iCAD Reports Fourth Quarter and Full Year 2007 Financi...( Company Achieves Record Quarterly ...),Health

Company Achieves Record Quarterly Revenue and Returns to Profitability

Provides First Half 2008 Financial Guidance

Conference Call Begins Today at 10:00 a.m. Eastern Time

NASHUA, N.H., March 6 /PRNewswire-FirstCall/ -- iCAD, Inc. (Nasdaq: ICAD), an industry-leading provider of Computer-Aided Detection (CAD) solutions for the early detection of cancer, today announced financial results for the fourth quarter and year ended December 31, 2007. Financial highlights include the following:

-- Fourth quarter revenue of $8.1 million up 26% over prior year fourth

quarter

-- Total revenue of $26.6 million up 35% over the prior year

-- Digital revenue growth of 42% for the quarter over prior year fourth

quarter and 60% for the year as compared to 2006

-- International revenue up 160% over prior year

-- Gross margin of 80.5% for the quarter and 80.2% for the year, compared

with 79.2% and 78.2%, respectively, for the comparable prior-year

periods

-- Profitable fourth quarter with net income of $525,000 or $0.01 per

diluted share

-- Q4 was the second consecutive cash flow positive quarter

"2007 was a very strong year for iCAD as we posted record total revenue, turned the corner on profitability, generated positive cash flow for the second half of the year and significantly strengthened our balance sheet," commented Ken Ferry, President and CEO. "The market for digital CAD for mammography continues to experience strong growth as evidenced by our 60% revenue growth in this area during 2007, and reflects the growing acceptance of full field digital mammography technology and CAD as the standard of care," he added. "There remains considerable room for growth in the digital CAD market as only approximately 30% of mammography systems at the 8,800 certified mammography sites in the U.S. have transitioned to digital technology from film-based te
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