Print
Email
Digirad Corp. (DRAD) filed Quarterly Report for the period ended 2011-03-31.
Digirad Corp. has a market cap of $55.9 million; its shares were traded at around $2.91 with and P/S ratio of 1.
This is the annual revenues and earnings per share of DRAD over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of DRAD.
Highlight of Business Operations:
Our consolidated revenues were $14.2 million for the three months ended March 31, 2011, which represented a decrease of $0.9 million, or 5.9%, over the comparable prior year period. This change was primarily due to a decrease in revenue from our DIS segment and was partially offset by an increase in our Product segment from a higher number of new cameras (compared to used cameras) sold to cardiology practices and hospitals. DIS revenue decreased $1.1 million, or 10.5%, which was primarily due to a continued reduction in our daily personnel and equipment leasing services fee (“lease fee”) from 2010 as well as a reduction in the number of days we were able to scan for our physician customers. The number of scan days was reduced due to the severe weather in the Midwest and East in January and February 2011 in addition to other environmental factors such as physician pre-certification requirements. We reduced our daily lease fee in 2010 to provide more incentive to our physician customers to continue using our services, since CMS reduced reimbursement to the physicians for
Consolidated. Consolidated revenue was $14.2 million for three months ended March 31, 2011, which represents a decrease of $0.9 million, or 5.9%, compared to the prior year quarter, primarily as a result of a decrease in revenue from our DIS segment, partially offset with an increase in our Product segment from higher camera sales. DIS revenue accounted for 67.7% of total revenues for 2011, compared to 71.2% for the prior year quarter. We expect DIS revenue to continue to represent the larger percentage of our consolidated revenue.
DIS. Our DIS revenue was $9.6 million for the three months ended March 31, 2011, which represents a decrease of $1.1 million, or 10.5%, compared to the prior year quarter. The decrease resulted from our decision in 2010 to reduce our daily lease fee, combined with a reduction in the number of days we were able to scan for our physician customers. The number of scan days was reduced partially due to the severe weather in the Midwest and East in January and February 2011 and partially due to other environmental factors such as physician pre-certification requirements.
Consolidated. Consolidated gross profit was $3.5 million for the three months ended March 31, 2011, representing an increase of $0.1 million, or 4.4%, compared to the prior year quarter. The increase in consolidated gross profit is primarily the result of improving gross margins in DIS due to decreased revenues that caused us to reduce our labor costs during the three months ended March 31, 2011. Consolidated gross profit as a percentage of revenue increased to 24.8% for the three months ended March 31, 2011 from 22.4% for the prior year quarter.
DIS. Cost of DIS revenue consists primarily of labor, radiopharmaceuticals, equipment depreciation, and other costs associated with the provision of services. Cost of DIS revenue was $7.8 million for the three months ended March 31, 2011, representing a decrease of $1.0 million, or 11.8%, compared to the prior year quarter. The decrease in cost of DIS revenue is primarily a result of decreased expenses from fewer scans and also from more efficient utilization of labor and equipment. DIS gross profit was $1.8 million for the three months ended March 31, 2011, which represents a decrease of $0.1 million, or 4.5%, from a gross profit of $1.9 million for the prior year quarter. DIS gross profit as a percentage of DIS revenue increased to 19.1% for the three months ended March 31, 2011 from 17.9% for the prior year quarter. The improvement in operational performance is primarily associated with the management of labor and equipment resources.
Product. Cost of Product revenue primarily consists of materials, labor and overhead costs associated with the manufacturing and warranty of our products. Cost of revenues for the Product segment was $2.9 million for the three months ended March 31, 2011, representing the same amount, compared to the prior year quarter. The stability in cost of Product revenue is primarily a result of ergo™ camera sales during the current quarter and the mix of new and used cameras compared to the prior year quarter. Product gross profit was $1.7 million for the three months ended March 31, 2011, representing an increase of $0.2 million, or 16.0%, compared to the prior year period. Product gross profit as a percentage of Product revenue increased to 36.8% for the three months ended March 31, 2011 compared to 33.4% for the prior year quarter, primarily due to the mix of new versus used cameras sold.
Subscribe RSS
