iCAD sales up in 2003, but firm remains in red

Mar 15, 2004

Computer-aided detection developer iCAD reported 2003 net sales of $6.5 million, up 30.4% compared with the $5 million booked in 2002. For the year (end-December 31), the Nashua, NH-based firm had a net loss of $8.4 million, compared with a net loss of $9.4 million a year ago.

The 2003 net loss included approximately $3 million in nonrecurring legal and related expenses associated with the resolution of patent litigation with R2 Technology of Sunnyvale, CA, a $1.4 million one-time, noncash charge involving the restructuring and improvement of the firm’s distribution channels, and costs related to channel development and merger activities.

In its fourth quarter, iCAD had net sales of approximately $1.6 million, down 27% compared with the approximately $2.2 million posted in the fourth quarter a year ago. The company had a fourth-quarter net loss of $1.8 million, compared with net income of $103,000 last year. iCAD attributed the sales decline to a suspension of its development of an independent reseller channel in anticipation of its merger with CADx, and a sales disruption from former distributor Instrumentarium Imaging, which was acquired by GE Healthcare of Waukesha, WI.

iCAD president and CEO Scott Parr said that the firm doesn’t believe that its reported results are indicative of its future prospects, with the combined sales of iCAD and CADx (which was acquired December 31) reaching approximately $6 million in the fourth quarter of 2003. He said that the company has taken steps to reduce projected annual operating costs by approximately $4 million, and has made multiple changes in sales channels, sales management and organization, product naming, positioning, and marketing in the first quarter of 2004.

The vendor has also consolidated iCAD’s iQ, MammoReader, and Second Look product lines into one SecondLook-branded CAD product line. As for its future outlook, iCAD said it expects to report a net loss in the first quarter, to be nearly break-even for the second quarter, and to be profitable at sales levels projected for the third and fourth quarters of the year.

By AuntMinnie.com staff writers
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