Computer-aided detection (CAD) developer iCAD has reported 2003 second-quarter (end-June 30) sales of medical imaging products of $1.3 million, compared with medical products sales of $486,000 for the same period in the previous year, a 175% increase. The firm’s total revenues from the year-ago period were $777,000, but those numbers include sales of $291,000 for graphics arts and photographic products, a business the company has since exited.
The Nashua, NH-based vendor reported a net loss of $1.3 million, compared with a net loss of $7.4 million in the second quarter of 2002.
During the second quarter, in anticipation of new product releases and the proposed acquisition of its distributor Instrumentarium Imaging by GE Medical Systems, the vendor converted Instrumentarium from a stocking distributor to a non-stocking distributor. This permitted Instrumentarium to deplete its inventory of the firm’s MammoReader systems in partial fulfillment of received orders from customers.
This change reduced shipments of MammoReader systems to Instrumentarium during the second quarter, leading to a corresponding reduction in the company’s recorded MammoReader sales for the second quarter, iCAD said.
Legal expenses related to iCAD’s ongoing patent infringement litigation with R2 Technology of Sunnyvale, CA, also represented a major expense for the company during the second quarter. Since its acquisition of Intelligent Systems Software in June 2002, iCAD has recorded more than $1.16 million in legal and related expenses associated with the R2 litigation Approximately $613,000 in legal expenses were recorded during the second quarter.
By AuntMinnie.com staff writersAugust 7, 2003
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