Digirad Corporation (NASDAQ: DRAD) today reported 2011 fourth
quarter revenue of $11.9 million, 2011 full-year revenue of $53.7
million and an ending cash and available-for-sale securities
balance of $30.5 million at December 31, 2011.
Digirad CEO Todd Clyde commented, "We laid out four key goals at
the beginning of the year: generate positive cash flow, increase
ergo sales, expand margins in both our Product and DIS business
units and return to year-over-year growth in the second half of the
year. We achieved the first three goals, but fell short on revenue
growth due to a relatively weak fourth quarter in the Product
division.
Clyde continued: "Going forward, we are seeing improvements in
the capital equipment environment, more activity in the sales
funnel on the Product side, continued stabilization in
reimbursements and new opportunities in new camera markets. In
2012, we expect to continue to generate positive cash flow from our
DIS business and to increase sales of both our cardiac and ergo
cameras. We invested in strategic market research in the fourth
quarter -- resulting in a better understanding of where our core
technologies can be applied with greater success. Management and
the Board are in the final stages of determining the best strategic
path toward returning to a growth platform, and we look forward to
communicating the specifics of those plans in the near future."
Fourth Quarter 2011 Summary
- Total revenue for the fourth quarter of 2011 was $11.9 million,
compared to $14.7 million for the same period in the prior year and
$13.4 million in the third quarter of 2011. DIS-only revenue for
the fourth quarter of 2011 was $9.0 million, compared to $9.4
million for the same period of the prior year and $9.3 million in
the prior quarter. Product revenue for the fourth quarter of 2011
was $2.9 million, compared to $5.2 million for the same period of
the prior year and $4.1 million in the prior quarter.
- Gross profit for the fourth quarter of 2011 was $3.1 million,
or 26.0 percent of revenue, compared to $3.6 million, or 24.6
percent of revenue, in the same period of the prior year and $4.2
million, or 30.9 percent of revenue, in the prior quarter.
- Net loss for the fourth quarter of 2011 was $2.8 million, or
$0.15 loss per share, compared to net loss of $0.6 million, or
$0.03 loss per share, in the same period of the prior year and a
net income of $0.1 million, or $0.01 per share, in the prior
quarter.
- Cash and cash equivalents and available-for-sale securities
totaled $30.5 million, or $1.61 per share as of December 31, 2011.
Cash and cash equivalents and available-for-sale securities totaled
$30.2 million, or $1.63 per share as of December 31, 2010.
- During the fourth quarter of 2011, DIS asset utilization was 56
percent on 130 systems (nuclear and ultrasound), compared to 58
percent on 132 systems (nuclear and ultrasound) in the prior year
fourth quarter and 56 percent on 130 systems (nuclear and
ultrasound) in the prior quarter.
2011 Full-Year Financial
Highlights:
- Total revenue for 2011 was $53.7 million, compared to $56.2
million for the prior year. DIS revenue for 2011 was $37.8 million,
compared to $39.5 million for the prior year, and Product revenue
for 2011 was $16.0 million compared to $16.6 million for the prior
year.
- Gross profit for 2011 was $14.8 million, or 27.5 percent of
revenue, compared to $12.0 million, or 21.4 percent of revenue for
the prior year.
- Net loss for 2011 was $3.3 million, or $0.18 loss per share,
compared to net loss of $6.2 million, or $0.33 loss per share, for
the prior year.
- During 2011, DIS asset utilization was 56 percent on 131
systems (nuclear and ultrasound), compared to 61 percent on 133
systems (nuclear and ultrasound) for the prior year.
Conference Call Information A conference
call is scheduled for 11:00 a.m. EST today to discuss the results
and management's outlook. The call may be accessed by dialing
877-941-1427 five minutes prior to the scheduled start time and
referencing Digirad. A simultaneous webcast of the call may be
accessed online from the Events & Presentations link on the
Investor Relations page at 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
www.digirad.com. Digirad® and Cardius® 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 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 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.
