iCAD, Inc. (Nasdaq: ICAD), an industry-leading provider of advanced image analysis, workflow solutions and radiation therapies for the early identification and treatment of cancer, today reported financial results for the fourth quarter and year ended December 31, 2011.
Ken Ferry, President and CEO of iCAD, commented, “While fourth quarter sales were softer than expected with our software and therapy product lines, we were encouraged by the continued growing interest in Breast Intraoperative Radiation Therapy (IORT). This was evidenced by a significant increase in balloon applicator and x-ray source sales in the quarter. In addition, we continued to make strong progress on a number of operational and financial initiatives, which resulted in a significant reduction in operating expenses and cash use in the fourth quarter.
“In September 2011, new reimbursement codes for IORT were assigned by the American Medical Association. We continue to work with the Centers for Medicare and Medicaid Services to obtain appropriate payment for these codes and anticipate a resolution on this issue by mid-year. There continues to be significant opportunity for Breast IORT and we are at the beginning of the growth curve. We remain confident that, over time, IORT will help accelerate new standards of oncology care and in doing so will provide iCAD with a significant revenue opportunity while making a real difference in patients’ lives.
“Our digital mammography CAD business was lower than anticipated in the fourth quarter as we continued to see weak European sales as well as softer demand in the U.S. Looking forward, we continue to make progress on the development of a new generation mammography CAD system and anticipate availability in the U.S. towards the end of the year. With our current CAD system connected to greater than 3,000 digital mammography systems in the U.S. alone, we see this new product as a major catalyst to generate considerable recurring revenue from our customer base over time.