This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

ICAD Reports Second Quarter Financial Results

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 six months ended June 30, 2013.

“We are pleased to report our second quarter financial results in which we achieved strong revenue growth and adjusted EBITDA profitability compared with the second quarter of 2012. This represents our fourth consecutive quarter of double-digit revenue growth and adjusted EBITDA profitability,” said Ken Ferry, President and CEO of iCAD.

“Revenue growth was particularly strong for the Therapy business in the quarter. We saw significant increases in new system placements and therapy source utilization, which is driven by increasing procedure volumes throughout our growing customer base. Moving forward, our efforts to continue to drive significant growth in this area will focus on broader distribution, clinical studies and expanding reimbursement, particularly for the treatment of breast and skin cancers.

“During the second quarter we experienced growth in our Cancer Detection subscription-based products and service revenue, which was offset by weaker new product sales, specifically in international markets. Also in the second quarter, we were pleased to expand our long-standing partnership with Fujifilm through the FDA clearance of our next-generation mammography computer-aided detection platform, PowerLook Advanced Mammography Platform, with Fujifilm’s family of Aspire HD Full-Field Digital Mammography Systems.

“Looking ahead, we will continue our focused efforts to execute successfully on our strategy and continue to deliver improved financial results,” concluded Mr. Ferry.

Second Quarter Financial Results

Revenue: Total revenue for the second quarter of 2013 increased 30% to $7.7 million from $5.9 million for the second quarter of 2012, driven by a 161% increase in Therapy revenue partially offset by a 14% decline in Cancer Detection product revenue.

Therapy revenue included Xoft™ Axxent™ Electronic Brachytherapy System™ product sales, as well as associated service and supply revenue. Cancer Detection revenue included film, digital mammography, MRI and CT CAD platforms, as well as service and supply revenue from these products.

    Three months ended June 30,

Cancer Detection

2013     2012     % Change
Products $ 1,647     $ 2,687     (39 )%
Service and supply   2,160       1,746     24 %
Total revenue $ 3,807     $ 4,433     (14 )%
 

 

Three months ended June 30,

Therapy

2013     2012     % Change
Products $ 2,857 $ 849 237 %
Service and supply   1,048       649    

61

%
Total revenue $ 3,905     $ 1,498     161 %
 

Gross Margin: Gross profit for the second quarter of 2013 was $5.2 million, or 67.7% of revenue, compared with gross profit for the second quarter of 2012 of $4.2 million, or 70.3% of revenue.

Operating Expenses: Total operating expenses for the quarter ended June 30, 2013 declined to $5.7 million from $6.1 million for the same period in 2012, primarily the result of continued cost-control measures implemented in the fourth quarter of 2011.

Non-GAAP Adjusted EBITDA: Non-GAAP adjusted EBITDA, a non-GAAP financial measure as defined below, was $434,000 for the second quarter of 2013, compared with a loss of $916,000 for the same period in 2012.

Net Loss: The net loss for the second quarter of 2013 was $1.9 million, or $0.17 per share, compared with a net loss for the second quarter of 2012 of $2.9 million, or $0.27 per share.

Non-GAAP Adjusted Net Loss: The Company non-GAAP adjusted net loss, as defined below, for the second quarter of 2013 was $1.3 million, or $0.12 per share, compared with a non-GAAP adjusted net loss for the second quarter of 2012 of $2.7 million, or $0.25 per share.

Cash and Cash Flow: As of June 30, 2013, iCAD had cash and cash equivalents of $12.9 million, compared with $12.7 million as of March 31, 2013 and $13.9 million as of December 31, 2012. In the second quarter of 2013, iCAD generated cash of $239,000. Net cash used for the first six months of 2013 was $1.0 million.

Six Month Financial Results

Revenue: Total revenue for the first half of 2013 increased 27% to $15.6 million from $12.3 million for the first half of 2012, driven by a 106% increase in Therapy revenue partially offset by a 4% decline in Cancer Detection product revenue.

