098 40,530

Gross profit 4,774 4,084 16,026 14,149

Operating expenses:

Research and development 868 1,036 2,441 3,249

Sales and marketing 1,624 2,272 5,661 6,797

General and administrative 3,037 3,455 9,126 11,689

Amortization of intangible assets 217 6 326 35

Total operating expenses 5,746 6,769 17,554 21,770

Loss from operations (972) (2,685) (1,528) (7,621)

Interest and other, net 384 551 1,252 1,480

Net loss $(588) $(2,134) $(276) $(6,141)

Net loss per share - basic and

diluted $(0.03) $(0.11) $(0.01) $(0.33)

Weighted average shares

outstanding:

Basic and diluted 18,829 18,782 18,821 18,751

Stock-based compensation

expense is included in the

above as follows:

Cost of DIS revenue $17 $33 $61 $125

Cost of Product revenue 17 24 60 66

Research and development 18 41 62 129

Sales and marketing 2 89 67
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SOURCE Digirad Corporation
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