For Immediate Release
[LOGO] iCAD Press Release
iCAD Reports Earnings in First Quarter 2005
- Sales, Gross Margin and Net Income Improve Over First Quarter 2004 -
NASHUA, New Hampshire - April 28, 2005 - iCAD(R), Inc. (Nasdaq: ICAD), an
industry-leading provider of Computer-Aided Detection (CAD) solutions for the
early identification of cancer, today reported its financial results for the
first quarter ended March 31, 2005.
iCAD sales for the quarter ended March 31, 2005 were $6,007,607 compared with
$5,426,881 in the first quarter of 2004. Gross margin improved to 79% of sales
in the most recent quarter, compared with 66% in the prior-year first quarter.
Net income before provision for income taxes for the first quarter of 2005
totaled $711,929 or $0.02 per share, compared with a net loss of ($1,899,401) or
($0.06) per share, in the prior-year quarter.
"We achieved several milestones in the first quarter of 2005," stated W. Scott
Parr, President and CEO for iCAD, Inc. "With the introduction of our new Second
Look(R) 700 and Second Look 300 products, we updated our film-based mammography
product line and recorded solid sales through national distributor, SourceOne
HealthCare. We also broadened our distribution channel and began selling our
film-based offerings through Fusion Sales Partners. In the second quarter, we
also anticipate sales of the Second Look 200 through our new private label
relationship with Hologic, Inc."
"In the first quarter, we made our digital CAD mammography solution available
through Hologic," continued Parr. "iCAD also received FDA approval to expand
Second Look Digital for use with Siemens' full-field digital system, which we
expect to contribute to sales in future quarters. Additionally, we filed our
first application with the FDA for approval of a product to support radiologists
in review of Computed Tomography (CT) studies of the chest, and detection of
potentially cancerous lung nodules."
Conference Call
As previously announced, iCAD will host a conference call today, April 28, 2005,
at 11:00 am EST. Shareholders and other interested parties can participate in
the conference call by dialing +1 800 659 1942 in the US and Canada or +1 617
614 2710 for international/local participants, and entering passcode 10000912.
The call will also be broadcast live on the Internet at www.streetevents.com,
www.fulldisclosure.com and www.icadmed.com.
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A replay of the conference call will be available two hours after its completion
from April 28, 2005 until May 5, 2005 by dialing +1 888 286 8010 in the US and
Canada or +1 617 801 6888 for international/local participants, and entering
passcode 63978084. The call will also be archived for 90 days at
www.streetevents.com, www.fulldisclosure.com and www.icadmed.com.
About iCAD, Inc.
iCAD, Inc. is an industry-leading provider of Computer-Aided Detection (CAD)
solutions that enable healthcare professionals to identify cancer and other
life-threatening conditions earlier by making medical services more effective,
more accessible and more affordable for patients worldwide. Recipient of Frost &
Sullivan's Growth Strategy Leadership award and repeatedly recognized as
offering "The Winning Combination" of Price and Performance by MD Buyline, iCAD
offers a comprehensive range of high-performance, upgradeable CAD systems for
the high, mid and low volume mammography markets. As the most frequently
selected CAD solution for film-based and digital breast screening, iCAD is
entrusted with the task of early cancer detection by almost one thousand women's
healthcare centers worldwide. For more information, call +1 877 iCADnow or visit
www.icadmed.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995:
Certain statements contained in this News Release constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements involve a number of known and unknown
risks, uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, but are not limited to, the
risks of uncertainty of patent protection, the impact of supply and
manufacturing constraints or difficulties, product market acceptance, possible
technological obsolescence, increased competition, customer concentration and
other risks detailed in the Company's filings with the Securities and Exchange
Commission. The words "believe", "demonstrate", "intend", "expect", "estimate",
"anticipate", "likely", and similar expressions identify forward-looking
statements. Readers are cautioned not to place undue reliance on those
forward-looking statements, which speak only as of the date the statement was
made. The Company is under no obligation to provide any updates to any
information contained in this release.
iCAD and Second Look are registered trademarks of iCAD, Inc.
For more information on iCAD, Inc., contact Kevin McGrath of Cameron Associates
at +1 212 245 4577 or via email at kevin@cameronassoc.com.