    Six months ended June 30,

Cancer Detection

2013     2012     % Change
Products $ 4,320     $ 5,304     (19 )%
Service and supply   4,125       3,468     19 %
Total revenue $ 8,445     $ 8,772     (4 )%
 

 

Six months ended June 30,

Therapy

2013     2012     % Change
Products $ 5,244 $ 2,283 130 %
Service and supply   1,953       1,219    

60

%
Total revenue $ 7,197     $ 3,502     106 %
 

Gross Margin: Gross profit for the first half of 2013 was $10.9 million, or 69.5% of revenue, compared with gross profit for the first half of 2012 of $8.6 million, or 70.0% of revenue.

Operating Expenses: Total operating expenses for the six months ended June 30, 2013 declined to $11.7 million from $12.5 million for the same period in 2012.

Non-GAAP Adjusted EBITDA: Non-GAAP adjusted EBITDA for the first half of 2013 was $1.0 million, compared with a loss of $1.9 million for the first half of 2012.

Net Loss: The net loss for the first six months of 2013 was $2.6 million, or $0.24 per share, compared with a net loss for the first six months of 2012 of $5.2 million, or $0.48 per share.

Non-GAAP Adjusted Net Loss: The Company’s non-GAAP adjusted net loss for the first six months of 2013 was $2.5 million, or $0.23 per share, compared with a non-GAAP adjusted net loss for the first six months of 2012 of $5.5 million, or $0.51 per share.

Use of Non-GAAP Financial Measures

In its quarterly news releases, conference calls, slide presentations or webcasts, the Company may use or discuss non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measures most directly comparable to each non-GAAP financial measure used or discussed, and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release after the condensed consolidated financial statements. When analyzing the Company's operating performance, investors should not consider these non-GAAP measures as a substitute for the comparable financial measures prepared in accordance with GAAP. The Company's quarterly news releases containing such non-GAAP reconciliations can be found on the Investors section of the Company's website at www.icadmed.com.

Conference Call

iCAD management will host an investment community conference call on Tuesday, July 30, 2013 beginning at 10:00 a.m. Eastern Time to discuss these results and answer questions. Shareholders and other interested parties may participate in the conference call by dialing 877-703-6106 (domestic) or 857-244-7305 (international) and entering passcode 16130604. The call also will be broadcast live on the Internet at www.streetevents.com, www.earnings.com and www.icadmed.com.

A replay of the conference call will be accessible two hours after its completion through August 6, 2013 by dialing 888-286-8010 (domestic) or 617-801-6888 (international) and entering passcode 91450890. The call will also be archived for 90 days at www.streetevents.com, www.earnings.com and www.icadmed.com.

About iCAD, Inc.

iCAD is an industry-leading provider of advanced image analysis, workflow solutions and radiation therapies for the early identification and treatment of common cancers. iCAD’s Xoft System offers radiation treatment for early-stage breast cancer that can be administered in the form of intraoperative radiation therapy or accelerated partial breast irradiation. The Xoft System is also cleared for the treatment of non-melanoma skin cancer and endometrial cancer. iCAD offers a comprehensive range of high-performance, upgradeable CAD solutions for mammography and advanced image analysis and workflow solutions for Magnetic Resonance Imaging, for breast and prostate cancers and Computed Tomography for colorectal cancer. For more information, call 877-iCADnow, or visit www.icadmed.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

Certain statements contained in this News Release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to the Company’s ability to defend itself in litigation matters, to achieve business and strategic objectives, the risks of uncertainty of patent protection, the impact of supply and manufacturing constraints or difficulties, uncertainty of future sales levels, protection of patents and other proprietary rights, the impact of supply and manufacturing constraints or difficulties, product market acceptance, possible technological obsolescence of products, increased competition, litigation and/or government regulation, changes in Medicare reimbursement policies, risks relating to our existing and future debt obligations, competitive factors, the effects of a decline in the economy or markets served by the Company; and other risks detailed in the Company’s filings with the Securities and Exchange Commission. The words “believe”, “demonstrate”, “intend”, “expect”, “estimate”, “will”, “continue”, “anticipate”, “likely”, “seek”, and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made. The Company is under no obligation to provide any updates to any information contained in this release. For additional disclosure regarding these and other risks faced by iCAD, please see the disclosure contained in our public filings with the Securities and Exchange Commission, available on the Investors section of our website at http://www.icadmed.com and on the SEC’s website at http://www.sec.gov.

iCAD, INC. AND SUBSIDIARY
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands except for per share data)
       
