Digirad Corporation Announces Preliminary Financial Results for 2007, Initial Guidance for 2008
January 08 2008 - 6:00AM
PR Newswire (US)
Projecting Revenue Growth, Net Income Potential in 2008 POWAY,
Calif., Jan. 8 /PRNewswire-FirstCall/ -- Digirad Corporation
(NASDAQ:DRAD), a leading provider of medical diagnostic imaging
products and services to physicians' offices, hospitals and imaging
centers, today announced preliminary financial results for the
fourth quarter and full-year ended December 31, 2007, and initial
guidance for full-year 2008. For full-year 2007, consolidated
revenues are expected at approximately $74.0 million, consisting of
imaging services revenue of approximately $52.4 million and product
revenue of approximately $21.6 million. Consolidated net loss is
expected in a range of $1.3 million to $1.5 million, including
estimated stock-based compensation expense of approximately
$900,000. For full-year 2008, the Company anticipates consolidated
revenues in a range of $80 million to $84 million, consisting of
imaging services revenue of $59 million to $61 million and product
revenue of $21 million to $23 million; and consolidated net results
for 2008 to range from net income of $500,000 to a net loss of $1
million, including estimated stock-based compensation expense of $1
million. Chief Executive Mark Casner commented: "Although full-year
2007 results were clear improvements over the prior year, they were
nevertheless below our previous expectations. The revenue shortfall
was due primarily to greater than expected physician cancellations
during the holidays and the radioisotope shortage experienced when
the nuclear reactor in Canada was out of service for an extended
period." Casner continued: "For 2007 overall, we are pleased with
having maintained control of expenses while at the same time
putting the building blocks in place for growth in 2008. We
acquired Ultrascan, launched our centers of influence strategy, and
had almost immediate success with three large medical centers.
During the fourth quarter we signed another large medical center,
the first on the West Coast, and now have five centers as we begin
2008. "As a result of ongoing discussions with an increasing number
of medical centers, we are also making solid progress toward
establishing new services agreements in 2008," Casner stated.
"Revenues from existing centers are beginning to ramp up, and with
the addition of new centers expected during the year, we see this
strategy gaining better traction and being a primary contributor to
revenue growth in 2008." Casner added: "Operationally, we will
continue our focus on increasing utilization of our mobile imaging
equipment and personnel, stronger direct marketing to primary-care
physicians, and controlling expenses. Furthermore, we have launched
an initiative in our product division to drive revenues, reduce
costs and improve reliability. This initiative is projected to
bring the product division to full-year profitability in 2008."
Digirad management will be presenting at JPMorgan's 26th Annual
Healthcare Conference being held January 7-10, 2008, at the Westin
St. Francis Hotel, San Francisco. Their presentation is scheduled
to begin at 11:30 a.m. PT on Thursday, January 10 and will include
a discussion of Digirad's business, growth strategy and outlook for
2008. The presentation will be Webcast live at
http://www.metameetings.com/webcasts/jpmorgan/healthcare08 and
archived for 90 days at on the events and presentations page of the
investors section of Digirad's web site at
http://drad.client.shareholder.com/events.cfm. About Digirad
Corporation Digirad provides diagnostic medical imaging products
and services to physicians' offices, hospitals and imaging centers
for cardiac, vascular, and general imaging applications. Digirad's
Cardius XPO line of nuclear imaging cameras use patented
solid-state technology and unique multi (single, dual, triple) head
design for superior performance and advanced features for sharper
digital images, faster processing, compact size, lighter weight for
portability, ability to handle patients up to 500 pounds, and
improved patient comfort compared to standard nuclear cameras.
Digirad's 2020tc general-purpose nuclear imager has a small
footprint and may also be configured for fixed or mobile use to
supplement primary imaging. Digirad's installed base of equipment
exceeds 450 systems; in addition, a mobile fleet of more than 120
nuclear and ultrasound imaging systems is being used in 22 states,
primarily in the eastern, midwestern and southwestern United
States. For more information, please visit http://www.digirad.com/.
Digirad(R), Digirad Imaging Solutions(R), and Cardius(R) are
registered trademarks of Digirad Corporation. Forward-Looking
Statements Digirad cautions that statements included in this press
release that are not a description of historical facts are
forward-looking statements. You can identify these statements by
the fact that they do not relate strictly to historical or current
facts and use words such as "anticipate," "estimate," "expect,"
"project," "intend," "plan," "believe" and other words and terms of
similar meaning in connection with a discussion of future operating
or financial performance or events. Examples of such statements
include statements regarding imaging services and product revenues
and net results for 2007 and 2008, growth, stock-based
compensation, growth drivers, and expected effects of strategic
focus on revenues, utilization and costs. The inclusion of these
and other forward-looking statements should not be regarded as a
representation by Digirad that any of its plans will be achieved.
Actual results may differ materially from those set forth in this
press release due to the risks and uncertainties inherent in
Digirad's business including, without limitation: the degree to
which personnel changes and related disruptions in our business
activities may affect Digirad's products, customers, work force,
suppliers, and our overall business prospects and operations; the
degree to which Digirad's camera systems and related services will
be accepted by physicians and hospitals some of whom may experience
reliability issues or technical problems; the ability of Digirad
effectively to market, sell and distribute its medical devices, and
related services given its limited capabilities in these areas;
Digirad's ability to manage risks relating to product liability,
warranty claims, recalls, property damage and personal injury with
respect to its imaging systems; and other risks detailed in
Digirad's filings with the U.S. Securities and Exchange Commission,
including its Annual Report on Form 10-K, Quarterly Reports on Form
10-Q, Form 8-K and other reports. Given these uncertainties,
readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof.
All forward-looking statements are qualified in their entirety by
this cautionary statement and Digirad undertakes no obligation to
revise or update this press release including the forward-looking
statements contained herein to reflect events or circumstances
after the date hereof or to update the reasons actual results could
differ materially from those anticipated in these forward-looking
statements, even if new information becomes available in the
future. DATASOURCE: Digirad Corporation CONTACT: Mark Casner, CEO
of Digirad Corporation, +1-858-726-1600, ; or investors, Dan Matsui
of Allen & Caron, +1-949-474-4300, , for Digirad Corporation
Web site: http://www.digirad.com/
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