Digirad Corporation Reports Third Quarter 2011 Financial Results
Digirad Generates Q3 Net Income; Fourth Consecutive Quarter Positive Cash
(firmenpresse) - POWAY, CA -- (Marketwire) -- 11/04/11 -- Digirad Corporation (NASDAQ: DRAD) today reported 2011 third quarter revenue of $13.4 million, 2011 nine-month revenue of $41.9 million and an ending cash and available-for-sale securities balance of $31.6 million at September 30, 2011.
Digirad CEO Todd Clyde commented: "We continue to improve our operating margins, grow our revenue modestly and generate cash for the fourth quarter in a row. We increased camera revenue in our product business segment, which was up 12.4 percent compared to the third quarter of 2010, thanks in part to our new ergo general purpose portable imaging system. Revenue from our Digirad Imaging Solutions business, or DIS, decreased from last quarter and the third quarter of last year, which we believe is due to the seasonality of that business and the continued reimbursement pressures and uncertainty in the overall healthcare market."
Clyde continued: "In our DIS business, we have made it a priority to work closely with our current physician customers and help maximize imaging operations of our existing customers. We remain optimistic about the acceptance our portable ergo camera is having in the marketplace. While sales of ergo have not grown as quickly as we hoped, we believe that we are building a base through our marketing of ergo, which will result in better future sales, once capital expenditures in hospitals begin to increase."
Total revenue for the third quarter of 2011 was $13.4 million, compared to $13.3 million for the same period in the prior year and $14.2 million in the second quarter of 2011. DIS-only revenue for the third quarter of 2011 was $9.3 million, compared to $9.6 million for the same period of the prior year and $10.0 million in the prior quarter. Product revenue for the third quarter of 2011 was $4.1 million, compared to $3.7 million for the same period of the prior year and $4.3 million in the prior quarter.
Gross profit for the third quarter of 2011 was $4.2 million, or 30.9 percent of revenue, compared to $3.1 million, or 23.4 percent of revenue, in the same period of the prior year and $4.0 million, or 28.0 percent of revenue, in the prior quarter.
Net income for the third quarter of 2011 was $0.1 million, or $0.01 per share, compared to net loss of $1.3 million, or $0.07 loss per share, in the same period of the prior year and a net loss of $0.2 million, or $0.01 loss per share, in the prior quarter.
Cash and cash equivalents and available-for-sale securities totaled $31.6 million, or $1.68 per share as of September 30, 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 third quarter of 2011, DIS asset utilization was 56 percent on 130 systems (nuclear and ultrasound), compared to 62 percent on 131 systems (nuclear and ultrasound) in the prior year third quarter and 59 percent on 133 systems (nuclear and ultrasound) in the prior quarter.
Total revenue for the first nine months of 2011 was $41.9 million, compared to $41.5 million for the prior year period. DIS revenue for the first nine months of 2011 was $28.8 million, compared to $30.1 million for the prior year period, and Product revenue for the first nine months of 2011 was $13.0 million compared to $11.4 million for the prior year period.
Gross profit for the first nine months of 2011 was $11.7 million, or 27.9 percent of revenue, compared to $8.4 million, or 20.2 percent of revenue, for the prior year period.
Net loss for the first nine months of 2011 was $0.5 million, or $0.03 loss per share, compared to net loss of $5.7 million, or $0.30 loss per share, for the prior year period.
During the first nine months of 2011, DIS asset utilization was 57 percent on 131 systems (nuclear and ultrasound), compared to 62 percent on 133 systems (nuclear and ultrasound) in the prior year period.
"We remain focused on our revenue, profit and cash goals for 2011 as well as investigating several strategic opportunities," Clyde concluded. "We improved our operational performance considerably this year, as is evidenced by our expanded margins and lower operating expenses. We continue to generate cash and alter our business model to align with the variability in our business caused by the uncertain healthcare environment. Furthermore, we will increase our spending in the fourth quarter to assess several strategic opportunities to better position our business for growth and profitability, in the long-term."
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 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 ; an archived replay of the webcast will be available within 15 minutes of the end of the conference call.
Digirad is a leading provider of diagnostic imaging products, and personnel and equipment leasing services. For more information, please visit . Digirad®, Digirad Imaging Solutions®, and Cardius® are registered trademarks of Digirad Corporation.
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.
Matt Clawson
Allen & Caron
949-474-4300
Richard Slansky
CFO
858-726-1600
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Datum: 04.11.2011 - 06:30 Uhr
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