Digirad Corporation
Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
---------------------- ----------------------
2011 2010 2011 2010
---------- ---------- ---------- ----------
Revenues:
DIS $ 8,956 $ 9,421 $ 37,794 $ 39,542
Product 2,926 5,236 15,951 16,641
---------- ---------- ---------- ----------
Total revenues 11,882 14,657 53,745 56,183
Cost of revenues:
DIS 7,090 7,649 29,672 32,561
Product 1,698 3,400 9,315 11,618
---------- ---------- ---------- ----------
Total cost of revenues 8,788 11,049 38,987 44,179
---------- ---------- ---------- ----------
Gross profit 3,094 3,608 14,758 12,004
Operating expenses:
Research and development 613 597 2,738 2,875
Marketing and sales 3,007 1,353 7,622 5,922
General and administrative 2,024 2,190 7,741 9,007
Amortization of intangible
assets 77 102 331 435
Restructuring loss (gain) -- -- (164) 355
---------- ---------- ---------- ----------
Total operating expenses 5,721 4,242 18,268 18,594
---------- ---------- ---------- ----------
Loss from operations (2,627) (634) (3,510) (6,590)
Other income (expense):
Interest income (expense) (199) 89 165 378
Other income (expense) -- (14) 3 (2)
---------- ---------- ---------- ----------
Total other income (199) 75 168 376
---------- ---------- ---------- ----------
Net loss $ (2,826) $ (559) $ (3,342) $ (6,214)
========== ========== ========== ==========
Net loss per common share
-basic and diluted $ (0.15) $ (0.03) $ (0.18) $ (0.33)
========== ========== ========== ==========
Weighted average shares
outstanding - basic 19,193 18,876 19,052 18,774
Weighted average shares
outstanding - diluted 19,193 18,876 19,052 18,774
========== ========== ========== ==========
Stock-based compensation
expense is included in the
above as follows:
Cost of DIS revenue $ 2 $ 4 $ 13 $ 26
Cost of Product revenue 23 20 99 60
Research and development 20 21 84 61
Marketing and sales 24 36 110 113
General and administrative 119 105 494 614
---------- ---------- ---------- ----------
Total stock-based
compensation expense $ 188 $ 186 $ 800 $ 874
---------- ---------- ---------- ----------
Digirad Corporation
Consolidated Balance Sheets
(In thousands, except share amounts)
December 31, December 31,
2011 2010
------------ ------------
Assets
Current assets:
Cash and cash equivalents $ 24,039 $ 20,459
Securities available-for-sale 6,413 9,788
Accounts receivable, net 6,320 7,527
Inventories, net 6,178 5,432
Other current assets 855 861
Restricted cash 194 --
------------ ------------
Total current assets 43,999 44,067
Property and equipment, net 5,367 7,185
Intangible assets, net 477 808
Goodwill 184 184
------------ ------------
Total assets $ 50,027 $ 52,244
============ ============
Liabilities and stockholders' equity
Accounts payable $ 1,330 $ 1,694
Accrued compensation 2,291 1,600
Accrued warranty 297 378
Deferred revenue 2,099 2,379
Other accrued liabilities 2,397 2,096
------------ ------------
Total current liabilities 8,414 8,147
Deferred rent 126 138
------------ ------------
Total liabilities 8,540 8,285
------------ ------------
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; 18,901,160 and 18,597,311
shares issued and outstanding (net of treasury
shares) at December 31, 2011 and 2010,
respectively 2 2
Treasury stock, at cost; 582,825 shares and
573,218 shares at December 31, 2011 and 2010,
respectively (1,058) (1,039)
Additional paid-in capital 155,704 154,785
Accumulated other comprehensive income 33 63
Accumulated deficit (113,194) (109,852)
------------ ------------
Total stockholders' equity 41,487 43,959
------------ ------------
Total liabilities and stockholders' equity $ 50,027 $ 52,244
============ ============
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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