Three Months Ended June 30, Six Months Ended June 30,
  2013   2012   2013   2012
Revenue:
Products $ 4,504 $ 3,536 $ 9,564 $ 7,587
Service and supplies 3,208   2,395   6,078   4,687  
Total revenue 7,712 5,931 15,642 12,274
 
Cost of revenue:
Products 1,446 969 2,801 2,076
Service and supplies 810 560 1,504 1,137
Amortization of acquired intangibles 234   233   467   465  
Total cost of revenue 2,490 1,762 4,772 3,678
       
Gross profit 5,222   4,169   10,870   8,596  
 
Operating expenses:
Engineering and product development 1,756 1,975 3,622 4,187
Marketing and sales 2,337 2,488 4,775 5,134
General and administrative 1,602   1,603   3,274   3,198  
Total operating expenses 5,695 6,066 11,671 12,519
       
Loss from operations (473 ) (1,897 ) (801 ) (3,923 )
 
(Loss) Gain from change in fair value of warrant (571 ) (213 ) (140 ) 386
Interest expense (834 ) (831 ) (1,660 ) (1,666 )
Other income 6   9   12   18  
Other expense, net (1,399 ) (1,035 ) (1,788 ) (1,262 )
 
Loss before income tax expense (1,872 ) (2,932 ) (2,589 ) (5,185 )
 
Income tax expense (10 ) (11 ) (20 ) (22 )
       
Net loss and comprehensive loss $ (1,882 ) $ (2,943 ) $ (2,609 ) $ (5,207 )
 
Net loss per share:
Basic and diluted $ (0.17 ) $ (0.27 ) $ (0.24 ) $ (0.48 )
 
Weighted average number of shares used in
computing loss per share:
Basic and diluted 10,836   10,794   10,828   10,785  
 
iCAD, INC. AND SUBSIDIARY
   
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands except for share data)
 
June 30,   December 31,

Assets

2013

2012

 
Current assets:
Cash and cash equivalents $ 12,912 $ 13,948

Trade accounts receivable, net of allowance for doubtful accounts of $73 in 2013 and $48 in 2012

6,099 4,980
Inventory, net 1,941 2,119
Prepaid expenses and other current assets 467   486  
Total current assets 21,419   21,533  
 

Property and equipment, net of accumulated depreciation and amortization of $3,947 in 2013 and $3,627 in 2012

1,343 1,483
Other assets 531 638

Intangible assets, net of accumulated amortization of $11,604 in 2013 and $10,744 in 2012

14,388 15,230
Goodwill 21,109   21,109  
Total assets $ 58,790   $ 59,993  
 

Liabilities and Stockholders' Equity

Current liabilities:
Accounts payable $ 2,480 $ 1,940
Accrued and other expenses 2,829 4,142
Interest payable 543 499
Warrant liability 1,678 1,538
Deferred revenue 7,433   6,520  
Total current liabilities 14,963   14,639  
 
Deferred revenue, long-term portion 1,775 1,502
Other long-term liabilities 1,248 1,341
Notes payable 15,169   14,846  
Total liabilities 33,155   32,328  
 
 
 
Stockholders' equity:

Preferred stock, $ .01 par value: authorized 1,000,000 shares;

none issued. - -
Common stock, $ .01 par value: authorized 85,000,000
shares; issued 11,022,742 in 2013 and 10,993,933 in 2012;
outstanding 10,836,911 in 2013 and 10,808,102 in 2012 110 110
Additional paid-in capital 165,995 165,416
Accumulated deficit (139,055 ) (136,446 )
Treasury stock at cost 185,831 in 2013 and 2012 (1,415 ) (1,415 )
Total stockholders' equity 25,635   27,665  
 
Total liabilities and stockholders' equity $ 58,790   $ 59,993  
 

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO COMPARABLE GAAP MEASURES(Unaudited, in thousands, except per share amounts)

The following is a reconciliation of the non-GAAP financial measures used by the Company to describe the Company's financial results determined in accordance with United States generally accepted accounting principles (GAAP). An explanation of these measures is also included below under the heading "Explanation of Non-GAAP Financial Measures".

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,122.01 +15.31 0.09%
S&P 500 2,000.12 +0.10 0.00%
NASDAQ 4,569.6210 -1.0160 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs