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Return to Profitability; $2.4 Million in Operating Cash Flow Announces Cash Dividend of $0.05 Per Share
SUWANEE, Ga., Nov. 1, 2013 (GLOBE NEWSWIRE) -- Digirad Corporation (Nasdaq:DRAD) today reported third quarter earnings of $2.5 million, or $0.14 per diluted share, with total revenues of $12.4 million. Ending cash, cash equivalents and available-for-sale securities was $25.9 million.
Included within the results for the quarter and nine months is a $1.6 million pre-tax gain in connection with a sale of assets and associated license agreement related to a surgical imaging system that was previously under development at Digirad.
Digirad President and CEO Matt Molchan said, "I am very pleased with our financial results for this quarter. Apart from the successful surgical imaging transaction, we posted positive financial results, including the most profitable quarter since our IPO in 2004. Our restructuring efforts continue to be right on track with our plan, and both our DIS and Diagnostic Imaging businesses are performing well, with DIS posting solid year over year revenue growth and Diagnostic Imaging improving its overall margins.
"Also for the quarter, we generated $2.4 million of cash flow from operations," added Molchan, "Though cash flow on a quarterly basis will fluctuate based on changing operations and seasonality, our general expectation is that we will be a net cash flow generator on an annual basis now that the major restructuring activities are nearing completion."
Jeffrey E. Eberwein, Digirad Chairman of the Board of Directors, said, "Since the beginning of our restructuring plan that was announced in late February 2013, we have made it clear that our go-forward strategy is to increase cash flow and maximize value to the shareholders. Now that the Company has returned to profitability and is generating positive cash flow, the Board is pleased to be able to pay a regular dividend as one additional way to return value directly to our shareholders."