iCAD Reports Fourth Quarter and Full Year 2007 Financi...(2089566 4.4% Service & suppl...),Health

Service & supply revenue 895,535 814,798 9.9%

Total revenue $8,100,649 $6,439,679 25.8%

2007 Full Year Results

For the year ended December 31, 2007, total revenue increased 35% to $26.6 million compared with total revenue of $19.7 million in 2006. The gross margin for 2007 increased to 80.2% from 78.2% in 2006. Operating expenses for 2007 were $22.5 million as compared to $21.9 million for 2006, an increase of only 3%. The net loss for 2007, including stock-based compensation expense of $1.2 million, was $1.5 million or a loss of $0.04 per share, an improvement of $5.1 million compared with the net loss for 2006, including stock-based compensation expense of $1.3 million, of $6.6 million or a loss of $0.18 per share.

For the full year 2007 sales of iCAD's digital products increased 60% over the prior year to $16.4 million from $10.3 million. Sales of film-based products grew by 4% over the prior year to $6.8 million from $6.5 million, and service revenue rose 17% to $3.4 million from $2.9 million recorded in 2006.

Year Ended December 31,

2007 2006 % Change

Digital revenue $16,429,450 $10,287,510 59.7%

Film based revenue 6,768,846 6,519,503 3.8%

Service & supply revenue 3,414,116 2,914,345 17.1%

Total revenue $26,612,412 $19,721,358 34.9%

Commenting on the balance sheet, Darlene Deptula-Hicks, Executive Vice President and Chief Financial Officer said, "In addition to strong operating performance in 2007, we have strengthened every balance sheet metric critical to building a healthy and sustainable growth company."

As of December 31, 2007, iCAD had cash and cash equivalents of $4.3 million, compared with $3.6 million as of De
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