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Digirad Corporation Reports Fourth Quarter And Year-End Financial Results

SUWANEE, Ga., Feb. 26, 2014 (GLOBE NEWSWIRE) -- Digirad Corporation (Nasdaq:DRAD) today reported fourth quarter earnings of $0.8 million, or $0.04 per diluted share, with total revenues of $12.5 million. Ending cash, cash equivalents and available-for-sale securities was $26.4 million.

Digirad President and CEO Matt Molchan said, "The financial results and the operational progress made by the organization in the fourth quarter continues to be right on track and illustrate how we can continue to generate profitability and cash from the business while implementing the framework and business discipline necessary to sustain growth for the future.

"In DIS, we added customers and leveraged our resources more efficiently, and as a result, increased our margins in our operating hubs. In Diagnostic Imaging, we increased margins on system sales during the period, and for all of Digirad, as expected, we generated cash flow from operations and profits. Along with our results for the fourth quarter, we also recently announced the termination of the lease of our former headquarters, a move we think will save between $400,000 to $500,000 annually, showing that we continue to look for meaningful ways to right-size our business and squeeze efficiency from it." Molchan added, "Our general expectation continues to be that we will be a net cash flow generator on an annual basis and will continue to deliver value back to shareholders via a growing business enterprise and a continued and sustainable dividend."

The Company previously announced on February 3, 2014 a dividend of $0.05 per share that was paid on February 24, 2014, to shareholders of record on February 14, 2014.

Fourth Quarter 2013 Summary

  • Total revenue for the fourth quarter of 2013 was $12.5 million, compared to $13.0 million for the same period in the prior year. DIS revenue for the fourth quarter of 2013 was $9.3 million, compared to $8.5 million for the same period of the prior year, and Diagnostic Imaging revenue for the fourth quarter of 2013 was $3.3 million, compared to $4.5 million for the same period of the prior year.  
  • Gross profit for the fourth quarter of 2013 was $3.7 million, or 29.4% of revenue, compared to $2.6 million, or 20.1% of revenue in the prior year quarter.  
  • Net income for the fourth quarter of 2013 was $0.8 million, or $0.04 net income per diluted share, compared to a net loss of $1.9 million, or $0.10 net loss per diluted share, in the same period of the prior year.  
  • Operating expenses for the fourth quarter of 2013 were $2.9 million, compared to $4.5 million in the same period in the prior year.  
  • Cash, cash equivalents and available-for-sale securities totaled $26.4 million as of December 31, 2013. Cash, cash equivalents and available-for-sale securities totaled $25.9 million at September 30, 2013 and $27.2 million as of December 31, 2012.

Full-Year 2013 Summary

  • Total revenue for 2013 was $49.4 million, compared to $50.5 million for the same period in the prior year. DIS revenue for 2013 was $37.2 million, compared to $36.1 million for the same period of the prior year. Diagnostic Imaging revenue for 2013 was $12.2 million, compared to $14.4 million for the same period of the prior year.  
  • Gross profit for 2013 was $14.1 million, or 28.6% of revenue, compared to $13.1 million, or 25.9% of revenue in the same period of the prior year.  
  • Net income for 2013 was $0.3 million, or $0.01 net income per diluted share, compared to a net loss of $4.9 million, or $0.26 net loss per diluted share, in the same period of the prior year. Adjusted net income for 2013, excluding expenses incurred for nonrecurring items related to restructuring activities and the gain on sale of assets and associated license agreement, was $0.4 million, or $0.02 adjusted net income per diluted share, compared to an adjusted net loss of $4.9 million, or $0.26 adjusted net loss per diluted share, for the same period in the prior year.  
  • Operating expenses for 2013 were $13.9 million, compared to $18.2 million in the same period in the prior year. Adjusted operating expenses, excluding expenses incurred for nonrecurring items related to restructuring activities and the gain on sale of assets and associated license agreement, for 2013 were $13.8 million, compared to the $18.2 million in the same period of the prior year. In addition to the restructuring costs and the gain on sale of assets and associated license agreement, operating expenses for 2013 included approximately $0.7 million in costs related to the proxy contest and subsequent litigation with the dissident shareholder group that was settled earlier in the year.

Conference Call Information

A conference call is scheduled for 1:00 p.m. EST today to discuss the results and management's outlook. The call may be accessed by dialing 877-941-2321 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 www.digirad.com ; an archived replay of the webcast will be available within 15 minutes of the end of the conference call.

Use of Non-GAAP Financial Measures by Digirad Corporation

This Digirad news release presents the non-GAAP financial measures "adjusted operating expenses," "adjusted net income (loss)", "adjusted net income (loss) per diluted share" and "adjusted EBITDA". The most directly comparable measure for these non-GAAP financial measures are operating expenses, net income (loss) and diluted net income (loss) per share. The Company has included below unaudited adjusted financial information for the quarters and years ended December 31, 2013 and 2012, which present the Company's results of operations after excluding restructuring charges and gain on the sale of assets and license agreement, and in the measure of adjusted EBITDA, interest, taxes, depreciation, amortization and stock-based compensation.

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