icad inc. (ICAD, Financial) filed Quarterly Report for the period ended 2009-03-31.
Icad Inc. designs engineers develops and manufactures digital image scanners densitometers film digitizers and related software for applications in the graphic arts medical imaging and life sciences markets. The Company sells its products throughout the world throughvarious distributors resellers systems integrators and OEM's. icad inc. has a market cap of $56.2 million; its shares were traded at around $1.24 with a P/E ratio of 15.5 and P/S ratio of 1.5.
Engineering and Product Development. Engineering and product development costs for the three month period ended March 31, 2009 increased by $752,006 or 53.4%, from $1,409,209 in 2008 to $2,161,215 in 2009. The increase in engineering and product development costs was primarily due to an increase in personnel and related costs of $195,000, resulting from staff increases to support the Company s product development programs, including its new MRI products, $353,000 in consulting and subcontracting services relating to the licensing and clinical trial costs for its CT Colon product, and $131,000 in amortization expense relating to the acquisition of assets of CAD Sciences in the third quarter of 2008. In addition, during the first quarter of 2009 the Company experienced an increase in legal, consulting, subcontracting, rent, education and stock based compensation expenses totaling $184,000. These expenses were offset by a decrease of $111,000 rent expense relating to the one time charge recorded in the first quarter of 2008 for the loss on subleased space relating to its Ohio facility.
Marketing and Sales. Marketing and sales expense for the three month period ended March 31, 2009 increased by $561,599 or 23.6%, from $2,383,522 in 2008 to $2,945,121 in 2009. The increase in marketing and sales expense for the three month period ended March 31, 2009, primarily resulted from an increase in personnel and related costs of $325,000, increased sales commissions due to increased revenue of $136,000, and increases in travel and related telephone expenses of $53,000, stock based compensation of $40,000 and Website design of $23,000. These increases in marketing and sales expenses were offset by a decrease of $16,000 in warranty related costs.
General and Administrative. General and administrative expenses for the three month period ended March 31, 2009 decreased slightly by $13,034 from $1,848,345 in 2008 to $1,835,311 in 2009. The decrease in general and administrative expense during the first quarter of 2009 was due primarily to the decrease in general legal costs of $35,000, amortization expense of $19,000 due to fully amortized patents, and various administrative expenses totaling $3,000, offset by an increase in stock based compensation expense of $44,000.
Net Loss. As a result of the foregoing, the Company recorded a net loss of ($998,527) or ($0.02) per share for the three month period ended March 31, 2009 on revenue of $7,164,998, compared to a net loss of ($445,852) or ($0.01) per share on revenue of $6,432,016 for the three months ended March 31, 2008.
Net cash used for operating activities for the three months ended March 31, 2009 was $136,248, compared to net cash provided by operating activities of $1,003,848 for the same period in 2008. The cash used for operating activities for the three months ended March 31, 2009 resulted from the net loss of $998,527, an increase in other current assets of $47,655, and decreases in accounts payable of $467,290 and accrued expenses of $734,156, which were offset by the decreases in accounts receivable of $618,236, inventory of $171,135 and deferred revenue of $314,623, plus non-cash items including depreciation and amortization totaling $507,351 and stock based compensation of $500,035.
Read the The complete ReportICAD is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC.
Icad Inc. designs engineers develops and manufactures digital image scanners densitometers film digitizers and related software for applications in the graphic arts medical imaging and life sciences markets. The Company sells its products throughout the world throughvarious distributors resellers systems integrators and OEM's. icad inc. has a market cap of $56.2 million; its shares were traded at around $1.24 with a P/E ratio of 15.5 and P/S ratio of 1.5.
Highlight of Business Operations:
Revenue. Revenue for the three month period ended March 31, 2009 was $7,164,998 compared with revenue of $6,432,016 for the three month period ended March 31, 2008 for an increase of $732,982 or 11.4%. Sales of iCAD s digital CAD and MRI products increased $491,455 or 11.5% to $4,777,121, compared to sales of $4,285,666 in 2008. This increase is due primarily to the release, early in the second quarter of 2008, of the Company s SecondLook® Digital CAD for sale with Fujifilm Computed Radiography for Mammography (“FCRm”) systems, an increase in revenue from the Company s international OEM customers due to the continued increased global demand for Full Field Digital Mammography (“FFDM”) systems and digital CAD technology for the detection of breast cancer and initial sales of its MRI products, offset by a decrease in revenue from some of the Company s domestic OEM customers.Engineering and Product Development. Engineering and product development costs for the three month period ended March 31, 2009 increased by $752,006 or 53.4%, from $1,409,209 in 2008 to $2,161,215 in 2009. The increase in engineering and product development costs was primarily due to an increase in personnel and related costs of $195,000, resulting from staff increases to support the Company s product development programs, including its new MRI products, $353,000 in consulting and subcontracting services relating to the licensing and clinical trial costs for its CT Colon product, and $131,000 in amortization expense relating to the acquisition of assets of CAD Sciences in the third quarter of 2008. In addition, during the first quarter of 2009 the Company experienced an increase in legal, consulting, subcontracting, rent, education and stock based compensation expenses totaling $184,000. These expenses were offset by a decrease of $111,000 rent expense relating to the one time charge recorded in the first quarter of 2008 for the loss on subleased space relating to its Ohio facility.
Marketing and Sales. Marketing and sales expense for the three month period ended March 31, 2009 increased by $561,599 or 23.6%, from $2,383,522 in 2008 to $2,945,121 in 2009. The increase in marketing and sales expense for the three month period ended March 31, 2009, primarily resulted from an increase in personnel and related costs of $325,000, increased sales commissions due to increased revenue of $136,000, and increases in travel and related telephone expenses of $53,000, stock based compensation of $40,000 and Website design of $23,000. These increases in marketing and sales expenses were offset by a decrease of $16,000 in warranty related costs.
General and Administrative. General and administrative expenses for the three month period ended March 31, 2009 decreased slightly by $13,034 from $1,848,345 in 2008 to $1,835,311 in 2009. The decrease in general and administrative expense during the first quarter of 2009 was due primarily to the decrease in general legal costs of $35,000, amortization expense of $19,000 due to fully amortized patents, and various administrative expenses totaling $3,000, offset by an increase in stock based compensation expense of $44,000.
Net Loss. As a result of the foregoing, the Company recorded a net loss of ($998,527) or ($0.02) per share for the three month period ended March 31, 2009 on revenue of $7,164,998, compared to a net loss of ($445,852) or ($0.01) per share on revenue of $6,432,016 for the three months ended March 31, 2008.
Net cash used for operating activities for the three months ended March 31, 2009 was $136,248, compared to net cash provided by operating activities of $1,003,848 for the same period in 2008. The cash used for operating activities for the three months ended March 31, 2009 resulted from the net loss of $998,527, an increase in other current assets of $47,655, and decreases in accounts payable of $467,290 and accrued expenses of $734,156, which were offset by the decreases in accounts receivable of $618,236, inventory of $171,135 and deferred revenue of $314,623, plus non-cash items including depreciation and amortization totaling $507,351 and stock based compensation of $500,035.
Read the The complete ReportICAD is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC.
