NightHawk Radiology Holdings, Inc. Announces Fourth Quarter and Full-Year 2007 Results; Updates 200...(ain non-cash charges including sto...),Health

charges, including stock compensation, IBNR reserve and the

amortization of intangibles associated with acquisitions. Also excluded

from the calculation of 2007 adjusted earnings per diluted share is a

one-time charge of approximately $0.5 million related to the settlement

of an acquisition-related legal dispute with a former advisor.

-- GAAP net income was $14.7 million, or $0.47 per diluted share, compared

to ($28.5) million, or ($1.00) per diluted share in the same period of

2006. GAAP net income was impacted by higher non-cash charges for stock

compensation, IBNR, and amortization of intangibles and, in 2006, a

pre-IPO non cash expense related to the company's then outstanding

preferred stock.

-- The company's 2007 results were impacted by slightly lower fourth

quarter scan volumes due to greater than expected seasonality and a

delay in transitioning the former Radlinx physician contracts to the

company's compensation model to late in the fourth quarter.

Fourth-Quarter Results

-- Fourth quarter 2007 revenue grew 77% to $42.7 million from

$24.1 million in the fourth quarter 2006. Fourth quarter 2007 scan

volumes grew 63% to 730,992 scans compared with 448,084 scans in the

fourth quarter 2006.

-- Fourth quarter organic revenue and organic scan volume grew 19% and

24%, respectively, year-over-year.

-- New service offerings, primarily daytime final reads and business

services, represented 21%, or $8.8 million, of total revenue for the

quarter.

-- Adjusted net income for the fourth quarter of 2007 grew 72% to

$8.1 million, or $0.26 per diluted share, from $4.7 million, or

$0.15 per diluted share in the fourth quarter 2006.

-- GAAP net income grew 41% to $3.1 million, or $0.10 per diluted share,

compared
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