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iCAD, INC.
Consolidated Statements of Operations
Three Months Three Months
March 31, 2005 March 31, 2004
-------------- --------------
(unaudited) (unaudited)
Sales $ 6,007,607 $ 5,426,881
Cost of sales 1,273,573 1,829,246
-------------- --------------
Gross margin 4,734,034 3,597,635
-------------- --------------
Operating expenses:
Engineering and product development 1,016,048 1,712,041
General and administrative 1,222,208 1,379,506
Marketing and sales 1,750,966 2,239,687
-------------- --------------
Total operating expenses 3,989,222 5,331,234
-------------- --------------
Income (loss) from operations 744,812 (1,733,599)
Interest expense - net 32,883 165,802
-------------- --------------
Net income (loss) before provision for income taxes 711,929 (1,899,401)
Provision for income taxes 70,000 --
-------------- --------------
Net income (loss) 641,929 (1,899,401)
Preferred dividend 30,432 33,250
-------------- --------------
Net income (loss) attributable to common stockholders $ 611,497 $ (1,932,651)
============== ==============
Net income (loss) per share
Basic $ 0.02 $ (0.06)
Diluted $ 0.02 $ (0.06)
Weighted average number of shares used in
computing income (loss) per share
Basic 36,384,185 33,708,252
Diluted 38,754,414 33,708,252
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iCAD, INC.
Consolidated Balance Sheets
March 31, December 31,
------------- -------------
2005 2004
------------- -------------
Assets (unaudited)
Current assets:
Cash and cash equivalents $ 7,216,734 $ 8,008,163
Trade accounts receivable, net of allowance for doubtful
accounts of $510,000 in 2005 and $450,000 in 2004 5,717,275 5,006,333
Inventory 1,051,071 1,013,806
Prepaid and other current assets 300,232 261,286
------------- -------------
Total current assets 14,285,312 14,289,588
------------- -------------
Property and equipment:
Equipment 2,316,017 2,078,306
Leasehold improvements 75,434 37,904
Furniture and fixtures 135,544 135,544
------------- -------------
2,526,995 2,251,754
Less accumulated depreciation and amortization 1,057,069 944,121
------------- -------------
Net property and equipment 1,469,926 1,307,633
------------- -------------
Other assets:
Patents, net of accumulated amortization 283,113 302,644
Technology intangibles, net of accumulated amortization 4,810,069 4,964,090
Tradename, distribution agreements and other,
net of accumulated amortization 667,334 756,867
Goodwill 43,515,285 43,515,285
------------- -------------
Total other assets 49,275,801 49,538,886
------------- -------------
Total assets $ 65,031,039 $ 65,136,107
============= =============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 2,077,705 $ 2,006,500
Accrued interest 53,396 671,154
Accrued salaries and other expenses 1,490,645 1,373,191
Deferred revenue 407,986 439,717
Convertible subordinated debentures -- --
Current maturities of notes payable 1,500,000 1,500,000
------------- -------------
Total current liabilities 5,529,732 5,990,562
Loans payable to related party 300,000 300,000
Notes payable, less current maturities 1,500,000 1,875,000
------------- -------------
Total liabilities 7,329,732 8,165,562
------------- -------------
Commitments and contingencies
Stockholders' equity:
Convertible preferred stock, $ .01 par value: authorized
1,000,000 shares; issued and outstanding
6,374 in 2005 and 7,435 in 2004, with the aggregate liquidation
liquidation value of $1,127,000 in 2005 and $1,257,500 in 2004,
plus 7% annual dividend 64 74
Common stock, $ .01 par value: authorized
50,000,000 shares; issued 36,610,929 in 2005
and 36,410,170 shares in 2004; outstanding
36,543,053 in 2005 and 36,342,294 shares in 2004 366,109 364,101
Additional paid-in capital 130,358,350 130,271,515
Accumulated deficit (72,072,952) (72,714,881)
Treasury stock at cost (67,876 shares) (950,264) (950,264)
------------- -------------
Total Stockholders' equity 57,701,307 56,970,545
------------- -------------
Total liabilities and stockholders' equity $ 65,031,039 $ 65,136,107
============= =============
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