Digirad Corporation Reports First Quarter 2009 Financial Results
April 30 2009 - 6:00AM
PR Newswire (US)
Digirad Reaches Quarterly Net Income POWAY, Calif., April 30
/PRNewswire-FirstCall/ -- Digirad Corporation (NASDAQ:DRAD), today
reported it was ahead of internal schedules on its 2009 goal of
generating consistent profitability and positive cash flow. Net
income was $44,000 for the first quarter ended March 31, 2009.
Digirad CEO Todd Clyde said, "We are pleased to report significant
financial and operational progress during the first quarter. We
previously communicated our 2009 goals as: 1) Creating greater
efficiency by selling or closing underperforming hubs; 2) improving
our approach to launching and growing Centers of Influence (COI);
3) introducing new imaging technologies; 4) developing new
technology platforms; and lastly, 5) progress toward consistent
profitability and positive cash flow. "We are ahead of plan on
nearly every one of these goals. We have sold or closed all but one
underperforming hub, achieved double-digit growth in our current
Centers of Influence locations, launched our Cardius(R) X-ACT rapid
cardiac SPECT/VCT imaging system to help open the hospital and
large cardiology practice markets, recorded net income in the first
quarter of 2009 and burned less cash than anticipated." First
Quarter Financial Highlights: -- Total revenue was $17.7 million,
compared to $18.3 million in first-quarter 2008. DIS revenue
remained stable at $13.9 million compared to $13.9 million in
first-quarter 2008 despite the sale of several hubs during the
period, and Product revenues were $3.9 million compared to $4.4
million in first-quarter 2008. -- Gross profit was $5.1 million, or
29% of revenue, compared to $4.4 million, or 24%, in first-quarter
2008. -- Net income was $44,000, or $0.00 per share, including
$145,000 in restructuring charges, compared to net loss of $1.4
million, or $(0.07) per share, in first-quarter 2008. -- Cash and
cash equivalents and securities available-for-sale totaled $28.1
million, or $1.48 per share, on March 31, 2009. Cash and cash
equivalents and securities available-for-sale were $26.4 million on
March 31, 2008 and $28.3 million on December 31, 2008. Clyde added,
"Our DIS personnel and equipment leasing services segment is
operating today on a stronger base-business footprint. We continue
to remain focused on driving positive margins as we attract new
business in the markets where we already have presence and can
leverage our teams, assets and COI relationships. In this quarter,
we felt the effects of the poor economy, which impacted the
purchasing patterns of our camera customers. Although we have
little visibility into how long the negative camera sales trend may
last, we remain focused on our goal of achieving consistent
profitability and cash flow." Conference Call Information A
conference call is scheduled for 11:00 a.m. EDT today to discuss
the results and management's outlook. The call may be accessed by
dialing 800-762-8795 five minutes prior to the scheduled start time
and referencing Digirad. For callers outside the United States,
dial 480-629-9041. A simultaneous webcast of the call may be
accessed online from the Events & Presentations link on the
Investor Relations page at http://www.digirad.com/; an archived
replay of the webcast will be available within 15 minutes of the
end of the conference call. About Digirad Corporation Digirad is a
leading provider of diagnostic imaging products, and personnel and
equipment leasing services. 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 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 planned investment in our technology roadmap,
expected product launches, and the impact of our innovative
initiatives on sales. 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, work force, suppliers, business
prospects, economic outlook, operational policy or structure,
acceptance and use of Digirad's camera systems and services,
reliability, recalls, and other risks detailed in Digirad's filings
with the U.S. Securities and Exchange Commission, including Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K and other reports. Readers are cautioned to not
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 the forward
looking statements contained herein. Investor Contact: Company
Contact: Matt Clawson Todd Clyde, CEO Allen & Caron
858-726-1600 949-474-4300 [Financial tables next pages] Digirad
Corporation Consolidated Statements of Operations (In thousands,
except per share amounts) Three Months Ended March 31, 2009 2008
(unaudited) Revenues: DIS $13,851 $13,854 Product 3,859 4,417 Total
revenues 17,710 18,271 Cost of revenues: DIS 10,194 10,912 Product
2,407 2,946 Total cost of revenues 12,601 13,858 Gross profit 5,109
4,413 Operating expenses: Research and development 772 644 Sales
and marketing 1,708 2,119 General and administrative 2,409 3,159
Amortization and impairment of intangible assets 170 190
Restructuring loss 145 -- Total operating expenses 5,204 6,112 Loss
from operations (95) (1,699) Interest income and other, net 139 304
Net income (loss) $44 ($1,395) Net income (loss) per share - basic
and diluted $0.00 ($0.07) Weighted average shares outstanding:
Basic 19,017 18,931 Diluted 19,172 18,931 Stock-based compensation
expense is included in the above as follows: Cost of DIS revenue $8
$17 Cost of Product revenue $14 $11 Research and development $9 $13
Sales and marketing $25 $24 General and administrative $109 $115
Digirad Corporation Consolidated Balance Sheets (In thousands,
except per share amounts) March 31, December 31, 2009 2008(1)
(unaudited) Assets Cash and cash equivalents $15,327 $13,525
Securities available-for-sale 12,781 14,759 Accounts receivable,
net 9,801 9,324 Inventories, net 6,355 4,978 Property and equipment
held for sale - 1,122 Other current assets 1,702 1,982 Total
current assets 45,966 45,690 Property and equipment, net 12,548
13,428 Intangible assets, net 1,663 1,833 Goodwill 184 184
Restricted cash 60 60 Total assets $60,421 $61,195 Liabilities and
stockholders' equity Accounts payable $2,571 $2,197 Accrued
compensation 2,737 3,457 Accrued warranty 809 906 Deferred revenue
2,481 2,723 Other accrued liabilities 2,786 2,811 Total current
liabilities 11,384 12,094 Deferred rent 112 142 Total stockholders'
equity 48,925 48,959 Total liabilities and stockholders' equity
$60,421 $61,195 (1) The consolidated balance sheet as of December
31, 2008, has been derived from the audited financial statements as
of that date. DATASOURCE: Digirad Corporation CONTACT: Matt Clawson
of Allen & Caron, +1-949-474-4300; or Todd Clyde, CEO of
Digirad Corporation, +1-858-726-1600, Web Site:
http://www.digirad.com/
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