Digirad Corporation Reports 2011 First Quarter Financial Results
Clyde continued, "We expect to see consolidated revenue growth in 2011, especially as we enter the second half as several market initiatives gain traction -- resulting in improving margins and profitability."
First Quarter 2011 Summary
- Total revenue for the first quarter of 2011 was
$14.2 million , compared to$15.1 million in the prior year and$14.7 million in the traditionally strong fourth quarter. DIS-only revenue for the first quarter of 2011 was$9.6 million , compared to$10.7 million for the same period of the prior year and$9.4 million in the prior quarter. Product revenue for the first quarter of 2011 was$4.6 million , compared to$4.3 million for the same period of the prior year and$5.2 million in the prior quarter. - Gross profit for the first quarter of 2011 was
$3.5 million , or 24.8 percent of revenue, compared to$3.4 million , or 22.4 percent of revenue, in the same period of the prior year and$3.6 million , or 24.6 percent of revenue, in the prior quarter. - Net loss for the first quarter of 2011 was
$0.4 million , or$0.02 loss per share, compared to net loss of$1.2 million , or$0.07 loss per share, in the same period of the prior year and a net loss of$0.6 million , or$0.03 loss per share, in the prior quarter. - Cash and cash equivalents and available-for-sale securities totaled
$30.6 million , or$1.64 per share as ofMarch 31, 2011 . Cash and cash equivalents and available-for-sale securities totaled$30.2 million , or$1.63 per share as ofDecember 31, 2010 . - During the first quarter of 2011, DIS asset utilization was 58 percent on 131 systems (nuclear and ultrasound), compared to 62 percent on 135 systems (nuclear and ultrasound) in the prior year and 58 percent on 132 systems (nuclear and ultrasound) in the prior quarter.
"To repeat our goals for 2011," Clyde concluded, "We expect to: 1) generate free cash flow for the full year 2011; 2) increase ergo sales by further driving imaging to the point of care; 3) expand margins in both our Product and DIS businesses; and 4) achieve consolidated top-line revenue growth in the second half of the year."
Conference Call Information
A conference call is scheduled for
About
Forward-Looking Statements
This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. These include statements regarding our ability to deliver value to customers, our expanded product and service offerings, including, the addition of the first large-field-of-view, solid state portable camera to the hospital marketplace, and our ability to generate positive cash flow in 2011. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made, including the risks associated with changes in business conditions, technology, customers' business conditions, reimbursement, radiopharmaceutical shortages, economic outlook, operational policy or structure, acceptance and use of
(Financial tables follow)
Digirad Corporation
Consolidated Statements of Operations
(Unaudited and in thousands, except per share data)
Three Months Ended
March 31,
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2011 2010
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Revenues:
DIS $ 9,596 $ 10,723
Product 4,579 4,346
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Total revenues 14,175 15,069
Cost of revenues:
DIS 7,762 8,803
Product 2,894 2,894
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Total cost of revenues 10,656 11,697
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Gross profit 3,519 3,372
Operating expenses:
Research and development 708 725
Marketing and sales 1,424 1,630
General and administrative 2,104 2,262
Amortization of intangible assets 94 132
Restructuring (gain) loss (164) --
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Total operating expenses 4,166 4,749
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Loss from operations (647) (1,377)
Other income (expense):
Interest income 208 122
Interest expense (13) (2)
Other income 65 22
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Total other income 260 142
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Net loss $ (387) $ (1,235)
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Net loss per common share - basic and diluted $ (0.02) $ (0.07)
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Weighted average shares outstanding - basic and
diluted 18,943 18,670
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Stock-based compensation expense is included in
the above as follows:
Cost of DIS revenue $ 4 $ 7
Cost of Product revenue 29 11
Research and development 22 9
Marketing and sales 36 19
General and administrative 136 130
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Total stock-based compensation expense $ 227 $ 176
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Digirad Corporation
Consolidated Balance Sheets
(In thousands, except share amounts)
March 31, December 31,
2011 2010
------------ ------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 21,586 $ 20,459
Securities available-for-sale 8,974 9,788
Accounts receivable, net 8,181 7,527
Inventories, net 5,529 5,432
Other current assets 1,426 1,038
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Total current assets 45,696 44,244
Property and equipment, net 6,385 7,185
Intangible assets, net 714 808
Goodwill 184 184
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Total assets $ 52,979 $ 52,421
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Liabilities and stockholders' equity
Accounts payable $ 2,427 $ 1,871
Accrued compensation 2,156 1,600
Accrued warranty 372 378
Deferred revenue 2,116 2,379
Other accrued liabilities 2,141 2,096
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Total current liabilities 9,212 8,324
Deferred rent 138 138
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Total liabilities 9,350 8,462
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Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.0001 par value: 10,000,000
shares authorized; no shares issued or
outstanding -- --
Common stock, $0.0001 par value: 80,000,000
shares authorized; 18,640,228 and 18,597,311
shares issued and outstanding (net of treasury
shares) at March 31, 2011 and December 31,
2010, respectively 2 2
Treasury stock, at cost; 573,218 shares at March
31, 2011 and December 31, 2010 (1,039) (1,039)
Additional paid-in capital 155,012 154,785
Accumulated other comprehensive income (107) 63
Accumulated deficit (110,239) (109,852)
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Total stockholders' equity 43,629 43,959
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Total liabilities and stockholders' equity $ 52,979 $ 52,421
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Investor Contact:Matt Clawson Allen & Caron 949-474-4300 Email Contact Company Contact:Richard Slansky CFO 858-726-1600 Email Contact
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