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iCAD, Inc. (Nasdaq: ICAD), an industry-leading provider of advanced image analysis, workflow solutions and radiation therapy for the early identification and treatment of cancer, today reported financial results for the three and nine months ended September 30, 2012.
“During the third quarter we demonstrated solid progress on our strategic plan as evidenced by significant growth in Therapy revenue and strong financial discipline including adjusted EBITDA profitability and an ongoing reduction in cash use,” said Ken Ferry, President and CEO of iCAD.
“The Therapy business achieved record growth in Axxent
® Electronic Brachytherapy
® system sales which was complemented by strong demand for balloon and surface applicators. The overall positive momentum underscores the continued growing market adoption of electronic brachytherapy and resulting increase in procedure volume. In particular, we were pleased with the substantial procedure growth in the treatment of skin cancer, which in the third quarter equaled the total skin cancer procedure volume for all of 2011. We also sold 12 Axxent systems in the third quarter and now have sold 22 year to date compared to 10 systems for the same period last year.
“During the quarter, the U.S. Centers for Medicare and Medicaid Services assigned a separate payment value for breast IORT delivery treatment codes in their 2013 proposed rule. We believe this will only further accelerate adoption of breast IORT in the future.
“We remain very enthusiastic about the growth potential for our Therapy products. We are in the early adoption phase of electronic brachytherapy and believe that there is significant room for growth in breast IORT and skin cancer treatment in addition to new areas in the future.
“Cancer Detection revenues during the third quarter were weaker than expected as we continue to shift this business model to a mix of new and recurring revenue by offering new products along with upgrades and annual service contracts. During the quarter we launched PowerLook AMP, our next-generation mammography computer-aided detection (CAD) system, and began marketing this upgrade to our U.S. installed base of more than 3,500 systems. We believe this new business model will provide a sizeable and steady revenue opportunity over time,” concluded Mr. Ferry.