Exhibit 99.1
Mark Casner Named CEO of Digirad;
He Succeeds Gary Burbach, Who Will Continue to Serve
Digirad as a Member of the Board of Directors;
Peter Sullivan Promoted to President of Digirad's Product Business;
Randy Weatherhead Promoted to SVP of Sales and Marketing
POWAY, Calif.--(BUSINESS WIRE)--Jan. 10, 2006--Digirad Corporation
(NASDAQ:DRAD), a leading provider of cardiovascular imaging services
and solid-state nuclear medicine imaging products to physician
offices, hospitals and imaging centers, announced today that Mark L.
Casner has been named Chief Executive Officer and a member of the
Board of Directors. Casner, age 50, who joined Digirad in September
2005 as President of the Company's Digirad Imaging Solutions (DIS)
leasing services subsidiary, succeeds Gary Burbach, who will remain a
member of Digirad's Board of Directors. These changes will become
effective on January 15, 2005.
"My primary objectives since stepping in as CEO last April have
been to put in place the proper business strategy, operating plan and
management team to allow the Company to achieve its growth and
profitability potential. I am pleased by the progress we have made in
reaching these goals. We have recruited key additions to our
management team, and implemented appropriate operational strategies
for both our product and DIS businesses that I believe have positioned
Digirad for improved performance. I look forward to remaining involved
with Digirad as a Board member.
"Since coming on board in September, Mark has demonstrated his
leadership, commitment and knowledge of our business, extending an
impressive record of accomplishment over his 27-year career in the
healthcare services industry. Prior to joining Digirad Mark served in
a progression of senior management positions at companies providing
medical imaging services. Of particular significance, Mark was
President and Chief Operating Officer of DMS Imaging, which offers
mobile diagnostic services to more than 450 healthcare facilities
nationwide. During his tenure, Casner increased profitability,
improved customer service and employee retention, expanded into new
geographic regions, and negotiated new agreements with customers and
vendors that enhanced opportunities for growth and profitability. He
also served in various positions with Radiologix, Inc., most recently
as Senior Vice President, Operations. These experiences in leading
large scale medical imaging organizations make him particularly
well-equipped to assume his new responsibilities as CEO," Burbach
said.
Burbach also announced that Peter Sullivan has been promoted to
President of Digirad's product business. Sullivan joined Digirad as a
consultant in January 2005 and as Senior Vice President of Operations
in April of 2005. Previously, he was Vice President and General
Manager at Asyst Technologies. "With Peter's many years of experience
in the semiconductor and medical imaging industries, I am confident
that he will continue to drive operational excellence and improved
financial results in our product business," Burbach said.
Additionally, Burbach said that Randy Weatherhead, who joined
Digirad in July 2005 as Vice President, Marketing, will assume an
expanded leadership role as the new Senior Vice President of Sales &
Marketing. Weatherhead previously served as VP of Sales and Marketing
at Siemens Nuclear Medicine. "It is evident from the many
contributions that Randy has made to Digirad that he is the right
person to lead both our sales and marketing efforts to help us gain
increasing market momentum in 2006," Burbach said.
New CEO Mark Casner stated, "We have assembled a highly capable
and experienced management team with key senior and mid-level
additions in our Digirad Imaging Solutions business as well as in our
sales, marketing, and operations groups. I believe our team has the
skills, energy and desire to achieve our goals for growth and
profitability, as we take advantage of our opportunities in both
physician-based imaging services (DIS) and the nuclear cardiology
camera market in our product business. I look forward to leading
Digirad during this exciting time in the Company's development."
About Digirad
Digirad Corporation develops, manufactures and markets
solid-state, digital gamma cameras to hospitals, imaging centers and
physician offices. Digirad offers a comprehensive line of solid-state
nuclear gamma cameras that produce a high-quality image for use in the
detection of many medical conditions, including cardiovascular
disease. Digirad's cameras are unique as their lightweight and compact
design allows them to fit easily into small office spaces. Digirad's
wholly owned subsidiaries Digirad Imaging Solutions and Digirad
Imaging Systems offer a comprehensive and mobile imaging leasing and
services program for physicians who wish to perform in-office nuclear
cardiology procedures but do not have the patient volume, capital or
resources to justify purchasing a gamma camera. For more information,
please visit www.digirad.com. Digirad7 and Digirad Imaging Solutions7
are registered trademarks of Digirad Corporation.
Forward-Looking Statements
Digirad cautions that statements included in this press release
that are not a description of historical facts are forward-looking
statements. You can identify these statements by the fact that they do
not relate strictly to historical or current facts and use words such
as "anticipate," "estimate," "expect," "project," "intend," "plan,"
"believe" and other words and terms of similar meaning in connection
with a discussion of future operating or financial performance or
events. Examples of such statements include the statements regarding
improved or continued performance of Digirad and our DIS and product
businesses or our expectations of Messrs. Casner's, Sullivan's or
Weatherhead's success in their new roles with the company and the
expectations of achieving operational excellence and improved
financial results in the product business. The inclusion of these and
other forward-looking statements should not be regarded as a
representation by Digirad that any of its plans will be achieved.
Actual results may differ materially from those set forth in this
press release due to the risks and uncertainties inherent in Digirad's
business including, without limitation: the degree to which personnel
changes and related disruptions in our business activities may affect
Digirad's products, customers, work force, suppliers, the introduction
of our Cardius-3M system and the related upgrade of our DIS fleet, and
our overall business prospects and operations; the degree to which
Digirad's Cardius-3M system and related services will be accepted by
physicians and hospitals some of whom may experience reliability
issues or technical problems; the ability of Digirad to effectively
market, sell and distribute its Cardius-3M system, and related
services given its limited capabilities in these areas; the degree to
which recent changes in customer profiles may reduce the number of
days service initiated per new contract or otherwise impact Digirad's
business; Digirad's ability to retain and attract key executives,
qualified managers, engineers and imaging technologists; Digirad's
ability to manage risks relating to product liability, warranty
claims, recalls, property damage and personal injury with respect to
its imaging systems, including the Cardius-3M system; and other risks
detailed in Digirad's Securities and Exchange Commission filings,
including its Annual Report on Form 10-K and other reports filed with
the Securities and Exchange Commission. Given these uncertainties,
readers are cautioned not to 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 this press release including the forward-looking statements
contained herein to reflect events or circumstances after the date
hereof or to update the reasons actual results could differ materially
from those anticipated in these forward-looking statements, even if
new information becomes available in the future.
CONTACT: Digirad Corporation
Todd Clyde, 858-726-1600
ir@digirad.com
or
Neil Berkman Associates (Investor Contact)
310-277-5162
info@BerkmanAssociates.com