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Digirad Corporation Reports Fourth Quarter and Full Year 2008 Financial Results
Posted by: gurufocus (IP Logged)
Date: February 5, 2009 06:01AM
Press Release: Digirad Corporation Reports Fourth Quarter and Full Year 2008 Financial Results
Board of Directors Approves Share Buyback Program
"Progress toward consistent profitability and positive cash flow are the priority at Digirad today," Clyde said. "Achieving that stable financial and operating platform allows us to make investments to drive product evolution, establish new service initiatives, increase market share, and ultimately make growth possible in 2010 and beyond."
Full Year 2008 Summary:
Clyde continued, "The financial and operational performance in the fourth quarter was a strong indication that a leaner Digirad organization is adopting the changes necessary to move the company forward and generate greater value for our customers and shareholders."
Corporate Goals in 2009
Share Buyback Approved
The Company also announced that its board of directors has authorized a stock buyback program to repurchase up to an aggregate of
Chairman of the Digirad Board of Directors
The timing of stock repurchases and the number of shares of common stock to be repurchased will be made in compliance with Rule 10b-18 under the Securities Exchange Act of 1934. The timing and extent of the repurchase will depend upon market conditions, applicable legal and contractual requirements, and other factors.
Conference Call Information
A conference call is scheduled for
About Digirad Corporation
Digirad provides medical diagnostic imaging systems and personnel and equipment leasing services to physicians' offices, hospitals and imaging centers for cardiac, vascular, and general imaging applications. Digirad's Cardius XPO line of nuclear imaging cameras use patented solid-state technology and unique multi (single, dual, triple) head design for superior performance and advanced features for sharper digital images, faster processing, compact size, lighter weight for portability, ability to handle patients up to 500 pounds, and improved patient comfort compared to standard nuclear cameras. Digirad's 2020tc general-purpose nuclear imager has a small footprint and may also be configured for fixed or mobile use to supplement primary imaging. Digirad's installed base of equipment exceeds 600 systems; in addition, a mobile fleet of more than 145 nuclear and ultrasound imaging systems is being used in 21 states, primarily in the eastern, midwestern and southwestern
This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. These include statements regarding the efficacy of Digirad's centers of influence model, the status of the negotiation of the sale or closure of underperforming hub locations, and the ability to achieve positive cash flow and profitability, drive technology progress and improve services utilization to grow market share. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made, including the risks associated with changes in business conditions, technology, customers' business conditions, work force, suppliers, business prospects, economic outlook, operational policy or structure, acceptance and use of Digirad's camera systems and services, reliability, recalls, and other risks detailed in Digirad's filings with the U.S. Securities and Exchange Commission, including Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports. Readers are cautioned to not place undue reliance on these forward looking statements, which speak only as of the date hereof. All forward looking statements are qualified in their entirety by this cautionary statement, and Digirad undertakes no obligation to revise or update the forward looking statements contained herein.
Investor Contact: Company Contact: Matt Clawson Todd Clyde, CEO Allen & Caron 858-726-1600 949-474-4300 firstname.lastname@example.org
Digirad Corporation Condensed Consolidated Statements of Operations (In thousands, except per share amounts) Three Months Ended Twelve Months Ended December 31, December 31, 2008 2007 2008 2007 (unaudited) (unaudited) Revenues: DIS $14,172 $13,420 $56,204 $52,440 Product 7,815 5,403 24,154 21,507 Total revenues 21,987 18,823 80,358 73,947 Cost of revenues: DIS 11,162 10,749 44,697 39,520 Product 4,543 3,582 15,590 13,909 Total cost of revenues 15,705 14,331 60,287 53,429 Gross profit 6,282 4,492 20,071 20,518 Operating expenses: Research and development 805 631 2,764 3,072 Sales and marketing 2,121 2,009 8,554 7,670 General and administrative 2,853 2,794 11,805 11,920 Amortization and impairment of intangible assets 256 371 798 697 Goodwill impairment loss 2,466 -- 2,466 -- Restructuring loss 1,308 -- 1,308 -- Total operating expenses 9,809 5,805 27,695 23,359 Loss from operations (3,527) (1,313) (7,624) (2,841) Interest income, net 212 343 819 1,566 Other expense (128) (130) (60) (101) Net loss $(3,443) $(1,100) $(6,865) $(1,376) Net loss per share - basic and diluted $(0.18) $(0.06) $(0.36) $(0.07) Weighted average shares outstanding: Basic and diluted 18,986 18,916 18,955 18,845 Stock-based compensation expense is included in the above as follows: Cost of DIS revenue $11 $10 $55 $71 Cost of Product revenue 15 (11) 53 49 Research and development 11 15 47 77 Sales and marketing 29 35 115 102 General and administrative 20 32 446 606
Digirad Corporation Condensed Consolidated Balance Sheets(1) (in thousands) December 31, 2008 2007 (unaudited) Assets Cash and cash equivalents $13,525 $14,922 Securities available-for-sale 14,759 16,740 Accounts receivable, net 9,324 8,536 Inventories, net 4,978 5,455 Property and equipment held for sale 1,122 -- Other current assets 1,982 1,786 Total current assets 45,690 47,439 Property and equipment, net 13,428 16,235 Other intangible assets, net 1,833 2,631 Goodwill 184 2,650 Restricted cash 60 60 Total assets $61,195 $69,015 Liabilities and stockholders' equity Accounts payable $2,197 $2,650 Accrued compensation 3,457 3,547 Accrued warranty 906 930 Other accrued liabilities 2,705 3,285 Deferred revenue 2,723 2,909 Current portion of long-term debt 52 213 Total current liabilities 12,040 13,534 Long-term debt, net of current portion 54 -- Deferred rent 142 234 Total stockholders' equity 48,959 55,247 Total liabilities and stockholders' equity $61,195 $69,015 (1) The condensed consolidated balance sheet as of December 31, 2007, has been derived from the audited financial statements as of that date.
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