Nuclear medicine firm Digirad has unveiled plans to restructure the company and make management changes in the wake of its 2012 year-end financial report.
Digirad plans to "significantly restructure" its diagnostic imaging gamma camera operation to reduce costs by $3 million to $4 million on an annual basis.
As part of the restructuring, Matthew Molchan, the current president of the Digirad Imaging Solutions (DIS) division, will become president of Digirad and will take over as the company's CEO in six months. Todd Clyde will continue in the role of CEO during the six-month transition period.
Digirad's Diagnostic Imaging business, which has been referred to as the Product business in the past, will be led by Virgil Lott as president.
In addition, Digirad will move its headquarters from Poway, CA, to Atlanta to reduce costs and better align with the company's new strategic focus.
Total revenue for 2012 decreased to $50.5 million, compared with $53.7 million in 2011. The company's DIS segment posted revenue of $36.1 million last year, compared with $37.8 million in 2011. Product revenue slipped to $14.4 million in 2012, compared with $16 million in 2011. Digirad also posted a net loss in 2012 of $3.3 million, matching a net loss of $3.3 million in 2011.
In the fourth quarter (end-December 31, 2012), total revenue increased 9% to $13 million, compared with $11.9 million in the fourth quarter of 2011. DIS revenue in 2012's fourth quarter was $8.5 million, compared with $9 million in the same quarter of 2011. Product revenue rose to $4.5 million in the fourth quarter, compared with $2.9 million in the same quarter a year ago.
The company's fourth-quarter net loss decreased to $300,000, compared with a net loss of $2.8 million in the fourth quarter of 2011.
